The Community Batteries Funding Program’s inaugural round, spearheaded by the Australian Renewable Energy Agency (ARENA), witnessed a remarkable response, with more than $3.5 billion in funding requests for battery deployment projects.
As part of the 2022-23 Federal Budget, the Australian Government earmarked $200 million for the Household Solar budget measure, intended for the deployment of 400 community batteries throughout the country. Of this allocation, ARENA received $171 million to facilitate the installation of at least 342 batteries.
“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.”
“We’re excited to be working on this initiative to support the roll out of these 342 batteries across Australia.”
ARENA’s CEO, Darren Miller
This impressive surge in interest came after ARENA initiated Round 1 in April, with the program’s primary objective being the reduction of energy costs, emissions, and the alleviation of strain on the electricity grid through community battery projects.
The expression of interest phase has recently concluded, and ARENA has announced that it received a total of 140 eligible applications spanning all states and territories. These applications collectively sought grants totaling $1.3 billion, an amount exceeding tenfold the available funding of $120 million allocated for Round 1.
Out of the numerous applications received, ARENA has shortlisted 31, inviting them to submit comprehensive project proposals. These selected projects span the entirety of Australia, with a total grant request of $231 million and an overall project value of $530 million.
Within this group, 14 applications have been invited under Stream A, with a combined funding request of $93 million, and 17 applications invited under Stream B, requesting $138 million.
Round 1 of the program encompasses a diverse array of use cases and business models. The shortlisted applicants are mandated to install a minimum of five community batteries, each ranging from 50 kW to 5 MW in size, and integrate them into the distribution network.
ARENA’s CEO, Darren Miller, emphasized that the unprecedented demand underscores the substantial potential for communal energy storage solutions.
“Through these initial projects we hope to see community batteries enable cheaper, cleaner energy storage to communities and provide valuable knowledge that can be shared across Australia to fast track the implementation of these local batteries.”
ARENA’s CEO, Darren Miller
Community batteries play a vital role in storing surplus solar energy within the distribution network, thereby reducing household electricity costs and alleviating stress on the local power grid.
The Department of Climate Change, Energy, the Environment, and Water (DCCEEW) will oversee the implementation of an initial 58 community batteries through the Business Grants Hub, with batteries such as those in Cabarita and Narara already commissioned as part of this initiative.
ARENA has already extended invitations to successful applicants to submit full project proposals, with the deadline for submissions set for March 2024.
Numerous funding opportunities await your application. ARENA programs offer guidance to align your proposal with ARENA’s strategic priorities. Select the appropriate opportunity and follow the application instructions. Funding applications should align with ARENA’s strategic priorities.
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