Australia's National Electricity Market (NEM) is on the brink of a significant transformation. According to Modo Energy's latest report, we can expect a ninefold increase in large-scale battery energy storage systems (BESS) by the end of 2027, jumping from the current 2 gigawatts (GW) to an impressive 16.8GW.
Collectively, these three states account for 88% of the NEM's annual energy demand, making them pivotal in this energy evolution.
The primary catalyst for this surge is the gradual retirement of coal-fired power plants. As these traditional energy sources phase out, there's a pressing need to integrate renewable energy with efficient storage solutions to ensure a stable and reliable power supply.
The trend isn't just about increasing capacity; it's also about building larger, more efficient batteries. Modo Energy notes that 20 projects, each with a capacity of 300MW or more, are expected to come online by 2028. This move towards bigger batteries underscores the commitment to a sustainable and resilient energy future.
Australia's NEM is gearing up for a substantial boost in battery storage capacity, ensuring that as we transition to renewable energy sources, the power supply remains consistent and dependable.
Source: Modo Energy's 2025 NEM Battery Energy Storage Pipeline Report
