The Australian Renewable Energy Agency (ARENA) has conditionally allocated up to $143 million to facilitate the deployment of up to 370 community batteries throughout Australia in its initial Community Battery Funding Round.
A Nationwide Initiative:
This program is anticipated to benefit all states and the Northern Territory, injecting an estimated $359 million into renewable energy infrastructure.
Once operational, these batteries are projected to alleviate local network constraints, increase rooftop solar capacity, reduce emissions, and lower electricity costs for consumers.
The beneficiaries of this initiative will span various sectors, including households, educational institutions, council facilities, housing developments, sports facilities, community hubs, shopping centres, and remote communities.
Empowering Consumers and Businesses:
ARENA CEO Darren Miller emphasized the pivotal role of community batteries in enhancing energy resilience, reliability, and sustainability, while concurrently lowering energy costs for both consumers and businesses.
Miller expressed ARENA’s enthusiasm for supporting the widespread implementation of these batteries through a transformative program that will significantly bolster Australia’s energy and grid security, providing cleaner and more cost-effective energy solutions for communities.
He highlighted the encouraging scale of this initiative and the anticipated impetus it will provide to the neighborhood-scale storage sector.
Government Backing for Community Batteries:
The October 2022 Federal Budget earmarked $200 million for the Community Batteries for Household Solar Budget Measure, aiming to deploy 400 community batteries across the nation.
Of this, $171 million was allocated to ARENA to deliver at least 342 batteries, with the remaining balance to be managed by the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
ARENA received an overwhelming response to Round 1, with 140 eligible Expressions of Interest submitted. Funding has now been conditionally granted to 21 applications (from 20 applicants): 10 applications under Stream A for Distribution Network Service Providers (DNSPs), receiving $67.3 million, and 11 applications under Stream B for Non-DNSPs, receiving $75.7 million.
Aggregated Storage Capacity and Grant Funding:
The combined storage capacity of these batteries is expected to reach 281 MWh, enabling the storage and utilization of renewable electricity generated across Australian communities. ARENA’s grant funding will contribute up to $0.51 per watt-hour, offsetting an average cost of $1.28 per watt-hour (39.8%).
The precise locations for the batteries are yet to be determined and will be subject to community consultation, planning approvals, and commercial agreements. All ARENA funding is contingent upon the finalization of funding agreements with each successful applicant.
Future Funding Rounds:
ARENA plans to launch a second round of community battery funding in late 2024, with a minimum funding allocation of $28 million.
Recipients and Locations:
Stream A (DNSPs):
- Ausgrid (NSW)
- Endeavour Energy (NSW)
- Energex (2 applications, QLD)
- Ergon Energy (QLD)
- Horizon Power (WA)
- Power and Water Corporation (NT)
- SA Power Networks (SA)
- Tasmanian Networks (TAS)
- Western Power (WA)
Stream B (Non-DNSPs):
- Department for Energy and Mining (SA)
- Enel X Australia (Multiple states)
- FRV Services Australia (VIC)
- Indigo Power (Multiple states)
- Gemlife (Multiple states)
- Hydro Tasmania (Multiple states)
- Mondo Power (VIC)
- Next Green Group (Multiple states)
- Shell Energy Retail (NSW)
- Transport for NSW (NSW)
- ZEN Energy Retail (NSW)
Locations:
- Queensland: 69 batteries (3 locations)
- New South Wales: 95 batteries (5 locations)
- Victoria: 37 batteries (2 locations)
- Tasmania: 6 batteries (1 location)
- South Australia: 24 batteries (2 locations)
- Northern Territory: 16 batteries (1 location)
- Western Australia: 28 batteries (2 locations)
- Multiple States: 95 batteries (5 locations)
Total: 370 batteries (21 locations)
Please note: All battery installations are subject to the finalization of agreements. The Australian Capital Territory (ACT) has already received batteries under the Business Grants Hub.