Australia has emerged as the world’s third-largest utility-scale battery energy storage market, with 4.3GW of large-scale battery storage systems reaching financial close in 2025.

Two battery energy storage systems (BESS) in South Australia and Queensland have received federal environmental clearance under the EPBC Act.

BESS in Australia’s NEM more than tripled their daytime-to-evening energy shifting in the first quarter of 2026, according to AEMO.

Australian infrastructure contractor GenusPlus Group has been awarded an AU$110 million (US$78.5 million) engineering, procurement, construction and commissioning contract for the 200MW/800MWh Koolunga battery energy storage system (BESS) in South Australia.

CleanPeak Energy Holdings has signed an agreement to acquire 100% of Sustainable Energy Infrastructure (SEI), one of Australia’s largest owners and developers of sub-5MW solar and battery storage assets.

Alinta Energy has commenced main construction works on its 1,000MWh Stage 1 of its Reeves Plains BESS in South Australia.

Copenhagen Infrastructure Partners has sold its 240MW/960MWh Summerfield Battery to Palisade Investment Partners in South Australia.

Envision’s Behzad Naderi believes that Australia’s hybridisation rules are reshaping development and connection processes across the NEM.

Australia’s battery energy storage sector faces mounting operational pressures, following the Australian Energy Market Operator (AEMO) issuing its latest direction to AGL’s Torrens Island battery energy storage system (BESS) on 9 March.

Speaking to ESN Premium, Tom Best and Rachel Rundle of Eku Energy explore some of the key policies and drivers of Australia’s ESS market.