Australia’s renewable energy sector recorded its slowest month of the year for additions in September, with 5.8GW of new projects added to development pipelines, according to data from Rystad Energy.
This is a sharp decline from July’s record-breaking highs, which saw almost 20GW of capacity added, and a marginal decrease month-on-month.
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Alokita Shukla, an Australian renewables and power senior analyst at Rystad Energy, noted on LinkedIn that despite fewer new project announcements, activity in project approvals, construction milestones, and corporate transactions remained robust throughout September.
Queensland led state-level capacity additions with 2.2GW of new projects, followed by New South Wales contributing 2GW to the national pipeline. The state’s solar sector has also demonstrated strong operational performance, with utility-scale plants dominating performance rankings and consistently topping utility performance metrics.
Solar PV additions totalled 800MW, primarily from smaller hybrid projects that combine solar generation with battery storage. The hybrid approach has become increasingly common as developers seek to optimise project economics and grid integration capabilities.
This is perhaps best showcased in the latest Capacity Investment Scheme (CIS) Tender 4 results, which saw 6.6GW of renewables awarded long-term contracts, many of which comprise solar-plus-storage configurations.
Utility-scale battery storage additions make up 78% of new capacity
Utility-scale battery energy storage systems (BESS) comprised 78% of total capacity additions during September, with 4.5GW distributed across 24 individual assets.
The dominance of battery storage projects reflects the growing recognition of energy storage as essential infrastructure for grid stability as renewable energy penetration increases across the National Electricity Market (NEM).
ACEnergy emerged as a major contributor via its Croydon solar-plus-storage project, which combines 625MW of solar generation with a 500MW/2,000Wh battery system.
Lightsource bp also advanced its storage portfolio with a 49MW/562MWh DC-coupled BESS addition at the Goulburn River Solar Farm. At the same time, Neoen achieved a milestone with the completion of the 270MW/540MWh Western Downs BESS Stage 2.
The system brings Neoen’s Western Downs facility’s total capacity to 540MW/1,080MWh, establishing it as Australia’s largest operational battery project, Shukla said.
Developer Tilt Renewables also contributed to the battery storage expansion with its 100MW/200MWh Latrobe Valley BESS, adding grid-scale storage capacity in Victoria’s transition away from coal-fired generation.
Wind energy additions proved minimal during September, with only Green Wind Renewables’ 450MW Mahogany Wind Farm in Western Australia contributing to the technology segment.
Shukla said the limited wind activity contrasts with stronger performance in previous months and reflects the project-specific nature of development announcements.
Strong approval and deal activity
Project approvals exceeded 3GW during September, indicating continued regulatory progress despite slower development pipeline announcement activity.
Federal EPBC approvals advanced several major developments, including ACEN’s 943MW Valley of the Winds project and the 1.3GW Pottinger Energy Park developed by AGL and Someva Renewables.
Edify Energy secured federal approval for its 300MW Nowingi solar-plus-storage project, adding to the company’s substantial development pipeline before its acquisition by La Caisse.
State-level fast-track approvals included TrinaSolar’s Killawarra Hybrid project in New South Wales and Pacific Green’s 1GW Portland Energy Park in Victoria.
Contract activity remained strong throughout September despite slower project announcements. HiTHIUM Energy Storage secured a battery supply contract for FRV’s 250MW/500MWh Gnarwarre BESS, while GenusPlus Group won EPC work for Alinta Energy’s Wagerup BESS project.
Neoen signed a 10-year power purchase agreement with BHP for 100MW from its Goyder North Wind Farm and Goyder Battery, demonstrating continued corporate appetite for renewable energy procurement. The agreement provides long-term revenue certainty for Neoen while supporting BHP’s decarbonisation objectives.
You can explore September’s solar generation performance in our latest NEM data spotlight, with all entries available to PV Tech Premium subscribers.
