Australia’s transition towards renewable energy gained significant momentum in the first quarter of 2025, with investment in large-scale battery storage systems reaching $2.4 billion. According to data released by the Clean Energy Council (CEC), six major battery projects—totaling 1.5 gigawatts (GW) of dispatchable capacity—achieved financial close between January and March. This marks the second-strongest quarter on record for energy storage, trailing only the final quarter of 2023, when $2.8 billion was committed to similar projects.
The standout in the latest round of investments is the four-hour, 350 megawatt (MW) Wooreen battery system in Victoria. Supported by the federal government’s Capacity Investment Scheme, Wooreen will provide critical load-shifting capability, storing excess renewable generation during periods of oversupply and dispatching it during peak demand. Three additional large-scale batteries in South Australia, and one each in Queensland and New South Wales, also reached the financial commitment milestone, signaling broad geographic uptake of storage technologies.
Renewable Energy Investment: A Slower Start, but Momentum Builds
In contrast to the boom in storage, renewable generation projects experienced a quieter start to 2025. Only two solar farms—comprising a combined 386 MW capacity and attracting $410 million in investment—reached financial close in the quarter. However, the CEC cautioned that first-quarter lulls are typical in the renewables sector, with commitments historically ramping up in later quarters as project approvals and financing milestones align.
Over the past five years, first-quarter commitments for wind and solar have averaged just 427 MW, compared to an average of 1,153 MW in the fourth quarter of each year. As of March 31, 2025, a total of 82 renewable energy projects were either financially committed or under construction, representing 12 GW of capacity. Combined with the robust storage pipeline, these figures underscore Australia’s deepening commitment to decarbonising its electricity sector.
Private Capital and Policy Certainty: Key Drivers
Arron Wood, the CEC’s Chief Policy and Impact Officer, attributed the surge in investment to enhanced policy certainty following the recent federal election, easing inflationary pressures, and strong industry participation in the Capacity Investment Scheme. “The target of 82 percent renewable energy by 2030 is ambitious, but it’s achievable,” Wood said. “With the election behind us and clear market signals in place, private sector investors are demonstrating an ‘eye-watering’ appetite for both renewable generation and battery storage.”
The Morrison and now Albanese governments have legislated the 2030 renewable target, setting a clear trajectory for utilities, developers, and financiers. Industry participants point to stable long-term policy frameworks—including the Renewable Energy Target and the National Energy Guarantee—as essential for underwriting multi-billion-dollar commitments that span multiple electoral cycles.
From Rooftops to Utility-Scale: 2024’s Clean Energy Investment Boom
The strong storage uptake in early 2025 follows Australia’s record clean energy investment year in 2024. That year saw rooftop solar installations on homes and businesses surpass the four-million mark nationwide, while large-scale renewables and storage combined for a staggering $12.7 billion in investment. Of that, $9 billion flowed into utility-scale wind and solar farms—a 500 percent increase over 2023—and the remainder into battery storage.
These trends reflect both falling technology costs and heightened corporate and consumer demand for clean, reliable electricity. As renewable penetration increased from 39.4 percent of total electricity generation in 2023 to 40 percent in 2024, the need for flexible, dispatchable assets like batteries has become ever more pressing.
Replacing Retiring Coal: The Need for Speed
Despite these gains, the CEC cautions that maintaining momentum will require the equivalent of at least 6 GW of new wind and solar capacity being connected annually through to 2030 to replace retiring coal-fired generators. Without that pace, Australia risks shortfalls in supply, exacerbated price volatility, and potential reliability concerns—particularly as electrification drives higher demand across transport, industry, and building sectors.
Tim Buckley, Director of Clean Energy Finance, stressed that “speed and scale” must accelerate beyond current rates. “Extended delays to grid connection remain a significant bottleneck,” he warned. “We need quicker approvals, streamlined transmission build-outs, and more efficient commissioning processes if Australia is to keep pace with its decarbonisation and reliability obligations.”
Grid Infrastructure and Community Engagement
New transmission lines are critical to unlocking renewable and storage resources, particularly in regions with high wind and solar potential but limited network capacity. The CEC highlights projects such as the Queensland Energy and Industrial Corridor and the Marinus Link under development between Tasmania and Victoria as vital enablers of future growth.
At the same time, community consultation and benefit-sharing mechanisms are increasingly important. Arron Wood notes that “working with communities to build support for the energy transition and maximise local benefits” can smooth project delivery and foster social licence, reducing risks of local opposition and costly delays.
Sectoral Electrification and Net-Zero Ambitions
Beyond the power sector, Australia’s legislated net-zero by 2050 target will drive extensive electrification across transport, mining, manufacturing, and buildings. Anna Skarbek, Chief Executive of the Climateworks Centre, emphasised that a fully decarbonised economy will require at least a doubling of current electricity demand. “Electricity will become the backbone of a net-zero Australia,” she said. “We have the resources—both solar and wind potential—to power new electric vehicle fleets, hydrogen production facilities, and electrified industrial processes. Leveraging distributed energy in households will also remain essential.”
Challenges and Opportunities Ahead
While the early-2025 figures are encouraging, challenges remain. Regulatory complexity, varying state-based planning regimes, and the need for skilled workforce expansion pose potential constraints. Ensuring equitable access to energy storage and generation—preventing an energy divide—will be another critical consideration as Australia’s transition advances.
Industry leaders advocate for coordinated national strategies to address these issues, calling for harmonised permitting processes, targeted workforce training programs, and inclusive policy design that supports both large-scale developers and community energy initiatives.
The Path to 2030 and Beyond
Australia stands at a pivotal juncture in its energy evolution. With nearly 12 GW of renewables and 1.5 GW of storage actively progressing, the groundwork is laid for a cleaner, more resilient electricity system. Private capital has shown its willingness to back the transition when policy signals are clear, and technological costs continue to decline.
Yet, as the Clean Energy Council report makes plain, the journey is far from complete. Meeting the government’s 82 percent renewables target by 2030—and laying the foundations for net-zero by 2050—will demand sustained investment, agile regulation, robust transmission build-outs, and ongoing community partnership.
As Arron Wood aptly summarises: “The willingness to build Australia’s energy transition is there. But that’s not something you can just set and forget.” With concerted effort and strategic leadership, the nation can fulfil its promise of affordable, reliable, and sustainable power—and chart a course that other countries might emulate in the global race to decarbonisation.
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