The federal Capacity Investment Scheme will reserve specific capacity in future tenders for renewable and storage projects featuring First Nations equity or revenue-sharing agreements. This landmark policy shift formalises Indigenous economic participation in the energy transition. It arrives, however, as market confidence shows signs of strain. NEM spot prices surged 49.3 per cent week-on-week to average $98.07/MWh, reflecting significant market stress. This volatility underscores findings from a new Clean Energy Investor Group survey, which revealed only 10% of investors expect Australia to meet its 82% renewables target by 2030. Respondents cited transmission delays and complex approvals as persistent barriers to capital deployment.
The intense financial pressure on market participants was laid bare as more details emerged about Zen Energy’s collapse. Network owner Endeavour Energy initiated winding-up proceedings against the renewable retailer due to outstanding debts, prompting the AER to transfer Zen's large commercial clients to default providers. The action followed persistent payment failures, highlighting the cascading financial risks within the sector as wholesale price volatility bites. This event serves as a stark reminder of the challenges facing retailers in the current market environment, even those with a renewable focus.
Despite these market headwinds, the project pipeline continues to advance. Swedish developer OX2 acquired the construction-ready Horsham Solar Farm in Victoria, a 119MW solar and 100MW/200MWh battery hybrid project. The asset is notably backed by a long-term revenue floor secured through the CIS, demonstrating the scheme's role in de-risking new generation. In NSW, CleanPeak Energy will build a 30MW/120MWh battery at Western Sydney International Airport as part of a 15-year total renewable power contract. Further bolstering the storage pipeline, three large-scale projects totalling 3.8GWh of capacity have progressed through the federal EPBC Act environmental assessment process.
Australia's growing reliance on battery storage places it squarely within a global supply chain dominated by a handful of players. New data shows Chinese system integrators captured 76% of the global BESS market in 2025, cementing their control over critical hardware. While this concentration offers economies of scale, it also presents strategic risks. In Europe, efforts to build local capacity are underway, with Eni Storage breaking ground on a gigafactory in Italy and Chinese firm Hithium securing an €80 million grant for a plant in Spain. These developments highlight a global push to diversify battery manufacturing beyond China.
Looking ahead, major suppliers are navigating what they see as a temporary market consolidation. JinkoSolar anticipates a global solar market recovery beginning in 2028, following a period of weaker demand and manufacturing pressure. Domestically, the future of industrial energy use is taking shape in Newcastle, where a new $500 million steel mill will operate entirely on renewables without fossil gas. Meanwhile, stakeholders have just one day left to comment on AusNet's application to the AER to recover costs from the January 2026 Victorian bushfires.