BESS pipeline in AEMO’s universe rose from 50.5 GW to 67.3 GW in one year, representing a 33% annual increase
Batteries account for 49% of the NEM connections pipeline and dominate all stages
Projects are taking longer to achieve full commissioning due to a number of challenges, including funding, supply chain, and project design
The Australian Energy Market Operator (AEMO) said its latest Connections Scorecard shows battery energy storage system (BESS) projects totaling 67.3 GW are currently progressing through the National Electricity Market (NEM).
This represents 33% annual growth in the overall BESS project pipeline, expanding from 50.5 GW at the end of Q1 2025 to 67.3 GW in Q1 2026. This new capacity is likely to meet around 28% anticipated increase in electricity demand by 2035, while offsetting the planned retirement of 11 GW of predominantly coal-fired power stations over the next decade.
It adds that batteries make up 49% of the overall NEM connections project pipeline, comprising close to 74% of grid-forming battery, alongside about 73 GW of installed generation and storage capacity in the NEM.
AEMO highlights that 18 new applications (5.5 GW) were received in Q3 of FY26, comprising 4.2 GW of standalone batteries, 0.6 GW of solar, and 0.7 GW of solar with battery. Of these 8 applications and 8 registrations were approved, and 5 projects completed commissioning during the last quarter. Batteries are the dominant technology in every stage of the process.
“Projects in application stage, where the performance of project design is assessed, increased by 51 per cent over the past year, from 19.7 GW to 29.8 GW, with 18 projects totalling 5.5 GW in the March quarter alone,” said AEMO Group Manager, Onboarding and Connections, Margarida Pimentel.
While the standalone battery storage capacity in the pipeline increased from 20.5 GW to 33.2 GW, grid-scale solar rose from 17.7 GW to 20.7 GW, and wind from 8.32 GW to 9.75 GW.
Among the clean energy projects that reached full output in Q1 2026, there were 2 BESS facilities: the 250 MW/500 MWh Swanbank and the 50 MW/400 MWh Limondale. The list also includes the 22 MW Wangaratta Solar Farm.
AEMO tracks new generation and storage projects through its Connections Scorecard as they progress from initial application to registration and full commissioning.
Despite growth in the pipeline, facilities have historically taken longer to reach the implementation stage. She lists prolonged funding uncertainty, changes in project ownership, supply chain and resource constraints, and design modifications as the factors responsible.
“What’s important is that these projects continue through to registration and commissioning to full output, so they can support reliability and the transition of the power system,” stressed Pimentel.
Previously, AEMO said the NEM connection pipeline had expanded to 64 GW at the end of December 2025, with batteries accounting for 46% of the total (see Australia’s NEM Project Pipeline Hits A Record 64 GW).