Navigating BESS planning approvals across Australia

As Australia works towards its target of 82% renewable energy generation by 2030,¹ battery energy storage systems (BESS) are playing a vital role. They store excess energy from sources like wind and solar when demand is low, and release it when it’s needed, helping to keep the power grid stable.

In Q4 2024 alone, five new BESS projects reached financial close,² and with global demand for BESS expected to increase tenfold by 2030,³ the number of projects is set to rise significantly. But getting approval for BESS projects isn’t always straightforward — rules and regulations timelines vary across states. Below we explore the key planning and approval stages, and common regulatory challenges for battery projects in Australia.

Planning and approval stages for battery projects

While requirements differ across jurisdictions, the planning and approval process for BESS projects can be broadly categorised into the following steps.

1. Preliminary site assessment and strategic planning

The initial step is to confirm the permissibility of the proposed BESS use under the relevant local planning instrument (such as a local environmental plan (LEP) in New South Wales or a planning scheme in Queensland or Victoria). This involves:

• Reviewing zoning controls to confirm if the use is permitted with or without consent;
• Assessing whether specific overlays apply (e.g. environmental, bushfire, flood risk, cultural heritage); and
• Identifying whether the site is subject to any State or Regional infrastructure planning frameworks (e.g. Renewable Energy Zones).

At this stage, legal risks associated with land tenure, easements or the need for rezoning are also identified.

2. Development consent application

Once site suitability is confirmed, the proponent must determine the appropriate development pathway:

• Exempt or complying development – in limited cases, small batteries may be installed as exempt or complying development, particularly when ancillary to an approved land use;
• Local development – Most standalone or utility-scale battery projects require a development application (DA) to the local council or regional planning authority; or
• State significant or major projects – larger batteries, for example, those over 30MW in NSW, may qualify as State Significant Development (SSD) under the Environment Planning and Assessment Act 1979 (NSW) (EPA Act) or equivalent major project categories in other jurisdictions. These require more rigorous environmental assessments and are determined by state-level authorities.

Battery projects are not yet uniformly recognised across planning frameworks, meaning classification must be carefully determined on a case-by-case basis.

3. Environmental impact assessment

Depending on size, location, and potential environmental effects, the project may require an Environmental Impact Statement (EIS) or other form of Environmental Impact Assessment (EIA).

Trigger points for EIA often include:

• Proximity to environmentally sensitive areas (e.g. threatened species habitat, wetlands, watercourses)
• Location within bushfire-prone or flood-prone areas
• Significant visual or landscape impacts
• Potential Aboriginal and Torres Strait Islander or historic cultural heritage impacts.

Where significant environmental impacts are likely, formal scoping and specialist studies (flora and fauna surveys, cultural heritage assessments, bushfire risk assessments, visual impact assessments) will be required. Early consultation with the planning authority is advisable to confirm assessment requirements and avoid incomplete lodgments.

4. Public exhibition and submission process

Where formal assessment is required, the development application and accompanying EIS (or relevant environmental documents) will be placed on public exhibition. During this period, interested parties (including landowners, community groups, and environmental organisations) may lodge submissions. Objections often focus on fire risk, property values, visual amenity, environmental concerns, and the industrialisation of rural landscapes. The developer must consider and respond to submissions, and in some cases, an Independent Planning Commission or equivalent body may conduct public hearings

5. Determination

Following public exhibition and assessment, the application is determined by the relevant authority. Local developments are typically decided by councils or regional planning panels, while State Significant Developments are determined by the Minister for Planning or an independent body (such as the IPC in NSW). Approval conditions are often imposed, including:

• Environmental management plans
• Fire safety measures
• Heritage protection requirements
• Landscaping and visual screening measures.

Developers and third parties may have limited rights of review or appeal to specialist courts or tribunals, depending on the jurisdiction.

6. Post-approval compliance and modification

After approval is obtained:

• Post-consent approval conditions must usually be submitted and approved before construction can commence.
• Monitoring and compliance obligations are imposed, including periodic reporting on environmental performance and incident notification requirements.
• Modification applications may be necessary if the project design evolves materially after development consent is granted.

Non-compliance with approval conditions can result in penalties, project delays, or enforcement action by regulators.

Differences in approval timelines by size and jurisdiction

Approval timelines vary significantly depending on the size and jurisdiction of the project. There is often a considerable gap between statutory approval timeframes and the actual time developers wait to receive their approvals. Utility-scale BESS projects over 30MW typically face longer approval periods—ranging from nine months to 2 years — especially where EIAs or ministerial sign-off are required, such as in New South Wales and Victoria.⁴

The industry average estimates below are for guidance purposes only based on what we are seeing in the market and may be subject to change.

Jurisdiction	<5MW Projects		Utility-Scale Projects (>5MW)
	Statutory Approval Timeframes (in some cases subject to extension by agreement)	Industry Average	Statutory Approval Timeframes (in some cases subject to extension by agreement)	Industry Average
New South Wales	40 calendar days	3-6 months	90 calendar days	6-24 months
Victoria	10 business days (VicSmart)	1-2 months	60 calendar days	6-12 months
Queensland	20 business days (code assessable)	2-4 months	35 business days after notification	6-12 months
South Australia	5-20 business days	1-3 months	20 business days	4-8 months
Western Australia	60 calendar days	3-6 months	60-90 calendar days	6-12 months
Tasmania	28 calendar days	2-4 months	42 calendar days	6-9 months
Northern Territory	28 calendar days	2-4 months	28 calendar days	4-8 months
Australian Capital Territory	30 working days	2-4 months	120 working days	8-14 months

Common regulatory hurdles and solutions

Currently, developers of BESS projects across Australia face several regulatory challenges in navigating the planning approval stage.

1. Lack of planning policy recognition

BESS projects are often not explicitly recognised as standalone land uses in local planning schemes, creating uncertainty around zoning, permitted uses and approval pathways.

While each State outlines the planning approval process for renewable energy projects generally, there is a lack of specific guidance for BESS projects. For example, the New South Wales Department of Planning, Housing and Infrastructure (DPHI) released a Wind Energy, Large-Scale Solar Energy, and Hydrogen Guideline but to date has remained silent on BESS’.⁵

Engaging specialist legal teams can help with interpreting existing planning frameworks, identifying applicable precedents, and developing robust strategies to navigate these policy gaps.

2. Bushfire risks and hazard concerns

The risk of fire, thermal runaway and hazardous material release is specific to battery technologies, especially lithium-ion systems.⁶ While other energy projects may have their own safety concerns (e.g. oil leaks from transformers, or blade throw from wind turbines), the fire and chemical risks associated with large-scale batteries require bespoke safety assessments, emergency response planning and compliance with evolving standards.

In Victoria, the Central Fire Authority (CFA) has outlined its ‘Design Guidelines and Model Requirements’ for renewable energy projects (including BESS projects).⁷ Among other things, CFA’s model requirements state than an application for a BESS project planning approval in Victoria must contain an explicit statement from the developer that a Risk Management Plan, Fire Management Plan and Emergency Plan will be prepared in consultation with CFA prior to commencing development, along with a bushfire hazard site and landscape assessment if the project is located in a bushfire prone area.⁸

Early consultation with the relevant state or territory fire service is important to reduce the likelihood of planning approval delays.

3. Decommissioning and end-of-life management

Battery projects raise unique questions about the handling, recycling, or disposal of large volumes of electrochemical cells at the end of their operational life. The potential for hazardous waste, specialist recycling processes and the environmental impact of battery materials are more significant than for most energy projects.⁹

Technological advancements in recycling and evolving standards mean that regulatory expectations and industry best practice are continually shifting.

Developers must proactively monitor changes in relevant legislation, recycling technologies, and industry guidelines to ensure that their decommissioning and end-of-life management strategies remain current and effective.

This includes engaging with licensed waste contractors, prioritising recycling and resource recovery wherever possible and maintaining detailed records of all waste movements and disposal methods.

Find out more about the advancements in circular economy initiatives for renewable energy in our New Energy Quarterly: Circular Economy.

What’s next

As Australia accelerates its shift to renewable energy, BESS projects are essential for supporting a stable and reliable grid. However, inconsistent planning frameworks, bushfire risks, and decommissioning uncertainty continue to pose significant regulatory challenges. To streamline approvals and avoid costly delays, developers must engage early with planning authorities and relevant stakeholders, including fire services. Clearer national guidance and policy recognition of planning approvals for BESS projects would help remove uncertainty and facilitate development. As demand for battery storage grows, proactive, transparent, and inclusive planning will be essential to ensure BESS projects can be delivered at the pace and scale needed to meet Australia’s renewable energy targets.

The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel and Amelia Prokuda.

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¹Department of Climate Change, Energy, the Environment and Water, Annual Climate Change Statement 2022, December 2022, 7.

²Clean Energy Council, Quarterly Investment Report Q4 2024 (Report, Clean Energy Council, 13 February 2025) 5 https://cleanenergycouncil.org.au/getmedia/baf51990-48e7-4d0c-b88d-8920eb78d55f/cec-quarterly-report_q4-2024.pdf.

³Queensland Government, ‘Powering Queensland’s Battery Industry’ (Web Page, 2025) https://www.statedevelopment.qld.gov.au/industry/powering-queenslands-battery-industry.

⁴Alvarez & Marsal, ‘Understanding the BESS Market in Australia’ (Web Page) https://www.alvarezandmarsal.com/sites/default/files/2024-11/Understanding%20the%20BESS%20market%20in%20Australia.pdf.

⁵New South Wales Planning, ‘Renewable Energy Planning Framework’ (Web Page) https://www.planning.nsw.gov.au/policy-and-legislation/renewable-energy/renewable-energy-planning-framework.

⁶Benjamin Ditch and Dong Zeng, ‘Fire Hazard of Lithium-ion Battery Energy Storage Systems: 1. Module to Rack-scale Fire Tests’ (2020) 59(6) Fire Technology 3049.

⁷Victoria Central Fire Authority, ‘Design Guidelines and Model Requirements for Renewable Energy Facilities’ (Web Page) https://www.cfa.vic.gov.au/ArticleDocuments/1933/250123%20-%20CFA%20DGMR%20Renewable%20Energy%20Facilities%20v4.3.pdf.

⁸Ibid.

⁹Queensland Renewable Energy Council, ‘Battery Energy Storage System Fact Sheet’ (Web Page) https://qrec.org.au/wp-content/uploads/2024/11/BESS-Factsheet-Nov-2024.pdf.