Waratah Super Battery Setback: What It Teaches Us About Energy Market Risk

Australia’s largest battery project — the $1 billion Waratah Super Battery in New South Wales — was designed as a flagship for the country’s renewable transition. With a massive 850 MW of capacity, it was expected to strengthen the grid during peak demand and support the shift away from coal-fired generation. 

But during final testing, one of the battery’s key transformers suffered a catastrophic, non-repairable failure, delaying full operation until May 2026. While the site continues to provide limited services through the System Integrity Protection Scheme (SIPS), the incident highlights a broader truth: even the most advanced energy infrastructure carries risk.

1. A Setback for Australia’s Biggest Battery 

The failure occurred during the final commissioning phase and involved major damage to one of the main transformers. It was severe enough to push back the operational timeline by nearly a year. 

Despite the setback: 

• The asset still provides 350 MW of grid-support services through SIPS 

• Partial capacity remains online 

• Grid stability is not immediately threatened 

However, it raises important questions about the reliability of large-scale storage — especially as the grid becomes increasingly dependent on batteries. 

2. The Company’s Response 

Internal memos from Akaysha Energy CEO Nick Carter, shared with stakeholders and reported by the AFR, outlined the following: 

• Two transformers experienced significant issues during testing 

• Engineers are working with suppliers to investigate the root cause 

• Progressive capacity restoration is planned throughout 2026 

• Grid integrity remains secure 

The transparency from Akaysha Energy underscores the complexity of commissioning large-scale batteries and the crucial role of robust reliability testing during early deployment. 

3. Why One Failure Matters to the Market 

A single transformer may seem small, but in an electricity market increasingly reliant on batteries for firming and frequency control, every megawatt contributes to system stability. 

Failures at this scale can lead to: 

• Reduced reserve margins during heatwaves 

• Increased volatility risk, even if not immediately visible in prices 

• Softening market confidence, influencing futures pricing across the NEM 

Today’s apparently calm prices may not reflect the underlying risk building beneath the surface. 

4. How This Shapes Energy Market Stability 

Australia’s energy system is shifting from dependable baseload generation to a more flexible, storage-driven grid. As we rely more heavily on batteries like Waratah: 

• Storage outages have wider market impacts 

• Technical problems can be seen in specialist datasets (like MT PASA) long before retail prices move 

• Market resilience now depends as much on the health of storage assets as traditional generators 

This incident reinforces the importance of closely monitoring infrastructure risks — not just wholesale price movements. 

5. What Businesses Should Take Away 

For commercial energy users — especially those spending $7,000+ per month — the lesson is clear: 

Don’t confuse price stability with risk stability. 

Even during low-volatility periods: 

• Supply disruptions can exert upward pressure on future pricing 

• Futures markets may already be signalling risk 

• Waiting until summer to renew contracts could leave your business exposed 

Now is the time to act while market conditions are still favourable — not after volatility returns. 

6. How Leading Edge Energy Helps You Stay Ahead 

Understanding market risks is one thing. Turning them into smart decisions is another. 

Our team tracks the energy market daily — analysing grid events, infrastructure updates, price signals and futures movements. We interpret complex developments (like the Waratah outage) and translate them into clear commercial advice for your business. 

What we offer: 

Contract & Renewal Management 
We analyse your current agreements, identify savings opportunities and negotiate better terms. 

Market & Risk Analysis 
We track futures trends, outage reports and grid conditions so you’re always ahead of developing risk. 

Procurement & Tendering 
We handle the entire procurement process, ensuring transparency and the strongest commercial outcome. 

Ongoing Advisory 
Our experts provide continuous insights — not just at renewal time — so your strategy evolves with the market. 

7. Final Thought: Calm Markets Can Hide Growing Risk 

The Waratah Super Battery’s transformer failure is more than a technical issue. It’s a reminder that energy reliability and pricing are increasingly interconnected. As Australia transitions to a storage-dependent grid, infrastructure risks matter more than ever. 

With volatility likely to rise again, now is the safest time to secure competitive rates and strengthen your energy strategy.

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All you need to do is get in touch, and we’ll take it from there.