As Australia scales up renewable energy, battery storage systems are emerging as the critical enabler of a flexible, reliable grid.
A National Priority
According to AEMO’s 2024 Integrated System Plan, more than 22 GW of dispatchable storage will be required by 2050, with a significant share delivered via 4–12 hour Battery Energy Storage Systems (BESS) to support evening peaks and manage variability in solar and wind generation (AEMO ISP 2024, p. 25).
Batteries are essential for:
- Fast-response frequency control services
- Energy shifting (storing solar generation for use after sunset)
- Reducing peak demand stress on networks
Large-scale batteries like Victorian Big Battery and Hornsdale Power Reserve in South Australia have already demonstrated strong performance in frequency response and market arbitrage.
Industry Trends & Economics
According to CSIRO’s GenCost 2023–24 report, lithium-ion battery costs are projected to fall further this decade, driven by global investment and economies of scale. However, Australia must address:
- Supply chain risks for lithium and rare earths
- Battery end-of-life management and recycling
- Regulatory consistency across states
The Clean Energy Council has called for a national battery recycling strategy and stronger incentives to fast-track investment in both grid-scale and distributed storage.
Conclusion
Battery storage is not optional—it’s central to grid stability and renewable integration. With coordinated policy, declining costs, and infrastructure investment, batteries will help Australia move from energy transition theory to reality.
