⚡ Australia's Renewable Energy Surge: A 2025 Snapshot

Large-Scale Battery Storage Investment in Australia

🔋 Record-Breaking Battery Storage Investments

In the first quarter of 2025, Australia witnessed a substantial investment of A$2.4 billion in large-scale Battery Energy Storage Systems (BESS), marking the second-highest quarterly investment on record. This investment facilitated six major projects, collectively adding 1.5 gigawatts (GW) of storage capacity and 5 gigawatt-hours (GWh) of energy output. Notably, Victoria's 350MW Wooreen system, supported by the federal Capacity Investment Scheme, was among these projects. 

These battery systems play a crucial role in stabilizing the grid, allowing for the storage of excess renewable energy and ensuring a reliable power supply during peak demand periods or when renewable generation is low.

🌞 Progress and Challenges in Renewable Energy Generation

While battery storage investments are booming, renewable energy generation projects have seen a slower start in 2025. Only two solar farms reached financial close in the first quarter, adding just 386 megawatts (MW) of capacity. This is significantly below the 1.5GW per quarter needed to meet the government's 2030 target of 82% renewable electricity generation. 

Despite this, 2024 was a landmark year for renewable energy investments, with commitments totaling A$12.7 billion, including A$9 billion in large-scale renewables—a 500% increase from 2023. 

🏛️ Government Initiatives and Policy Support

The Australian government's Capacity Investment Scheme aims to underwrite 32GW of capacity, including 9GW of battery storage and 23GW of wind and solar projects by 2030. This initiative provides financial certainty to investors, encouraging further private sector participation in the renewable energy sector. 

Additionally, the federal government has pledged over A$200 million in the 2025 budget to expand energy storage, supporting emissions reduction and climate targets. 

sources: The Australian, Carbon Credits, Clean Energy Council, The Guardian, World Energy