Octopus Australia has referred its 1.2 GW / 4.8 GWh Hanworth Battery Project for federal environmental assessment, a major step for one of New South Wales’ largest proposed storage assets. The four-hour duration battery, developed with partner Enervest, signals the continued momentum in the state’s utility-scale storage pipeline as developers move to meet anticipated demand from retiring thermal generation and new power-hungry industries.
That demand is being shaped by firm federal policy. Energy Minister Chris Bowen dismissed claims of fossil fuel exemptions for data centres, affirming that all states must adhere to proposed renewable energy mandates for the sector. This uniform national approach contrasts with moves in the Northern Territory, where the government is fighting to power future data centres with gas while its utility tenders for more grid-scale solar to ease pressure on costly gas peakers.
The robust Australian project pipeline exists within a turbulent global manufacturing landscape. Major Chinese solar manufacturers reported significant financial losses for the first half of 2024, squeezed by persistent market oversupply and depressed module prices. This downturn in profitability is occurring even as Intertek CEA forecasts global solar installations are forecast to hit a record 638 GW this year, highlighting a severe structural imbalance between manufacturing capacity and projected demand.
In contrast, the battery supply chain shows signs of stabilising. Leading Chinese BESS manufacturers including CATL, EVE, and REPT are reporting steady earnings growth, with second-tier players returning to profitability. The financial recovery follows recent market volatility, suggesting a healthier supply-demand balance than that seen in the solar PV sector. This divergence matters for Australian developers weighing technology choices and supply chain risk.
At the local level, the transition is becoming more tangible. Ausconnex has begun construction on its AU$65 million community battery programme, starting with the first of eight planned BESS units across Greater Western Sydney. Meanwhile, a coalition of nine councils in north-western Victoria is developing a new strategy to ensure their communities capture more of the economic benefits from the renewable energy build-out in their region.
Decarbonisation is also advancing in the resources sector, with Gina Rinehart’s Mt Weld rare earths mine achieving a 93% renewable energy penetration rate so far this year. The achievement supports the greening of a supply chain critical for electric vehicles. In the NEM, market behaviour continues to evolve, with WattClarity analysis flagging a curious, unforecast 500 MW jump in Victorian market demand on Friday, potentially linked to a retailer's 'three hours free power' promotion.
While Minister Bowen this week reaffirmed the critical importance of transmission links like VNI West, he provided no new cost or timeline update for the troubled Snowy 2.0 project. Attention now turns to market rule-making, with AEMO seeking feedback on its latest dispatch compliance discussion paper. Submissions on the paper close on September 25.