Australia strengthens power grid with new generation and storage projects

The Australian Energy Market Operator’s 2026 outlook projects more than 1,000 MW of new generation and storage capacity to be added to Western Australia’s South West Interconnected System by 2030‑31, driven by strong renewable investment and government programs. Increased rooftop solar and household batteries are expected to shave about 200 MW off peak demand in 2028‑29, while overall electricity demand is forecast to grow over 50 % in the next decade, requiring further investment as ageing thermal plants retire.

The federal government has also approved 4.2 GW of dispatchable capacity, providing 16.1 GWh of four‑hour storage across 15 battery projects in the National Electricity Market. The projects, awarded under CIS Tender 8, will supply enough power for roughly 3.7 million homes during peak periods and include large batteries in South Australia, Queensland, New South Wales, Victoria and the ACT. Winners such as Potentia Energy, Ampyr, Eku Energy and Lightsource bp are set to deliver installations ranging from 125 MW to 400 MW.

Together, these measures aim to secure reliability targets, support the transition to a greener grid and meet rising consumption across Australia.