The Australian Renewable Energy Agency (ARENA) has launched the $46.3 million (USD 29 million) community batteries funding initiative (CBFI) second round to deploy community batteries across Australia and provide shared storage to over 100,000 households.
Applications are being sought to deploy community batteries that will build industry capacity, support the integration of distributed energy resources (DER) into Australian energy markets, or demonstrate benefits of community batteries.
To be eligible, each community battery must be between 50 kW and 5 MW in size and connected to the distribution network.
ARENA Chief Executive Officer Darren Miller said batteries are a critical part of the transition to net zero as the grid transitions to energy generated from renewable sources.
“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,” Miller said.
“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,” said Mr Miller.
Miller added that over recent years, a concerted effort has been made in deploying batteries to support the grid and transition to clean energy.
“Round 2 will build on the insights, expertise and knowledge developed in Round 1, resulting in further optimisation of distributed energy resources in the electricity grid,” he said.
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 the country.
Funding applications can be submitted from 17 March 2025 to 30 April 2025.
Successful applicants for round one, which received a total grant request of $1.3 billion and was announced in June 2024, included 10 stream A distributed network service providers (DNSP) in New South Wales (NSW), Queensland, Western Australia (WA), the Northern Territory (NT), South Australia (SA) and Tasmania.
These were Ausgrid, Endeavour Energy, Energex (two applications), Ergon Energy, Horizon Power, Power and Water Corporation, SA Power Networks, Tasmanian Networks and Western Power.
Stream B for non-DNSPs saw 11 successful bids for round one grants, including in NSW, Shell Energy Retail, Transport for NSW and ZEN Energy Retail, in South Australia the Department for Energy and Mining, and in Victoria FRV Services Australia.
In Victoria, Mondo Power won funding through the program as did Enel X Australia, Indigo Power, Gemlife, Hydro Tasmania and Next Green Group, for projects across multiple states.
In total, 370 community battery installation projects were successful including 21 that are conditionally approved and subject to finalisation of agreements.
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