South Australia is set to more than double its grid-scale battery storage capacity, with the state government this week announcing the fast-tracking of six new large-scale battery energy storage (BESS) projects. The contracts, awarded under the Firm Energy Reliability Mechanism (FERM), will add a combined 517 megawatts (MW) and 4,136 megawatt-hours (MWh) of dispatchable storage capacity to the state’s network.
The announcement, made on June 11, 2026, marks a significant step towards bolstering South Australia’s energy system reliability, particularly during periods of high demand or unexpected supply shortfalls. Once operational, these batteries will be capable of supplying enough electricity to power more than 300,000 average households for up to eight hours. This expansion will increase South Australia’s total large-scale battery fleet from 1.1 GW to an estimated 2.5 GW, representing a substantial increase of 1.4 GW.
Critical Boost for Grid Reliability and Stability
The six projects were selected through a competitive tender process specifically designed to secure long-duration storage. This ensures the state maintains access to continuous dispatchable energy, crucial for managing the intermittency of renewable energy sources like solar and wind. The contracted capacity is equivalent to almost three-quarters of South Australia’s record peak electricity demand.
“This move is set to more than double the state’s grid-scale battery storage capacity and strengthen energy system reliability.”
The push for increased battery storage aligns with broader national efforts to integrate more renewables into the grid. The Australian Energy Market Operator (AEMO) has consistently highlighted the transformative impact of battery storage, both large and small, on the electricity system. AEMO Chief Executive Daniel Westerman recently noted that large-scale batteries in the National Electricity Market (NEM) more than tripled the amount of energy shifted from daytime to evening in the first three months of 2026, reducing reliance on more expensive peaking gas generation.
The Six Key Projects
The newly contracted BESS projects, and their full nameplate capacities as listed by the South Australian Government, are:
| Project Name | Developer | Power (MW) | Storage (MWh) |
|---|---|---|---|
| Brinkworth BESS | Akaysha Energy | 250 | 1,000 |
| Dartmoor BESS | ZEBRE Pty Ltd | 144 | 576 |
| Goyder Battery Stage 1 | Neoen Australia | 200 | 800 |
| Goyder Battery Stage 2 | Neoen Australia | 200 | 800 |
| Northern Battery | AMPYR Australia | 270 | 1,080 |
| Tungkillo BESS | Iberdrola Australia | 270 | 1,080 |
These projects represent a combined total nameplate capacity of approximately 1,354 MW and 5,336 MWh, with the FERM contracts securing a specific portion of their dispatchable capacity. The inclusion of the Tungkillo BESS, for which Iberdrola Australia recently secured a long-term contract, underscores the significant investment flowing into South Australia’s energy transition.
Broader Context: Australia’s Battery Boom
Australia is rapidly emerging as a global leader in battery storage. Recent data indicates the country has become the world’s third-largest market for battery storage, behind only China and the United States. The Federal Government’s Cheaper Home Batteries scheme, introduced in July 2025, has played a crucial role, supporting over 420,000 home battery installations and adding 12 gigawatt-hours (GWh) of capacity to the grid.
This rapid uptake of both grid-scale and residential batteries is fundamentally reshaping Australia’s energy landscape. While the initial focus of the federal home battery rebate was to encourage Virtual Power Plant (VPP) participation, AEMO has observed that even ‘passive’ home batteries, not actively orchestrated in VPPs, are delivering significant system-wide benefits by altering demand patterns and reducing costs.
For households considering battery storage, understanding the available incentives remains crucial. While state-specific rebates like the SA Home Battery Scheme have closed, South Australians can still access the federal Cheaper Home Batteries Program and the Retailer Energy Productivity Scheme (REPS) VPP incentive, which offers up to $2,050 for connecting to an approved VPP. These incentives, combined with ongoing savings from reduced electricity bills, make home battery storage an increasingly attractive investment. To maximise savings, homeowners should compare various options and understand their eligibility for available support programs. For a detailed analysis of how to integrate home batteries for optimal savings, explore our guide on Best Home Energy Management Systems (HEMS) in Australia 2026: Unlock $3,300+ Savings After Rebates and Unlock $1,000+ Annually: Best Home Battery VPP Programs in Australia 2026 Ranked.
The continued investment in large-scale battery projects, alongside the growing adoption of home batteries, signifies a robust transition towards a more resilient and renewable-powered energy future for South Australia and the nation. These projects are expected to be operational by 2028.