The Australian Renewable Energy Agency (ARENA) has made a significant investment of $25 million in Relectrify, a battery technology company based in Melbourne, to speed up the market deployment of its innovative battery energy storage system (BESS), the AC1. This funding aims to support the rollout of Relectrify’s technology, which stands out in the quickly changing energy storage field by removing the need for a traditional inverter.
The AC1 BESS marks a major shift in battery design. Unlike standard systems that require a separate power conversion unit, the AC1 uses a proprietary Battery Management System (BMS) that can carefully control each battery cell to directly generate AC power, and this unique design offers significant advantages, such as a noticeable reduction in battery cell wear and the ability to deliver about 20% more energy over its lifespan. This improved performance is key to lowering the overall cost of energy storage, a vital goal for the renewable energy transition.
Relectrify’s AC1 technology originated from a previous project backed by ARENA. Although that earlier effort, which aimed to reuse end-of-life batteries, faced challenges, it ultimately led to the development and fine-tuning of this innovative BMS technology. This highlights the essential role of early, risk-taking investments in promoting Australian innovation. With venture capital backing and further support from ARENA, Relectrify is well-positioned to expand the AC1 technology, showing how early support helps local companies provide impactful clean energy solutions and gain global significance.
ARENA CEO Darren Miller emphasized the project’s importance and the affirmation of supporting new technologies, as well as Australia’s leading role in global battery innovation. Mr. Miller noted that ARENA’s initial support was crucial for Relectrify to develop and conduct early field trials of its technology. He recognized that the process had its challenges, but these initial deployments were vital in leading to breakthroughs that could lower costs and greatly improve battery performance. “What started as a project to reuse end-of-life batteries has evolved into world-class battery management technology with the potential to transform energy storage,” Mr. Miller said. He stressed that supporting local innovators like Relectrify is crucial for fast-tracking technologies that can create new value from batteries and help build a more flexible, low-emissions electricity grid. The $25 million funding is set aside to help deploy up to 100 MWh of AC1 systems in commercial and industrial (C&I) and small front-of-meter markets. These important demonstration projects will provide essential real-world operating experience, gather key performance data, and create operational reference sites for potential clients.
Mr. Renaud labeled C&I energy users as the “missing middle” in Australia’s ongoing energy transition, stating that the AC1 is designed to fill this critical gap. The system allows large energy users to better manage their energy consumption and cut down operational expenses while supporting the national shift toward renewable energy sources. ARENA’s continuous support gives Relectrify the momentum needed to launch the groundbreaking AC1 BESS at scale, making it readily available to Australian businesses.
Additionally, the initiative includes a knowledge-sharing program. This program will provide detailed case studies and performance data on battery operation, aimed at fostering industry-wide learning and supporting ARENA’s strategic goals for renewable integration and grid stability. It can be mentioned that this funding builds on ARENA’s previous support for Relectrify’s work on second-life electric vehicle battery applications, effectively positioning the company to advance and commercialize its innovative BMS technology for a global impact.
