NEM Frontiers

Click any frontier to inspect where constraints, reforms and new business models are emerging across the NEM.

Generation

Transmission & REZs

Distribution & DER

Markets & Retail

End-use & Industry

Stakeholder context

This dashboard now shares the same visual system as the NEM stakeholder map, so the frontier view and stakeholder view read as a single product. A future iteration can replace this callout with the live actor graph itself.

Storage commercial models

Battery storage is transitioning from simple arbitrage to complex multi-revenue stacking. New commercial models that optimise across energy, FCAS, and network services are needed, alongside regulatory clarity on dispatch and degradation.

GenerationHeat: High0–3 yearsScalingReading

Constraints

  • Revenue uncertainty across multiple value streams (arbitrage, FCAS, network support)
  • Degradation risk not well-priced in contracts
  • Market rules designed for thermal generation, not fast-responding storage
  • Limited visibility into optimal dispatch strategies for multi-use assets

Drivers

  • Falling battery costs (below $150/kWh for grid-scale)
  • Rising need for FCAS and system stability services
  • Network deferral value in constrained areas
  • VPP aggregation enabling behind-the-meter participation

Value pools

  • FCAS markets (contingency & regulation services)
  • Energy arbitrage (daytime solar → evening peak)
  • Network services contracts (TUOS deferral, local reliability)
  • Renewable firming contracts for wind/solar farms

Existing players & approaches

  • Large batteries: Tesla Megapack, Fluence
  • VPP aggregators: Tesla VPP, AGL VPP, Amber Electric
  • Optimisation platforms: Leap, Redback, Enel X
  • Utility-scale developers: Neoen, AGL, Origin

Gaps & open problems

  • Real-time optimisation software that co-optimises degradation + revenue
  • Transparent price signals for multi-use storage contracts
  • Insurance/warranty products for revenue risk and degradation
  • Standardised APIs for dispatch and telemetry across VPP platforms

Signals to watch (timing)

  • AEMO FCAS price volatility and rule changes
  • Network augmentation deferrals announced by DNSPs
  • Commissioning of large-scale batteries (>100MW)
  • State government storage targets and subsidy schemes

Dominant opportunity types

SoftwareFinanceHardware