The Australian energy landscape is set for a significant transformation with the federal government’s announcement of 15 successful large-scale battery energy storage system (BESS) projects. Under the Capacity Investment Scheme (CIS) Tender 8, these projects will collectively add 4.2 gigawatts (GW) of capacity and 16.1 gigawatt-hours (GWh) of storage to the National Electricity Market (NEM), primarily across New South Wales, Queensland, Victoria, and South Australia. The announcement, made between June 23 and 26, 2026, marks a crucial step in stabilising the grid, integrating more renewable energy, and ultimately aiming to put downward pressure on household electricity bills.
The Albanese Government’s scheme is designed to de-risk investment in clean dispatchable capacity, unlocking approximately $6 billion in private investment. These projects are projected to deliver an estimated $343 million in benefits to local communities and Australian industry, including $62 million for community benefit sharing and $52 million for the use of Australian-made steel.
Minister for Climate Change and Energy Chris Bowen emphasised the role of these batteries in the energy transition.
“These batteries will soak up cheap renewable energy during the day and send it back into the grid when demand is highest, helping keep the lights on and bills down.”
Boosting Grid Stability and Lowering Costs
Australia’s energy grid is rapidly evolving, with a surging uptake of rooftop solar and a growing need for reliable, dispatchable power as coal-fired generators retire. These new grid-scale batteries are critical to this transition, storing excess solar and wind energy generated during off-peak periods and releasing it during evening peaks when demand is high. This process helps to flatten the “duck curve” of electricity demand, reducing reliance on more expensive peaking gas generators and mitigating wholesale price volatility.
The Australian Energy Market Operator (AEMO) has consistently highlighted the increasing importance of battery storage. In its latest 2026 Integrated System Plan (ISP), AEMO doubled its 2030 grid-scale battery outlook, projecting 33 GW of capacity by then – a 40% increase from its draft plan. This reflects rapid project development and the growing understanding of batteries’ role in grid stability.
State-by-State Impact
The 15 successful projects are distributed strategically across the NEM to maximise their impact on regional grids and communities. Queensland secured the largest share, with seven projects contributing over 7 GWh of capacity. New South Wales and Victoria each gained three projects, while South Australia received two.
Here’s a breakdown of the new battery storage capacity by state from CIS Tender 8:
| State | Number of Projects | Capacity (GW) | Storage (GWh) |
|---|---|---|---|
| Queensland | 7 | 2.15 | 8.413 |
| New South Wales | 3 | 0.83 | 2.270 |
| Victoria | 3 | 0.875 | 3.533 |
| South Australia | 2 | 0.35 | 1.408 |
| Total | 15 | 4.205 | 15.624 |
Note: Total GWh announced is 16.1 GWh. Minor discrepancies in summed state figures may be due to rounding or details not fully specified for all projects in public releases.
Notable projects include Ampyr Energy’s 400 MW/1.6 GWh Rutherglen Battery in Queensland and the 400 MW/1.6 GWh Gelston Energy Park in NSW by Ascera Energy. Ampyr Energy was a significant winner, securing four projects across multiple states, including the Grahams Battery (350 MW/1.428 GWh) in Queensland and the Wimpole Battery (375 MW/1.522 GWh) in Victoria.
These large-scale deployments complement the rapid growth in home battery installations, which are also playing an increasing role in grid stability. Australia saw over 400,000 home battery systems installed by mid-May 2026, with 11.4 GWh of usable capacity. This rapid uptake, partly driven by incentives like the Cheaper Home Batteries Program, allows households to store their solar energy for evening use, reducing their reliance on the grid.
While grid-scale batteries offer robust, centralised support, home battery systems contribute to a more resilient, distributed energy network, offering a degree of Home Battery Backup for Blackouts in 2026: Systems & Costs from $7,000 for individual households and the potential to participate in Virtual Power Plants (VPPs). However, AEMO’s latest ISP indicates reduced assumptions for VPP participation compared to previous forecasts, suggesting a stronger emphasis on grid-scale solutions for overall system stability.
The Path Ahead
The successful Tender 8 projects are expected to generate over 6,800 jobs during their construction, operation, and maintenance phases. Building on this momentum, the federal government has already launched CIS Tender 10, targeting a further 4 GW / 16 GWh of dispatchable capacity, with bids open until August 18, 2026.
This sustained investment in large-scale battery storage is crucial for Australia to meet its target of 82% renewable electricity by 2030. By integrating more clean energy into the grid, these projects aim to deliver cheaper, cleaner, and more reliable electricity for Australian homes and businesses, offering a vital buffer against global energy volatility. The shift towards robust energy storage infrastructure is not just about environmental goals; it’s a strategic move to secure Australia’s energy future and help manage energy costs for consumers. Homeowners considering their own energy solutions can explore how greater grid stability impacts their choices for What Solar System Size Do You Really Need in Australia 2026? Future-Proofing for EVs & Electrification and overall Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30%.