Melbourne-based battery company Relectrify has secured $25 million in funding from the Australian Renewable Energy Agency (ARENA) to accelerate deployment of its world-first AC BESS.
Unlike conventional battery energy storage systems, the AC1 does not require an inverter. Instead, it uses a proprietary battery management system (BMS) that controls each cell to directly produce AC power. This design reduces degradation and delivers up to 20% more energy over the system’s lifetime, lowering energy storage costs.
The AC1 evolved from an earlier ARENA-supported project that uncovered breakthrough technology despite initial challenges. With venture capital backing and renewed support from ARENA, Relectrify is scaling its AC BESS, demonstrating how early investment enables Australian firms to take risks and deliver globally impactful clean energy solutions.
“With early-stage support from ARENA, Relectrify was able to develop its technology and test its first deployments,” said ARENA CEO Darren Miller. “Not everything went to plan, but through these early trials Relectrify developed a breakthrough with the potential to reduce costs and improve performance,”
“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 support deployment of up to 100MWh of AC1 systems across commercial, industrial and small front-of-meter markets, generating performance data and reference sites for future customers.
