Transmission The Rise of Big Batteries in Australia's Energy Markets - Neoen
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Mar 4, 2026 Jérémie Yvon, Head of Energy Management at Neoen Australia, who runs optimisation for a 4 GW wind, solar and battery portfolio. He discusses how Australia’s two market designs shape battery economics. They explore Hornsdale’s proof of concept, virtual battery products and firm renewable contracts. He also warns about rapid scale, market impacts and the real risk of battery oversupply.
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Australia's Battery Market Leapfrogged To Core System Status
- Australia is one of the most mature grid-scale battery markets, evolving from 2017 proof-of-concept to core system assets.
- Hornsdale proved batteries can be built fast and provide stability services like synthetic inertia, driving rapid scale and integration.
NEM Rewards Volatility While WEM Pays For Capacity
- NEM and WEM reward batteries differently: the NEM is energy-only with high five-minute volatility while WEM relies on capacity revenues.
- In the NEM batteries chase price volatility; in WA roughly two thirds of battery revenue can come from the capacity mechanism.
Battery Deployment Is Hitting Systemic Scale Fast
- Battery deployment has accelerated: NEM passed 5 GW in operations and is on track for 14 GW by 2028, representing nearly 40% of peak demand.
- Neoen progressed ~700 MW ~3 GWh in six months, showing how fast scale changes market dynamics.