Federal government provides support for over 420 community batteries to share rooftop solar power – pv magazine Australia

July 1, 2024 David Carroll

The Federal Government has announced that the Australian Renewable Energy Agency (ARENA) has conditionally approved $143 million ($95.5 million) to support the construction of up to 370 community batteries with a total storage capacity of 281 MWh under the first round of the Community Battery Fund.

Battery energy storage systems with a capacity of up to 5 MW will be deployed in every state and territory. Combined with the 58 community batteries already under construction by the Department of Industry, Science and Resources through the Business Grants Hub, this system will exceed the federal government’s original commitment to deliver 400 batteries under the Community Batteries for Household Solar program.

Of the first tranche of community batteries to be deployed under the ARENA funding initiative, 95 will be installed in New South Wales (NSW), 69 in Queensland, 37 in Victoria, 28 in Western Australia, 24 in South Australia, 16 in the Northern Territory and six in Tasmania. The Australian Capital Territory received the batteries through the Business Grants Hub.

ARENA’s first round of funding will be split between 21 distributed network service providers and off-network organizations.

ARENA chief executive Darren Miller said community batteries would increase solar grid capacity, improve energy resilience, reliability and sustainability, while lowering energy costs for consumers and businesses.

“We have 21 different applications, different organizations deploying these batteries, so we will learn a lot from this program and see what is possible in the future,” he said, adding that he expects this round of funding to “jumpstart the storage sector on a local scale.”

“These batteries are the missing link in our renewable energy system. They enable more solar panels to be installed on rooftops, helping households and other energy users benefit from local solar energy,” he said.

The first of the batteries to be installed under the ARENA funding program was unveiled at the weekend when New South Wales distributed grid provider Ausgrid switched on a 267kWh community battery in the southern Sydney suburb of Bexley North.

Ausgrid chief executive Marc England said the battery, which also includes a charger for electric vehicles, would act like a sponge during the day, absorbing energy from the sun and then feeding it back into the grid during peak times.

“Community batteries not only facilitate a fairer path to net zero emissions, they also create a more resilient grid,” he said.

England said Ausgrid aims to deploy a portfolio of batteries of up to 5MW under the first round of its Community Batteries funding programme.

The Bexley North Community Battery is the eighth battery already installed on the Ausgrid network.

Federal Energy Minister Chris Bowen, who attended the opening of the facility in Bexley North, said it and other community batteries would help local energy reliability and allow more households to enjoy the benefits of solar panels.

“While one in three Australian households has already installed rooftop solar and has access to cleaner, cheaper energy, fewer than one in 40 households have batteries,” he said.

“Community batteries are the next step to ensure all communities benefit from the energy transition.”

The Community Batteries funding scheme is expected to enable shared electricity storage for up to 100,000 households.

ARENA said specific battery locations have not yet been finalized and are subject to public consultation, planning approvals and the conclusion of commercial agreements. The agency said all funding is contingent on finalizing funding agreements with each successful applicant.

ARENA expects to launch a second round of funding for Community Batteries in late 2024, committing at least $28 million.