ARENA says it has seen an overwhelming response to Round 1 of the Community Batteries Funding Program.

The Australian Renewable Energy Agency (ARENA) received more than $3.5 billion in funding requests for battery deployment projects. 

The program, launched in April, aims to reduce energy costs, lower emissions, and alleviate pressure on the power grid through community battery initiatives.

Following the completion of the expression of interest stage, ARENA has announced that it received 140 eligible applications from all states and territories, seeking a total of $1.3 billion in grants. 

This is more than ten times the available funding of $120 million for Round 1.

ARENA has now shortlisted 31 applications, representing a total grant request of $231 million and a combined project value of $530 million. 

Among these, 14 applications were invited under Stream A, and 17 under Stream B, requesting $93 million and $138 million, respectively.

The first round will support a diverse range of community battery projects, with a requirement for each shortlisted applicant to install a minimum of five community batteries, ranging in size from 50 kW to 5 MW, and connected to the distribution network.

Community batteries store excess solar energy for later use, reducing household electricity costs and easing strain on the local electricity grid. 

ARENA's CEO, Darren Miller, says there is significant potential for shared local energy storage, noting the unprecedented demand for the program.

The Australian Government allocated $200 million in the 2022-23 Federal Budget for the deployment of 400 community batteries across the country, with ARENA responsible for delivering at least 342 of them. 

The Department of Climate Change, Energy, the Environment, and Water will oversee the initial deployment of 58 community batteries through the Business Grants Hub. 

Some batteries are already operational in Cabarita and Narara as part of this effort.

Successful applicants have received invitations to submit full applications, with the submission deadline set for March 2024.