Australia’s energy storage sector is off to a strong start in 2025, with the Clean Energy Council reporting $2.4 billion in financial commitments to large-scale Battery Energy Storage Systems (BESS) during the first quarter. According to the Council’s Quarterly Investment Report: Large-scale renewable generation and storage Q1 2025, six major battery projects reached financial close, delivering a combined capacity of 1.5 GW and 5 GWh in storage.
This marks the second-highest quarterly investment in BESS on record, trailing only the $2.8 billion secured in Q4 2023. Clean Energy Council Chief Policy and Impact Officer Arron Wood welcomed the momentum, emphasizing the role of energy storage in enabling reliable and affordable renewable energy.
“Wind and solar combined with energy storage is the lowest-cost form of electricity generation,” Wood said. “By installing more battery projects nationwide, Australians can benefit from cheaper, cleaner, and more reliable power—while creating thousands of new jobs.”
The largest single project to reach financial commitment in Q1 was the 350 MW/1.4 GWh Wooreen battery in Victoria, designed with a four-hour duration. South Australia led in total capacity committed, contributing 640 MW/1.8 GWh.
In addition to these six projects, three more battery systems—totaling 840 MW/2.9 GWh—entered construction during the quarter. However, renewable generation projects lagged behind, with only two solar farms—AMP Energy’s Bungama in South Australia and European Energy’s Lancaster in Victoria—reaching financial close, totaling 386 MW and $410 million in investment.
Wood acknowledged the slower start to 2025’s renewable generation pipeline but attributed it partly to investor uncertainty surrounding the Federal Election. With the election now settled and policy direction clarified, he expects renewed momentum in both renewable energy and storage investments.
“Markets have responded positively to political certainty,” Wood noted. “It has provided a clear signal about where to invest.”
The Q1 report coincided with the release of the 2025 Clean Energy Australia Report, which highlighted a record-breaking year for clean energy investment in 2024. Commitments for renewable generation soared to $9 billion, up from just $1.5 billion in 2023. When including utility-scale storage, total clean energy investment reached $12.7 billion—the highest in Australian history.
By the end of 2024, 82 renewable generation projects and 69 storage projects—representing 12.5 GW and 32.1 GWh respectively—were either committed or under construction. Battery projects alone accounted for 8.7 GW/23.3 GWh of this pipeline.
With 40% of Australia’s electricity coming from renewables in 2024, and over 4 million rooftop solar installations achieved, the transition to a cleaner grid is well underway. The Clean Energy Council anticipates further investment growth through 2025, buoyed by market confidence and supportive policy frameworks.
