The Australian Renewable Energy Agency (ARENA) has announced the reopening of its Community Batteries Funding Program, making more than $46 million available under round two to support the deployment of community batteries across the nation. Building on the success of its first round, the program aims to help lower energy costs, reduce emissions, and ease pressure on the national electricity grid.
ARENA is now calling for applications for community battery projects that can enhance the economic viability of energy storage, foster industry growth, facilitate the integration of distributed energy resources (DERs) into the Australian energy market, and demonstrate the tangible benefits of community batteries.
To qualify for funding, projects must involve batteries ranging from 50 kW to 5 MW in size, and they must be connected to the distribution network.
Community batteries play a pivotal role in storing excess solar energy generated during the day for later use. This ability helps to optimize the use of rooftop solar power, reduce household energy bills, and alleviate congestion on local electricity grids. They also support the increased integration of renewable energy sources, which is vital as Australia works toward a cleaner, more sustainable energy future.
Darren Miller, CEO of ARENA, highlighted the importance of energy storage in the transition to a net-zero emissions future. “As we increase our reliance on renewable energy, it’s essential to enhance our firming technologies to ensure grid security and reliability. By storing surplus energy in batteries when renewable power is abundant, we can use this stored energy during periods of higher demand, such as in the evening and overnight,” said Mr. Miller.
ARENA’s second funding round builds on the knowledge and experience gained during the first phase of the program, further optimizing the role of distributed energy resources in Australia’s electricity network.
The Australian Government has committed $200 million in funding for the Household Solar budget measure, which includes the deployment of 400 community batteries across the country. ARENA is tasked with distributing $171 million of this budget allocation to deliver at least 342 community batteries over the course of both funding rounds.
This funding initiative is part of a broader strategy to advance the transition to clean energy and strengthen the reliability of the national power grid.
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