Battery Storage Sites in High Demand, Landowners Profiting
The demand for large-scale battery storage projects in Australia is rapidly increasing, with prime sites expected to be fully occupied within the next three years. However, this surge in demand is not translating into higher prices for landowners, according to Daniel Moroko, the head of Rok Solid, a company specializing in acquiring land for renewable energy projects.
Moroko highlights that in New South Wales (NSW) and Victoria, most of the ideal locations for battery sites have already been claimed. As a result, he anticipates a shift towards smaller, local batteries that can be situated near 66 kilovolt (kV) lines close to small substations.
Challenges in Land Acquisition
Despite the increasing scarcity of suitable sites, Moroko notes that the prices of land around substations are not experiencing a significant surge. This is because the development of one project reduces the available capacity for neighbouring projects, thereby impacting the overall value of the land.
He explains, “There’s a finite number of battery energy storage sites remaining in the country. However, the presence of planned projects near substations diminishes the value of the surrounding land, as it reduces the available capacity.”
Many landowners are unaware of this dynamic, leading to unrealistic price expectations or terms that may not align with the market reality.
