The Community Batteries Funding Round 1 seeks to support the deployment of community batteries across Australia, with $120 million funding allocation, to lower energy bills, cut emissions, reduce pressure on the electricity grid and enable further distributed solar installations.

Deadlines and Timings

Applications are open. The application and assessment process typically consist of two stages: an expression of interest (EOI) stage and a full application stage. Both stages involve an assessment against all eligibility and merit criteria.

EOI deadline is on 30 June 2023 by 5PM AEST. ARENA aims to issue invitations to submit a full application within 8 weeks of the EOI due date. Full applications may be submitted at any time once ARENA’s feedback at the EOI stage has been addressed, and no later 29 March 2024, 5PM AEDT.

Overview and Grant Amount

The Community Batteries Funding Round 1 (referred to “Round 1” the rest of the text) objective is to fund activities that contribute to one or more of the following outcomes:

• improve the economics of community battery projects through the reduction in, or removal of, barriers to large-scale deployment;
• build industry capacity to deploy community batteries at scale; and
• support the budget measure by:
  • putting downward pressure on household electricity costs;
  • contributing towards lowering emissions; ›providing a net benefit to the electricity network, having regard to matters such as network constraints; and
  • enabling storage of distributed solar energy for later use or sharing and supporting further distributed solar installations

The amount of grant funding requested will range from $3 million to $20 million and ARENA’s funding will not exceed 100% of battery capex cost. Proposals will involve the deployment of community batteries, which are chemical batteries of at least TRL 9, in the range of 50 kW to 5000 kW nameplate capacity, connected in the distribution network. A total of five (5) batteries are expected to be deployed by proposals. Batteries that are co-located or share a connection point will be considered a single community battery, with a total size equal to the aggregate nameplate capacities. batteries at individual households will not be eligible for grant funding. Also, proposals that receive funding under the Department of Climate Change, Energy, the Environment and Water’s Community Batteries for Household Solar Program – Delivery of Election Commitments grant opportunity will not receive funding under Round 1. Stream A and Stream B will equally have $60 million funding allocation.

Eligibility and Criteria

There are two streams for Round 1, namely, Stream A and Stream B. Applicants under Round 1 are required to meet all eligibility criteria as outlined in the ARP Guidelines as well as the following additional criteria:

STREAM A

• an approved distribution network service provider (DNSP) according to Round 1 guidelines
• applicants not among the listed DNSPs are not eligible
• batteries connected in a front of the meter (FTM) configuration that meet the requirements of the scope of activity according to Round 1 guidelines

STREAM B

• any applicant eligible under the Advancing Renewables Program, excluding the DNSPs listed in Round 1 guidelines
• batteries connected in a front of the meter (FTM) or behind the meter (BTM) configuration, that meet the requirements of the scope of activity according to Round 1 guidelines

EOI stage

At the EOI stage, Applicants must provide the following:

1. Project Plan ― max 20 pages

• summary of the project
• list of key activity partners and their proposed roles and responsibilities
• status of any development, planning and environmental approvals, permits and/or licenses required for the project
• approach to grid connection
• approach to land access for the proposed project location(s)
• timeline for the project, including key milestones
• approach to managing potential cost overruns, and amount of contingency allowed
• evidence to support budget estimates
• an outline of key risks and approach to management and mitigation
• approach to community consultation
• status of ring-fencing waiver (for applications under Stream A, where required)

2. Financial Model ― a dynamic financial model in excel format or similar that includes (at a minimum):

• expected revenues over the life of the project, including the source of these revenue projections
• expected costs over the life of the project, with a clear breakdown of cost categories
• all assumptions to be clearly labelled and dynamic
• ability to sensitise the model to view the project returns with and without grant funding

3. List of Batteries ― a list of batteries using the template provided on the Round 1 website

Full application stage

At the Full Application stage, Applicants must provide the following:

1. Project Plan

• summary of the project
• list of key activity partners, their proposed roles and responsibilities and details of their relevant experience of successfully delivering battery or related energy projects
• status of any development, planning and environmental approvals, permits and /or licenses required for the project and anticipated pathway and timing to finalisation
• status of grid connection application(s)
• status of land access for the proposed project location(s)
• timeline for the project, including key milestones
• approach to managing potential cost overruns, and amount of contingency allowed
• an outline of key risks and approach to management and mitigation
• an outline of the sources of funds required for the lifetime of the project
• evidence to support budget estimates
• details on the proposed operations and maintenance regime for the lifetime of the asset
• demonstration that the project would not be able to proceed without the requested grant funding
• evidence of appropriate insurance for the project activities
• status of ring-fencing waiver (for applications under Stream A, where required)
• an appendix noting responses to any EOI stage feedback.

2. Financial Model ― a dynamic financial model in excel format or similar that includes (at a minimum):

• expected revenues over the life of the project, including the source of these revenue projections
• expected costs over the life of the project, with clear breakdown of cost categories
• all assumptions to be clearly labelled and dynamic
• ability to sensitise the model to view the project returns with and without grant funding

3. Risk Management Plan ― a detailed risk management plan (including work, health and safety issues) including management and mitigation strategies. The plan must address risks specific to battery storage and public infrastructure, such as fire, damage, noise, vandalism, cybersecurity, and natural disasters.
4. Community Consultation Plan ― a community consultation plan for the project.
5. Knowledge Sharing Compliance ― a statement of acceptance of the requirements of the knowledge sharing plan.
6. Funding Agreement Compliance ― a statement setting out any proposed departures from the standard terms and conditions contained in the funding agreement template.
7. List of Batteries ― a list of batteries using the template provided on the Round 1 website.
8. Any letters of support of commitment from activity partners

For more information, interested parties are encouraged to read the program guidelines set by the funding grant. Submissions for EOI and full application must be lodged through ARENA’s online portal.

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