The Australian Renewable Energy Agency (ARENA) has announced $25 million in funding for Melbourne-based battery technology company Relectrify to accelerate the commercial rollout of its world-first battery energy storage system, the AC1.
In a statement, ARENA said the funding will support large-scale deployment of Relectrify’s technology, which uses a unique approach to deliver alternating current (AC) power directly from battery cells – without the need for a separate inverter.
According to the agency, the system’s design reduces battery degradation and can deliver up to 20 per cent more energy over its lifetime, helping to lower energy storage costs and improve efficiency.
ARENA said the AC1 technology builds on outcomes from an earlier ARENA-funded project that, despite facing challenges, resulted in a major breakthrough in battery management technology.
The agency noted that this new investment demonstrates how early-stage funding can help Australian innovators develop, refine and scale clean energy solutions that have potential for global impact.
ARENA CEO Darren Miller said the Relectrify project reflects the importance of supporting emerging technologies that can strengthen Australia’s renewable energy capabilities.
“With early-stage support from ARENA, Relectrify was able to develop its technology and test its first deployments. Not everything went to plan, but through these early trials Relectrify developed a breakthrough with the potential to reduce costs and improve performance,” Miller said.
“What began as a project to reuse end-of-life batteries has now grown into a world-class battery management technology with the potential to transform energy storage. By backing home-grown innovators like Relectrify, we’re helping to bring forward technologies that could unlock new value from batteries and support the transition to a more flexible, low-emissions grid,” he said.
ARENA said the latest funding will enable Relectrify to deploy up to 100 megawatt-hours of AC1 systems in the commercial and industrial, and small front-of-meter markets.
The agency explained that these deployments will provide valuable real-world operating data, establish reference sites for future customers, and demonstrate the performance and reliability of the technology in practical settings.
Relectrify CEO Jeff Renaud welcomed the announcement, describing ARENA’s investment as a strong endorsement of the AC1 system’s potential to transform battery energy storage.
“The AC1 BESS neutralises weaknesses in today’s battery systems with a proprietary architecture that can independently optimise the usage of every battery cell. The AC1 does things no other BESS can do, generating grid-compliant AC power directly from battery cells, without the need for a separate inverter,” Renaud said.
He added that the technology is particularly suited to commercial and industrial energy users, who he described as the “missing middle” in Australia’s energy transition.
“ARENA’s support enables Relectrify to bring the game-changing AC1 BESS to market at scale, and we’re thrilled that it is now available to Australian businesses,” he said.
ARENA said the project also includes a comprehensive knowledge-sharing program to provide industry participants with case studies, operational data, and insights on battery performance.
