Eight grid-scale battery projects across Australia will receive $176 million in conditional funding from the Australian Renewable Energy Agency (ARENA).

Funded under ARENA’s Large Scale Battery Storage Funding Round, each battery will be equipped with grid-forming inverter technology, allowing them to provide essential system stability services traditionally provided by synchronous generation such as coal and gas.

With a total project value of $2.7 billion and a capacity of 2.0GW (4.2GWh) these projects represent a tenfold increase in grid-forming electricity storage capacity currently operational in the National Electricity Market.

The Large Scale Battery Storage Round was launched in December 2021 with an initial funding envelope of $100 million. In recognition of the high quality of applications received, this was expanded to $176 million, including $60 million in additional funding provided to ARENA by the Australian Government in the October 2022 budget as part of its Support for Energy Security and Reliability budget measure.

ARENA chief executive Darren Miller says the batteries represent a transformative portfolio of new storage capacity: “Battery storage is an essential technology in the transition to renewable energy, allowing us to smooth out variable generation and store electricity for when it’s needed.

“These next-generation grid-scale batteries will underpin this transition, with inverter technology that can maintain grid stability without the need for coal and gas generators. This pipeline of grid-forming projects will help move us closer to an electricity grid that can support 100% renewable energy in the NEM.”

He adds that ARENA received my high-quality proposals and the government saw an opportunity to deliver a step change in grid-forming capabilities across the NEM which have been backed by funding.

ARENA has previously provided $81 million in funding for eight grid-scale batteries, including five with grid-forming capability at a smaller scale. The 150MW/194MWh Hornsdale Power Reserve in South Australia, which received ARENA funding for its 2019 expansion, is currently the largest grid-forming battery in Australia.