Executive summary

The Clean Energy Council’s Q4 2025 Quarterly Investment Report indicates a rebound in large-scale renewable energy and storage investment across Australia. The quarter was characterised by record commissioning outcomes for both generation and batteries, alongside strong financial close activity and a continued expansion of the national project pipeline. Five renewable generation projects totalling 1.2 GW and five storage projects totalling 1.1 GW reached financial close during the period, with total capital investment exceeding $4 billion across generation, storage, and hybrid assets.

Q4 2025 outperformed all other quarters on record for newly commissioned projects. Nine generation projects were completed, totalling 2.1 GW of new capacity, representing 63% of the total operating capacity for 2025. A record four storage projects (1.9 GW / 4.9 GWh) became operational, surpassing previous records set in Q3 2025. Despite this momentum, the report notes that further work is required to streamline planning and approval processes and ensure the delivery of critical transmission infrastructure to maintain the pace of the energy transition.

Highlights

Key highlights for the quarter include the commissioning of nine generation projects with a total operating capacity of 2.1 GW, a quarterly record that exceeds the combined total of the previous six quarters. Additionally, five renewable generation projects worth $3.5 billion reached financial close, representing an uplift from more subdued investment levels earlier in the year. In the storage sector, four projects were commissioned, providing 1 GW of capacity and 2.3 GWh of energy output, while five new storage projects worth 1.1 GW of capacity and 2.8 GWh of energy generation reached financial close.

Project pipeline

The forward pipeline remains robust, with 81 generation projects (nearly 13 GW) and 75 storage projects (13 GW / 34.7 GWh) currently either financially committed or under construction. Since 2017, a total of 260 generation and storage projects have been commissioned in Australia, representing over 20 GW of installed generation capacity and 4.1 GW / 8.7 GWh of energy storage. New South Wales leads the pipeline in project count with 39 projects, followed by Victoria with 29 and Queensland with 25. Total project capital investment in the current pipeline is estimated at $38.1 billion.

Generation project analysis

Quarter 4 was the strongest period in 2025 for new generation financing, featuring a late surge of projects progressing through the development pipeline. Five projects reached financial close, including the 300 MW Blind Creek Solar Farm in New South Wales. Notably, four onshore wind farms reached financial close in the final weeks of December, providing a combined 857 MW. Despite this strong finish, the total capacity of financially closed generation projects in 2025 reached 2.3 GW, which is a decrease from the 4.4 GW recorded in 2024. The industry continues to face challenges related to transmission rollout, grid connection, and planning approvals.

Project investment

Investment in Q4 2025 reached $3.5 billion, the second-highest level of investment in a single quarter for new generation projects. This demonstrates strong global demand for investment in Australia when correct settings are in place. Total capital expenditure for generation projects reaching financial close in 2025 was $4.4 billion. By comparison, the running total for 2024 was $9 billion, indicating that more consistent investment flows are necessary to support the energy transition.

Commissioned generation projects

Records were broken for commissioned generation projects in Q4 2025, with nine projects reaching this stage. The total capacity of 2.1 GW is 57% higher than the previous record set in Q3 2021. Queensland led the nation with four operational projects, including the Clarke Creek Wind Farm – Stage 1, which has a maximum capacity of 450 MW. New South Wales commissioned three projects, while Victoria and South Australia each commissioned one. These nine projects represent a capital expenditure value of over $3.3 billion.

Project completion time by state

On average, solar projects in Australia take 21 months to progress from financial investment decision to full operation. Onshore wind projects take an average of 30 months, while storage projects average 23 months. South Australia leads in average completion times for generation technology. In Western Australia, hybrid projects (incorporating three or more technologies) take approximately 17 months to progress from financial commitment to commissioning.

Energy storage project analysis

The storage sector continued to show strength in Q4 2025, with five projects totalling 1.1 GW / 2.8 GWh reaching financial commitment. Victoria’s Elaine BESS (311 MW / 1,244 MWh) was the largest storage project to reach an investment decision during the quarter. For the full year 2025, 20 projects worth 4.2 GW / 13.4 GWh reached financial close, setting a new annual record for energy output. Commissioned storage projects also broke records, with four projects (1 GW / 2.3 GWh) coming online, led by Victoria’s Melbourne Renewable Energy Hub (600 MW / 1,600 MWh).

Pumped hydro energy storage (PHES)

While no new pumped hydro projects reached financial close in Q4, two major projects remain under construction: the Kidston Pumped Hydro Project in Queensland (250 MW / 2,000 MWh) and Snowy 2.0 in New South Wales (2,000 MW / 350,000 MWh). In November, the Kidston project began its commissioning process, making it the first of its kind to join the National Electricity Market in 40 years.

Hybrid projects

Hybrid projects, which co-locate multiple technologies such as solar, wind, and storage, are becoming increasingly prevalent. There are currently 64 hybrid projects at various stages of development across Australia. Solar and storage systems comprise nearly two-thirds of these projects. New South Wales holds the highest capacity of solar and storage hybrids, while South Australia leads in onshore wind and storage hybrid capacity.

Capacity Investment Scheme and NSW Long-Term Energy Services Agreements tracker

The Capacity Investment Scheme (CIS) aims to support 40 GW of new capacity nationally through revenue underwriting. As of the end of Q4 2025, 66 projects had been awarded a CIS Agreement, with nearly a quarter progressing beyond financial close. Similarly, the New South Wales Long-Term Energy Services Agreements (LTESA) support the state’s Electricity Infrastructure Roadmap. To date, 17 projects have been awarded an LTESA, and nearly two-thirds of these have progressed past the financial close stage.