Australia’s National Electricity Market Adds 1.8 GW of New Capacity in Q4 2025

Australia’s National Electricity Market (NEM) added 1.8 GW of new renewable generation and energy storage capacity during the fourth quarter of 2025. The increase came from two large solar farms and seven battery energy storage projects that reached full operational output during the October–December period.

The development pipeline for new generation and storage projects continued to expand, reaching a record level of approximately 64 GW by the end of the quarter. This represented a 14% increase compared with the previous quarter, highlighting sustained investment interest in Australia’s energy transition.

During the fourth quarter, applications were submitted for around 26 GW of new capacity, while 3.8 GW across 18 projects received approval to proceed. In addition, nearly 1.9 GW of capacity across solar, solar-plus-storage hybrid, hydroelectric, and standalone battery projects was formally registered and connected to the NEM, enabling these assets to move toward full commercial operation.

Nine projects achieved full output during the quarter, representing a key milestone in the commissioning process. The 1.8 GW brought online in Q4 lifted cumulative capacity commissioned to full output in the 2026 financial year to date to approximately 3.8 GW—nearly 90% higher than at the same point in the previous year.

Battery storage continues to dominate the NEM investment pipeline, accounting for nearly half of all projects undergoing the connection process. Hybrid solar and battery projects represent close to one-fifth of the pipeline, followed by wind, standalone solar, hydro, and gas-fired projects.

The growing deployment of battery storage is enhancing the value of renewable generation by storing low-cost electricity during periods of high output and releasing it to support demand during peak periods, strengthening overall system reliability.