BESS roundup: Australia’s battery storage sector surges

The battery energy storage sector in Australia has seen a boom over the last week, with tenders, acquisitions and data illustrating its growth.

Iberdrola, Neoen Australia, Ark Energy, FRV Services Australia, BW ESS Australia, Bridge Energy and their partner Energy Vault are among the names benefitting from the New South Wales (NSW) Roadmap Tender Round 6 for long duration storage.

In the same week as these announcements, Octopus Australia announced acquisition of two new battery projects, one in NSW and another in Queensland.

Additionally, data from AEMO shows how battery storage at the end of 2025 dominated the pipeline of new projects connecting to the National Electricity Market.

Six battery projects secure tenders in New South Wales

Under the tenders, overseen by AusEnergy Services Limited (ASL), formerly AEMO, the projects have been granted Long-Term Energy Service Agreements (LTESAs), designed to solve the ‘missing money’ challenge for long-duration storage projects, improving bankability and accelerating delivery of new electricity infrastructure.

The projects represent an additional 1.17GW/12GWh of long duration storage  capacity, taking the total of new storage capacity under contract in NSW to 30GWh, enough to meet the Roadmap’s legislated Minimum Objective of delivering 2GW of LDS by 2030 and 28GWh by 2034.

This is the largest tender for storage capacity awarded in NSW to date, both in terms of total gigawatt capacity and number of contracted projects. 

Once operational, the additional storage will increase the reliability and energy security of the NSW electricity system. Several projects will also be capable of providing essential system services, including frequency and voltage control.

All projects are expected to reach commercial operations before 2030.

LTESA winners

French developer Neoen Australia’s 330MW/3,500MWh Great Western Battery is the largest of the six projects awarded LTESAs.

The project will be located in the Lithgow region of NSW, just north of Wallerawang and about a 40 minute drive from Bathurst, and will be linked to Transgrid’s transmission network via a substation. The battery will be able to provide a variety of services to the grid including frequency control and load shifting, which are both necessary for the development of more renewable energy.

Two projects follow the Great Western Battery in size, including the 233MW/2,676MWh Bannaby BESS, managed by BW ESS, and the 250MW/2,414MWh Bowmans Creek BESS, managed by Ark Energy Corporation.

Utility giant Iberdrola won an LTESA for its 100MW/1,080MWh Kingswood battery and at the same time opened its 65MW/130MWh Smithfield facility, which was also awarded an LTESA contract in round 2 of the same state programme.

Both projects, says the Spain-based multinational utility company, strengthen the integration of renewables, increase grid flexibility and improve availability and efficiency of supply.

Australia is a strategic market for the Iberdrola Group, whose subsidiary Iberdrola Australia has more than 2,000MW of generation capacity in operation or under construction, supplying clean energy to approximately 400 commercial and industrial customers. 

As part of its 2025-2028 strategic plan, Iberdrola foresees total investments of more than €1 billion ($1.2 billion) in Australia, a country with a AAA credit rating, focused on key businesses and markets that offer stability and predictability.

Fotowatio Renewable Ventures (FRV) Australia oversees the Armidale East BESS project, another winner.

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Located approximately 16km east of Armidale, the project will deliver a total capacity of 315MW, of which 157.5MW will feature an eight-hour duration system contracted under LTESA. 

The company’s chief executive Carlo Frigerio hailed the win as a “key milestone in FRV Australia’s strategy to advance long-duration storage solutions across New South Wales and the wider NEM". 

“With its eight-hour duration capability, this project will provide firm and dispatchable energy over extended periods, enable longer duration energy shifting, and make a decisive contribution toward the decarbonization objectives of both the state and the country.”

Armidale East is expected to become FRV Australia’s third BESS project in the country, following the Terang (100MW/200MWh) and Gnarwarre (250MW/500MWh) projects currently under construction in Victoria. 

Last but not least, Bridge Energy’s 100MW/870MWh EBOR BESS won an LTESA, with partner Energy Vault holding the exclusive option to acquire and contruct the project, after supporting Bridge Energy through early stage development.

Located in Ebor, the project will provide eight hours of dispatchable capacity and provide essential grid firming capacity as aging coal generators retire. The system will charge during periods of excess renewable generation and discharge during peak demand, directly supporting the state’s transition to a decarbonized grid.

Subject to obtaining the necessary contractual and regulatory approvals, Energy Vault plans to exercise its option to acquire the project. Under its exclusive agreement, Bridge Energy will partner with Energy Vault to bring the project to development completion. 

The Ebor BESS will then be built, owned and operated by Energy Vault under the Asset Vault platform, the company's subsidiary which develops, builds, owns and operates energy storage assets globally. 

The project will utilise Energy Vault’s B-VAULT system architecture, designed for high-performance cycling and long-duration applications, controlled by the proprietary Vault-OS Energy Management System.

Octopus Australia BESS acquisition

At the same time as the release of the LTESA awards, Octopus Australia too announced a milestone for its activity in the sector.

The renewable energy developer and fund manager acquired the Hanworth Battery Energy Storage System in NSW, as well as the Dunmore Solar Farm and Battery project in Queensland.

At full scale, the 1.2GW/4.8GWh Hanworth Battery, located near Bannaby, west of Bowral in New South Wales, will be capable of storing and delivering enough electricity to power more than half a million homes during the evening peak, when demand is highest and solar generation drops off.

The solar-battery development at Dunmore in Queensland will act as a hybrid engine, combining a 300MW solar farm with a 150MW/300MWh battery system, soaking up surplus energy generated through the day and releasing it in the evening, when demand surges.

The Hanworth project was acquired from Australian energy developer Enervest, connecting into Transgrid’s Bannaby Terminal Station. It will support long-term electricity supply contracts for large customers seeking firmed renewables, helping to facilitate the provision of low-emissions power at stable prices.

The Dunmore Solar and Battery project near Toowoomba in Queensland was acquired from Samsung C&T Renewable Energy Australia in the company’s first renewable energy transaction in Australia. 

According to Octopus Australia, its acquisitions come at a time when new renewable energy investment across Australia has slowed. Chief executive Sam Reynolds said: “While some investors are stepping back, we’re stepping forward.

“Australia still needs new power stations to replace ageing coal plants. The difference is that today we can build them using a mix of solar, wind and batteries instead of smokestacks.”

“By owning and operating our projects as one portfolio, we can deliver reliable power every day of the year – not just when the sun shines or the wind blows. This is about replacing coal with clean energy that works in the real world.”

Batteries dominate 

These initiatives come as the battery segment in Australia sees a flurry of activity, with data from AEMO showing how battery energy storage dominates the pipeline of new projects connecting to the country’s NEM.

According to data from AEMO released in late January, this pipeline reached a record 64GW in the December 2025 quarter, a quarterly increase of 14% over the September quarter. 

Battery storage continues to dominate the 64GW investment pipeline, accounting for nearly half of all projects at 46%. This is followed by hybrid solar and battery projects (19.7%), wind (16%), solar (11.9%), hydro (4.7%) and gas (1.4%).

AEMO Onboarding & Connections Group Manager Margarida Pimentel said the December quarter demonstrated strong progress across every stage of the connections process, from application approvals through to projects reaching full output.

“The ongoing increase to 64GW in the connections pipeline shows that confidence in Australia’s renewable energy transition remains strong, with new applications activity rising from 20GW to 26GW.

“The growth in battery storage will complement renewable generation by storing low cost, low emissions electricity during the day for release to support demand during the evening peak.”