Federal funding boosts Queensland local renewable energy zone program

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The Queensland government earlier this year committed $80 million (USD 55.33 million) to establish Local Renewable Energy Zones (LREZs) in Townsville and Caloundra, with plans to deploy 8.4 MW / 18.8 MWh of battery energy storage to support 2.8 MW of existing and additional rooftop solar in each centre and share it across the local network during demand peaks.

The project has now been upsized with the Australian government providing an additional $21.2 million in funding, under a Federation Funding Agreement, to increase the solar capacity of the LREZ projects by 10.6 MW to a total of 16.2 MW.

The state government said the LREZ projects will be complete local energy systems for communities, coordinating generation from rooftop solar installations, electric vehicles (EVs), customer batteries, hot water systems, and community and network batteries with the existing network infrastructure.

Energy generated by households with rooftop solar will be transferred into community batteries operated by state government-owned distribution network operator Energy Queensland, to be transferred back during peak demand periods.

It is expected the LREZs will boost renewable energy production in the Caloundra and Townsville areas, and improve grid stability in both regions.

Queensland Energy Minister Mick de Brenni said the federal investment will provide a boost to the work the state government is already doing in Caloundra and Townsville and allow up to 5,500 more households in thos areas to benefit from the installation of shared solar and battery energy storage systems.

“The new deal with the Australian government is a welcome opportunity for Queensland to deliver more affordable and reliable power to apartments and homes that would otherwise not have access to solar,” he said.

“Queensland is the Sunshine State, so making sure we tap cheap energy from the sun for the benefit of everyone in our community makes perfect sense, and that’s what this partnership will deliver.”

Australian Energy Minister Chris Bowen said the federal investment is part of the Commonwealth government’s Community Solar Banks program, which aims to deliver access to shared solar for 25,000 homes across Australia that have found it difficult to access solar in the past.

“Queenslanders have some of the country’s best sunshine. The Albanese government’s Solar Banks program is making sure everyone can enjoy cheap solar power in their homes,” he said.

“By partnering with the Queensland government we’re making it easier for Queenslanders to access the cheapest form of energy and cut power bills.”

Both the Caloundra and Townsville LREZs are expected to commence operations from January 2025.

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