Transgrid has shortlisted nine battery projects to provide system strength services to the New South Wales transmission network, with services expected from mid-2026. The procurement targets up to 2GW of grid-forming batteries, offering an additional revenue stream for battery owners while stabilising the grid at lower cost than traditional network upgrades.
Transgrid has shortlisted nine battery projects to provide system strength services to the New South Wales transmission network, with services expected to commence in the second half of 2026, according to an official announcement. The procurement follows technical modelling to determine required capacity and priority locations for an initial tranche of services.
Transgrid is the transmission system operator for New South Wales, responsible for maintaining power system stability as the state's System Strength Service Provider. The company is targeting up to 2GW of grid-forming batteries through the initial procurement phase, with a broader goal of securing 5GW of stabilising services from third-party owned batteries by 2033.
The procurement focuses on existing batteries or those in advanced development stages at specific network locations where system strength gaps are emerging. Transgrid is negotiating directly with shortlisted projects to secure services under competitive pricing and contract terms.
This development matters for Australia's energy storage sector, where batteries increasingly provide grid stability services alongside energy arbitrage. System strength services represent an additional revenue stream for battery owners, improving project economics and potentially accelerating investment in large-scale storage. Australia has become the third-largest market globally for big batteries, according to analysis by Rystad Energy.
For the renewable energy industry, the procurement demonstrates a lower-cost alternative to traditional network upgrades for maintaining grid stability as coal-fired generation retires. Stakeholders including battery developers, financiers, and equipment suppliers stand to benefit from expanded service opportunities. The approach also supports the integration of renewable generation by maintaining power system stability through distributed storage assets.
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