Batteries lead record project pipeline seeking grid connection

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The pipeline of new generation and storage seeking connection to Australia’s main grid has grown 43% over the past year, driven by a surge in battery projects.

The Australian Energy Market Operator’s (AEMO) latest Connections Scorecard shows 80.9GW of generation and storage projects currently in the connection queue.

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AEMO said the figures showed strong investor interest in new energy infrastructure.

“The pipeline of new generation and storage projects looking to connect to the National Electricity Market has overtaken current capacity of 77GW for the first time,” AEMO group manager onboarding and connections James Lindley said.

By technology, grid-scale batteries account for more than half (55%) of capacity in the end-to-end connection process from application to commissioning, followed by hybrid solar and battery projects (19%), wind (15%), solar (5%), hydro (5%), and gas (1%).

“Not only are we seeing more battery projects, but also increasing amounts of longer-duration storage, with nearly 40% of battery projects that can provide between three and 10 hours of storage. This can enhance energy resilience when renewable generation output is low,”  Lindley said.

Total capacity by connection stage shows that 88% of the pipeline remains in the early application and proponent implementation stages, with capacity growing 101% to 38.5GW and 42% to 32.3GW, respectively.

“The size of the pipeline is encouraging, but not every project will progress at the same pace or ultimately reach commissioning,” Lindley said.

Projects can face a range of challenges to their progress, including ownership and design changes, as well as delays due to finalising commercial arrangements.

To help overcome connection challenges, AEMO and industry are progressing the Connections Reform Initiative Phase 2 and other reform initiatives, which are focused on streamlining registration processes, enhancing technical frameworks and improving the transparency and predictability of connection outcomes.

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The NEM Connections Scorecard provides a quarterly snapshot of generation and storage projects progressing through AEMO’s connections process.

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