About this report

The Clean Energy Council’s quarterly investment report monitors utility-scale renewable energy projects from the financial investment commitment stage through to completion and operation. This stage serves as a critical lead indicator for new capacity, involving agreements for debt and equity based on necessary project development, connection approvals, and contracting. Investment figures for specific projects are expressed in nominal terms, while long-term trends beyond 12 months are presented in real terms using September 2017 as the base month.

Highlights

The second quarter of 2025 (Q2) marked another soft period for renewable energy investment activity in Australia. Four generation projects totalling 615 MW and three storage projects totalling 334 MW (capacity) / 1,168 MWh (energy output) reached financial close. Five generation projects were commissioned with a total operating capacity of 312 MW, while two storage projects worth 325 MW / 760 MWh were commissioned. Currently, 83 generation projects representing 13.1 GW and 73 storage projects representing 12.8 GW / 33.3 GWh are in the pipeline. Total 2025 commitments stand at just 1,173 MW, which is approximately one third of the 6-7 GW annual run-rate required to meet Australia’s 82 per cent renewable energy target by 2030.

Another poor quarter for new wind and solar commitments puts pressure on second half of 2025

The 615 MW of new generation capacity in Q2 2025 follows 558 MW in Q1, bringing the half-year total to 1,173 MW. This result is well short of the pace needed for national targets. Notably, no onshore wind farm has yet been committed in 2025, reflecting higher costs, complexity, and lengthy planning and environmental assessment processes. Policy uncertainty surrounding the Federal Election on 3 May likely contributed to the weak first-half results. Other challenges include the slow transmission roll-out and a lack of long-term offtake and revenue certainty. Despite this, five projects representing 701 MW commenced construction in Q2, including Vena Energy’s 240 MW Wandoan South Solar Farm Stage 2.

Storage projects experience slower quarter after strong start to 2025

Storage investment in Q2 2025 was the lowest since Q1 2023. However, this follows a run of nine consecutive quarters where the energy output of newly committed storage exceeded 1,000 MWh. Year-to-date deployment remains on track to meet Australian Energy Market Operator (AEMO) Step Change scenarios. The largest storage commitment was the 250 MW / 1,000 MWh Reeves Plains Energy Hub Battery in South Australia. Other commitments included the Fulham Solar Farm BESS (64 MW / 128 MWh) and Mulwala Solar Farm BESS (20 MW / 40 MWh). Three battery storage projects totalling 589 MW / 1,153 MWh commenced construction, and the rolling 12-month average for commissioned storage energy output reached a record 584 MWh.

Generation projects

Since the Clean Energy Council began reporting in 2017, onshore wind and utility-scale solar have reached financial commitment on 11.7 GW and 16.4 GW of capacity respectively. Quarterly investment for Q2 2025 reached $520 million, which is 68 per cent lower than the revised 12-month quarterly average of $1.6 billion. Unit cost trends show that while solar costs continue to decline due to manufacturing scale, onshore wind costs increased by 8 per cent in 2023-24 and 6 per cent in 2024-25, driven by local increases in land and installation costs. Development timeframes have also elongated, with construction timelines increasing on average from 52 to 90 weeks since 2020.

Energy storage projects

The total capital expenditure investment for storage projects commencing construction in Q2 is valued at more than $750 million. The largest battery beginning construction was the Liddell Battery (500 MW / 1,000 MWh). For commissioned projects, 2024 saw a peak investment of $1,325 million, while 2025 year-to-date stands at $250 million. Long duration storage is currently represented by three pumped hydro projects under construction: Snowy 2.0 (2,000 MW / 350,000 MWh), Kidston (250 MW / 2,000 MWh), and Goat Hill (230 MW / 1,840 MWh). Kidston is anticipated for completion in 2025.

Hybrid projects

There are 61 hybrid projects in development, with solar and storage systems accounting for nearly two thirds. These systems are becoming more prevalent as wind and solar serve as natural complements for stable power operation. New South Wales hosts some of the largest solar and storage hybrids, while South Australia leads in wind and storage combinations. Total build costs for hybrid types vary significantly, with solar and battery hybrids representing a $6.9 billion investment across 40 projects. Twelve hybrid projects currently offer energy output durations exceeding two hours.