Battery energy storage deployment in Australia’s NEM surges 150% year-on-year, says AEMO – Energy-Storage.News

Report on Battery Energy Storage System (BESS) Deployment in Australia’s National Electricity Market (NEM)

Executive Summary

A recent report from the Australian Energy Market Operator (AEMO) for the third quarter of 2025 reveals a substantial 150% year-on-year surge in the deployment of Battery Energy Storage Systems (BESS) within the National Electricity Market (NEM). This expansion, representing an additional 2,936MW/6,482MWh of capacity over 12 months, marks a critical milestone in Australia’s transition to a sustainable energy future. The rapid growth directly supports the achievement of several United Nations Sustainable Development Goals (SDGs), particularly those concerning clean energy, climate action, and resilient infrastructure.

Key Deployment Statistics (Q3 2025)

• Year-on-Year Growth: BESS capacity deployment increased by 150%.
• Total Capacity Expansion: An additional 2,936 megawatts (MW) and 6,482 megawatt-hours (MWh) were integrated into the NEM over a 12-month period.
• Data Source: Australian Energy Market Operator (AEMO) quarterly report.

Contribution to Sustainable Development Goals (SDGs)

The accelerated deployment of BESS technology is a fundamental enabler for Australia’s progress towards key SDGs.

SDG 7: Affordable and Clean Energy

The expansion of energy storage is pivotal for ensuring access to affordable, reliable, and modern energy for all.

• Enhancing Renewable Energy Integration: BESS stabilises the grid by storing excess energy generated from variable renewable sources like solar and wind, allowing for its dispatch during periods of low generation or high demand.
• Improving Grid Reliability: By providing grid-firming services, battery storage reduces the reliance on fossil fuel-based peaker plants, leading to a cleaner and more resilient energy supply.
• Supporting Energy Affordability: BESS can help lower wholesale energy prices by discharging stored energy during peak price periods, contributing to more affordable electricity for consumers.

SDG 13: Climate Action

This infrastructure development is a direct and urgent action to combat climate change and its impacts.

• Decarbonisation of the Energy Sector: The primary role of BESS in a modern grid is to facilitate the transition away from carbon-intensive fossil fuels, thereby significantly reducing national greenhouse gas emissions.
• Building Climate Resilience: A decentralised and storage-supported grid is more resilient to climate-related disruptions, ensuring energy security.

SDG 9: Industry, Innovation, and Infrastructure

The surge in BESS deployment represents a significant investment in building resilient, sustainable, and innovative infrastructure.

• Modernising National Infrastructure: The integration of large-scale battery storage is a critical upgrade to Australia’s national electricity infrastructure, making it fit for a 21st-century renewable-powered economy.
• Fostering Technological Innovation: This trend drives innovation in energy management systems, grid technology, and sustainable industrial practices.

SDG 11: Sustainable Cities and Communities

A stable and clean energy grid is foundational for making human settlements inclusive, safe, resilient, and sustainable.

• Powering Sustainable Urban Areas: Reliable access to clean energy, supported by BESS, is essential for powering public transport, healthcare, and other critical urban services sustainably.
• Reducing Urban Pollution: By enabling a shift from fossil fuels, BESS contributes to improved air quality in cities and communities.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy
   • The article’s central theme is the rapid deployment of Battery Energy Storage Systems (BESS). BESS technology is critical for ensuring a stable and reliable supply of clean energy, as it stores power generated from intermittent renewable sources like solar and wind, making it available when needed. This directly contributes to the goal of increasing access to clean energy.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The massive expansion of BESS capacity represents a significant upgrade to Australia’s National Electricity Market (NEM) infrastructure. This deployment is an innovative solution to modernize the energy grid, making it more resilient, sustainable, and capable of supporting a higher penetration of renewable energy sources.
3. SDG 11: Sustainable Cities and Communities
   • By enhancing the reliability of the power grid and facilitating the transition to cleaner energy, the deployment of BESS contributes to building more sustainable and resilient energy infrastructure for communities. A stable power supply is essential for the functioning of modern cities.
4. SDG 13: Climate Action
   • The article highlights a key strategy for climate change mitigation. By enabling greater use of renewable energy and reducing reliance on fossil fuels for grid stability, BESS deployment directly supports actions to combat climate change and its impacts. The surge in battery storage is a tangible step towards decarbonizing the electricity sector.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • The article discusses the expansion of BESS, which is an enabling technology essential for increasing the share of variable renewable energy in the grid. The 150% year-on-year surge in deployment directly supports the integration of more renewables, thus contributing to this target.
2. Target 7.b: By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services.
   • The deployment of 2,936MW/6,482MWh of BESS capacity is a direct example of expanding and upgrading energy infrastructure with modern, sustainable technology as described in the article.
3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure.
   • Battery storage systems improve the reliability and resilience of the electricity grid, which is a critical piece of national infrastructure. The article’s focus on the growth of BESS in Australia’s NEM points directly to efforts to build more resilient energy infrastructure.
4. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The rapid growth of BESS deployment, as reported by the Australian Energy Market Operator (AEMO), reflects the integration of climate-friendly energy solutions into Australia’s national energy strategy. This infrastructure build-out is a key measure for achieving climate goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 7.2 and 7.b: Increase in renewable energy capacity and infrastructure investment.
   • The article provides specific quantitative data that can be used as indicators of progress. The figures “2,936MW/6,482MWh” represent the expansion of installed capacity for energy storage infrastructure over 12 months. This directly measures the growth of technology that enables a higher share of renewables.
2. Indicator for Target 9.1: Rate of infrastructure development.
   • The statement that deployment “surges 150% YoY” is a direct indicator of the accelerated rate of development of new, resilient energy infrastructure. This percentage growth highlights the speed at which Australia is upgrading its energy systems.

4. SDGs, Targets, and Indicators Summary Table

Source: energy-storage.news