Big Batteries Surge Ahead of Gas in Evening Peaks

The rapid expansion of big battery projects is transforming Australia’s energy landscape, with batteries now playing a key role in setting electricity prices during peak evening demand.

Batteries Now Second Only to Hydro

22% share in evening peak price-setting (6:30 PM interval), surpassing gas and coal.

Batteries set an average price of $309/MWh, compared to $189/MWh for gas and $111/MWh for hydro.

Battery Revenue Soars

Grid-scale battery net revenue hit $69.5 million, more than doubling from $31.5 million in Q4 2023.

Energy market net revenue grew by $34.6 million to $48.1 million, making up 69% of total battery earnings.

Revenue from energy generation (discharging) surged 300%, adding $38.4 million.

Market Growth & Volatility

NEM-wide battery capacity increased 44%, reaching 1,087 MW by end of 2024.

Battery generation averaged 90 MW, nearly double year-on-year levels.

NSW and Queensland saw the highest price volatility, benefiting battery and pumped hydro projects.

Pumped hydro revenue tripled, reaching $83.3 million, with Wivenhoe in Queensland leading.

Wholesale Demand Response (WDR) Spikes

Dispatch rose to 103 MWh in Q4 2024, compared to just 1 MWh in Q4 2023.

NSW high-price events saw demand response reach 92 MWh, with spot prices hitting $3,633/MWh in some periods.

As coal generation declines and renewables expand, battery storage is taking center stage in energy arbitrage and grid stability. With higher revenue potential and increased investment, battery deployment is expected to accelerate, further driving the transition to a cleaner and more resilient energy grid.

Looking for expert advice on energy storage, solar solutions, or energy efficiency? EServices4U helps businesses and households cut costs and boost resilience with smart energy solutions. Visit www.eservices4u.com today!