Time to put the pedal to the metal on planning and productivity reforms as clean energy investment slows in first half 2025 - Q2 Report

The Clean Energy Council’s Quarterly Investment Report: Large-scale renewable generation and storage (Q2, 2025) shows that the total amount of renewable energy generation financially committed in the first half of 2025 was 1.17 GW - only a third of the 6-7 GW annual pace required to replace aging coal and meet the nation’s 82 per cent renewable energy target. Of these projects, no new wind farms were committed in the first half of 2025.

The report also found that Q2 saw the lowest level of investment in large-scale battery storage seen in almost two years (since Q3 2023) representing 334 MW of capacity – less than a quarter of the levels seen in Q1 2025 (1520 MW). However, despite a slower quarter, with three projects reaching financial close in Q2, battery storage generation remains on track to meet and beat deployment levels under the Australian Energy Market Operator’s Step Change scenario, with newly committed capacity exceeding 1000 MWh for nine consecutive quarters.

Clean Energy Council Acting Chief Policy and Impact Officer, Anna Freeman, said while the pipeline of clean energy projects remains strong, many are being held back by delayed transmission projects and extended planning and environment assessments. The peak body called on governments, regulators and market bodies to address barriers to investment as a priority.

“Unsurprisingly, the Federal Election in May created a great deal of political and policy uncertainty which has been unhelpful to energy investors who are trying to make very large investments in assets which will be in operation for decades to come,” Ms Freeman said.

“International and local investors are ready to invest in Australia, but assessments  need to be faster, clearer and more predictable to unlock projects.

“Victoria has not approved a large-scale wind farm since 2023 and projects in Queensland are now facing a higher degree of uncertainty. 

“We need unprecedented levels of focus, collaboration and problem-solving between Federal and State governments, industry and stakeholders to urgently clear hurdles to new investment.

“The clean energy build is not a ‘’nice to have’’, this is a ‘’must have’’. The reliability and affordability of our electricity system depends on it.

Other key results included:

• Four generation projects totalling 615 MW of capacity secured financial commitment in Q2 2025 (the lead-indicator for new power projects). While another five generation projects were commissioned in Q2 2025 with a total operating capacity of 312 MW.
  
• Three storage projects worth 334 MW (capacity) / 1,168 MWh (energy output) reached financial close, which marks the lowest quarterly result for storage projects since Q1 2023. While another two storage projects were commissioned in Q2 worth 325 MW / 760 MWh. The rolling average energy output for commissioned storage projects reached a new height in Q2 2025, at 584 MWh.
  
• There are currently 83 renewable electricity generation projects which are in the financial commitment or under construction pipeline, representing 13.1 GW of capacity. There are also 73 committed storage projects (either standalone or hybrid projects) currently in this pipeline, equivalent to 12.8 GW / 33.3 GWh in capacity / energy output.

ENDS

For more information or to arrange an interview, please contact: 

Liam Straughan
Clean Energy Council Media Officer
+61 409 470 683