Transmission The Rise of Big Batteries in Australia's Energy Markets - Neoen
Mar 4, 2026
Jérémie Yvon, Head of Energy Management at Neoen Australia, leads optimisation for multi-gigawatt wind, solar and battery portfolios. He contrasts volatile NEM and capacity-driven WEM dynamics. They discuss Hornsdale’s proof-of-concept, virtual battery products, firming PPAs and long-duration storage. Jérémie warns about possible battery oversupply and explains why in-house optimisation and flexible design matter.
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How Hornsdale Proved Big Batteries Work
- Australia moved from proof-of-concept batteries to core system assets after Hornsdale demonstrated fast build, cost savings, and system services.
- Hornsdale proved synthetic inertia and system integrity protection schemes, unlocking broader grid-scale battery deployment.
Why NEM And WEM Value Batteries Differently
- NEM is an energy-only market with five-minute trading, huge price caps and deep negative floors creating structural volatility that batteries exploit.
- WEM has a lower price cap and leans on capacity revenues, so two-thirds of battery revenue there comes from capacity contracts.
Design Projects For Rapid Battery Scale-Up
- Expect rapid scale: Australia exceeded 5 GW operational batteries in 2025 and could hit 14 GW by 2028, so design for high competition and changing fundamentals.
- Invest in continuous optimisation and skilled teams because revenue streams compress as more batteries connect.