Australia Backs Lithium-Ion Battery Surge in Western Australia

Canberra, Li battery 

Canberra’s CIS Program Expands Storage by 2.6GWh, Supporting Grid Reliability and Renewable Integration

Federal Government Underwrites Four Major Battery Projects in WA

Australia’s federal government has committed to underwriting four lithium-ion battery projects in Western Australia, adding 2.6GWh of storage capacity by late 2027. The investment comes through the Capacity Investment Scheme (CIS), a national program designed to stabilize revenue for renewable and storage developers over a 15-year period.

Although the government has not disclosed exact revenue floor levels for these projects, the financial backing provides long-term security, encouraging private investment in energy infrastructure.

PGS Energy and Neoen Lead Battery Expansion in WA

The largest of the new CIS-backed batteries is a 1.2GWh system in Marradong, developed by PGS Energy. Co-located with a solar farm, it will connect to the South West Interconnected System (SWIS) — the grid serving WA’s most populated regions.

Neoen, a French renewable energy company, will construct a 615MWh battery outside Perth. The company has already established a strong presence in Australia, operating the Collie Battery Energy Storage System since October 2024. That system alone manages 877MWh and is also connected to SWIS.

Two smaller battery systems, totaling 780MWh, will be built in WA’s rural areas. All four projects represent a regional leap forward in clean energy storage capabilities.

National Battery Strategy Accelerates Toward September Megaround

This announcement follows Canberra’s December 2024 decision to underwrite eight other batteries totaling 3.6GWh in three Australian states, excluding WA. The government plans another major round of funding in September 2025, targeting a cumulative 16GWh. So far, over 100 projects with 135GWh in capacity have applied.

Through the CIS, Australia is accelerating its transition toward a renewable-powered grid. Lithium-ion battery storage plays a pivotal role in managing variable solar and wind inputs while enhancing grid resilience.