With Australia's energy transition at a pace, investment in large batteries prospers

Investment in large batteries reached $2.4 billion in the first three months of 2025, making it the strongest quarter in the second quarter on record in Australia.

The latest data from the Clean Energy Commission found that six new storage projects (a total of 1.5 GW of capacity) reached financial closings (which means possible financial commitment to establish the project) and hit a record $2.8 billion investment level that last appeared in the last quarter of 2023.

The largest is Victoria's four-hour Wooreen battery system, located at 350MW, supported by the federal government's capability investment program.

Three large battery systems in South Australia, one in Queensland and three large battery systems in New South Wales also reached financial shutdowns.

Renewables started slowly, with two solar farms (total of 386MW and $410 million in investment) reaching financial closings. Investment is increasing all year round, and it is a quieter first quarter, CEC said.

“Over the past five years, the new investment commitment averaged 427 MW in the first quarter of this year, compared with an average of 1,153 MW in the fourth quarter of the same period,” it said.

By the end of March, 82 renewable energy projects had met financial commitments or were under construction, representing 12GW of capacity.

The CEC's annual snapshot found that the results of storage were large in the first quarter after Australia's largest annual investment in clean energy investment in 2024, with the company's annual snapshot competing for rooftop solar installations for homes and businesses in 2024.

Investment in large-scale renewable energy reached $9 billion, up 500% in 2023. This is combined with investments in energy storage to record a new historical statement of $12.7 billion.

Arron Wood, chief policy and impact officer at CEC, said political certainty will continue to help drive the “attractive” level of investment for government investment to meet its target of 82% renewable energy by 2030.

“The goal is ambitious, but can be achieved,” Wood said. “With the election behind us, the easing of inflation and strong industry participation capacity investment programs, early signs show that we can expect to see a growing private sector investment in renewable power generation and battery storage projects as the years evolve.”

Renewable energy provides 40% of Australia's total electricity generation in 2024, up from 39.4% in 2023. The CEC report said that by 2030, there will be 6GW and solar farms each year to replace retired coal generation.

“There is a lot of very good news in Australia’s clean energy report,” Wood said, adding that it shows that investment flows with the right policy environment and continuity.

“There is the will to build Australia’s energy transition there. But it’s not a place you can set up and forget.”

Wood said the new transmission lines are crucial to keep pace and connect the project to the grid together as quickly and effectively as possible. It is also important to work with the community to build transitions and maximize support for local interests.

Clean Energy Finance Director Tim Buckley said there is reason to stay optimistic, but keep investment and development faster to approve, build and commission.

“We need to go beyond the current speed, especially as the expansion delays of the grid connection,” he said.

“There is a huge motivation and there is more to be done,” said Anna Skarbek, CEO of the Climate Workers Center.

The power transition is well tracked in replacing fossil fuels with renewable energy, she said.

“We know that a prosperous economy in the global global economy, when all sectors are net zero net carbon – will actually be more electricity than we use today,” she said.

By 2050, reaching the government's legislative target net zero will at least double the demand for electricity as other sectors, including transportation, mining and industries, try to reduce their emissions.

“We know Australia has the ability to do this,” Scarbeck said. “Australia does have the large-scale potential to use renewable energy in the heavy industry, which is a very important contribution to global trade. And, we are considered world-class solar penetration in homes that are small-scale or distributed energy.”