Battery energy storage systems (BESS) are receiving major investment to support the transition to renewable energy and stabilise the grid. Although storage capacity is expanding and infrastructure spending is increasing, household power prices continue to rise. Higher network and transmission costs are the primary drivers of this trend.
Currently, six large-scale BESS projects worth $2.5 billion have secured funding in early 2025. These developments are set to deliver 1.5 gigawatts of added storage capacity and 5 gigawatt hours of output. Investment in renewable generation has risen 500% to reach $9 billion over the past year. Renewable energy combined with battery storage is now considered the lowest-cost method of generating electricity, although the savings are not yet reaching consumers.
A key issue is the delivery of energy to homes. Transmission infrastructure, which accounts for more than half of the retail electricity cost, is costly. With increasing demand on the system, transmission expenses are growing. Since batteries store rather than produce power, their benefit depends on timing, which makes it harder to pass the savings through to households.
To address this, developers are introducing new software aimed at improving how batteries interact with the grid. These tools help optimise battery performance by managing when batteries are charged or discharged based on grid demand. This allows operators to maintain reliability and maximise returns. One such developer is working with international clients in Europe and the US using open-source platforms that are adaptable and designed to improve investment outcomes.
Looking ahead, the combination of smarter software and more storage could make Australia's electricity supply more efficient and cleaner. However, the impact on consumer bills will rely not only on technological improvements but also on competitive markets and infrastructure reform.
