In 2025, Australia is witnessing a significant expansion in large-scale battery storage projects, marking a pivotal step in its renewable energy transition.

A surge in investment in large batteries is helping to safeguard Australia’s energy future but experts say the trend could be threatened by a change in policy.

Hundreds of millions of dollars are being committed to dozens of battery projects aimed at capturing renewable energy that can be used during off-peak periods when wind and solar power is not being generated.

Among the projects is Pacific Green’s Limestone Coast North Energy Park in South Australia.

Once the neighbouring Limestone Coast West project is completed, the site will be the largest battery energy storage facility in the state.

It is expected to have a capacity of 1,500 megawatt hours, which Pacific Green says will be enough to store up to 60 per cent of the SA’s residential solar output.

Over the border in Victoria, the construction of the larger four-stage Portland Energy Park is expected to begin in early 2026 and several other projects are in the early stages of development.

Pacific Green Australia managing director Joel Alexander said the pipeline of batteries had strengthened as the cost of the technology decreased.

“The benefits can be ultimately passed on to consumers through lower volatility in the market and therefore lower retail prices,” he said.

Battery projects other than Pacific Green’s are planned for the National Electricity Market and south-west Western Australia’s Wholesale Energy Market.

The ‘easiest’ approach

Australia was an early adopter of battery storage with projects such as SA’s Hornsdale Power Reserve – also known as the “Tesla battery” – but Scott Dwyer from the University of Technology Sydney said the technology had rapidly developed in other countries.

“Australia will still be attractive for developers, particularly as they’re trying to ease the process and make it easier to connect to these big projects,” he said.

Edith Cowan University senior lecturer Asma Aziz said that in the past big batteries could only run for about two hours but higher capacity systems were now becoming common.

“If we are looking at a reliable system we need to look at more long-duration storage systems, like four or eight hours,” she said.

Dr Aziz said battery storage was the “right, and easiest, approach for Australia” and noted that American states were already having success with a similar model.

“We’re seeing from a US perspective how they have been using it and we’re seeing success from California and Texas,” she said.

“That’s what we’re trying to replicate here in Australia.”

Uncertainty for investors

Last month Pacific Green closed the sale of the Limestone Coast North project to Intera Renewables for $460 million.

Simon Parbery, the executive director of Palisade Investment Partners, the majority owner of Intera, said the purchase would provide “sustainable long-term returns” for investors while supporting decarbonisation.

Dr Dwyer said battery parks provided “attractive, stable revenues” for companies.

“They can be difficult to develop as well, so some of these parks are almost built, ready for these investors to come along,” he said.

Energy policy is a key point of difference between the major parties and Dr Dwyer said a shift away from renewables could unnerve investors following the federal election in May.

“It would cast some doubt over Australia’s transition to net zero mostly through renewable energy projects,” he said.

“But the Coalition’s nuclear projects are probably not going to be developed for decades and, once you’ve got all the development agreements, batteries are pretty quick to build and energise.

Key part of energy future

Dr Dwyer said big batteries were not the only solution to Australia’s energy issues, but would play a significant role in the future.

“Australia’s got a massive challenge, like the rest of the world, to decarbonise its economy,” he said.

“Not to be forgotten, though, is the role of smaller-scale distributed storage.

“We’ve got 300,000 to 400,000 residential battery systems … we’re also seeing businesses and communities looking at small-scale battery storage.”

Dr Aziz said Australia would have to find other energy sources such as pumped hydro or nuclear in the future.

“But right now I think we’re on the right track through renewable energy and batteries,” she said.

https://www.abc.net.au/news/2025-04-23/big-battery-storage-key-to-renewable-energy-transition-australia/105074602