Grid-Forming Batteries Take Center Stage in NSW Push

TransGrid shortlists 2GW of grid-forming battery projects in NSW to replace stability lost from coal retirements before 2030.

26 Jun 2026

TransGrid has shortlisted 2GW of grid-forming battery storage projects across New South Wales, moving to secure system strength services as coal plant retirements remove traditional sources of grid stability. Contract negotiations are targeted for completion by mid-2026.

Coal's exit has reshaped what the grid needs. NSW now requires 56GWh of battery storage by 2030, a figure that has grown sharply as rising solar generation saturates daytime output and pushes demand for storage well beyond earlier estimates. Paul Peters, chief executive of the NSW Energy Security Corporation, confirmed that solar expansion was the direct cause of the revised target.

Grid-forming inverters are central to the approach. Unlike conventional batteries that follow the grid's existing signal, grid-forming technology actively supports voltage and frequency stability, replicating functions once delivered by spinning turbines in coal plants. Jason Krstanoski, TransGrid's executive general manager for networks, said third-party-owned batteries allow the company to accelerate grid strengthening without acquiring new plant or undertaking major network upgrades, keeping capital deployment lean while still delivering the stability services the market requires.

Industry data supports the shift. According to figures citing an AEMO report, 74 percent of Australia's battery storage pipeline now features grid-forming inverters, a proportion that reflects broad confidence in the technology across the sector. Procurement decisions nationwide are already reflecting that shift.

For energy consumers and businesses in New South Wales, the shortlisting represents a concrete step toward a more resilient grid. As negotiations conclude and projects move toward construction, the state edges closer to a storage base capable of supporting accelerating renewable growth through the next decade.