The Australian Renewable Energy Agency (ARENA) has announced $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 to reducing energy expenditures, emissions, and strain on the electricity grid.
ARENA is currently accepting submissions for up to $20 million in funding to deploy at least five community batteries.
Each community battery needs to be connected to the distribution network and be between 50 kW and 5 MW in size to qualify for ARENA funding.
ARENA has allotted $120 million in funding for Round 1, which will be distributed evenly between two streams:
- Stream A: Distributed Network Service Providers (DNSP)
- Stream B: Applicants that are not DNSPs
Community batteries are energy storage devices in the distribution network that can store extra solar energy for later use, lowering residential electricity rates and relieving strain on the local power system.
“We’re excited to be working on this initiative to support the roll out of these 342 batteries across Australia,” ARENA CEO Darren Miller said.
Miller explained that community batteries are the next stage in optimising dispersed energy resources in the electric grid.
“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,” he added.
The Australian Government allocated $200 million for the Household Solar budget measure in the 2022/23 Federal Budget to build 400 community batteries around Australia.
ARENA received $171 million of the funding to supply at least 342 batteries.
ARENA has committed $120 million to Round 1 and plans to reinvest the remaining funds in a future Community Batteries Funding Program round.
Meanwhile, the Department of Climate Change, Energy, Environment, and Water (DCCEEW) will also distribute 58 community batteries through the Business Grants Hub. This round is now closed, and DCCEEW is reviewing submissions.
ARENA will hold two information sessions about the Community Batteries Funding Program in April.
