Third-party owned batteries will start providing system strength services to the NSW transmission network this year, underpinning Transgrid’s plan to keep the ‘heartbeat’ of the grid strong at the lowest possible cost for consumers.
The company has shortlisted nine battery projects following completion of technical modelling to determine the required capacity and priority locations on the NSW transmission network for an initial tranche of procurement.
Transgrid Executive General Manager Network Jason Krstanoski said talks are underway to secure an expanded scope of system strength services from up to 2GW of grid-forming batteries, which will start to come online in the second half of 2026.
“Third-party owned batteries are integral to our system strength plan, because they enable us to accelerate the strengthening of the grid without the cost associated with acquiring new plant or major network upgrades,” he said.
“Our initial procurement process is focused on batteries that already exist, or are in the advanced stages of development, in specific locations on our network to address gaps in system strength as they emerge.
“Negotiating directly to secure services from up to nine select batteries will ensure there is strong competition on price and contract terms so we can select the battery fleet that provides optimal value for NSW consumers.”
Mr Krstanoski said Transgrid is encouraged by the recent groundswell of investment in big batteries, which has made Australia the third-largest market globally for these assets, according to analysis by Rystad Energy.
“System strength presents an additional opportunity for batteries to provide value to the energy system, and contracting for this service will help stabilise the grid and make NSW a better place to invest in this technology,” he said.
“By 2033, we are ultimately targeting 5GW of stabilising services from third-party owned batteries to complement the proven grid-strengthening role played by synchronous condensers.
“Our requirements will continue to evolve as the transition progresses, so we look forward to engaging with a wider pool of battery owners in future procurement rounds.”
As the System Strength Service Provider (SSSP) for NSW, Transgrid is responsible for ensuring sufficient system strength services are available to maintain power system stability in NSW.
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