Reference Documents
This page contains links to useful Community Batteries reference documents.
Project Overview
Final Report - Yarra Energy Foundation - Fitzroy North
Powerful Neighbours Report
Community Scale Battery Working Group - Policy Advice
Community Scale Battery Working Group
Making community batteries work at scale in Australia
Adapted from the Community Scale Batteries Working Group document
17 April 2022 - Geoff Acton
Key messages
Community batteries could play a significant role in the energy transition, providing affordable local storage for excess rooftop solar energy and equitable access to renewable energy for non-solar owners.
A carefully designed community battery policy could help address current unknowns (eg, around potential ownership models and battery services) in order for these batteries to maximise their potential.
We recommend that publicly funded projects feature clear program objectives, consistently applied assessment criteria for project selection and oversight by an independent public authority.
Background
The term “community batteries” refers to models where the community is directly involved in the battery project, either through ownership, governance or another direct form of involvement (including sharing in the benefits).
Community batteries are generally in the range of 100 kWh to 1 MWh, and are most often located close to customers. Batteries with these characteristics which do not feature direct community involvement are often referred to as community scale or neighbourhood batteries.
based on the practical experience of CSBWG members, as well as neighbourhood battery research carried out to date, including guidelines to be published shortly by the Victorian Government (Department of Environment, Land, Water and Planning - DELWP).
Executive Summary
Section 1 What we know about implementing community batteries:
There is strong interest from the public and the energy industry in community batteries, which can provide an opportunity to engage local communities (including non-solar owners) in the energy transition.
There are potential advantages in economic efficiency, fairness and customer satisfaction with community batteries compared to household batteries.
Carefully considered governance will be required to ensure that the expected economic, environmental and equity impacts are realised.
Innovation in network partnerships will be important for commercial viability.
Section 2 What we need to answer to inform the program:
It is currently unclear what roles community batteries could best play in the energy transition, so further work is needed to understand and quantify the benefits and costs.
Multiple business, ownership and operating models are still being developed, and ongoing support is needed for pilots and trials that share lessons learned.
New network tariffs may be needed to incentivise efficient use of the local network by community batteries.
Some regulatory reforms may be required (eg, around metering and AEMO market settlements, or to access all possible value streams).
A range of other issues need to be resolved, such as supply chain considerations; lifecycle environmental impacts including battery cell recycling; how to ensure the long term financial viability of projects; community concerns around noise, space, visual and perceived or real safety risks; and how to integrate electric vehicles with community batteries.
Section 3 What considerations will be critical to the success of a publicly funded community battery program:
The overarching policy intent should be clearly stated and aligned with community expectations and values.
work through the unknowns listed in Section 2 prior to funding being allocated to particular projects.
Network constraints maps (for both load and solar exports) should be available to help ensure that, where relevant, community batteries can support the electricity network.
Projects should be selected utilising the following assessment criteria:
A preference for locations with:
High local solar penetration and/or high solar exports.
Strong community and Council support.
Potential DNSP and retailer support.
Suitable and available land.
The project management capabilities of the lead organisation or consortium, including:
Its financial stability and cybersecurity capabilities.
Demonstrated successful community engagement and consultation.
The likely long-term capability of the organisation to manage the battery project.
The viability of the ownership and business model involved.
The expected increase in the use of local renewable energy and/or reduction in emissions.
The utilisation of existing or forthcoming Australian manufacturing capabilities.
Section 4 How a publicly funded community battery program should be governed:
Adopt the best practice governance principles of independence, accountability and transparency.
Ensure battery users and the local community are directly represented.
Program oversight should be by an independent public authority.
Avoid political interference, hasty implementation, funding white elephants and burnout.
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The objective of the CSBWG is to give community scale/neighbourhood batteries the best possible chance of becoming an important part of the energy transition.
ARENA
Stockpiling solar power in suburban batteries - Rewired podcast
Creative ways of storing energy from the wind and sun will be needed to power the next phase of the energy transition.
https://arena.gov.au/blog/stockpiling-solar-power-in-suburban-batteries/
Or listen below:-
Victorian Neighbourhood Battery Initiative Consultation
Some useful extracts are shown below:
Neighbourhood scale batteries (also called community scale batteries) are a type of energy storage model that can provide multiple benefits to consumers, communities and the electricity system. Neighbourhood scale batteries are bigger than household solar batteries, ranging in power capacity from approximately 100 kilowatts (kW) to five megawatts (MW). Neighbourhood scale batteries are connected ‘in front of the meter’ to the electricity distribution network, rather than ‘behind the meter’ in a household or business premises. They would typically be located at street level in proximity to where electricity is being both consumed by homes and generated from rooftop solar.
What are neighbourhood scale batteries?
Neighbourhood scale batteries (also called community scale batteries) are a type of energy storage model that can provide multiple benefits to consumers, communities and the electricity system.
Neighbourhood scale batteries are much bigger than a solar battery you might install in your house. While a typical household solar battery might have a power capacity up to about 10 kilowatts (kW), neighbourhood scale batteries range in power capacity from approximately 100 kW to five megawatts (MW).
Neighbourhood scale batteries are connected ‘in front of the meter’ to the electricity distribution network, rather than ‘behind the meter’ in a household or business premises. A neighbourhood scale battery would typically be located at street level close to where electricity is being both consumed by homes and generated from rooftop solar. This location allows them to provide a range of benefits to energy users and the electricity system.
Neighbourhood scale batteries can be owned by electricity distribution businesses or third parties such as community energy groups, electricity retailers, aggregators, and private investors. The potential benefits a neighbourhood scale battery project can provide, who these benefits flow to, and the value streams accessed by the battery, will depend on who it is owned by and how it is operated.
What are the benefits of neighbourhood scale batteries?
A key advantage of neighbourhood scale batteries is that they can provide a wide range of social, economic and technical benefits, including:
Supporting solar integration: Neighbourhood scale batteries can enable the network to support more rooftop solar by storing electricity generated by solar systems during the day and discharging it during the evenings when local demand is highest. This can enable consumers to generate and consume more renewable energy locally and support Victoria’s climate change and renewable energy targets.
Network support: Neighbourhood scale batteries can be operated to help avoid expensive network upgrades by better managing electricity network conditions. This may enable all consumers to save on bills through lower network charges.
Market services: Neighbourhood scale batteries can participate in spot price arbitrage in the wholesale electricity market (buying electricity when prices are low and selling when they are high), which can help put downward pressure on electricity prices for everyone. They can also provide services that help maintain the security and reliability of the electricity system for energy users.
Reliability in outage-prone areas: Customers in remote, outage-prone areas may benefit from local neighbourhood scale batteries providing backup power and improving reliability of supply.
Virtual shared storage service for customers: Some batteries may be operated to provide a retail storage offering to customers, allowing them to virtually store excess solar generation in the battery during the day and draw down on it in the evening. This may help to expand consumer access to the benefits of storage. Participation in shared storage schemes may be cheaper, more efficient and more flexible than purchasing a household battery, avoiding installation and maintenance costs, as well as relocation constraints.
The Powerful Neighbours Report
This report results from a feasibility study led by electricity distribution network Powercor, and conducted in partnership with CitiPower, United Energy and twelve community-based organisations.
The project, known as the Electric Avenue Feasibility Study, was supported by a grant from the Victorian Government’s Neighbourhood Battery Initiative in 2021.
In less than 12 months, the partners worked together to investigate the various uses for batteries, the key factors to consider in their location, design and planning, as well as the commercial considerations for not only their cost but also how they may potentially create revenue for communities.
Ultimately, the partners identified a list of preferred battery locations which are at various stages of development as new projects.
However, the study also revealed learnings, insights and ideas that may support other communities interested in these new technologies.
The feasibility study has shown how to, in effect, develop neighbourhood batteries to make the most of the benefits they can bring while also ensuring they can be effectively integrated into the fabric of communities.
In this way, they can become valuable community assets. A powerful neighbour that you want to have nearby.