Australia’s minister for climate change and energy, Chris Bowen, has called on the Australian Renewable Energy Agency (ARENA) to increase funding for community electrification initiatives involving solar PV and batteries.
In a statement released today (28 January), the minister is calling on ARENA to increase funding to support key technologies for Australia’s energy transition. This includes home batteries and rooftop solar PV systems, both of which could contribute to grid stability from 2027 via a modification made by the Australian Energy Market Commission (AEMC).
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Bowen adds that thanks to initiatives ARENA has supported, local communities are already reaping the benefits of distributed renewable energy technologies. The minister references the Electrify 2515 Community Pilot scheme as one such initiative.
The scheme aims to incorporate various technologies, such as rooftop solar PV, home batteries, water heaters and heat pumps, to create a low-carbon, electrified suburb in Northern Illawarra. The 2515 postcode covers Austinmer, Clifton, Coledale, Scarborough, Thirroul and Wombarra, and it will benefit 500 households.
ARENA confirmed that the project’s total cost is AU$11.88 million (US$7.45 million) and will end on 30 April 2027. Financial institution Brighte is heading the initiative along with project partners Rewiring Australia and Endeavour Energy.
ARENA is now seeking more opportunities to replicate the Electrify 2515 pilot across the Australian Capital Territory, Western Australia, Queensland, Victoria and Tasmania.
The government noted that this is the first time Bowen has used the statutory ministerial referral powers to ask the ARENA board to look at backing specific projects.
“Communities across Australia are seeing the benefits of the clean energy transformation, and the Albanese government is delivering the leadership and support they need to grasp those benefits,” Bowen said.
“ARENA pilot projects supporting home electrification will help create valuable insights into how households can transition to renewables and smart energy systems to cut energy costs and reduce emissions.”
CERs and VPPS a ‘significant opportunity’ for Australia
The AMEC has previously said that including consumer energy resources (CERs) and virtual power plants (VPPs) in the energy market could be a “significant opportunity” for consumers, retailers and the broader electricity system.
Indeed, the organisation’s research indicates that the inclusion of CERs would result in cost savings of around AUS$834 million between 2027 and 2050 while also further incentivising the uptake of small-scale solar PV installations.
It’s worth noting that the inclusion of CERs, in particular small-scale rooftop solar PV and batteries, could benefit the grid as Australia begins to withdraw coal, which is set to be completed by 2038.
However, despite the potential for CERs, the Australian Energy Market Operator (AEMO) said in early December that the National Electricity Market (NEM) must introduce a new “emergency backstop” mechanism to manage the impact rooftop solar PV can have on grid stability.
AEMO said that the emergency backstop mechanism must be introduced to allow rooftop PV systems to be curtailed or turned off briefly, if necessary, in rare emergency conditions, similar to the capabilities normally required of any large-scale generator.
