Sydney, NSW – New South Wales has officially brought online its full fleet of major energy grid stabilisers, completing the $1.8 billion investment under Tender Round 2 of the NSW Electricity Infrastructure Roadmap. The announcement, made on 18 September 2026, confirms that three large-scale Battery Energy Storage Systems (BESS) and a significant Virtual Power Plant (VPP) are now fully operational, bolstering the state’s energy security as summer approaches.
This crucial infrastructure, delivered by AGL Energy, Akaysha Energy, Iberdrola Australia, and Enel X, represents a combined dispatchable capacity of approximately 1 GW and 3 GWh. This capacity is sufficient to power around 400,000 households during periods of peak demand, directly addressing concerns about grid reliability and electricity prices.
Key Projects Now Fully Operational
The completion of these projects marks a significant milestone in NSW’s transition away from coal-fired generation, providing essential ‘firming’ capacity to support the increasing integration of renewable energy sources. The four key components now active across the state include:
| Project Name | Company | Capacity (MW) | Storage Capacity (MWh) | Status |
|---|---|---|---|---|
| Liddell BESS | AGL Energy | 500 | 1,000 | Fully Operational (Sept 18, 2026) |
| Orana BESS | Akaysha Energy | 415 | 1,660 | Fully Operational (June 2026) |
| Smithfield BESS | Iberdrola Australia | 65 | 130 | Fully Operational (Sept 2026) |
| Virtual Power Plant | Enel X | 95 (demand response) | N/A | Fully Operational (Sept 2026) |
AGL Energy’s 500 MW / 1,000 MWh Liddell BESS, located at the site of the former Liddell coal-fired power station in Muswellbrook, completed its final reliability testing on 15 September 2026, achieving full commercial operation on 18 September. This project alone can push a quarter of the old coal plant’s power for two hours. Akaysha Energy’s Orana BESS, near Montefiores, provides a substantial 415 MW / 1,660 MWh of storage, capable of four hours of full output. Meanwhile, Iberdrola Australia’s 65 MW / 130 MWh Smithfield BESS in Western Sydney, co-located with a gas peaking plant, also reached full operation this month.
The Enel X Virtual Power Plant, a statewide initiative, contributes 95 MW of flexible demand response, allowing the grid to call on distributed energy resources for at least two hours at a time. This type of distributed energy management, which networks individual home batteries, is becoming increasingly vital for grid stability. Households participating in such schemes can potentially Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026 by offering their stored power to the grid during peak demand events.
“The completion of these batteries and the virtual power plant is an an important milestone for NSW. Together, these projects can provide enough firming capacity to meet the peak electricity demand of around 400,000 homes, helping keep the lights on during the hot summer to come.” — NSW Minister for Energy and Climate Change, Penny Sharpe
Bolstering Grid Reliability and Lowering Costs
Minister for Energy and Climate Change, Penny Sharpe, highlighted that these projects represent more than AUD $1.8 billion of investment in NSW, supporting over 1,500 jobs during their construction. The strategic deployment of these assets is designed to manage the volatility associated with high renewable energy penetration, ensuring a more stable and resilient grid, particularly during extreme weather events and evening peak demand periods. This enhanced stability is critical for preventing outages and applying downward pressure on consumer electricity bills.
Australia’s National Electricity Market (NEM) has some of the world’s most stringent grid compliance requirements for large storage assets. The successful commissioning and operational approval from the Australian Energy Market Operator (AEMO) and Transgrid for these projects validate the performance and reliability of these new battery technologies at utility scale.
The Broader Battery Boom
The commissioning of these NSW projects occurs amidst a broader national acceleration in battery storage deployment. Australia is witnessing a significant uptake in both grid-scale and residential battery installations, driven by government incentives like the federal Cheaper Home Batteries Program. This program, which provides an upfront discount via Small-scale Technology Certificates (STCs), aims to make home battery storage financially viable for more Australians.
In related developments, RWE Renewables Australia’s Limondale Battery Energy Storage System in western NSW also became Australia’s first operational 8-hour long-duration storage project this month, utilising 144 Tesla Megapack units to deliver 400 MWh of storage at a 50 MW discharge rate. This longer-duration storage capability is crucial for covering not just evening peaks but also overnight baseload gaps, further reducing reliance on fossil fuel peaker plants. Such developments are vital for overall Power Outage Preparedness 2026: Your $4,350+ Australian Home Resilience Guide and ensuring continuous power supply.
The strategic focus on both large-scale grid batteries and distributed VPPs demonstrates a comprehensive approach to energy storage, aiming to create a robust and flexible electricity system capable of meeting Australia’s growing energy demands and ambitious environmental targets for 2026 and beyond.
This wave of battery installations is fundamental to the nation’s energy future, providing the necessary infrastructure to manage renewable energy variability and support a reliable, lower-emissions electricity supply for all Australians.