Western Australia Sets 7‑Hour Battery Storage Target, Aims for 8.5‑Hour Goal

The Australian Energy Market Operator (AEMO) announced that the Western Australian electricity system will now receive full capacity credits for batteries delivering seven hours of firm output, a new “sweet spot” for storage that supports the planned exit of coal generation. The latest Western Australian Energy Network (WEM) Electricity Statement of Opportunities (ESOO) also increased the value of those credits by 35 % and raised the annual payment rate from $360,700 per MW to $488,500 per MW.

AEMO says the storage duration may need to be extended to 8.5 hours by the middle of the next decade to accommodate higher penetrations of wind and solar. While developers can still build shorter‑duration batteries, they will only be compensated for the portion of time they operate within the seven‑hour window. South Australia is considering a similar incentive scheme for four‑hour batteries that could supply up to eight hours of storage when required.