Australia’s Big Battery Investment Surge in 2025
Australia has witnessed a significant surge in big battery investments in the first quarter of 2025, with six projects securing financial closure. These projects, valued at $2.4 billion, boast a collective capacity of 1,510 megawatts (MW) and over 5 gigawatt-hours of storage duration, marking a remarkable achievement within just three months.
The latest quarterly data released by the Clean Energy Council (CEC) highlights a strong start to the year, indicating a growing trend towards firming up energy sources. Both standalone battery energy storage systems (BESS) and hybrid projects combining batteries with large wind and solar installations are attracting substantial investment.
Record-breaking Progress
The report describes this achievement as the second-best quarterly result in terms of energy output and the best annual start for new storage projects on record. This progress is particularly noteworthy given the backdrop of an impending federal election, adding an element of uncertainty to the investment landscape.
Arron Wood, the CEC’s chief policy and impact officer, expressed satisfaction with the sustained high levels of investment in renewable energy. He emphasised the cost-effectiveness of combining wind and solar with energy storage, highlighting the potential for Australians to benefit from cheaper, cleaner, and more reliable power through the deployment of battery storage projects nationwide.
Rapid Growth in Renewable Investments
The surge in battery funding follows a momentum from 2024, where the CEC reported a fivefold increase in financial commitments to large-scale renewable generation. The total investment soared from $1.5 billion in 2023 to around $9 billion in 2024, marking the highest annual financial commitment to large-scale generation since 2018.
Kane Thornton, CEO of CEC, attributed this growth to improving economic conditions and a more favourable policy environment. He highlighted the positive impact of federal Labor’s expanded Capacity Investment Scheme (CIS), which has already awarded tenders to 19 projects, indicating a step towards providing investment certainty in the sector.
Optimism for the Future
Despite the progress, Thornton acknowledged that the pace of new renewable energy generation capacity additions in 2024 falls short of the target required to replace coal by 2030. However, he remains optimistic, citing the increasing number of projects reaching financial close as a positive sign for achieving the necessary development levels.
The report for 2024 reveals a total of 59 large-scale generation projects under construction, with a combined capacity of approximately 9.9 gigawatts (GW). This includes a mix of solar, wind, and biomass projects, indicating a diverse portfolio of renewable energy sources being developed across the country.
Furthermore, the increasing number of large-scale battery projects under construction signifies a growing focus on energy storage solutions. The combined capacity of these projects is set to significantly enhance grid stability and support the integration of renewable energy sources into the network.
Key Developments in Q1 2025
The first quarter of 2025 has seen several significant battery projects coming online, including EnergyAustralia’s Wooreen Battery Energy Storage System in Victoria and Quinbrook Infrastructure Partners’ Supernode project in Queensland. These projects, along with others in South Australia and New South Wales, are contributing to the expansion of energy storage infrastructure in the country.
With a record-breaking amount of battery projects being commissioned in a single quarter, Australia’s transition towards a cleaner and more sustainable energy future is gaining momentum. The ongoing investments in renewable energy and energy storage projects signal a positive trajectory towards achieving a more resilient and low-carbon electricity grid.
