Neighbourhood batteries

Battery energy storage systems (BESS) come in many sizes and work at different scales. BESS all use similar battery technologies - utilising chemical processes to store electrical energy for use at a later time. They differ in storage size and coverage but offer similar benefits and services, including energy reliability and storage of low-cost energy.

Victorian homes with solar panels can be fitted with a household battery. The battery allows an individual household to store energy generated by their solar panels for later use. They commonly offer between 3-10kW of storage.

Neighbourhood batteries have a capacity of 100kW up to 5MW and can service a neighbourhood of approximately 20-100 households.

Large-scale (also known as utility-scale batteries) offer similar functionality as neighbourhood batteries at a much greater scale, with significantly larger capacities up to 300MW for example, The Victorian Big Battery. Many batteries installed together can act as a large-scale power generator.

Battery installation must comply with the Electrical Safety Act 1998, as well as the following regulations:

• AS/NZS 3000 Wiring Rules
• AS/NZS 5139:2019 Electrical Safety (General) Regulations
• AS/NZS 4771.1:2016 Inverter Installation

Battery product standards must comply with the Best Practice Guide: Battery Storage Equipment – Electrical Safety Requirements (2018). Energy Safe Victoria oversees battery installation regulation and provides support and guidance to current project proponents.

Understanding the benefits of a range of battery ownership and operational models is a core objective of NBI.

ANU’s BSGIP team has undertaken preliminary research in this area and categorised the potential owners of neighbourhood batteries into 3 groups: retailers, electricity distributors, and third parties (which includes private investors, community groups, local or state governments, or a combination of these groups).

Some neighbourhood battery models allow non-solar consumers to access energy produced from solar-generating households in their local area. This can include renters and those living in apartment blocks. It means local energy consumers (both solar and non-solar) can consume more energy from a local renewable source.

Ongoing community engagement is essential in understanding the needs and priorities of communities, as well as the barriers and challenges they face. Community forums are one option to engage with a diverse range of community members, work towards social inclusion and representation and engage the community through local councils.

Enabling effective communication with communities to support engagement with a battery will depend on ensuring that the needs of a diverse range of community members are identified and targeted, including their levels of energy literacy. Information should also be accessible through a variety of sources.

Development of a community engagement plan that provides engagement objectives and summarises key stakeholders. It provides an overview of the community's demographics and a tool to assess the impacts of engagement that will assist with this ongoing process.

Yarra Energy Foundation’s Community Engagement page also guides in this area.

The Australian Government established the Australian Renewable Energy Agency in 2012 to support the global transition to net zero emissions by accelerating the pace of pre-commercial innovation of renewable energy to benefit Australian consumers, businesses and workers.

A wholesale electricity market in which electricity is sold by generators and bought by retailers (who on-sell it to consumers) or large-scale customers. Operates in New South Wales, the Australian Capital Territory, Queensland, South Australia, Tasmania and Victoria.

An energy system’s position is about an electric meter. Energy systems in front of the meter are integrated into the electricity network and thus require energy utilities, for example, powerlines, to reach the consumer. Systems in front of the meter include utility-scale generation, utility-scale energy storage, and transmission and distribution units.

An energy system’s position is about an electric meter. Energy systems that are behind the meter sit on a customer’s property or business and are not integrated into the electricity network. Generation and storage are managed within the property and can be utilised without energy utilities, for example, powerlines. Behind the meter systems can include residential solar, home batteries, and microgrids.

Renewable energy units that are located at houses or businesses to provide customers with power for example solar units, battery storage, or electric vehicles and chargers.

Transmission Use of System Charge (TUOS) is a charge levied by transmission network businesses to recover operations, maintenance costs, and investment returns on transmission assets.

Distribution Use of System Charge (DUOS) is a charge levied by distribution network businesses to recover operations and maintenance costs and investment returns on distribution assets.

Local Use of System Charge (LUOS) is a charge levied by local providers to represent the discounted network costs of local flows.

Rechargeable battery systems store energy generated from renewables or grid power. They enable energy systems to have emergency power reserves and enhance energy resilience.