Australia’s new 2,200MWh of grid-forming battery storage shows how AI, software, and flexible capacity are quietly rewiring the clean energy grid.
Australia just pushed another 2,200MWh of grid-forming battery energy storage toward reality. That’s not a press-release vanity metric; it’s enough flexible capacity to shift several hours of peak demand for millions of homes and businesses.
Here’s the thing about this moment: projects like FRV Australia’s Terang BESS and AGL’s Tomago Battery aren’t just “more renewables infrastructure.” They’re the backbone of a new, AI-enabled, low‑carbon grid where software and storage quietly keep everything stable while coal and gas retire.
This matters because anyone working in green technology, energy, heavy industry, or large‑scale property now has a new playbook: storage, software, and smart controls first. The two projects in this article show exactly how that playbook is being written in real time.
1. What’s Actually Happening in Australia’s Grid Right Now
Australia is moving fast on grid-scale batteries, but these two projects stand out because they’re both grid-forming and software-driven:
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FRV Australia – Terang BESS (Victoria)
- 100MW / 200MWh battery energy storage system
- First standalone storage project for FRV Australia
- Equipped with grid-forming inverters
- Optimised by intelligent algorithms and Fluence’s Mosaic software
- Now successfully connected to the National Electricity Market (NEM) and entering commissioning
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AGL – Tomago Battery Project (New South Wales)
- 500MW / 2,000MWh grid-forming BESS
- AU$800 million investment
- Targeting operations in H2 2027
- Built with Fluence’s Gridstack Pro platform
- One of Australia’s largest planned grid-forming storage assets, also connected to the NEM
Together, these systems represent 2,200MWh of dispatchable, software‑orchestrated clean energy capacity. They’re designed to do three things extremely well:
- Stabilise a renewables-heavy grid as coal plants shut down.
- Shift energy in time – soak up cheap solar and wind, release during peaks.
- Provide essential system services (frequency, inertia, voltage support) that fossil plants used to deliver “for free” as a by-product.
If you care about decarbonisation, these are the kinds of assets you want to see getting built.
2. Why Grid-Forming Batteries Are a Big Deal (Not Just a Buzzword)
Most companies hear “battery storage” and think: big lithium-ion box that charges when prices are low and discharges when prices are high. That’s only half the story.
Grid-forming batteries go further. Instead of just following the grid, they set the rhythm of the grid.
Grid-following vs grid-forming: the simple version
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Grid-following inverters:
These act like good listeners. They sync to an existing voltage and frequency created by big spinning generators (coal, gas, hydro) and inject power accordingly. -
Grid-forming inverters:
These act like leaders. They create a stable voltage and frequency reference, allowing renewables and other resources to operate even when traditional generators aren’t there.
In a system with high solar and wind penetration, grid-forming batteries provide:
- Virtual inertia – fast response to keep frequency stable when there’s a disturbance.
- Black start capability – the ability to help restart parts of the grid after an outage.
- Stronger hosting capacity – more renewables can connect without destabilising the system.
Australia’s National Electricity Market is already seeing periods where renewable penetration is above 70% in some states. That level simply doesn’t work at scale without grid-forming technology.
So when Terang and Tomago commit to grid-forming capabilities, they’re not checking a fancy box. They’re solving the technical bottleneck that’s blocked deeper decarbonisation in many markets.
3. AI, Software, and the New Operating System of the Grid
The reality is simpler than you think: the hardware matters, but the software is what makes these batteries truly “green technology.”
Both Terang and Tomago rely on advanced control platforms to squeeze value out of every MWh:
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Terang BESS uses intelligent algorithms and Fluence’s Mosaic optimisation to decide:
- When to charge from the grid or nearby renewables
- When and how fast to discharge
- Which grid services (energy, frequency, capacity) to prioritise at any moment
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Tomago Battery will run on Gridstack Pro, which is built for:
- Multi‑service operation (energy shifting + ancillary services + capacity)
- Complex market participation in the NEM
- High-availability operation for critical infrastructure
From an AI and analytics perspective, this is where things get interesting:
A 500MW / 2,000MWh battery isn’t a big battery. It’s a real-time decision engine that just happens to move electricity instead of money or data.
What AI actually does in grid-scale storage
In practice, AI and advanced optimisation for BESS will:
- Forecast renewable generation and load at 5–60 minute intervals.
- Model price signals and constraints in the National Electricity Market.
- Optimise bids for energy and services across multiple markets.
- Adapt to asset health, degradation, and operating constraints.
For investors, operators, and large energy users, this means:
- Higher revenue per installed MWh – smart dispatch beats static schedules.
- Lower risk – software can detect edge cases and avoid penalties.
- Better asset life – smart charging protects batteries from unnecessary degradation.
If you’re building a sustainability strategy for your business, it’s not enough to ask, “Do we have storage?” The sharper question is, “How smart is our storage?”
4. What This Means for Businesses, Investors, and Cities
Projects like Terang and Tomago aren’t isolated wins. They signal how green technology, AI, and energy storage will show up in your world over the next 5–10 years.
For large energy users and corporates
If you run factories, data centres, campuses, or large property portfolios, these grid-forming batteries unlock:
- More reliable renewables-backed contracts – corporate PPAs supported by storage are less exposed to volatility and curtailment.
- Better power quality – fewer disturbances from frequency and voltage swings in high-renewables regions.
- New on-site options – behind-the-meter batteries can mimic some of the same grid-forming and optimisation capabilities, especially for microgrids.
A practical roadmap many organisations are following:
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Short term (0–2 years):
- Energy analytics
- Demand response participation
- Small-scale battery pilots
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Medium term (2–5 years):
- On-site or co-located BESS projects
- Hybrid systems (solar + storage + controls)
- Integration with building or process controls
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Long term (5+ years):
- Local microgrids with partial islanding ability
- Active participation in flexibility and capacity markets
- Full digital twin and AI-optimised energy operations
For investors and project developers
The Tomago Battery’s AU$800 million price tag tells you two things:
- Capital is available for long-duration, grid-forming assets when the regulatory signals are clear.
- Scale matters: 2,000MWh in one location is vastly more bankable than 20 x 100MWh projects scattered with weak revenue models.
If you’re structuring deals around energy storage in 2026 and beyond, expect:
- More value on software capability in due diligence. A 200MWh asset with strong optimisation can outperform a 300MWh asset with mediocre controls.
- More structured revenue stacks: energy + FCAS / ancillary services + capacity + network support.
- Regulators to reward grid-forming and system-strength contributions, not just raw megawatts.
For cities and regions
On the policy and planning side, Terang and Tomago reinforce a simple lesson:
You can’t build a renewables-led grid without storage-led stability.
For regions trying to become green technology hubs, that means:
- Prioritising grid-forming storage in planning documents.
- Streamlining approvals for projects that add inertia, system strength, and resilience.
- Coordinating with industry clusters – heavy industry, ports, data centres – to site storage where it reduces congestion and unlocks new loads.
5. How to Position Your Organisation in This Shift
Most organisations sit in one of three camps right now:
- Spectators – watching the transition and hoping existing suppliers “handle it.”
- Tactical movers – running pilots, signing green contracts, but without a cohesive storage and data strategy.
- System thinkers – treating energy, data, and flexibility as strategic assets.
If you want to be in the third camp, storage projects like Terang and Tomago point to a clear action list.
Step 1: Map your flexibility potential
Start by asking:
- Where can we shift load by 15–60 minutes without hurting operations?
- Which sites could host behind-the-meter batteries or participate in flexibility markets?
- How much value is currently being wasted in demand spikes, penalties, or curtailment?
This is where AI-based analytics tools earn their keep.
Step 2: Connect with grid-scale storage
You don’t need to own a 500MW battery to benefit from one.
Options include:
- Structuring PPAs or contracts that explicitly include storage-backed supply.
- Joining aggregation platforms that bundle flexible loads and small batteries into grid-scale resources.
- Working with retailers who actively source from grid-forming and storage-backed assets.
Step 3: Treat software as core infrastructure
Whether you’re building your own microgrid or renegotiating your retail contract, ask tough questions about the software stack behind it:
- How are dispatch and optimisation decisions made?
- What forecasting and AI capabilities are in place?
- How is asset life and performance being monitored and improved over time?
Energy storage isn’t just metal in the ground anymore. It’s a digital asset with a physical footprint.
Where This Fits in the Bigger Green Technology Story
Within our broader Green Technology series, Terang and Tomago are clear markers of where everything is heading:
- Clean energy isn’t just more solar panels and wind turbines. It’s smart, flexible infrastructure that uses AI to keep the system stable.
- Smart cities won’t run on static grids. They’ll run on interactive networks that combine batteries, flexible loads, EVs, and data.
- Sustainable industry will depend on access to reliable, low‑carbon, storage-backed power, not just “renewable certificates.”
Australia is showing how this can work at national scale: grid-forming batteries, AI‑driven optimisation, and clear investment signals. The question for every business and city elsewhere is simple:
Are you planning for a world where these systems are rare, or a world where they’re standard?
If it’s the latter, now’s the time to start treating energy storage and intelligent controls as core parts of your green technology roadmap—not an optional add‑on you’ll think about later.