The Australian Renewable Energy Agency (ARENA) has committed to invest $46.3 million for the second round of the Community Batteries Funding Program.
The program aims to deploy community batteries across Australia to lower energy bills, cut emissions, and reduce pressure on the electricity grid.
Community batteries provide energy storage in the distribution network that can store excess solar energy for later use, enabling higher penetrations of rooftop solar, putting downward pressure on household costs, and easing pressure on local electricity grids.
To be eligible for the funding, each community battery must be between 50 kilowatts and 5 megawatts in size, as well as connect to the distribution network.
ARENA Chief Executive Darren Miller says batteries are critical for the transition to net zero as the grid transitions to energy generated from renewable sources.
“Part of increasing our dependency on renewable sourced energy is the need to increase our firming technology to make sure the energy grid is secure and reliable,” Miller says.
“We can achieve this by storing energy in batteries when renewable energy is plentiful and use this stored energy later in the day and overnight when people most need it.
“Over recent years, a concerted effort has been made in deploying batteries to support the grid and transition to clean energy. Round two will build on the insights, expertise and knowledge developed in round one, resulting in further optimisation of distributed energy resources in the electricity grid.”
ARENA is currently seeking applications to deploy community batteries. The projects should improve the economics of community battery projects, build industry capacity, support the integration of distributed energy resources into Australian energy markets, or show benefits of community batteries.
As part of the 2022-23 Federal Budget, the Australian Government allocated $200 million for the Household Solar budget measure to deploy 400 community batteries across Australia.
In total, ARENA was allocated $171 million of this funding to deliver at least 342 community batteries across rounds one and two.
Write to Aaliyah Rogan at Mining.com.au
Images: ARENA
