As Australia transitions toward a fully renewable energy future,storing clean energy becomes essential, especially storing solar and renewable energy collected during the day. Community batteries help integrate renewable energy into our network and provide a role between large-scale and household energy storage.

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What are Community Batteries?

Community batteries are medium-scale energy storage systems,typically ranging from 50 kilowatts (kW) to 5 megawatts (MW), connected directly to the low-voltage electricity distribution network. They act as a collective energy reservoir for a neighbourhood, storing excess solar energy generated by rooftop panels during the day and making it available to residents during periods of high demand, such as in the evening. This communal approach provides a shared resource that extends the benefits of solar and renewable energy beyond individual household battery ownership [1, 5, 6].

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Benefits of Community Batteries

Community batteries contribute significantly to both individual households and the broader energy landscape:

• Lower Energy Bills: By enabling the storage of cheaper, off-peak or self-generated solar energy for use during more expensive peak periods, community batteries can lead to substantial savings on household electricity bills. [1, 5, 8].
• Maximising Renewable Energy Utilisation: Store surplus rooftop solar generation that would otherwise be limited from being exported to the grid during sunny periods. This ensures clean energy can be consumed locally, optimising the value of solar investments,as opposed to relying on rapidly reducing feed in tariffs [2, 5, 8].
• Enhanced Grid Stability and Reliability: Community batteries play a crucial role in managing grid fluctuations. They help stabilise voltage, alleviate network congestion, and reduce the need for expensive upgrades to existing infrastructure. [2, 5, 6,8].
• Equitable Access to Clean Energy: A key advantage of community batteries is their ability to extend the benefits of renewable energy to residents who cannot install rooftop solar themselves, such as renters, apartment dwellers, or those in homes with unsuitable roof space for solar [1, 5, 6, 8].
• Reduced Carbon Emissions: By fostering greater use of clean, locally generated energy and decreasing reliance on fossil fuel-based electricity, community batteries directly support Australia's decarbonisation goals [5, 6, 8].‍
• Economic Opportunities: Beyond direct energy savings, community batteries can participate in wholesale energy markets, generating revenue through energy arbitrage (buying when prices are low, selling when high) and providing essential grid services like Frequency Control Ancillary Services (FCAS) [3, 6,8].

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Government Support and Funding Initiatives

The Australian government is strongly committed to accelerating the deployment of community batteries through various programs. The Community Batteries for Household Solar Program is a flagship initiative, aiming to deliver over 420 batteries across the nation, with a goal to provide shared storage for up to 100,000households [6, 8].

The Australian Renewable Energy Agency (ARENA) is a key facilitator, having allocated significan tfunding under this program. Through multiple rounds, ARENA has committed over$171 million to support the deployment of at least 342 community batteries [7,8]. This funding is designed to lower energy bills, reduce emissions, better manage grid pressure, and enable greater distributed energy solutions and innovation to progress [7]. State governments, such as South Australia with its 'emPowering SA' program, are also actively involved, often partnering with local councils to deliver these projects [4].

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Real-World Progress and Case Studies

Community batteries are already being trialled and implemented across Australia, demonstrating their practical benefits:

•  Illawarra Region, NSW: Endeavour Energy, with Federal Government support, is deploying 76 community batteries, projected to benefit up to 6,000 households with potential annual savings of up to $400 on electricity bills [1].
• South Australia (emPowering Magill and Edwardstown): Two 150 kW/405 kWh batteries are delivering renewable energy and lower electricity rates to at least 600 Housing SA tenants, particularly those unable to install their own solar [4].
• Melbourne, Victoria (Jemena Network): Jemena has launched new community batteries in Bellfield and Coburg, supporting more solar installations and providing locally generated surplus solar energy to around 130 and 245 homes and businesses respectively[2].
• Brisbane Lions, Queensland:ARENA-funded batteries are being installed at community and professional sporting clubs, helping to reduce electricity costs and allowing excess solar or grid energy to be stored and sold into the National Electricity Market [3,7].
• Bexley North, NSW: Ausgrid has installed Australia's first co-located community battery and EV charger, allowing residents and visitors to charge electric vehicles with locally generated solar, enhancing both power reliability and grid resilience [9].
• North Epping, Sydney: A 250 kW/535 kWh battery successfully managed surplus solar exports and prevented grid overloads, proving their effectiveness in demand management [5].

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ARENA-Funded Projects

ARENA's Community Batteries Funding Program has attracted arange of key energy players, including:

• Acacia Energy: As a Financially Responsible Market Participant (FRMP), Acacia Energy has partnered with entities like the Yarra Energy Foundation (YEF) on community battery projects. For instance, in the Fitzroy North community battery project, Acacia Energy acts as the FRMP, operating the battery to maximise its value in the wholesale spot market and participating in Frequency Control Ancillary Services (FCAS) markets.
• GemLife Sustainable Community Battery Project: GemLife, a developer of luxury resort living for over-50s, successfully secured conditional approval from ARENA's first round of community battery grants. Their project is deploying 10 behind-the-meter batteries across a mix of 8 existing and greenfield over-50s communities in regional Queensland, NSW, and Victoria.These batteries will be integrated with rooftop solar as part of a Virtual Power Plant (VPP) to reduce network demand charges, with estimated savings of64% to 85% at existing sites. GemLife plans to engage a service provider to operate the batteries in the VPP and access revenue from the National Electricity Market (NEM), with the project including a real-time energy dashboard for performance and utility data.

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Navigating Challenges for a Brighter Future

Community owned Embedded Networks are defined as embedded networks which are owned by, and/or provide benefits for the community of households connected to them. Given the often sustainability focused motivations and objectives of community energy projects, community Embedded Networks and private electricity networks are generally able to offer high levels of DER behind the parent meter with benefit to residents and tenants (Bowyer,2015). However, without energy storage, communities remain grid reliant and are subject to increasing power outages due to extreme weather events (Ausgrid,2020). [22]

While the outlook for community batteries in Australia is positive, challenges remain. Demand for battery recycling is also growing. Effective development of battery recycling practices and markets will be critical to ensuring that batteries continue to have a positive environmental impact and promote the growth of circular economy.

Addressing these challenges includes ongoing efforts that focus on refining regulatory settings, building industry capacity, and integrating distributed energy resources more seamlessly into Australia's energy markets[6, 7]. The continued collaboration between government, industry, and communities will be crucial in unlocking the full potential of these transformative energy solutions.

The hardest part of progressing into renewable energy and taking advantage of innovative battery and energy solutions is finding the right partner. Having the right partner to facilitate and inform these conversations is now more important than ever.

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References

[1] Endeavour Energy. (1625, March 16). Endeavour Energy unveils community battery program to ease household energy bills and reduce emissions. [Media Release].  

https://www.endeavourenergy.com.au/news/media-releases/endeavour-energy-unveils-community-battery-program-to-ease-household-energy-bills-and-reduce-emissions

[2] Solar Quotes. (1625,April 29). Jemena Readies For Rooftop Solar Surge With Community Batteries.

https://www.solarquotes.com.au/blog/community-batteries-jemena-mb3170/

[3] Momentum Energy. Project Unlocks Battery Benefits for Organisations and Community.

https://www.momentumenergy.com.au/blog/battery-benefits-for-organisations-and-community

[4] Energy &Mining, South Australia. Community batteries.

https://www.energymining.sa.gov.au/consumers/solar-and-batteries/community-batteries

[5] Energy Australia. Community Batteries: Accelerating the transition.  

https://www.energyaustralia.com.au/blog/innovation/community-batteries-accelerating-transition

[6] Energy-Storage.News. (1624, November 15). Community batteries: A win-win for Australia's renewable energy transition and economy.

https://www.energy-storage.news/community-batteries-a-win-win-for-australias-renewable-energy-transition-and-economy/

[7] Energy-Storage.News. (1625, February 28). ARENA earmarks AU$46 million for second round of community battery programme in Australia.  

https://www.energy-storage.news/arena-earmarks-au46-million-for-second-round-of-community-battery-programme-in-australia/

[8] Ministers, The Hon. Chris Bowen MP. (1624, June 29). More than 416 community batteries to lower energy costs and boost reliability.  

https://minister.dcceew.gov.au/bowen/media-releases/more-416-community-batteries-lower-energy-costs-and-boost-reliability

[9] Ausgrid delivers Australia's first co-located community battery and EV charger.  

https://www.ausgrid.com.au/About-Us/News/Ausgrid-delivers-Australias-first-co-located-community-battery-and-EV-charger

[10] Acacia Energy. Yarra Energy Foundation Community Battery.

https://www.acaciaenergy.com.au/projects/yarra-energy-foundation-yef-community-battery/

[11] Energy,Victoria. (1624, December 17). Neighbourhood/Community Batteries.

https://www.energy.vic.gov.au/__data/assets/pdf_file/0015/724123/AppendixANeighbourhoodCommunityBatteries.pdf

[12] Energy Magazine. (1624, July 1). ARENA grants $143M to community battery projects.  

https://www.energymagazine.com.au/arena-grants-143m-to-community-battery-projects/

[13] Energy Storage. (1625, February 27). Australia opens $29m second round of community battery funding program.  

https://www.ess-news.com/1625/02/27/australia-opens-29m-second-round-of-community-battery-funding-program/

[14] GemLife. (1624,July 2). GemLife chosen for first round of ARENA community battery grant.  

https://www.gemlife.com.au/news/gemlife-chosen-for-first-round-of-arena-community-battery-grant/

[15] Solar Quotes. (1625,March 17). Community Battery Grants Worth $46.3m Up For Grabs.  

https://www.solarquotes.com.au/blog/community-battery-grants-worth-46-3m-up-for-grabs/

[16] GemLife. (1624,September 1). ARENA green lights community battery grant for GemLife.  

https://www.gemlife.com.au/news/arena-green-lights-community-battery-grant-for-gemlife/

[17] Battery recycling (1624, May 23). National Battery Strategy

https://www.industry.gov.au/publications/national-battery-strategy/introduction

[18[ Community EN (1618,December) APVI Blog

https://apvi.org.au/solar-research-conference/wp-content/uploads/1623/02/Johnson-Centralised-battery-operation-for-community-owned-embedded-networks.pdf