Melbourne-based battery technology company Relectrify has secured $25 million in funding from the Australian Renewable Energy Agency (ARENA) to fast-track the rollout of its world first battery energy storage system (BESS), the AC1.
Unlike traditional systems, the AC1 doesn't require an inverter. Instead, it uses a unique battery management system (BMS) that controls each battery cell to directly produce AC power. This design reduces battery degradation and can deliver 20% more energy over its lifetime, helping to lower energy storage costs.
Relectrify's AC1 system emerged from an earlier ARENA-funded project that, despite challenges, uncovered the breakthrough technology with the potential to cut costs and boost battery performance. Backed by venture capital and now supported again by ARENA, Relectrify is scaling the AC1 innovation showing how early investment helps Australian companies take risks, adapt and deliver clean energy solutions with global impact.
ARENA CEO Darren Miller said the project highlights the importance of backing early-stage technology and Australia's leadership in battery innovation.
"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," Mr 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."
The funding will enable Relectrify to deploy up to 100 MWh of AC1 systems in the commercial and industrial and small front-of-meter markets. These demonstration projects will build real-world operating experience, generate critical performance data and create reference sites for future customers.
Relectrify CEO Jeff Renaud said the ARENA funding is a strong endorsement of the potential for the AC1 BESS 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. This all translates into enhanced safety, reliability and investment returns for BESS owners," Mr Renaud said.
"Commercial and industrial energy users are the missing middle' in Australia's energy transition and the AC1 is designed to fill this gap. It gives large energy users the ability to take control of their energy use and reduce costs, all while supporting Australia's transition to renewables. 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."
The project will also deliver a comprehensive knowledge sharing program, including case studies and performance data on battery performance, supporting industry-wide learning and complementing ARENA's existing priorities of renewable integration and improving grid stability.
This initiative builds on ARENA's past funding for Relectrify in second-life EV battery applications and positions Relectrify to further develop and commercialise its novel BMS technology.
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