Critical grid stabilising batteries to charge NSW energy transition

The contracting of grid batteries is expected to form up to half of Transgrid’s solution to keep the ‘heart beat’ of the NSW grid strong at the lowest possible cost for consumers.

Big batteries are massive energy stores that can be configured in ‘grid-forming’ mode, which will help stabilise the high-voltage network in the event of a major disturbance such as a lightning strike or generator malfunction.

Transgrid Executive General Manager of Network Jason Krstanoski said this stabilising role is critical to ensuring power to households and businesses stays uninterrupted when sudden faults occur, while supporting the connection of more renewable generators as the state’s coal powered fleet retires.

“With the recent boom in grid-scale batteries, calling on them to act as stabilisers means we can accelerate the crucial strengthening of the renewable grid without increasing its footprint,” he said.

“That’s good news for consumers, because we do not need to purchase, own, install or significantly upgrade the network to operate these energy storage devices.

“Giant batteries will complement the proven grid-strengthening role played by synchronous condensers to enable the NSW power system to operate at up to 100% instantaneous renewables.”

Transgrid is preparing to offer contracts to batteries configured in grid-forming mode, with initial request proposals from select battery owners for services expected to begin in the second half of 2026.

This initial tender process will seek proposals from batteries providing approximately 1 GW of stabilising services, out of Transgrid’s eventual 5 GW target.

“We were very pleased to receive interest from the owners of more than 7.5 GW of batteries when we developed our plan with them to maintain NSW’s system strength,” Mr Krstanoski said.

“We are finalising the technical analysis that will determine the battery capacity needed for our initial process, and we look forward to engaging further with battery owners in the coming months.

“This will be followed by periodic tenders in 2026 and beyond, so that we can progressively add additional stabilising battery capacity to our system strength portfolio, eventually reaching the 5 GW target for grid-forming batteries we put forward in our system strength plan.

“At that threshold, grid-forming batteries owned by third parties will provide equivalent system strength support of 17 synchronous condensers, in terms of stabilising capacity for new renewable generator connections.

“This means grid-forming batteries will make up about half of NSW's portfolio of system strength solutions.”

Following the tender process, Transgrid will register the executed contracts with AEMO for enablement in the energy market dispatch process, ensuring the stabilising measures are in place when they are needed in 2026.

The stabilising services are a crucial element of Transgrid’s plan to accelerate Australia's clean energy future and help the Australian Government achieve its new 2035 climate change target of a 62 to 70 per cent reduction in emissions, compared with 2005 levels.

Media enquiries: James Atkinson 0475 965 030 / james.atkinson@transgrid.com.au