In 2024, Australia’s energy sector is undergoing a notable shift toward battery storage. This year marks a significant step in integrating big battery projects already underway, which not only enhance capacity but also improve energy management and grid stability. Batteries are increasingly vital to our renewable energy strategy, as they enable us to store excess energy from renewable sources and release it during peak demand. This can be achieved by a combination of a smaller number of large scale “big batteries” and a comprehensive network of batteries at the consumer level that operate in concert with rooftop solar, this is sometimes called Consumer Energy Resources (CER). With advancing technology and decreasing costs, these batteries are becoming essential for our transition to a greener grid.

In this article, we will delve into the specifics of why 2024 is a landmark year for big batteries in Australia, including technological advancements, policy changes, market trends, and the integration of grid-scale storage solutions.

A Landmark Year for Grid Scale Storage – Big Batteries

2024 is set to be a transformative year for big battery storage in Australia, surpassing wind and solar projects for the first time. Technological advancements in efficiency and storage capacity are crucial in managing the intermittency challenges of renewables. Supportive government policies and increased investor interest are driving the growth of the big battery sector. Big batteries play a critical role in enhancing grid stability by balancing supply and demand and providing emergency backup. While challenges exist, the opportunities for a more sustainable and efficient energy future are significant in 2024 and beyond. The benefit of having a large capacity “big” battery to be able to quickly despatch a large amount of capacity during times of peak demand into the grid are obvious, and these are generally situated near large scale renewable generation capacity such as wind farms or solar farms, utilising the HV transmission infrastructure that services the renewable generation infrastructure.

Consumer Batteries (CER)

The simple idea behind Consumer Energy Resources, is to distribute many Battery Energy Storage Systems (BESS) in as close a proximity as possible to the point of generation at individual consumer locations. This removes them from the demand equation by utilising their own stored capacity at peak times. These consumers could also export their excess capacity to supply other installations in their local area, further reducing the evening peak. The beauty of CER is that it fixes the daytime “negative demand” (or solar power over supply) problem at the source, currently the oversupply of rooftop PV during the day causes local grid instability, so much so, that distribution networks across the country have controls in place to “switch off” privately owned solar during times of oversupply.

Rather than relying on large, centralised storage that needs long runs of HV transmission lines to transfer the energy to our cities and towns, many BESS located in private homes and businesses are installed throughout towns and cities utilising the existing distribution infrastructure. This removes single points of failure, and increases network resilience, whilst at the same time incrementally and progressively increasing system storage capacity with each individual system installed. CER would reduce the need for as many large-scale projects dramatically, utilising the existing distribution networks of our cities and towns that has been paid for by the public over the last 100years. It enables co-investment from ordinary taxpayers to take control of their own energy usage, utilising their own assets that they have paid for in the most efficient way.

Most state governments have had had successful battery subsidy pilots, MEA are advocating in every jurisdiction that battery subsidies for CER to be put at the centre of dispatchable storage policy so that the shifting of the solar PV generation curve can take place more rapidly and more cheaply than relying on Mega storage projects alone.

Trends and Challenges in Australia’s Battery Industry

Emerging Trends in Battery Technology
– Batteries are improving with higher energy densities, longer lifespans, and faster charging capabilities, with innovations like solid-state batteries offering even greater efficiency and safety.

Sustainability in Focus
– There is a growing emphasis on the lifecycle and environmental impact of batteries, leading to research into recyclable and eco-friendly materials that could change manufacturing and disposal processes.

Challenges in Supply Chain and Material Availability
– Supply chain issues and the availability of critical materials like lithium, cobalt, and nickel pose concerns for battery production, impacting costs and project timelines.

Regulatory Landscape and Compliance
– As big batteries become more important in Australia’s energy infrastructure, regulations and standards are evolving, requiring contractors to stay compliant to ensure safe and efficient installations.

Adapting to Market Needs and Consumer Expectations
– The demand for reliable and efficient battery storage solutions is increasing with the growth of renewable energy, necessitating contractors to be responsive to market changes and evolving industry demands.

Battery Storage vs Renewable Energy Project Approvals

Record construction starts for big batteries, coupled with an increased uptake in home batteries demonstrate the sector’s response to the need for energy storage solutions for renewable energy sources. These batteries are essential for grid management, providing backup power and improving renewable energy utilisation. There has been a decline in approvals for new large wind and solar projects due to regulatory hurdles and community opposition, whilst at the same time installation of rooftop PV is still growing strongly. Energy storage, particularly home batteries, is crucial for bridging the gap and maximising renewable energy potential. Integrating these batteries into the grid presents challenges that require careful planning and coordination. Electrical contractors have significant opportunities in this evolving industry, with a growing demand for their expertise in installing and managing battery systems.

Navigating the Future of Batteries

The future of batteries in Australia is both promising and challenging. They are transitioning from storage solutions to integral components of the energy grid, providing rapid response to fluctuations in demand and supply. Scaling up and integrating these projects pose challenges that require collaboration and innovative solutions. Big batteries are crucial for managing the intermittency of renewable energy and offer electrical contractors opportunities to be at the forefront of industry transformation.

2024 stands as a pivotal year in the journey of big batteries in Australia’s energy sector. With their growing importance in grid stability and renewable energy integration, big batteries are not just a trend; they are a necessity. The challenges in scaling up and technological integration present unique opportunities for electrical contractors to innovate and grow. As we move forward, the collaboration between various sectors and continuous adaptation to new technologies will be key to harnessing the full potential of big batteries in Australia’s renewable energy landscape.

Find out more about advocacy work we have been doing recently in this space on our dedicated Advocacy page.