Origin Energy (ASX:ORG), Australia's largest integrated energy company, expands battery storage capacity to support growing data-center electricity demand.

Origin Energy (ASX:ORG) enters fiscal year 2027 with an expanded battery portfolio, sustained growth in its Energy Markets business, and growing exposure to electricity demand from data centres. In August, the company released its FY2026 results, reporting higher statutory profit and strong cash generation, despite declines in underlying profit and underlying EBITDA compared to the prior financial year. Concurrently, Origin has advanced a large-scale battery development program to support Australia’s electricity grid as it integrates rising volumes of renewable generation. Data centres are simultaneously emerging as a major driver of electricity demand. Origin noted growth in business electricity volumes tied to the sector during FY2026, aligning with national forecasts that project material increases in data-centre consumption over the coming decade.

For the year ended 30 June 2026, Origin reported a statutory profit of AUD 1.57 billion, up from AUD 1.48 billion in FY2025. Underlying profit, however, fell to AUD 1.16 billion from AUD 1.49 billion. Underlying EBITDA decreased to AUD 3.22 billion from AUD 3.41 billion, a decline driven by lower commodity-linked earnings from Integrated Gas, including reduced realised oil prices and weaker LNG trading gains. Adjusted free cash flow rose by AUD 867 million to AUD 2.07 billion. Meanwhile, the Energy Markets business delivered underlying EBITDA of AUD 1.70 billion, an increase from AUD 1.40 billion in FY2025. The company declared a fully franked final dividend of 30 cents per share, bringing total FY2026 dividends to 60 cents per share.

Large-scale batteries have become a cornerstone of Origin Energy’s generation portfolio. As of August 2026, the company reported 1.3 GW / 4.1 GWh of operational large-scale battery capacity, drawn from a total development program of approximately 1.8 GW. The portfolio includes assets associated with Eraring in New South Wales, Supernode in Queensland, and Mortlake in Victoria. The Mortlake Battery Energy Storage System was completed in September 2026, featuring a capacity of 300 MW / 650 MWh alongside Origin’s Mortlake gas-fired power station. Origin has stated that these batteries store electricity during periods of high renewable generation and discharge it during peak demand, providing critical flexibility to the electricity system.

With much of its battery development program moving into operation, Origin anticipates lower group growth capital expenditure in FY2027. Total capital expenditure is forecast between AUD 450 million and AUD 650 million for the financial year, a reduction reflecting the winding down of its major battery development initiatives. Energy Markets underlying EBITDA for FY2027 is projected at AUD 1.55 billion to AUD 1.85 billion. Origin expects the ramp-up of its battery portfolio to partially offset the impact of lower wholesale electricity prices.

Data centres have emerged as a key source of electricity-demand growth within Origin’s Energy Markets business. During the March 2026 quarter, the company reported a 4% increase in electricity sales volumes compared to the prior corresponding period, with growth in business volumes largely driven by the data-centre sector. Origin continues to expand its participation in Australia’s data-centre market, identifying grid connections, long-term renewable electricity contracts, and on-site solar and battery systems as core services to support large customers. This expansion coincides with rising electricity requirements for computing infrastructure across the National Electricity Market.

Australia’s electricity-market operator has incorporated higher data-centre demand into its long-term projections. The 2026 Electricity Statement of Opportunities forecasts data-centre electricity consumption in the National Electricity Market to rise from approximately 5 terawatt-hours in FY2026 to around 34 terawatt-hours by FY2036. This would increase the sector’s share of grid-supplied electricity from roughly 3% to approximately 13%. The forecast methodology accounts for the possibility that not all proposed data-centre developments will proceed, and acknowledges that electricity consumption typically scales progressively after a facility connects rather than immediately reaching maximum capacity. Consequently, data-centre demand is expected to grow materially, though the timing and scale of individual projects may vary.

Origin Energy enters FY2027 with an expanded operating battery portfolio, ongoing investment in electricity-market flexibility, and growing exposure to business electricity demand. Its Energy Markets EBITDA guidance of AUD 1.55 billion to AUD 1.85 billion factors in the ramp-up of battery assets alongside anticipated lower wholesale electricity prices. Nationally, forecasts point to a substantial increase in data-centre electricity consumption over the next decade. Origin’s FY2027 performance will also reflect broader electricity and gas market conditions, APLNG production levels, battery operations, and developments across Octopus Energy and Kraken Technologies.

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