In a major push to maximise the benefits of renewable energy for households across the state, the Victorian Government is rolling out neighbourhood battery storage systems through its $42 million Neighbourhood Batteries Program.
The first round will see over $6 million allocated to deliver 25 battery units providing more than 4.2 megawatt hours of storage capacity across 20 towns. These community-scale batteries will allow excess solar generation during periods of low demand to be stored and discharged onto the grid when needed.
In addition to improving grid reliability and preventing outages, the neighbourhood batteries enable more households to install rooftop solar by removing network constraints. They also reduce electricity costs by increasing the ability to generate and consume renewable power locally.
One of the largest initial projects is on Phillip Island, where seven batteries totalling 1750 kilowatt hour (kWh) of storage will be installed. This is expected to protect grid reliability while delivering financial dividends back to the community.
The town of Queenscliff will receive four batteries with 1000kWh total storage, with annual dividends funding further clean energy initiatives through a local climate action group.
Other approved battery installations span regional centers like Wodonga, Wangaratta, Tatura and 10 units across eastern and northeastern Victoria by network operator AusNet, providing 850kWh of storage overall.
Once fully rolled out across 100 sites, the neighbourhood batteries aim to maximise the benefits of Victoria’s rapid residential solar growth through improved renewable integration, enhanced grid support and reduced power costs for consumers.
“We’re building 100 neighbourhood batteries across Victoria to make sure all families can share the savings from the massive uptake of solar,” Victoria’s Minister for Energy and Resources Lily D’Ambrosio said.
“We’re making Victoria the home of batteries – to deliver storage to soak-up renewable energy, improve the network, drive down bills and spread the benefits of local renewable energy even further.”
The program forms part of the state’s strategy to transition to renewable energy while ensuring reliable and affordable electricity. The next funding round opens for applications in August 2024.
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