Grant Proposal : Business Plan for a Network of Community Batteries in the Noosa LGA

Proposal for a “Business Plan for a Network of Community Batteries in the Noosa LGA”

Objective

The ZEN Inc community group and Noosa Council have received requests from community groups, businesses, bodies corporate, individuals and Councilors about the introduction of community batteries in the Noosa LGA. We have been investigating initiatives in other jurisdictions to assess their viability locally to support time shifting of excess generated solar PV, increased hosting capacity, whilst also providing network support particularly on LV feeders, all in a financially viable way.

To help meet the challenges of the energy transition and to meet zero emissions targets, we wish to collaborate with stakeholders, and especially Energex / Energy Queensland to explore and define areas of mutual benefit in this space.

Following from our commissioned roadmap report “Achieving 100% Renewable Electricity in Noosa”, it’s now time to plan how to best time shift the excess daytime solar electricity through a large number of strategically located batteries to support the Noosa community whilst providing support for our grid network.

This new roadmap will be the “Business Plan for a Network of Community Batteries in the Noosa LGA”, and will guide the pathway to grow from a single community battery, to a dozen, and in time to more than 100.

We expect that this specific plan for Noosa will be able to be easily adapted to other local government areas in South East Queensland in the Energex zone, and beyond.

Opportunities

Rapid uptake in solar is causing ‘congestion’ in the electricity network, that is, more renewable energy than the grid can handle. Unfortunately, if renewable energy can’t be used, exported to the grid, or stored, it is wasted.

Community batteries address this problem by absorbing and storing excess energy from rooftop solar and releasing it during peak times when it is needed most. At the neighbourhood-scale, costs are shared, making energy supply and storage more affordable for everybody. With community batteries, we can make our energy system more resilient, climate friendly, equitable, and affordable.

Business Plan

Detailed sections of the Business Plan are planned as follows:

Sites for batteries

  • specify criteria for site selection

  • identify and qualify candidate sites based on above criteria

    • also refer to the section on draft site selection criteria

  • examples where there is nascent support

    • Noosa Council - Wallace Park precinct, Sunrise Beach shops

    • Peregian Beach Energy Hub (proposed by working group)

    • Elysium residential estate (proposed by Elysium Body Corporate)

    • Village of Cooran (proposed by Cooran Earth Rights)

    • Noosa Junction - Sunshine Beach Road shopping precinct (proposed by local businesses, new solar is constrained for export)

    • Community Title Schemes - eg community of townhouses with dedicated distribution transformer (proposed by residents)

    • Residential areas with every high solar PV adoption, eg Cooroy (proposed by residents)

    • Boreen Point and other hinterland townships (anecdotal evidence of power instability)

    • Semi-industrial areas where many solar installations are constrained for export (proposed by businesses)

    • Areas in the Energex network which are “constrained”

    • Proposed new sporting developments

      • McKinnon Drive Sports area

      • Pirates Rugby proposed development

      • Cooroy Sports complex

Community Engagement

  • engage the community to educate and gauge support

  • refer to Community Engagement Plan

Local Electricity Network Provider - Energex / Energy Queensland

  • continue to engage with Energex / Energy Queensland to gain their support and assistance

  • identification of suitable sites, focussing on placement for mutual Energex / community benefit

  • define requirements for connection of the community battery to the network

  • propose community battery tariffs, noting that CitiPower/Powercor/United Energy(Victoria), Ausgrid(NSW), Essential Energy(NSW) & EvoEnergy(ACT) all have community battery tariffs trials for 2022-23 approved by the Australian Energy Regulator

Define the business / financial model

  • Options for how business and financial structures are setup for a network of community batteries

  • define the preferred philosophy behind the venture, ie balance between for-profit, community benefit, for carbon reduction, energy equity, etc ○ critically review potentially model based on Yarra Energy Foundation Not-For-Profit hybrid model

  • recommended model

Define the operating model

  • identify all revenue streams and operational costs

    • energy arbitrage

    • Frequency Control Ancillary Services(contingency FCAS)

    • LUOS tariffs

    • customer fees

    • customer payments

    • aggregator fees

    • retailer fees

    • operational and maintenance costs

    • potentially model after Yarra Energy Foundation NFP

  • ensure that all cost centres are covered by revenue streams, so the community batteries are financially sustainable

Land, Development Approvals, Environmental Approvals

  • in conjunction with Noosa Council

    • identify suitable land parcels for location of batteries and associated switchgear, for identified candidate sites

    • this may include Council land parcels

    • identify Council Development Approval requirements for community batteries

    • identify any Council environmental requirements for community batteries, such as noise, visual amenity, safety, etc

Identify partners for implementation of the Business Plan

  • Noosa Council

  • Energy Queensland / Energex

  • Yarra Energy Foundation consortium

  • Community Scale Battery Working Group

  • Electricity aggregator (for access to FCAS market)

  • Electricity retailers (for access to the retail market and customers)

  • Commercial partners

Identify funding sources

  • Noosa Council

  • ARENA

  • Commercial partners

  • Federal Government, via ALP election commitment for $500k community battery at Noosaville

  • Local investors