Paving the way for network neigbourhood batteries in Australia: a business case assessment

Australia has made a commitment to achieve net zero emissions by 2050. This has prompted many installations of renewable energy resources, notably wind and solar, which displace conventional fossil-fuel generation. These intermittent energy resources would need to be firmed with storage to achieve a stable electricity supply system. Investments in battery energy storage systems at the transmission network level are flourishing but at much lower level in the distribution network due to the relatively high cost of battery systems and the more limited benefits. The concept of neighbourhood batteries (NBs, also known as community batteries) is to provide energy storage sized to meet the local community need, providing an alternative to individual consumers installing their own battery storage systems. NBs allow the storage of excess solar energy for use during peak times, and in aggregate and through coordinated control, be of sufficient scale to create further value from providing a range of network and energy market services. This paper describes a business case assessment by a Distribution Network Service Provider to invest in NBs in two greenfield Underground Residential Distribution (URD) developments.