AEMO says the NEM connection pipeline expanded to 64 GW in the quarter ending December 2025, with batteries making up 46% of the share
Solar and battery projects represent 19.7% of the pipeline, followed by 11.9% of solar facilities, among others
The pipeline increased by 14% sequentially, with 18 project applications worth 3.8 GW approved across technologies
According to the Australian Energy Market Operator (AEMO), the connection pipeline of new generation and storage projects to the National Electricity Market (NEM) reached a record 64 GW in the December 2025 quarter. Battery storage dominates this pipeline, with a 46% share.
Hybrid solar and battery projects represent 19.7% of the total investment pipeline, followed by 11.9% solar, 4.7% hydro, and 1.4% gas facilities, according to the agency’s Connections Scorecard. Through this scorecard, AEMO tracks all projects as they move through the initial application stage to commissioning and full output.
AEMO says the total NEM pipeline increased by 7.4 GW or 14% in the December quarter of 2025 when it approved 3.8 GW of applications across 18 projects, including 2.1 GW battery, 383 MW solar with battery, a 320 MW solar, a 949 MW wind, and a 29 MW gas project.
Another 1.9 GW capacity across 10 projects was registered and connected to the NEM, comprising 875 MW battery, 590 MW solar, 250 MW hydro, 150 MW solar and battery, and 10 MW BESS. These facilities are now moving to the final stages of commissioning and operational readiness.
Another 1.8 GW of new generation and storage capacity progressed through commissioning to reach full output during the reporting quarter. This comprises the 350 MW Culcairn Solar Farm, the 120 MW Munna Creek Solar Farm, and 7 BESS facilities.
“The growth in battery storage will complement renewable generation by storing lowcost, lowemissions electricity during the day for release to support demand during the evening peak,” said AEMO Onboarding & Connections Group Manager Margarida Pimentel.
She added, “The ongoing increase to 64 GW in the connections pipeline shows that confidence in Australia’s renewable energy transition remains strong, with new applications activity rising from 20 GW to 26 GW.”
The growing share of renewables in the country’s power mix is also showing a positive impact on its wholesale electricity prices, which averaged AUD 50/MWh across the NEM in Q4 2025. AEMO says this is a 44% reduction from Q4 2024 and a 43% decline from Q3 2025.
While coal-fired generation fell to an all-time quarterly low, down by 4.6% year-over-year (YoY), gas generation declined 27% to its lowest level since Q4 2000.
On the other hand, renewable energy storage output grew strongly, with wind generation improving 29%, grid-scale solar 15%, and battery discharge nearly tripling to an average of 268 MW.
Rooftop solar generation also reached an all-time quarterly high of 4.41 GW, accounting for an 8.7% increase, reducing daytime operational demand. It contributed significantly to battery charging.
“For the first time, renewables and storage supplied more than half of the system’s energy needs for a full quarter,” remarked AEMO Executive General Manager Policy and Corporate Affairs, Violette Mouchaileh. “It reflects years of sustained investment and demonstrates that more wind, solar and battery capacity in the system reduces reliance on higher cost coal and gas generation, placing sustained downward pressure on wholesale electricity prices.”
AEMO’s Draft 2026 Integrated System Plan (ISP) offers the ‘least-cost’ roadmap for generation, storage, and transmission infrastructure in the NEM. Achieving this pathway by 2050 will require grid-scale wind and solar capacity to increase from 23 GW at present to 58 GW by 2030 and 120 GW by 2050.
It will also require grid-scale solar to grow to 32 GW by 2030, 38 GW by 2035, and 63 GW by 2050. The plan envisions adding 32 GW of grid-scale batteries, 14 GW of flexible gas, and 12 GW of pumped hydro, backed by 6,000 km of new transmission lines.
AEMO also sees a proliferation of small-scale solar, expecting consumers to invest in 87 GW of rooftop and other small-scale solar, along with 27 GW of household and commercial batteries by 2050.