Transgrid has shortlisted nine battery projects to support the energy transition in New South Wales. The third-party owned batteries will begin providing system strength services to the New South Wales transmission network as early as this year.
The initiative is a cornerstone of Transgrid’s strategy to maintain the grid’s ‘heartbeat’, or the technical stability required to keep power flowing, at the lowest possible cost to households.
Following extensive technical modelling, the network operator has shortlisted the nine battery projects for an initial procurement tranche, targeting priority locations where stability gaps are emerging.
Transgrid Executive General Manager of Network, Jason Krstanoski, confirmed that negotiations are currently underway to secure up to 2GW of grid-forming battery capacity, with the first of these services expected to go live 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,” Krstanoski said.
By contracting existing or advanced-stage private assets, Transgrid aims to bypass the massive capital expenditure typically required for traditional infrastructure.
This market-led approach leverages Australia’s position as the world’s third-largest market for big batteries, according to analysis by Rystad Energy.
As the designated System Strength Service Provider (SSSP) for NSW, Transgrid is targeting 5GW of stabilising services from private batteries by 2033. These digital solutions will complement the physical spinning mass provided by traditional synchronous condensers.
“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,” Krstanoski 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.
Grid-forming batteries and synchronous condensers underpin Transgrid’s comprehensive 10-year plan to transform the state’s power system and ensure the secure operation of the grid at up to 100 per cent instantaneous renewables.
