Transgrid secures up to 2GW of batteries to strengthen NSW grid
Transgrid has shortlisted nine battery projects to provide system strength services across New South Wales. The Australian operator is negotiating up to 2GW of grid-forming batteries, expected online from the second half of 2026.
| Sectors | Energy Storage, Batteries, Power Grids, Transmission |
|---|---|
| Themes | Project Development, Tenders |
| Companies | Rystad Energy, Transgrid |
| Countries | Australia |
Transgrid, the transmission network operator in New South Wales (NSW), has shortlisted nine battery projects to provide system strength services across its transmission infrastructure. The selection followed technical modelling to identify priority locations and required capacity. Transgrid is now negotiating with developers to secure up to 2GW of grid-forming batteries, expected to come online from the second half of 2026.
A selection guided by technical modelling
The procurement targets projects already operating or in advanced development stages, to address emerging system strength gaps while maintaining competitive pricing. Transgrid aims to close identified gaps in grid resilience without incurring major capital expenditure linked to new plant acquisition. Jason Krstanoski, Executive General Manager at Transgrid, stated that this approach "enables us to accelerate the strengthening of the grid without the cost associated with acquiring new plant or major network upgrades." The use of third-party owned batteries is, according to him, a central pillar of the operator's system strength plan.
Australia provides fertile ground for this procurement strategy. According to Rystad Energy, the country has established itself as the third-largest global market for large-scale battery systems, facilitating access to a pipeline of advanced projects. Australia's dynamic mirrors a global trend: operators such as Corsica Sole are also accelerating storage deployments across Europe, reflecting the sector's broad momentum.
A 5GW target by 2033
Beyond the current procurement, Transgrid is targeting 5GW of system strength services from third-party batteries by 2033, as part of its long-term grid stability strategy. This target represents a 2.5-fold increase over the capacity being pursued in the current tender. The operator is counting on the continuation of Australia's battery investment boom to meet this objective. Growing interest in industrial-scale storage is also visible in other markets, as demonstrated by the 80 MWh storage order secured by Recharge Power in Japan.
