The Australian Renewable Energy Agency has announced $25 million in funding for Melbourne-based battery company Relectrify to fast-track deployment of its world-first battery energy storage system, the AC1.
Unlike conventional batteries, the AC1 system does not require an inverter. Instead, it uses a unique battery management system that controls individual cells to directly produce AC power. This approach can deliver 20 per cent more energy over a battery’s lifetime and reduce overall storage costs.
Relectrify’s AC1 evolved from an earlier ARENA-funded project, which led to a breakthrough in battery architecture capable of lowering costs and extending performance. ARENA CEO Darren Miller said the project shows the importance of backing early-stage technologies.
“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,” he 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.”
The $25 million in funding will support deployment of up to 100 MWh of AC1 systems across commercial and industrial sites and small front-of-meter markets. These trials will provide real-world performance data and reference sites for future customers.
Relectrify CEO Jeff Renaud said the funding validates the company’s innovative approach. “The AC1 BESS neutralises weaknesses in today’s battery systems with a proprietary architecture that can independently optimise the usage of every battery cell,” he said. “It generates grid-compliant AC power directly from the cells, without a separate inverter, translating into enhanced safety, reliability and investment returns for BESS owners.”
Renaud said the system will help large energy users – the “missing middle” of Australia’s energy transition – manage energy use and lower costs while supporting renewable uptake.
The project also includes a knowledge-sharing program featuring case studies and data to support broader industry learning.
By continuing to back Relectrify, ARENA is helping bring Australian-developed technology to global markets, further strengthening the nation’s position in clean energy innovation.
