Battery energy storage breaks records in Australia in Q1 2025

The Australian Energy Market Operator (AEMO) has published its Quarterly Energy Dynamics (QED) report for Q1 2025. It reveals that battery generation set an all-time high during the quarter, with an output increase to 98 MW, which is 86% higher than Q1 2024. 

Battery energy storage system (BESS) output occurs most significantly in the evening peak period, as shown by Figure 30 in the AEMO QED report. 

BESS is more influential than ever in the National Electricity Market (NEM), as their price-setting frequency increased from 3% to 4% for battery generation, and from 3% to 6% for battery load, when comparing Q1 2025 to Q1 2024. 

Prices set by batteries decreased marginally during that same period, from $246/MWh to $215/MWh for battery generation, and decreased from $35/MWh to $26/MWh for battery load. 

Grid-scale revenue

Australia’s net revenue for NEM grid-scale batteries totaled $44 million AUD, covering energy and frequency control ancillary services (FCAS). This amount is $3.7 million lower than the estimated revenue for Q1 2024.

Despite this decline, energy market revenue increased by 44% to $48.5 million, an increase of $14.7 million. AEMO outlined that the growth was primarily driven by a 42% increase ($12.8 million) in revenue from energy generation. 

Charging during negative price periods contributed an additional $1.9 million in revenue, bringing the total revenue to $5.4 million. 

NEM battery availability jumped 46%, with average capacity increasing from 819 MW in Q1 2024 to 1,193 MW in Q1 2025. The NEM-wide price spread for batteries declined to $183/MWh, down from $248/MWh in Q1 2024, which reflects lower price volatility.

From the conclusion of Q1 2024 and the start of Q1 2025, several major battery systems entered the NEM and have either reached full operation or are undergoing commissioning. This includes Western Downs (255 MW/510 MWh) in Queensland, Waratah (850 MW/1,680 MWh) in New South Wales, Blyth (200 MW/400 MWh) in South Australia, and Rangebank (200 MW/400 MWh) in Victoria.

During Q1 2025, several new major battery systems were registered or commenced commissioning. These include Greenbank (200 MW/400 MWh) and Tarong (300 MW/600 MWh) in Queensland, Eraring (460 MW/1,073 MWh) in New South Wales, and Koorangie (185 MW/370 MWh) in Victoria.

Reduced emissions

Total emissions dropped by 5.1% from Q1 2024, as 27.4 million tonnes of carbon dioxide equivalent were recorded for Q1 2025. 

AEMO Executive General Manager Policy & Corporate Affairs Violette Mouchaileh stated that coal and gas-fired power were key contributing factors. “The impact of the transitioning electricity system was also seen, with a 5.1% decline in total emissions, due to the combination of lower coal and gas-fired generation and higher renewable output,” Mouchaileh said.