The Australian Renewable Energy Agency (ARENA) has allocated $120 million in funding for Round 1 of the Community Batteries Funding Program.
The program intends to encourage the deployment of community batteries across Australia in order to reduce energy expenditures, emissions, and strain on the electricity grid, ARENA said in a press release.
The agency said it is currentlyf accepting submissions for up to $20 million in funding to deploy at least five community batteries.
To be eligible for ARENA funding, each community battery must be between 50 kW and 5 MW in size and connected to the distribution network.
ARENA pointed out that community batteries offer distribution network energy storage that can hold onto extra solar energy for later use, bringing down home electricity rates and relieving strain on the local power system.
These batteries, according to ARENA CEO Darren Miller, are the next development in the grid’s optimisation of dispersed energy sources.
“Not everyone is able to install rooftop solar, but by storing electricity close to the point of consumer demand, we can reduce network costs and alleviate constraints in areas with high solar penetration. This will ultimately reduce electricity costs for all consumers,” Miller said.
He added, “We’re excited to be working on this initiative to support the roll out of these 342 batteries across Australia.”
The Australian Government granted $200 million for the Household Solar budget measure to install 400 community batteries across Australia as part of the 2022–2023 Federal Budget.
Of these funds, $171 million was given to ARENA for the delivery of at least 342 batteries.
Based on the lessons learned from this tranche, ARENA plans to award the remaining cash to a subsequent round after allocating $120 million to Round 1.
The Department of Climate Change, Energy, the Environment and Water (DCCEEW) will first distribute 58 community batteries.
The DCCEEW said it is still reviewing applications after this round was closed.
