Strong Start for Australia’s Battery Storage Investment in Q1 2025

According to the Clean Energy Council’s latest Quarterly Investment Report, Q1 2025 marked the second-strongest quarter on record for large-scale Battery Energy Storage System (BESS) investments in Australia. A total of six battery projects reached financial close, amounting to $2.4 billion in commitments. These projects will deliver an additional 1.5 GW of storage capacity and 5 GWh of energy output.

This surge in battery investment is the most significant since Q4 2023, which recorded $2.8 billion in commitments. The report highlights strong nationwide momentum in utility-scale storage, reinforcing its role in Australia’s clean energy future.

“Battery storage is essential for enabling reliable and affordable renewable power. Continued investment shows growing confidence in the sector,” said Arron Wood, Chief Policy & Impact Officer at the Clean Energy Council.

The largest project approved this quarter is the Wooreen BESS in Victoria, offering 350 MW / 1.4 GWh of four-hour storage. South Australia led in total approved capacity with 640 MW / 1.8 GWh across several projects.

In addition to projects reaching financial close, three battery projects began construction in Q1 2025, adding 840 MW / 2.9 GWh of storage.

Slower Start for Renewable Generation Projects in Q1

In contrast to BESS, large-scale renewable generation projects experienced a slow Q1, with only two projects reaching financial close: AMP Energy’s Bungama Solar Farm (SA) and European Energy’s Lancaster Solar Farm (VIC), totaling 386 MW and $410 million in investment.

Arron Wood noted that a slower first quarter is typical, particularly amid pre-election uncertainty, but anticipates a rebound in activity now that political clarity has returned post-election.

“The election result has provided policy stability and a clear direction for investment in clean energy,” he added.

2024: A Record Year for Clean Energy Investment

The 2025 Clean Energy Australia Report reveals that 2024 was a landmark year, with renewable generation investment surging by 500% to $9 billion, up from $1.5 billion in 2023. When including battery storage, total clean energy investment reached $12.7 billion, the highest ever recorded in Australia.

“Clear policy and growing industry participation have created ideal conditions for private investment,” said Wood.

Key 2024 Findings:

• 82 renewable projects (12.5 GW capacity) were financially committed or under construction.

• 69 committed storage projects (12.5 GW / 32.1 GWh) are in the pipeline.

• 8.7 GW / 23.3 GWh of large-scale batteries were under construction, up from 5 GW / 12 GWh in 2023.

• 5.2 GW of renewable capacity was added in 2024, including 3.2 GW from rooftop solar.

• Over 4 million rooftop solar systems are now installed nationwide.

• Rooftop solar generated 12.4% of electricity in 2024, with wind at 13.4%.

• 40% of electricity in 2024 came from renewables; fossil fuels still made up 60% of the mix.