Australia’s pipeline of new generation and storage seeking to connect to the National Electricity Market (NEM) has grown 43% over the past year, driven by a surge in battery projects.
The Australian Energy Market Operator’s (AEMO) latest Connections Scorecard shows 80.9 gigawatts (GW) of generation and storage projects currently progressing through the connection process.
AEMO Group Manager Onboarding & Connections, James Lindley, said the figures demonstrated strong investor interest in new energy infrastructure, while highlighting the importance of progressing viable projects through to commissioning.
“The pipeline of new generation and storage projects looking to connect to the National Electricity Market has overtaken current capacity of 77 GW for the first time,” Mr Lindley said.
By technology, grid-scale batteries account for more than half (55%) of capacity in the end-to-end connection process from application to commissioning, followed by hybrid solar and battery projects (19%), wind (15%), solar (5%), hydro (5%) and gas (1%).
“A strong pipeline is encouraging, but what ultimately matters for consumers is getting viable projects connected and operating in the power system,” he said.
During the September quarter, 23 projects totalling 4.5 GW received application approval, four projects (1 GW) were registered and connected to the NEM, and seven projects (1.3 GW) completed commissioning and reached full output.
AEMO also received 25 new connection applications totalling 7.5 GW during the quarter, with 19 battery projects accounting for 5.8 GW, or 76% of new capacity seeking connection.
“Not only are we seeing more battery projects, but also increasing amounts of longer-duration storage, with nearly 40% of battery projects that can provide between three and 10 hours of storage. This can enhance energy resilience when renewable generation output is low,” Mr Lindley said.
Total capacity by connection stage shows that 88% of the pipeline remains in the early application and proponent implementation stages, with capacity growing 101% to 38.5 GW and 42% to 32.3 GW, respectively.
“The size of the pipeline is encouraging, but not every project will progress at the same pace or ultimately reach commissioning,” Mr Lindley said.
Projects can face a range of challenges to their progress, including ownership and design changes, as well as delays due to finalising commercial arrangements.
“It’s critical for electricity reliability that projects continue to advance to commissioning, with around 15 GW of generation scheduled to retire in the coming decade at the same time as electricity consumption is forecast to increase by more than 40 per cent,” Mr Lindley said.
“That’s why AEMO closely monitors project progress and reflects the latest information available in its reliability assessments,” he said.
To help overcome connection challenges, AEMO and industry are progressing the Connections Reform Initiative Phase 2 and other reform initiatives, which are focused on streamlining registration processes, enhancing technical frameworks and improving the transparency and predictability of connection outcomes.
The NEM Connections Scorecard provides a quarterly snapshot of generation and storage projects progressing through AEMO’s connections process.
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About AEMO
AEMO is responsible for operating Australia’s largest gas and electricity markets and power systems in the best interests of Australian energy consumers. These include the National Electricity Market and interconnected power system in Australia’s eastern and southeastern seaboard, the Wholesale Electricity Market and power system in Western Australia, the Victorian gas transmission system and gas markets across Australia.
As Australia’s independent energy markets and power systems operator, AEMO provides critical planning, forecasting and power systems security advice and services to deliver energy security for all Australians. AEMO is a not-for profit entity. For more information, head to head to www.aemo.com.au.