Wind Projects Stall in Australia's Grid Pipeline as Battery Storage Dominates
Wind energy projects continue to account for approximately half of all new connection enquiries on Australia’s main grid. However, new data reveals a rapid decline in the number of these projects progressing to an actual grid application and construction.
The Australian Energy Market Operator’s (AEMO) latest Connection Scorecard for the National Electricity Market indicates that AEMO has received around 180 gigawatts (GW) of connection enquiries. Notably, only approximately one-quarter of these advance beyond the initial enquiry stage.
The Evolving Investment Pipeline
AEMO currently identifies 64 GW of projects that have moved beyond enquiries into what it calls the investment pipeline. This includes projects in various stages: connection application (26 GW), planning and construction (26 GW), registration (5 GW), and commissioning (7 GW).
Within this critical investment pipeline, the technology mix shows a significant shift from initial enquiries. Wind projects constitute only 16% of the total capacity. In stark contrast, battery storage accounts for nearly half of the capacity, with solar-battery hybrids contributing 19.7%. Standalone solar makes up 11.9%, hydro 4.7%, and gas 1.4%.
This data underscores a clear transition from the enquiry stage, where wind projects (both onshore and offshore) hold a large share, to later stages of development which are now heavily dominated by battery storage, and increasingly by solar and battery hybrids. This shift is influenced by the declining cost of battery storage, alongside various planning, social license, supply chain, and cost issues affecting wind projects.
Quarterly Trends: Batteries Lead the Charge
In the last quarter, AEMO reported receiving 25 new applications totaling 8.1 GW. Batteries led with 4.1 GW, followed by wind at 2.3 GW. Solar-battery hybrids accounted for 960 MW, standalone solar 310 MW, and hydro 330 MW.
During the same quarter, 10 projects received registration approvals, comprising four batteries, three solar, one solar-battery hybrid, and one hydro. Furthermore, nine projects completed commissioning, including seven batteries and two solar plants.
"Batteries are the dominant technology in every stage of the process."
Pipeline Maturity and Inverter Technology
Grid approvals and grid registrations for the 2025/26 period are tracking slightly below the previous year. However, commissioning is ahead, particularly with the addition of new partly commissioned projects. Projects at the stage of proponent implementation are 29% ahead of the same time last year, registrations are 2% ahead, and projects in the process of commissioning are 26% ahead.
On the technological front for battery storage, projects incorporating grid-forming inverter technologies now dominate. These account for 13 GW and 30 GWh of new applications, a significant lead compared to 1 GW and 3 GWh for projects with grid-following inverter technologies.
Margarida Pimentel, AEMO Onboarding & Connections Group Manager, commented on the progress, stating that the December quarter demonstrated strong advancement across all stages of the connections process. She highlighted the increasing maturity of the pipeline and the sector's growing capability to deliver.