Australia’s ARENA approves funding for 370 community batteries

The Australian Renewable Energy Agency (ARENA) has conditionally approved up to AU$143 million (US$95.5 million) to support the roll out of up to 370 community batteries across Australian states.

The funding falls under ARENA’s Community Battery Funding Round 1 and will see all states, as well as the Northern Territory, benefit. The funding round is also anticipated to unlock AU$359 million (US$239.8 million) of investment in renewable energy infrastructure.

The batteries will have an aggregated storage capacity of up to 281MWh. ARENA will contribute up to AU$0.51/Wh (US$0.34/Wh) in grant funding against an average cost of AU$1.28/Wh (US$0.85/Wh).

The range of energy consumers that will benefit from these batteries include households, hospitals, schools and tertiary education institutions, council facilities, housing developments, social and community housing, sports facilities, libraries, aquatic centres, shopping centres and regional and remote communities.

Once online, the batteries are expected to have a tangible impact on local network constraints, reduce emissions and electricity costs for consumers, and expand rooftop solar capacity.

Commenting in a release, ARENA CEO Darren Miller said: “ARENA is pleased to support the roll out of these batteries through our transformative programme which will have a significant impact upon Australia’s energy and grid security while delivering cleaner and more cost-effective energy for our communities.

“We are encouraged to see this important asset class being demonstrated at such a scale and expect that this funding round will kick start the neighbourhood-scale storage sector.”

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ARENA received a strong response under Round 1 of the funding, with 140 eligible Expressions of Interest received.

Funding has now been conditionally allocated to 21 applications from 20 applicants. Ten applications requested AU$67.3 million (US$45 million) under Stream A Distribution Network Service Providers (DNSPs), and 11 applications requested AU$75.7 million (US$50.6 million) under Stream B Non-DNSPs.

The 370 Australian batteries will be installed in the following locations:

• Queensland: three conditionally approved locations for 69 batteries
• New South Wales: five conditionally approved locations for 95 batteries
• Victoria: two conditionally approved locations for 37 batteries
• Tasmania: one conditionally approved location for six batteries
• South Australia: two conditionally approved locations for 24 batteries
• Northern Territory: one conditionally approved location for 16 batteries
• Western Australia: two conditionally approved locations for 28 batteries
• Multiple: Under stream B, five Non-DNSPs have received conditional approval for 95 batteries

Recipients under Stream A of DNSPs include:

• 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)

Recipients under Stream B of 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)

Specific locations for the batteries are yet to be finalised and are subject to community consultation, planning approvals and entry into commercial agreements.

All ARENA funding is conditional on the finalisation of funding agreements with each successful applicant.

ARENA expects to launch a second round of community battery funding in late 2024, with a funding allocation of at least AU$28 million (US$18.7 million).