Australia’s energy grid achieved a significant milestone in the 2025/26 financial year, with a record 9.1 gigawatts (GW) of new generation and energy storage capacity reaching full operational output. This figure more than doubles the 4.4 GW delivered in the previous financial year, according to the latest Connections Scorecard released by the Australian Energy Market Operator (AEMO) on 20 July 2026.
The surge in new capacity, spread across 34 projects, underscores Australia’s accelerating transition towards a renewable-dominated electricity system. The report highlights substantial contributions from large-scale solar, wind, and battery energy storage systems (BESS) across the National Electricity Market (NEM).
Battery Storage Dominates New Capacity
While solar and wind played crucial roles, battery storage projects accounted for the largest share of the new capacity. Of the 9.1 GW that reached full output, 2.7 GW came from standalone battery storage systems. Co-located solar and battery projects added another 500 megawatts (MW), while standalone solar contributed 400 MW. Wind generation accounted for 200 MW.
“A record 9.1GW of new generation and storage capacity reached full output in the last financial year, more than double the result achieved in FY25,” stated Margarida Pimentel, AEMO’s Onboarding and Connections Group Manager.
The June quarter alone saw 3.9 GW of capacity from 14 projects reach full output, demonstrating a strong finish to the financial year. The total new capacity also included 12.9 gigawatt-hours (GWh) of energy storage capacity.
Expanding Pipeline and Persistent Challenges
Despite the record completions, AEMO’s scorecard also pointed to a continually expanding connections pipeline, which grew by 42% from 53 GW to 75.4 GW. Battery projects continue to dominate this pipeline, representing 52% of the total capacity.
However, the report also flagged growing challenges in project delivery, particularly in the ‘proponent implementation’ stage, which is developer-led. The median duration for this phase increased from 14 to 18 months in FY26, with a third of projects remaining in this stage for over two years. AEMO attributes these delays to factors such as design changes, equipment substitutions, project sales, financing processes, and commercial readiness activities.
Implications for Australia’s Energy Future
The substantial increase in operational renewable generation and storage capacity is critical for Australia’s energy transition, helping to integrate the country’s world-leading rooftop solar penetration and stabilise the grid. The AEMO’s 2026 Integrated System Plan (ISP) outlines a roadmap requiring nearly 120 GW of utility-scale wind and solar by 2050 to meet decarbonisation targets, approximately five times the current level.
The growth in large-scale solar, paired increasingly with battery storage, offers greater flexibility to the electricity system, helping to manage price volatility and grid constraints. This complements the benefits households gain from their own rooftop solar systems and home batteries. For those considering optimising their energy use, understanding how to leverage solar and storage is becoming increasingly vital.
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Key Figures from AEMO’s FY26 Connections Scorecard
| Metric | FY26 Total (GW) | FY25 Total (GW) | YoY Change (%) |
|---|---|---|---|
| New Generation & Storage (GW) | 9.1 | 4.4 | +106.8% |
| Standalone Battery Storage (GW) | 2.7 | N/A | N/A |
| Co-located Solar & Battery (GW) | 0.5 | N/A | N/A |
| Standalone Solar (GW) | 0.4 | N/A | N/A |
| Wind Generation (GW) | 0.2 | N/A | N/A |
The report underscores that while Australia is making significant strides in renewable energy deployment, addressing connection bottlenecks and streamlining the implementation phase remains crucial for sustaining this momentum towards a cleaner, more resilient energy future.