Batteries have overtaken gas in Australia's evening peak

For the first time, grid-scale batteries supplied more of the evening peak on Australia's main grid than gas. The market operator's plans, and the capital now committing to storage, point the same way.

Every quarter, the Australian Energy Market Operator (AEMO) reports on how the National Electricity Market (NEM) performed over the previous three months. Its Quarterly Energy Dynamics report for July to September 2026 marks a milestone.

Grid-scale batteries supplied 8.0% of generation in the 4pm to 9pm evening peak, against 5.1% from gas. AEMO notes it is the first time batteries have exceeded gas in that window in any quarter.

The evening peak is the most demanding part of the day for the grid. Solar output falls away just as households come home and demand climbs. Storage is now carrying a meaningful share of that load, and it has happened quickly.

A fleet that has grown up fast

Installed grid-scale battery capacity in the NEM passed 10GW / 23GWh at the end of September, including projects still in commissioning. On an average day in the quarter, batteries discharged 10.9GWh into the evening peak, more than three times the 3.2GWh of a year earlier. Most of that energy was stored in the middle of the day, when solar is plentiful.

Battery charging or discharging set the wholesale price in 48% of dispatch intervals, up from 18% a year earlier, making batteries the NEM's most frequent price-setting technology. The average NEM wholesale price fell to A$63/MWh, the lowest for a September quarter since 2021. Renewables supplied a record Q3 share of 44.3% of generation, and gas-fired generation fell to its lowest Q3 average since 2000.

Demand is growing alongside. Underlying demand set a new Q3 record, with data centre load among the drivers. Households are part of the picture too: AEMO's sample data shows homes with solar and batteries drew around three-quarters less power from the grid in the evening peak than solar-only homes.

The plan goes further

AEMO's 2026 Integrated System Plan, published in June, sets out the least-cost path for the NEM: renewable energy, supported by storage, connected by transmission and backed up by gas.

The final plan projects 33GW of grid-scale batteries by 2030. Analysis by Modo Energy puts that around 40% above December's draft and roughly double the 2024 plan's outlook.

The connection queue suggests developers are ready to deliver. AEMO's latest Connections Scorecard shows 80.9GW of generation and storage seeking connection to the NEM, with batteries making up 55% of that capacity. Nearly 40% of battery projects in the queue now offer three to ten hours of storage, a clear move towards longer duration.

State planners are reaching similar conclusions. Speaking at the Energy Storage Summit Australia in March, Paul Peters, chief executive of NSW's Energy Security Corporation, said the state's 2030 storage requirement had risen from 40GWh to 56GWh, driven by the growth of solar, as reported by Energy-Storage.News.

Capital is following

The Clean Energy Council's Clean Energy Australia 2026 report found A$4.8 billion was committed to 4.3GW / 13.5GWh of new large-scale battery capacity in 2025, up 67% on the year before, while large-scale battery costs fell by around 20%. The Council now ranks Australia as the world's third-largest market for utility-scale batteries, after China and the United States.

That momentum has carried into 2026. The Clean Energy Regulator's June-quarter report shows 4.2GWh of large-scale storage reached final investment decision or began operating in the June quarter alone. Among the quarter's drivers, the regulator named falling battery storage costs and the progress of Capacity Investment Scheme projects.

What the market rewards

As batteries become central to the evening grid, the market increasingly rewards quality. That means projects at strong grid locations, with the duration the system needs and long-term contracted revenue. The projects reaching financial close in Australia tend to share those foundations, together with planning consent and a credible construction plan.

Pacific Green in Australia

Pacific Green entered the Australian market in October 2023, bringing experience of developing and delivering grid-scale battery energy parks in the UK. In March 2025 it took Limestone Coast North Energy Park in South Australia through to financial close. Its Australian portfolio spans South Australia, Victoria and New South Wales, and is built around large-scale battery energy parks at strong grid locations.

Australia's energy system is changing quickly, and batteries now sit at the centre of it. The market operator's plan calls for a step change in storage this decade, the fleet is already reshaping the evening peak, and investors are committing at scale. Australia is one of the most attractive storage markets in the world, and Pacific Green intends to play a full part in its growth.