ARENA allocates funding to up to 281 MWh of community batteries

The Australian Renewable Energy Agency (ARENA) on Saturday announced it has conditionally approved up to AUD 143 million (USD 95m/EUR 89m) in funding for up to 370 community batteries across Australia.

After strong response to its Community Battery Funding Round 1, ARENA has now allocated support to a total of 21 applications from 20 applicants under the two streams -- Distribution Network Service Providers (DNSPs) and Non-DNSPs. The batteries will have a combined capacity of up to 281 MWh and are expected to have a positive effect on local network constraints, help expand rooftop solar capacity, reduce emissions and lower electricity costs. ARENA is providing up to ADU 0.51 per Wh in grant funding towards the average cost of AUD 1.28 per Wh.

"We are encouraged to see this important asset class being demonstrated at such a scale and expect that this funding round will kick start the neighbourhood-scale storage sector,” said ARENA CEO Darren Miller.

In Australia’s October 2022 budget there was AUD 200 million earmarked for the deployment of 400 community batteries across Australia, of which AUD 171 million was directed to ARENA to deliver at least 342 batteries, and the rest to the Department of Climate Change, Energy, the Environment and Water (DCCEEW).

ARENA expects to open a second round of at least AUD 28 million in late 2024.

The newly selected projects are yet to finalise specific locations, which will be subject to community consultation, planning approvals and entry into commercial agreements.

(AUD 1 = USD 0.666/EUR 0.622)

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