CSIRO’s Renewable Energy Integration Facility just doubled its testing capacity. Startups, SMEs and researchers can now apply to use it. Here’s what changed and why it matters.
What’s happening: CSIRO has officially launched a $3 million upgrade to its Renewable Energy Integration Facility (REIF) in Newcastle, more than doubling the lab’s power testing capacity.
Why this matters: Australia’s energy grid is under mounting pressure. Rooftop solar now generates over 12% of Australia’s electricity and new clean energy investment hit $12.7 billion in 2024, the highest year on record.
Australia’s electricity grid is in the middle of one of the most significant transformations it has seen in a century, and a research facility in Newcastle is now at the centre of it.
On 25 February 2026, CSIRO officially launched the expanded Renewable Energy Integration Facility (REIF) at its Newcastle Energy Centre, following a $3 million upgrade that more than doubles the facility’s power testing capacity and introduces advanced grid and battery emulation tools, programmable inverters, and real-time hardware simulation for large-scale experiments.
The facility, which has operated since 2009 when it was opened by then Prime Minister Kevin Rudd, is one of the largest renewable and grid integration testing facilities in the Southern Hemisphere. The upgrade now enables researchers to simulate microgrids, grid faults, household and commercial energy systems, and the interactions between solar panels, batteries, electric vehicles and a diverse mix of generators under conditions that mirror the real world.
CSIRO’s Chief Executive, Dr Doug Hilton, said the timing is no accident. “The Renewable Energy Integration Facility provides industry, researchers and system operators with an independent laboratory to test how technologies such as wind, solar, batteries and electric vehicles can integrate safely and reliably into the grid,” Dr Hilton said.
“As Australia transitions to a cleaner, more electrified economy, we need the confidence that new energy technologies can operate safely and reliably across the system. This upgraded facility strengthens Australia’s capability to test exactly that.
“The facility will support more efficient use of electrical infrastructure, ultimately helping improve energy affordability for Australian homes and businesses.”
The EV wildcard
One of the more striking elements of the upgraded facility is its vehicle-to-grid (V2G) demonstration capability. The technology enables electric vehicles to act as flexible batteries, storing surplus solar energy and returning power to the grid during peak demand periods. CSIRO and Essential Energy have already delivered what they describe as Australia’s first successful demonstration of combined charging system (CCS2) enabled V2G technology using commercially available equipment, an achievement recognised with the 2025 Energy Networks Australia Industry Innovation Award.
CSIRO Energy Systems Research Program Director Dr John Ward said the facility’s capabilities are now better matched to the challenges Australia actually faces.
“The Renewable Energy Integration Facility allows us to simulate and stress-test real-world grid conditions, giving us deeper insight into how inverter-based technologies like solar and batteries perform as their share grows across the electricity system,” Dr Ward said.
“Australia faces unique challenges, from long, remote distribution networks and record levels of rooftop solar, to increasingly volatile weather and rising demand from energy-intensive data centres.
“This facility allows us to work side-by-side with industry and market bodies to design innovative solutions.
“The facility also supports Australian innovation and manufacturing by providing a rigorous, independent environment to evaluate new technologies before they reach market,” he said.
Why business should care
The pressure on Australia’s energy system is not theoretical. The Australian Energy Regulator’s State of the Energy Market 2025 report shows rooftop solar capacity increased by 13% to 23 GW during 2024, equivalent to 25% of all generation capacity in the National Electricity Market. Meanwhile, a survey by the Council of Small Business Organisations Australia found that small businesses are experiencing financial strain from energy bills at a rate exceeding the peak of the COVID-19 pandemic, with one in five businesses struggling to pay energy bills on time.
For businesses, the REIF upgrade has a direct implication: technologies that pass through independent facilities like this one are more likely to reach market with fewer reliability surprises. The facility has already supported major projects, including smart inverter development with Google X, virtual power station testing, and Australian Standards development.
CSIRO has previously offered programs to help SMEs engage with clean energy research, including its Innovate to Grow initiative developed in partnership with the Trailblazer for Recycling and Clean Energy program.
The facility is open to external industry and research organisations. Businesses interested in collaboration or commercialisation projects can direct expressions of interest to [email protected]. Australian start-ups and small to medium enterprises are also encouraged to explore support through CSIRO’s Kick-Start Program.
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