Key points

• BESS projects must manage risks like electric shock, fire, and chemical exposure throughout the project lifecycle, including construction and operation.
• BESS project stakeholders - including owners, contractors, suppliers, operators and maintenance contractors - have legal duties under Australian work health and safety laws (and related laws) and must coordinate BESS safety compliance.
• Safe design, emergency planning, worker training, and regular maintenance are essential to meeting BESS safety compliance requirements and avoiding incidents.

Battery Energy Storage Systems (BESS) are central to Australia’s clean energy future, enabling renewable power to be stored and delivered when needed. However, these systems carry significant work/occupational health and safety (WHS) risks. Hazards such as electric shock, arc flash, fire, explosion, and chemical exposure require careful management.

Notable incidents, like the 2021 Victorian Big Battery fire, highlight the catastrophic potential of battery failures and the regulatory focus on these projects. Project owners, Engineering, Procurement, and Construction Contractors (EPC Contractors), Balance of Plant Contractors (BOP Contractors), operators, maintenance contractors and suppliers must understand and meet their WHS obligations throughout the lifecycle of a BESS project.

We outline below the key Australian WHS legal duties, offering practical guidance for managing risk at all stages of a BESS project.

Work health and safety duties across jurisdictions

In jurisdictions implementing the Model Work Health and Safety Act (e.g. the Commonwealth, ACT, NSW, NT, QLD, SA, TAS and WA), a Person Conducting a Business or Undertaking (PCBU) must, so far as is reasonably practicable, ensure the health and safety of workers and others. This duty spans construction, commissioning, operation, and maintenance phases.

Risks must be controlled using the “hierarchy of controls” - starting with eliminating hazards, then using engineering solutions, before relying on procedures or personal protective equipment. Duty holders (e.g. project owners, contractors) must also consult and coordinate on safety matters. For example, a project owner engaging a BOP Contractor in a split contracting arrangement must share hazard information and agree on WHS roles.

Victoria has not adopted the model WHS laws but imposes analogous duties under the Occupational Health and Safety Act 2004 (Vic). The Occupational Health and Safety Regulations 2017 (Vic) also require employers to ensure that employees and supervisors are given information and trained on hazards, including processes for identifying hazards and controlling risk, and safety procedures associated with using plant in the workplace.

Despite legislative differences, all jurisdictions expect proactive, risk-based safety management from project design to the construction and operation of a BESS project.

Construction phase responsibilities

BESS construction typically involves civil works, high-voltage electrical installation, and system commissioning. These activities fall under the definition of “construction work”under WHS laws. Where project costs exceed prescribed thresholds, a principal contractor must be appointed (commonly the BOP Contractor in a split contracting arrangement and the EPC Contractor in a fully wrapped contracting arrangement).

During construction, High Risk Construction Work requirements will likely apply - for example, if there is electrical work on or near energised electrical installations, work at heights, or confined space work, the contractor must develop Safe Work Method Statements (SWMS) for those tasks in accordance with WHS regulations. The principal contractor should ensure SWMS are in place and being followed.

WHS obligations during the construction phase extend to all parties involved in BESS projects. Effective safety management relies on clear coordination and accountability across the entire project team, including:

• Project owners: Must ensure competent parties are engaged and WHS responsibilities are clearly coordinated.
• Principal contractors: Must lead WHS planning, implement risk controls, and oversee SWMS for high-risk activities.
• Subcontractors: Must follow site procedures and SWMS, and report hazards.
• Designers: Must eliminate risks through safe design, including ventilation, fire suppression, and access provisions.
• Suppliers and manufacturers: Must provide safe equipment and clear guidance on installation and handling.

Operational phase responsibilities

Once the BESS is constructed and commences operation, the focus shifts to the operator as the primary “duty holder”. The operating BESS site is a “workplace” under WHS law, so the operator (as a PCBU) must ensure the ongoing safety of workers (e.g. employees or contractors performing maintenance) and others (e.g. nearby land users or emergency personnel) in relation to that workplace.

Risk management is an ongoing duty. The operator must continually identify new hazards and review control measures, especially as the BESS ages or if modifications are made. Regular inspections, preventative maintenance, and monitoring of battery health are essential to prevent incidents like thermal runaway fires.

Chemical risk management is essential throughout the project lifecycle of a BESS project, including the operational phase. Duty holders must comply with dangerous goods and hazardous chemicals laws, including requirements for storage, ventilation, labelling, and emergency planning.

Incident response management plans

Having an incident response or emergency management plan in place is crucial to ensuring workers are safely able to manage any events that occur during both construction and operational phases. The plan should form part of the broader WHS Code of Practice of the employer, setting out expectations and responsibilities for WHS.

The key elements of an emergency management plan are:

1. Hazard identification:

The plan should include details of specific identified hazards that are associated with the types of work conducted at the workplace.

2. Roles and responsibilities:

To effectively coordinate responses, the plan should clearly outline roles and responsibilities for safety, including emergency contacts and designated individuals or teams for initiating emergency procedures.

3. Emergency response protocols:

Well-defined response protocols give workers a path to follow in time of emergency. These should include how to identify and manage specific hazards, how to manage personal safety and the safety of others, and who to contact (including whether to contact emergency services).

4. Reporting and recording:

For continued improvement of WHS, the plan should include a method for reporting and recording of incidents.

Practical safety management measures

To meet WHS duties, BESS project teams should follow these core measures:

1. Integrate risk management early:

• Conduct risk assessments for each phase.
• Identify risks (e.g. fire, arc flash, toxic gas) and update controls when systems change.
• Use expert advice where needed.

2. Use the hierarchy of controls:

• Prioritise elimination and engineering solutions over procedures or personal protective equipment.
• Use systems like fire suppression, gas ventilation, and battery management system shutdowns to manage risks.

3. Plan for emergencies:

• Prepare site-specific emergency plans.
• Include battery fire and gas leak response, evacuation procedures, and coordinate with local fire services.

4. Report and respond to incidents:

• Notify regulators immediately after notifiable incidents.
• Preserve the site, investigate causes, and implement corrective action.

5. Train and supervise workers:

• Ensure all workers are trained and competent - from White Card holders on site to technicians handling battery systems.
• Keep training records and check contractor credentials.

6. Maintain and review systems:

• Follow maintenance schedules, respond to battery management system alerts, and regularly review safety controls.
• Encourage staff to report issues and conduct periodic safety audits.

Regulatory developments: The energy safety review

In May 2025, the Victorian Government released the Energy Safety Review Consultation Paper (the Review) led by the Department of Energy, Environment and Climate Action, aimed at modernising the State’s energy safety framework amidst the rapid uptake of renewable technologies like energy storage systems, BESS, solar PV, and hydrogen.

The Review identifies new and emerging safety risks associated with decentralised energy systems, highlights gaps in the current regulatory regime, and proposes reforms to better manage hazards such as thermal runaway fires from lithium-ion batteries. It underscores the importance of skilled labour, improved product standards, and clearer oversight of grid/utility scale battery projects and behind-the-meter systems.

These developments signal an increasing regulatory focus on the full lifecycle safety of energy technologies (such as battery storage technology), reinforcing the importance for duty holders to proactively review and update their WHS systems in alignment with anticipated regulatory change. The consultation was open from 13 May to 24 June 2025, with feedback to be reviewed in mid to late 2025 and a public Statement of Reasons expected in the same period.

Conclusion

WHS compliance in BESS projects requires active risk management at every stage. By designing for safety, ensuring safe construction practices, and managing operations rigorously, stakeholders can reduce legal exposure and prevent serious incidents.

Dentons advises all parties to review their WHS procedures in light of WHS obligations, and to stay informed as regulators issue further guidance specific to BESS. With strong planning and coordination, BESS projects can meet both energy and safety goals effectively.

A follow-up article will examine chemical risk management and the regulation of dangerous goods within the Australian legal framework, with specific relevance to BESS. For further information and expert insights on this topic, please contact Matt Coleman and Paul O'Halloran to learn how Dentons can assist you in ensuring WHS compliance and optimising your risk management strategies.