A Community / Neighbourhood Battery for Queenscliffe?

FREQUENTLY ASKED QUESTIONS

Victorian Government commits to a community/neighbourhood battery

In November 2022 the Victorian government committed to funding 100 community/neighbourhood batteries across the state over the next four years. Alison Marchant, MP for Bellarine, made it clear that Queenscliffe is included in the first tranche of the roll out, subject to a successful application.

Neighbourhood batteries improve energy reliability and maximise the benefits of locally generated solar power. The batteries function as solar sponges, increasing access to cheap renewable energy.

The commitment to batteries is part of the strategy to build the resilience of the electricity network ensuring that the switch away from fossil fuels to renewable energy can be completed without compromising the distribution network.

This commitment will help to make it possible to achieve the Climate Emergency Response Plan goal of matching the Borough community’s electricity usage with renewable energy by 2025.

What is a community battery?

We all know what batteries do, they are very much a part of our everyday lives and have been for a very long time. Today batteries are more sophisticated, but their fundamental function has not changed. Batteries store energy and enable that energy to be used later in time or in another location.

The term ‘community battery’ has become the shorthand for a battery that absorbs solar energy and reuses that energy locally. The Yarra Energy Foundation provides a valuable description and additional reading if you have the time to dive deeper, here.

How is a ‘community’ battery different to a ‘neighbourhood’ battery?

It could be argued that there is no difference, just an alternative name choice with both funded under the Victorian government grant scheme called the Neighbourhood Battery Initiative. After all, no matter what you call a big battery it does the same thing – stores electricity enabling it to be used later.

However, the term ‘community battery’ is being used for a battery that has been installed in a community that own and manage the battery following community consultation.

The term ‘neighbourhood battery’ is often used to cover batteries owned and managed by perhaps the community and the electricity network provider.

Who would pay for a battery located in the Borough of Queenscliffe?

Community batteries are expensive to purchase and set up. Governments across Australia have allocated money to fund big batteries to dramatically increase storage and support the electricity grid as the nation moves towards emissions free power generation. Community batteries are part of the storage solution.

The Victorian government made a commitment to fund a battery solution in the BoQ during the run up to the 2022 State election campaign.

I’ve heard it said that a community battery will not generate sufficient income to provide a ROI. If that is true, why is the government planning to install them across Victoria?

Return on Investment (ROI) for community infrastructure is complex but it is generally safe to say that a positive cash ROI is not the goal. The decision to invest in community infrastructure is based on assessment of the cost/benefits analysis. The costs are more readily definable, the benefits are not so easily defined or measured in dollar terms especially for long term projects. The Victorian government, in fact all governments in Australia, are investing in community infrastructure (including batteries) to rapidly increase the production and use of renewable energy. Not unlike Australian state governments in the 19th century investing in railway infrastructure to open up the country and improve access to markets for food production without the expectation of a cash profit, but to improve the welfare of society as a whole. We could add hospitals, schools the road network and national parks to the list of government infrastructure funded by governments in the interest of society as a whole.

When will the funding for a battery in the Borough of Queenscliffe become reality?

It is likely that a decision on the first round of funding will be known before the end of March 2024.

Will a battery in Queenscliffe enable me to store excess electricity from my rooftop solar and then draw that down later in the day?

If you are in the same low voltage network as the battery, your excess solar will go into the battery subject to the electricity network traffic at any given point in time. 

In the context of the current application under the Neighbourhood Battery Initiative our partner, Mondo, would manage the battery operation in cooperation with the network provider, Powercor. 

Trials of a community battery model where excess solar is fed into a battery and then drawn down later, have occurred with varying degrees of success. However this model will not apply to the Borough in the context of this funding round. 

It is worth remembering that any community or neighbourhood battery model currently in operation is being done so on a trial basis with data being used to inform future decisions.

Should I install a solar battery at home or wait until the neighbourhood battery is operational?

The best strategy is to talk to the experts at Vortex Electrical (our 2023 community solar program delivery partner) or another provider you trust, about your energy use now and into the future and then decide on how to use your limited funds to gain the best outcome for you personally.

The best outcome for you will be about the money you save over the short and long term in the context of your electricity use as well as your desire for energy independence. You may also factor into your expected return a dollar value on the  contribution your decision makes to reducing climate emissions. If these considerations mean that a home solar battery works for you now then we recommend going ahead and not waiting for a community battery. Given the current early stage of development of community batteries, the various models of operation that are being explored, and the limited area each battery will serve, it will be several years before they become a viable alternative to home battery storage for most homeowners.

The best decision you can make right now is to install solar on your roof. That will save you money and reduce emissions immediately. And if home batteries don’t work for you now, you’ll be in a position to take advantage of options that a local community battery or alternative storage solutions might bring in the future.