The first quarter (Q1) of 2025 has seen a surge in investment for large-scale battery storage in Australia, with six projects worth a total of A$2.4bn ($1.5bn) reaching the financial commitment stage, according to the latest Clean Energy Australia Report 2025.
This marks the second-highest quarterly investment on record, delivering an additional 1.5GW in storage capacity and 5GWh in energy output.
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Additionally, construction of large-scale batteries was significantly higher at the end of 2024, with 8.7GW/23.3GWh underway, compared to 5GW/12GWh in 2023.
According to the report, the largest battery energy storage system (BESS) project to reach financial commitment in Q1 was in Wooreen, Victoria, boasting a storage capacity of 350MW and an energy output of 1.4GWh.
South Australia led in terms of capacity, with projects totalling 640MW/1.8GWh.
Clean Energy Council chief policy and impact officer Arron Wood said: “Energy storage systems, such as big batteries, are a critical part of Australia’s future energy mix and act as a reliable back-up system allowing us to store renewable energy for when it is needed most and keep the lights on under all conditions. It’s great to see the high levels of investment we’ve seen over the past couple of years continue.”
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By GlobalDataMoreover, three more battery storage projects began construction in Q1 2025, adding 840MW/2.9GWh in capacity and energy output.
Despite these strong figures for BESS, renewable energy generation projects had a slower start, with only two projects, including AMP Energy’s Bungama Solar Farm in South Australia and European Energy’s Lancaster Solar Farm in Victoria, achieving financial close, the report said.
The two renewable energy projects total 386MW and represent a combined investment of A$410m.
Renewable generation capacity added last year was also slightly down from 2023, with 5.2GW installed, of which 3.2GW came from rooftop solar, marking a slight increase from the previous year.
However, investment commitments for renewable energy generation last year witnessed a 500% increase, totalling A$9bn, compared to A$1.5bn in 2023. This made 2024 the year with the highest financial commitments to large-scale generation since 2018.
Additional findings from the 2025 Clean Energy Australia Report include 82 renewable electricity generation projects either financially committed or under construction by the end of 2024, representing 12.5GW of capacity.
There were also 69 committed storage projects, equivalent to 12.5GW in capacity and 32.1GWh in energy output.
Renewables provided 40% of Australia’s electricity last year, with fossil fuels still accounting for the majority at 60%, according to the report.
