The power behind Australia’s BESS boom
07 Apr 2025
Australia’s Battery Energy Storage Systems (BESS) market is surging ahead at an unprecedented pace, fuelled by the nation’s commitment towards sustainability and the urgent need for grid stability.
Over the past five years, the sector has experienced some phenomenal growth – and this growth isn’t predicted to stop.
The numbers tell a compelling story. A staggering 119GW of BESS projects have now been announced, marking a 330% increase from the 36GW reported in February 2023. This surge is quickly showing the critical role energy storage plays in supporting Australia’s transition to a more resilient and sustainable power network.
Several key factors are driving the rapid expansion of BESS across the country:
Integration with renewable energy – Australia has been strategically co-locating battery storage with solar and wind farms, in an effort to optimise the efficiency and reliability of renewable power.
Weather resilience – with extreme weather events becoming more frequent, battery storage helps us to maintain grid stability and reduce outages.
Population growth and demand – as Australia’s population expands, so too does the need for robust energy infrastructure that can meet the escalating electricity demands.
The National Electricity Market (NEM) is also seeing unprecedented investment in large scale battery storage, a move strongly endorsed by the Australian Energy Market Operator (AEMO). BESS is quickly becoming indispensable in balancing the intermittent nature of renewables and ensuring a reliable energy supply as coal and gas generation decline.
But, will it continue? All indications say — yes, absolutely!
The growth is set to continue, with both front-of-the-metre (FTM) and behind-the-metre (BTM) installations playing important roles in Australia’s energy future.
The drivers for this continued growth include:
Falling costs and policy support — advancements in battery technology and government incentives continue to make energy storage more accessible and cost-effective
Local supply chain development — Australia is ramping up domestic production of battery components, further strengthening the industry and reducing reliance on imports.
With record-breaking investment and innovation in BESS, now, more than ever, Australia is well on its way to enabling a more sustainable, reliable and affordable secure energy system.
