Australia has more new renewable energy generation and storage projects lining up to connect to the main grid than it has current generating capacity, new data has shown – and more than half of the queue is made up by big batteries.
The latest Connections Scorecard from the Australian Energy Market Operator (AEMO) shows 80.9 gigawatts (GW) of generation and storage projects currently going through the process of connecting to the National Electricity Market (NEM) – surpassing for the first time the current total capacity of 77 GW.
AEMO says the queue grew by another 25 connection applications in the September quarter, alone, with a total of 7.5 GW seeking connection – and 19 battery projects accounting for 5.8 GW, or 76% of those 25 projects.
Batteries also dominate the total 80.0 GW pipeline, accounting for 55 per cent 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,” said AEMO’s group manager of onboarding and connections, James Lindley.
Lindley says nearly 40 per cent of the battery projects that are lining up to connect to the grid are proposing to provide between three and 10 hours of storage – the sort of storage duration that can “enhance energy resilience when renewable generation output is low.”
But Lindley notes that while size and shape of the connection pipeline is encouraging, not every project will move at the same pace – and some projects will not make it at all.
Indeed, the vast majority of the projects in the queue to connect – 88 per cent – is in the early application and proponent implementation stages.
As for the number of projects that made it through the queue, AEMO says a total of 23 projects with a combined 4.5 GW of capacity received grid connection application approval in the September quarter.
Another four projects, totalling 1 GW, were registered and connected to the NEM, and seven projects worth a combined 1.3 GW completed commissioning and reached full output.
Four battery projects reached effective registration over the quarter, with total discharge capacity of 1 GW and storage capacity of 3.4 GWh.
A notable addition to this quarter’s Approved Applications stats is the “one compressed air (0.2 GW)”, which refers to the September connection approval of the 200 MW, up to eight hour (1,600 MWh) duration Silver City Energy Storage project – part of the world-first renewable energy mini-grid that will help power Broken Hill in New South Wales.
“It’s critical for electricity reliability that projects continue to advance to commissioning, with around 15 GW of generation scheduled to retire in the coming decade at the same time as electricity consumption is forecast to increase by more than 40 per cent,” Lindley said.
“That’s why AEMO closely monitors project progress and reflects the latest information available in its reliability assessments.”
AEMO says it is doing its part to keep things moving through various reforms focused on streamlining registration processes, enhancing technical frameworks and improving the transparency and predictability of connection outcomes.
But there is plenty that is out of AEMO’s control, including state and federal approvals processes, ownership and design changes, and delays due to finalising commercial arrangements.
Of all the NEM states, Victoria accounted for half of the six connection projects that reached full output this quarter – all of them big batteries, with a total of 800 MW with and 1.3 GWh storage capacity.
This would include the 240 MW and 480 MWh Mornington battery energy storage system (BESS), which officially reached its full nameplate capacity in the final days of September.
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Sophie Vorrath
Sophie is editor of Renew Economy and editor of its sister site, One Step Off The Grid . She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.
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