Batteries driving cheaper bills and resilient networks

Victorian energy and resources minister Lily D’Ambrosio speaks to the audience during the opening of the Hazelwood Battery Energy Storage System (BESS) in Morwell, Vic, Wednesday, June 14, 2023. (AAP Image/Diego Fedele)

The Victorian Government is improving energy resilience for local communities and making sure more families drive down their energy bills, through the Neighbourhood Batteries Program.

On Friday 30 August, energy and resources minister Lily D’Ambrosio opened applications for the second round of the $42 million 100 Neighbourhood Batteries Program, which has expanded to include energy back-up systems that will improve energy reliability for local communities.

“We’re making Victoria the home of batteries – delivering storage to soak-up renewable energy, improve the network, drive down bills and spread the benefits of local renewable energy even further,” Ms D’Ambrosio said.

“Our Neighbourhood Batteries will improve local energy network reliability, helping communities keep the lights on during storms and allow more households to drive down their bills by taking up rooftop solar.”

The new energy resilience category will help to further improve the resilience of the communities who install them, helping them maintain an independent power source during emergencies such as storms to cook meals, charge devices and access critical information.

Larger than a household battery but smaller than grid-scale batteries, neighbourhood batteries return power into the hands of local communities – soaking up cheap and clean renewable energy when it is plentiful and dispatching it when it is needed most.

This round will also prioritise projects that provide benefits to diverse, low income and vulnerable households, as well as outer suburbs and regional areas – helping to drive down energy bills for those who need it most.

Applications open 30 August, with increased funding of up to $400,000 per project also available, building on the success of the first round of the 100 Neighbourhood Batteries Program, which has already funded 25 batteries across the state.

The funding could enable applicants to establish community hubs with energy back-up systems, such as the 26 sites funded through the Energy Resilience Solutions Program, where community can access information, hot water and charge their devices during a prolonged power outage caused by extreme weather.

The 100 Neighbourhood Batteries Program is open to councils, community groups, businesses, developers and not-for-profits. The new Project Readiness Assessment Tool helps applicants determine whether a neighbourhood battery is the right fit for their community and apply.

This round, the minimum size of each battery is 20kW/40kWh, and the maximum size of each battery is 5MW/20MWh.

Application guidelines are available at energy.vic.gov.au/grants/neighbourhood-batteries.