As Australia prepares for a major energy transition, the need for scalable, flexible battery storage solutions has never been more urgent. The Australian Energy Market Operator (AEMO) forecasts that the country will require around 9GW of new battery energy storage systems (BESS) by 2027 to support renewable energy integration, manage coal plant closures, and address rising grid volatility.
In this exclusive interview with Australian Manufacturing, Stuart Thompson, President of ABB Electrification Service, discusses how ABB’s innovative Battery Energy Storage-as-a-Service (BESSaaS) model can accelerate deployment, overcome capital and skills barriers, and support the development of local expertise across the energy and manufacturing sectors.
Removing capital barriers to energy transition
“Australia’s battery storage market is unique in that there is a clear understanding of the role that storage plays in enabling a sustainable, long-term transition to renewables amid continued coal plant closures and increasing grid volatility,” said Stuart Thompson, President of ABB Electrification Service. “However, the traditional capital-intensive model that comes with investments in battery storage creates significant deployment bottlenecks.”
ABB’s BESS-as-a-Service offering seeks to overcome these barriers by turning battery deployment into an operational expense. “This approach allows organisations to access new monetisation sources offered by battery storage such as peak shaving and grid services revenue, while benefitting from the reliability of a clean backup power source without the multi-million-dollar investments or technical expertise traditionally required,” Thompson said.
The model not only reduces entry costs but also opens avenues for local supply chain participation. “Increased emphasis on domestic development and manufacturing of battery components will be critical to strengthening supply chains amid growing geopolitical uncertainty,” he added.
South Australia’s playbook and broader lessons
South Australia’s early success with battery storage serves as a critical benchmark for the rest of the nation. “With wind and solar accounting for 72% of local demand and seven major batteries operational, it’s demonstrating scalable renewable integration that other jurisdictions are studying closely,” said Thompson.
However, states are forging their own paths. “Victoria’s approach to renewable energy zones differs from New South Wales’ distributed storage strategy, while Queensland is integrating batteries with coal-to-renewable transition planning,” he said. The lesson? “Clear market signals and revenue streams are essential for sustainable storage deployment. What customers consistently want are the benefits of South Australia’s model of energy security, cost predictability, and grid services revenue, without the complexity of managing market participation themselves.”
Battery storage meets industrial strategy
For Australian manufacturers, battery storage is fast becoming an integral part of maintaining competitiveness. “Australian manufacturers are experiencing a fundamental shift in how energy infrastructure impacts competitiveness,” Thompson said, citing the International Energy Agency’s observation of a ‘new Age of Electricity.’
“Progressive manufacturers are using storage to shift production to low-price periods, participate in grid services markets, and maintain operations during grid disturbances,” he said. This trend is also transforming the role of service providers, as manufacturers increasingly rely on partners to manage energy participation complexity.
Overcoming the remote operations challenge
Australia’s vast geography adds complexity to large-scale battery storage deployment. “Routine maintenance costs increase dramatically when factoring travel, accommodation, and equipment logistics,” Thompson noted. Environmental conditions and skills shortages exacerbate the issue.
To address this, ABB is leveraging remote monitoring and predictive maintenance. “These challenges are forcing smarter maintenance approaches. Remote monitoring and predictive maintenance can spot problems developing and often fix them before they cause disruption,” he said. ABB’s service-based model enables economically viable deployment even in remote regions, where traditional models may fall short.
Australia’s global standing in storage innovation
Australia’s global leadership in battery storage is already evident. “We rank 4th globally in battery storage capacity, ahead of major economies like Germany, Japan, and South Korea,” Thompson noted. With an 18-fold increase in capacity projected by 2027, Australia could soon rank among the top three markets worldwide.
Australia’s potential as a battery innovation hub is also rooted in its natural advantages. “The real opportunity is developing battery technologies for extreme conditions and integrated renewable-storage solutions,” Thompson said. ABB aims to apply its global experience—over 17 million installations across more than 50 countries—to meet Australia’s unique deployment challenges.
Collaborating for a resilient energy future
ABB is also building long-term partnerships with Australian industry to co-develop solutions that match the country’s challenging operational environments. “Australian industrial customers are moving beyond compliance-driven sustainability to strategic energy management,” Thompson said.
Through partnerships like its collaboration with GridBeyond, ABB is applying AI-powered optimization to BESS-as-a-Service offerings. “Their AI-driven platform optimizes BESS-as-a-Service performance through real-time energy optimization and accurate price forecasting,” he said.
ABB’s contribution to projects like the INPEX Ichthys LNG facility highlights the critical role of co-developed solutions in ensuring infrastructure resilience. “The traditional transactional vendor-customer model is giving way to integrated partnerships where shared operational intelligence drives both immediate project success and long-term infrastructure resilience in Australia,” Thompson concluded.
The content of this article is based on information supplied by ABB. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
