Batteries are key to ensuring grid reliability and stability during periods of uncertain renewable supply. This proposal appears on the Australian Government’s National Renewable Energy Priority List and supports the national target of achieving 82% renewable electricity by 2030. It aligns with a range of Australian Capital Territory Government policies, including the Australian Capital Territory Climate Change Strategy 2019-25 and Australian Capital Territory Zero Emissions Framework.  

PROPOSAL DESCRIPTION  

To support growing amounts of renewable energy generation on Australia’s east coast, the National Electricity Market (NEM) requires significant investments in dispatchable energy storage to maintain electricity grid stability and reliability.  

This proposal presents an opportunity for the Australian Capital Territory to add new battery storage capacity that would help reduce the risk of power outages and supply disruptions in the NEM. It would support the Australian Capital Territory’s electrification and transition away from fossil-fuels, while minimising disruption and the need for costly network upgrades.  

INVESTMENT RECOMMENDATION   

The Australian Government should consider prioritising this proposal for planning investment.  

OPPORTUNITIES AND OUTCOMES  

This proposal has the potential to:  

• Support Australia’s renewable energy transition and emissions reduction – as the NEM shifts from fossil fuel-based generation to renewable energy, increased battery storage capacity would support Australia’s net zero targets.
• Increase the resilience of the NEM – new battery storage capacity would strengthen system reliability by supporting reduced risk of power outages and supply disruptions in the NEM, enhancing energy security during peak demand and supply disruptions. 
• Improve energy affordability and reliability – additional battery storage would help achieve emission reductions targets while supporting lower costs of the transition to renewable energy for industry and consumers.   

NEXT STEPS  

Proponent to progress planning activities (in line with Infrastructure Australia’s Assessment Framework), considering a diverse range of technologies to:   

• determine the best way for battery energy storage in the Australian Capital Territory to support NEM stabilisation as upgrades to its electricity distribution network occur 
• identify operational opportunities and constraints for managing battery storage.