Australia’s pipeline of new generation and storage projects seeking to connect to the National Electricity Market (NEM) has reached 80.9 gigawatts (GW), a 43 per cent increase over the past year, driven largely by battery projects, according to the Australian Energy Market Operator (AEMO).
AEMO’s latest Connections Scorecard shows the pipeline has exceeded the NEM’s current capacity of 77 GW for the first time, although most projects remain in the early stages of the connection process.
Grid-scale batteries account for 55 per cent of capacity progressing through the connection process, from application to commissioning. Hybrid solar and battery projects represent 19 per cent, followed by wind at 15 per cent, solar and hydro at 5 per cent each, and gas at 1 per cent.
AEMO Group Manager Onboarding and Connections James Lindley said the figures indicated strong investor interest in new energy infrastructure, but emphasised that projects needed to progress to operation.
“The pipeline of new generation and storage projects looking to connect to the National Electricity Market has overtaken current capacity of 77 GW for the first time,” Lindley said.
During the September quarter, 23 projects totalling 4.5 GW received application approval, while four projects with 1 GW of capacity were registered and connected to the NEM. A further seven projects, representing 1.3 GW, completed commissioning and reached full output.
AEMO received 25 new connection applications totalling 7.5 GW during the quarter. Battery projects accounted for 19 of those applications, representing 5.8 GW, or 76 per cent of the new capacity seeking connection.
Lindley said longer-duration battery storage was also becoming more prominent, with nearly 40 per cent of battery projects capable of providing between three and 10 hours of storage.
“This can enhance energy resilience when renewable generation output is low,” he said.
However, AEMO reported that 88 per cent of the total pipeline remained in the early application and proponent implementation stages. Capacity in the application stage increased 101 per cent to 38.5 GW, while capacity in the proponent implementation stage grew 42 per cent to 32.3 GW.
Lindley said projects could encounter challenges, including changes to ownership and design, and delays in finalising commercial arrangements.
“The size of the pipeline is encouraging, but not every project will progress at the same pace or ultimately reach commissioning,” he said.
AEMO said progressing projects to commissioning was important for electricity reliability, with around 15 GW of generation scheduled to retire over the coming decade as electricity consumption is forecast to increase by more than 40 per cent.
The operator is working with industry on the second phase of its Connections Reform Initiative and other reforms aimed at streamlining registration processes, strengthening technical frameworks and improving the transparency and predictability of connection outcomes.
AEMO publishes its NEM Connections Scorecard quarterly to track generation and storage projects moving through the connection process.
