Australia opens $29m second round of community battery funding program

Federal body ARENA has launched an AUD 46.3 million ($29.3 million) second round of its CBFI, which aims to provide shared energy storage access to more than 100,000 households.

Applications are invited from community battery projects that can build industrial energy capacity, support the integration of small-scale, “distributed” energy resources in Australia’s energy markets, and demonstrate the benefits offered by community energy storage.

Eligible batteries must be 50 kW to 5 MW in scale and connected to an electricity distribution grid.

“Part of increasing our dependency on renewably sourced energy is the need to increase our firming technology to make sure the energy grid is secure and reliable,” said ARENA chief executive Darren Miller. He added, the latest CBFI funding round “will build on the insights, expertise, and knowledge developed in round one, resulting in further optimization of distributed energy resources in the electricity grid.”

The government allocated AUD 200 million to deploy 400 community batteries nationwide, as part of the 2022-23 federal budget.

Round one of the CBFI received requests for AUD 1.3 billion worth of community batteries and awarded funds to electricity distribution companies Energex, which made two successful bids, Ausgrid, Endeavour Energy, Ergon Energy, Horizon Power, Power and Water Corporation, SA Power Networks, Tasmanian Networks, and Western Power. The funds relate to community batteries in New South Wales (NSW), Queensland, Western Australia, the Northern Territory, South Australia (SA) and Tasmania.

A separate funding stream for non-utility applicants awarded 11 grants: to Shell Energy Retail, Transport for NSW, and ZEN Energy Retail, in NSW; SA’s Department for Energy and Mining; and Victoria’s FRV Services Australia and Mondo Power. Enel X Australia, Indigo Power, Gemlife, Hydro Tasmania, and Next Green Group secured funds for projects across multiple states.

A total 370 community battery projects were successful applicants in round one of the program, 21 of which have already been conditionally approved and are subject to finalization of agreements.

Round two applicants can submit bids from March 17 to April 30.

From pv magazine Australia.