Released June 06, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Australia's energy storage sector saw investment top AUS$2.4 billion (US$1.6 billion) in the first three months of 2025.
It was the second strongest quarter on record, after the AUS$2.8 billion (US$1.8 billion) recorded for the last quarter of 2023. This year, the first three months saw six large-scale battery energy storage systems (BESS) projects worth AUS$2.4 billion in total reaching the financial commitment stage. They have a storage capacity of 1.5-gigawatts (GW) and will supply 5 gigawatt-hours (GWh) in energy output, according to new figures released by the country's Clean Energy Council.
The largest of the projects is the government-supported Wooreen project in Victoria, with a storage capacity/energy output of 350 megawatts (MW) and 1.4 GWh, and a duration of four hours. In addition to the six projects that reached financial commitment, a further three BESS projects commenced construction in the first quarter of 2025, with a total of 840 MW/2.9 GWh in storage capacity/energy output. South Australia is the most popular BESS destination, with the largest share of financially committed storage projects in capacity (640 MW/1.8 GWh).
Industrial Info is tracking 434 Australian BESS projects in various states of development worth almost US$92 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"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," said Arron Wood, Clean Energy Council chief policy and impact officer. "It's great to see the high levels of investment we've seen over the past couple of years continue. Wind and solar combined with energy storage is the lowest-cost form of electricity generation and by installing more battery storage projects across the country, Australians can get the biggest benefits from renewable energy through cheaper, cleaner, more reliable power - while creating thousands of new jobs."
BESS projects had a strong start in 2025, but it was a slow start for renewable generation projects, the Clean Energy Council found, blaming market uncertainty leading up to the recent general election, which was won by the sitting Labour Party government, which is a strong proponent of renewable-energy. Two renewable energy generation projects totalling 386 MW achieved financial close in the first quarter of 2025: the Bungama solar farm in South Australia and the Lancaster solar farm in Victoria. "There is no doubt the 2025 Federal Election caused a degree of investor uncertainty earlier this year, given the stark differences in energy policy between the two major parties. Subdued levels of investment are fairly typical in the first quarter of the year; however, the clear-cut result of this election has given the Government a mandate to continue leading Australia's transition to clean energy and that has provided markets with policy certainty and a clear signal about where to invest."
Last year was a record year for renewables investment in Australia. Investment commitments for renewable energy generation skyrocketed by 500% to AUS$9 billion (US$5.6 billion) in 2024, compared with much weaker investment in 2023 of AUS$1.5 billion (US$970 million). It made 2024 the single highest year of new financial commitments to large-scale generation since the boom of 2018, which hit AUS$8.4 billion (US$5.5 billion).
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
It was the second strongest quarter on record, after the AUS$2.8 billion (US$1.8 billion) recorded for the last quarter of 2023. This year, the first three months saw six large-scale battery energy storage systems (BESS) projects worth AUS$2.4 billion in total reaching the financial commitment stage. They have a storage capacity of 1.5-gigawatts (GW) and will supply 5 gigawatt-hours (GWh) in energy output, according to new figures released by the country's Clean Energy Council.
The largest of the projects is the government-supported Wooreen project in Victoria, with a storage capacity/energy output of 350 megawatts (MW) and 1.4 GWh, and a duration of four hours. In addition to the six projects that reached financial commitment, a further three BESS projects commenced construction in the first quarter of 2025, with a total of 840 MW/2.9 GWh in storage capacity/energy output. South Australia is the most popular BESS destination, with the largest share of financially committed storage projects in capacity (640 MW/1.8 GWh).
Industrial Info is tracking 434 Australian BESS projects in various states of development worth almost US$92 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"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," said Arron Wood, Clean Energy Council chief policy and impact officer. "It's great to see the high levels of investment we've seen over the past couple of years continue. Wind and solar combined with energy storage is the lowest-cost form of electricity generation and by installing more battery storage projects across the country, Australians can get the biggest benefits from renewable energy through cheaper, cleaner, more reliable power - while creating thousands of new jobs."
BESS projects had a strong start in 2025, but it was a slow start for renewable generation projects, the Clean Energy Council found, blaming market uncertainty leading up to the recent general election, which was won by the sitting Labour Party government, which is a strong proponent of renewable-energy. Two renewable energy generation projects totalling 386 MW achieved financial close in the first quarter of 2025: the Bungama solar farm in South Australia and the Lancaster solar farm in Victoria. "There is no doubt the 2025 Federal Election caused a degree of investor uncertainty earlier this year, given the stark differences in energy policy between the two major parties. Subdued levels of investment are fairly typical in the first quarter of the year; however, the clear-cut result of this election has given the Government a mandate to continue leading Australia's transition to clean energy and that has provided markets with policy certainty and a clear signal about where to invest."
Last year was a record year for renewables investment in Australia. Investment commitments for renewable energy generation skyrocketed by 500% to AUS$9 billion (US$5.6 billion) in 2024, compared with much weaker investment in 2023 of AUS$1.5 billion (US$970 million). It made 2024 the single highest year of new financial commitments to large-scale generation since the boom of 2018, which hit AUS$8.4 billion (US$5.5 billion).
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
