The Australian Renewable Energy Agency (ARENA) has conditionally approved up to $143 million in funding to facilitate the installation of up to 370 community batteries throughout Australia.
This initiative, under ARENA’s Community Battery Funding Round 1, aims to benefit all states and the Northern Territory.
Unlocking Investment in Renewable Infrastructure:
This significant funding injection is expected to unlock $359 million in renewable energy infrastructure investment nationwide. The widespread deployment of community batteries will address local network constraints, bolster rooftop solar capacity, reduce carbon emissions, and ultimately lower electricity costs for diverse consumers.
The benefits of these community batteries will extend to various sectors, including households, hospitals, schools, council facilities, housing developments, sports facilities, libraries, and regional communities. This wide-ranging impact underscores the potential of neighborhood-scale storage to transform the energy landscape.
Kickstarting Neighborhood-Scale Storage:
ARENA CEO Darren Miller highlighted the program’s transformative potential, stating that it will serve as a catalyst for the growth of the neighborhood-scale storage sector in Australia. The substantial scale of the project promises to demonstrate the significant benefits this technology can offer to communities nationwide.
The initiative originates from the October 2022 Federal Budget, which allocated $200 million for the Community Batteries for Household Solar Budget Measure. ARENA was tasked with delivering at least 342 batteries from this allocation, with $171 million assigned for this purpose.
Overwhelming Response and Funding Allocation:
ARENA received an impressive response to Round 1, with 140 eligible Expressions of Interest. Funding has been conditionally allocated to 21 applications from 20 applicants, encompassing both Distribution Network Service Providers (DNSPs) and Non-DNSPs.
The combined storage capacity of the community batteries will reach up to 281 MWh, enabling the efficient storage and utilization of renewable electricity across Australian communities. ARENA will contribute up to $0.51/Wh in grant funding, with the average cost per Wh estimated at $1.28.
Diverse Locations and Future Rounds:
While specific battery locations are still being determined, subject to community consultation and necessary approvals, the recipients span a diverse range of organizations across multiple states and territories. ARENA is already planning a second funding round for community batteries in late 2024, with an allocation of at least $28 million, further solidifying the growth of neighborhood-scale energy storage in Australia.