Highlights

  • Origin is building out large-scale battery capacity as part of its changing generation portfolio.
  • The first stage of the Eraring Battery entered commercial operation in January 2026.
  • A second Eraring battery stage is expected to commence operations in early 2027.
  • Kraken Technologies continued to expand contracted accounts during 2026 following its formal separation from Octopus Energy.
  • Origin continues to balance energy-market operations, storage development and its interest in Australia Pacific LNG.

Origin Energy Limited (ASX:ORG) is a leading Australian integrated energy company supplying electricity, natural gas, LPG and solar services while also operating generation Assets and participating in gas production. During 2026, its operating priorities increasingly centred on large-scale battery storage, the transition of the Eraring site and the development of technology-linked energy services through its exposure to Kraken Technologies.

Eraring Battery Moves Into Operations

Battery storage is becoming a more visible part of Origin's generation portfolio. The first stage of the Eraring Battery commenced commercial operation in January 2026, marking an important step in the planned transition of the Eraring site. The operating stage provides 460MW of capacity with around four hours of dispatch duration, using existing transmission infrastructure at the site to support grid stability and renewable energy integration.

The second stage remains under development and is expected to begin operating in the first quarter of 2027. Once both current stages are operating, the Eraring battery system is expected to provide 700MW of combined capacity and 3,160MWh of storage. Origin is also seeking approval for a further battery development adjacent to the existing project, although that proposal remains subject to planning and assessment processes.

Storage Portfolio Supports Energy-Market Flexibility

Origin's FY26 reporting showed that 1.3GW / 4.1GWh of large-scale batteries were operational by August 2026 within a broader 1.8GW development program. The expanding storage portfolio gives the company additional capacity to respond to periods of changing electricity Supply and demand, particularly as renewable generation increases across the National Electricity Market.

The battery program also sits alongside Origin's decision in January 2026 to extend operations at Eraring Power Station to April 2029. The extension reflects the continuing role of existing generation in supporting system reliability while new transmission, renewable generation and storage infrastructure are brought online.

Kraken Adds a Technology-Led Growth Platform

Origin's technology exposure also changed materially during 2026. Kraken Technologies was formally separated from Octopus Energy and completed a standalone Equity raising in July. Origin's FY26 update reported that Kraken's contracted accounts increased to 95 million, while Revenue grew 19 per cent during the year.

Kraken provides an energy technology platform used to manage customer accounts and related Utility processes. Its expansion gives Origin exposure to a software-based Business model that differs from the capital-intensive nature of generation, storage and gas operations. The separation also allows Kraken to pursue its own commercial development while Origin retains an economic interest in the business.

Integrated Gas Remains Part of the Portfolio Mix

Alongside batteries and technology, Australia Pacific LNG continues to form an important part of Origin's operating mix. FY26 results showed that lower commodity-linked Earnings from Integrated Gas were partly offset by improved performance in Energy Markets. This combination highlights the diversified structure of the group, with domestic energy markets, gas exposure and technology contributing through different operating drivers.

Key Insights

Origin's 2026 developments show a business balancing established energy assets with newer storage and technology platforms. Battery Investment is increasing the role of flexible generation within the portfolio, while Kraken broadens exposure to utility software and digital energy services. Execution across the Eraring transition, battery commissioning and technology scaling remains central to how these activities develop within Origin's broader operating structure.