Making community scale batteries work at scale in Australia
This article provides an extract of advice from the Community Scale Batteries Working Group,(CSBWG) dated 7th June 2022.
Zero Emissions Noosa is represented on the CSBWG.
Key messages
“Community scale 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.
We recommend that publicly funded projects feature clear program objectives, consistently applied assessment criteria for project selection and oversight by an independent public authority.
An independent public authority is needed to support and oversee the roll-out of community scale batteries and other community energy projects (e.g. a community energy office within ARENA).
A carefully designed community battery policy could help address current unknowns (e.g. ownership models, battery services) in order for community scale batteries to maximise their potential.”
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“This document is the work of the Community Scale Battery Working Group (CSBWG) …… and is based on a workshop held on 1 March 2022. The views expressed do not necessarily represent those of the organisations that the authors or other members of the CSBWG represent or work for.
The Australian Labor Party (ALP) has sought the CSBWG’s advice on its “Power to the People” community scale batteries policy. The CSBWG provides the following advice for all parties interested in publicly funded community scale batteries.”
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“Executive Summary
Section 1
What the working group agrees we know about implementing community scale batteries:
• There is strong interest from the public and the energy industry in community scale 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 scale batteries compared to household batteries.
• Carefully considered governance will be required to ensure that the expected economic, environmental and equity impacts are realised.
• Network pricing reform and innovation in network services and partnerships will be important.
Section 2
What the working group agrees we don’t know but need to answer to inform the program:
• It is currently unclear what roles community scale 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.
• 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; the need for network tariff reforms; and how to integrate electric vehicles with community scale batteries.
Section 3
What considerations will be critical to the success of a community battery program:
• The overarching policy intent should be clearly stated and aligned with community expectations and values.
• Network constraint maps (for both load and solar exports) should be available to help ensure that, where relevant, community scale batteries can support the electricity network.
• Projects should be selected utilising the following assessment criteria:
1. A preference for locations with (a) high local solar penetration and/or high solar exports, strong community (b) DNSP and Council support and (c) suitable available land.
2. The project management capabilities of the lead organisation or consortium, including (a) ts financial stability and cybersecurity capabilities (b) realistic and achievable project timelines and (c) its likely long-term capability to manage the battery project, both financially and logistically.
3. The viability of the ownership and business model involved.
4. The expected increase in the use of local renewable energy and/or reduction in emissions.
5. The utilisation of existing or forthcoming Australian manufacturing capabilities.
Section 4
How a publicly funded community battery program should be governed:
• An independent public authority should be funded to coordinate, support and oversee the roll-out of community scale batteries and other community energy projects e.g. a community energy office within ARENA. The office could be responsible for overseeing research into the unknowns listed in Section 2, administering the program, as well as providing technical expertise, regulatory support and building capacity in communities.
• Adopt the best practice governance principles of independence, accountability and transparency, as well as local community input or representation.
• Avoid political interference, hasty implementation, funding white elephants and burnout.
The CSBWG would welcome any further questions that the ALP or any other political party has related to these recommendations.”
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About the Community Scale Battery Working Group
The Community Scale Batteries Working Group (CSBWG) is an informal collaboration of staff from environmental and energy user groups, research institutions, community energy groups, retailers and governments around Australia. It was created in late 2020 and meets online monthly to discuss topics of common interest including business cases, technical issues, ownership and operational models, planning, environmental and social license issues, and user experiences. The CSBWG is managed by a steering committee consisting of Dr Mark Byrne, Total Environment Centre (convenor); Dr Marnie Shaw (chair), ANU; Chris Wallin, Yarra Energy Foundation; Laura Lynch, DELWP Victoria; and Alida Jansen van Vuuren, Ausgrid. The objective of the CSBWG is to give community scale/community scale batteries the best possible chance of becoming an important part of the energy transition.