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<\/a><\/p>\nSource: CEC<\/p>\n
Meanwhile, the capital cost of batteries fell by 20 per cent, according to the report, as economies of scale started to kick in.<\/p>\n
\u201cBatteries are playing an increasingly important role in Australia\u2019s electricity system, shifting excess energy during peak generation periods to periods of peak demand,\u201d the report says. <\/p>\n
\u201cTrend-wise, batteries are setting the wholesale price more frequently and closing the gap on gas peaker plants to set a spot price below that of gas. We expect this trend to continue as batteries start to compete more often with each other rather than with gas peakers.\u201d<\/p>\n
Big batteries also played a major role being paired with new renewable energy generators, mainly solar farms, in a trend towards project hybridisation that was identified in AEMO modelling as the primary tool for managing network congestion. <\/p>\n
\u201cSolar and wind developments were increasingly paired with battery storage, helping to manage price volatility, reduce curtailment risk and improve access to grid connections,\u201d the CEC report says. <\/p>\n
\u201cIn many cases, projects that were previously constrained as standalone generation in 2024 became viableagain in 2025 when configured as hybrids,\u201d it adds, citing the example of Neoen Australia\u2019s 412 MW Goyder South wind farm, which was paired with the 238.5 MW\/477 MWh Blyth Battery, which started operations in April 2025.<\/p>\n
At the other end of the battery spectrum, the CEC report shows that home battery installations surged 260 per cent year-on-year, with more than 268,000 units installed by the end of December \u2013 the vast majority of these through federal Labor\u2019s hugely successful rebate scheme, which only launched halfway through the year.<\/p>\n
\u201cDuring the year, 268,675 home batteries were purchased, up from 74,582 in 2024,\u201d the report says. \u201cHousehold battery discharge levels more than doubled across all states.<\/p>\n
Beyond batteries, other standout achievements in 2025 include renewable energy reaching a 42.7 per cent share of Australia\u2019s electricity mix over the full year to December, up from 39 per cent the year prior. <\/p>\n
\u201cFor the first time in Australia\u2019s history and in the final quarter of 2025, clean energy generated more electricity than fossil fuels,\u00a0easing wholesale electricity prices,\u201d the report says<\/p>\n
Less impressively, however, the report found just 2.3 GW of new renewable energy generation reached financial close in 2025, down 46 per cent compared to 2024. Onshore wind had a particularly tough time of it, with financial commitments to new projects falling 59 per cent.<\/p>\n
\u201c2025 was a year of new records. More renewable energy, more batteries, more households generating their own power,\u201d said CEC chief Jackie Trad in a statement on Tuesday.<\/p>\n
\u201cBut we need to be honest about where we are, and where we need to be. The number that demands attention is going in the wrong direction: financial commitments for large-scale wind and solar is at a decade low. That is a gap we must close.<\/p>\n
\u201cThe next five years matter most. Our sector\u2019s highest priority in 2026 must be to remove the barriers slowing investment in new large-scale wind and solar projects that will ultimately replace unreliable coal generators that threaten the security of our energy system,\u201d Trad says.<\/p>\n
\u201cCritical government programs are in place and private capital is ready to deploy.<\/p>\n
\u201cBut billions of dollars in projects are being held back by structural barriers, such as: connection delays and capacity, planning bottlenecks, curtailment, and gaps between policy signals and project economics. All are within the power of state governments and regulators to fix.\u201d<\/p>\n
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