Neighbourhood Batteries
What has happened so far
Since mid-2022, City of Port Phillip has been involved in the ‘Fast-Tracking Neighbourhood Batteries’ project to identify the local potential and feasibility of neighbourhood batteries.
Thank you to everyone who participated in both stages of our engagement by completing a survey or attending one of our in-person events. Across the three council areas, we heard from over 1000 people.
Throughout this engagement, the community shared with us their strong support for renewable energy and support for neighbourhood batteries being part of the solution.
While we heard from many participants with solar power, we also heard from those who cannot have solar for various reasons. Both groups agreed on the importance of increasing access to renewable energy for those that cannot readily access or afford it.
Most participants were supportive of having a neighbourhood battery in their local area. For those with concerns such as maintenance, safety and long-term viability, there was a genuine interest and willingness to learn more.
You can read the full stage one engagement report here.
The team drew on the stage one engagement findings to progress their work around identifying potential areas for future neighbourhood battery projects.
The three Councils worked with the Yarra Energy Foundation to evaluate potential locations from a technical perspective for future neighbourhood batteries.
Up to five potential locations for Neighbourhood Batteries were identified across each municipality, understanding how local communities feel about a neighbourhood battery in their area and the benefits they want to see.
You can view the proposed areas here.
Map of locations across the Cities of Melbourne, Yarra and Port Phillip.
Proposed areas marked in green.
Involving the community
Thank you for providing your feedback on locations for neighbourhood batteries.
A special thanks to our volunteer ‘Community Champions’ across the three Councils, City of Melbourne, City of Yarra and City of Port Phillip. These passionate advocates helped us to understand our community’s views about neighbourhood batteries and their potential benefits.
You can read about the ‘Community Champions’ and watch the video here
Neighbourhood battery community champions | Power Melbourne | Participate Melbourne )
What happens next?
Following the ‘Fast-Track’ project, City of Port Phillip is one of 22 Councils involved in a project to develop business cases for batteries in specific feasible locations.
The business case will help determine how much income can be earned from neighbourhood batteries, for several potential owners.
The project is led by Yarra Energy Foundation and funded through Victorian Government’s Neighbourhood Battery Initiative. By August 2024, Council will have a business case to apply to the Victorian Government’s 100 Neighbourhood Batteries program, to support implementation of a neighbourhood battery in the City of Port Phillip.
FAQ
FAQ
New FAQs
- How do you select the preferred site for the neighbourhood battery within an area?
How do you select the preferred site for the neighbourhood battery within an area?
Within a defined area of a low-voltage network, selecting a site for a neighbourhood battery is primarily driven by land ownership, planning controls (such as zoning) and community preferences. There are few limitations from a technical perspective.
- What is the role of community engagement in neighbourhood batteries?
Involving the community is critical to ensuring neighbourhood batteries create genuine and shared benefits. While neighbourhood batteries can provide clear benefits to the energy grid and the environment by storing and sharing energy, they also provide many opportunities that can directly benefit the community.
The benefits that interest the community and service the community's needs need to be defined early on so they can influence how the neighbourhood battery is designed and operated. This is because different battery project models provide different benefits.
- Can I still be involved in the engagement if I won’t be connecting my own rooftop solar to a local battery?
Absolutely. The benefits of neighbourhood batteries extend beyond the properties connected to them. For example, having more renewable energy supplied to the electricity network or ‘grid’ from batteries means that our overall electricity supply is cleaner and creates fewer greenhouse gas emissions,which benefits everyone.
Batteries also mean increased stability of the electricity grid and a more resilient power supply. They can also help avoid costly grid upgrades, which can positively impact energy prices for consumers.
- How does Council determine which areas a neighbourhood battery can/could go in?
How does Council determine which areas a neighbourhood battery can/could go in?
From a technical perspective, the suitability of an area to accommodate a neighbourhood battery includes consideration of the following:
- Ability to generate solar energy, including the availability of rooftop space to generate solar energy.
- The number of properties currently with solar access and solar panels, indicating the potential to generate excess solar energy, which the neighbourhood battery could store.
- Land uses. Residential properties and businesses are likely to have peak energy use in the evening that can use the energy stored in the battery. Commercial operations tend to have high energy uses in the day, and use any solar energy immediately, they are less likely to have any excess solar energy. So areas with residential land uses are better for neighbourhood batteries.
There are other non-technical factors in determining a good site for a neighbourhood battery based on community preferences. For example, we’ve heard that using any valuable open space would not suit many in our communities, so avoiding current or potential green space is preferable.
- My local area is being explored for suitable host sites. Does this mean a battery will definitely be installed in my neighbourhood in future?
My local area is being explored for suitable host sites. Does this mean a battery will definitely be installed in my neighbourhood in future?
No. Before any installation of a neighbourhood battery at a suitable site, a business case to determine the best way to deliver and operate a battery at that site needs to be developed. This current project has received funding for community engagement, technical assessments and design work. Further funding for installation of neighbourhood batteries will be required.
- How do I get a neighbourhood battery in my area?
How do I get a neighbourhood battery in my area?
Through this project, we will gather learnings about the best way to fast-track the instalment and use of neighbourhood batteries across the three municipalities. We hope this information can be used by both Councils and their communities to drive more neighbourhood battery projects both in inner Melbourne and elsewhere. We know that some of the benefits that neighbourhood batteries can provide won't be realised until we have lots of them.
Both the Australian and Victorian Governments are committed to the roll-out of neighbourhood batteries. The Federal Government has committed $224.3 million for the Community Batteries for Household Solar Program.
- Why are local Councils leading this work?
Why are local Councils leading this work?
Through their partnerships with State and Federal Governments to reach renewable energy targets, local governments play an important role in the future of neighbourhood batteries. Councils can support neighbourhood batteries through their roles in town planning (e.g. identifying and approving sites), community engagement (both for education and understanding community views) and accessing other government funding and support (such as the funding received from Victorian Government for this project).
You can learn more about the role of government in the Hip v. Hype report, Neighbourhood Batteries: an opportunities assessment for local government.
- I have solar panels on my home. Will I be able to export more solar if I am connected to a neighbourhood battery?
I have solar panels on my home. Will I be able to export more solar if I am connected to a neighbourhood battery?
Your local electricity network operator determines how much solar you can export. One of the reasons these limits exist is to ensure the network isn't overloaded on a sunny day when those with solar produce surplus energy. Neighbourhood batteries help to increase the network's capacity. As more neighbourhood batteries are installed and the network's capacity increases, this could see solar export limits increase.
Note that in the current models being explored and tested, you will still receive the feed-in-tariff for the excess solar electricity you export to the battery and to the grid.
- Who can own and operate neighbourhood batteries?
Who can own and operate neighbourhood batteries?
We are exploring different operating models as part of the feasibility study and community engagement. Different operating models provide different opportunities for the community. The operating model will determine who owns and operates the battery. Neighbourhood batteries can be owned by electricity distribution businesses, organisations such as local councils community groups, electricity retailers or private investors.
The Power Melbourne project proposes a demonstration network of 3-5 batteries owned by City of Melbourne and operated in partnership with a commercial provider. Ownership and operating models may look different for batteries in the City of Port Phillip and City of Yarra
- What is the financial viability of a neighbourhood battery?
Financial viability depends on the operating model and ownership of the battery. This project explores some aspects of what is required for a feasible neighbourhood battery. However, as with other new technologies, neighbourhood batteries will need financial support to demonstrate all the potential benefits.
A report by Orkestra commissioned by Central Victorian Greenhouse Alliance (linked below) looks extensively at this topic. This report is publicly available here
- What benefits could a neighbourhood battery have in an area with many high rise apartments ?
What benefits could a neighbourhood battery have in an area with many high rise apartments ?
You don’t need your home or business to be close to a battery to be able to benefit from a neighbourhood battery. You also do not need to have solar panels on your building, For example, an electricity plan associated with a battery could be available for anyone in the municipality to sign up and get access to affordable renewable energy.
- Can an apartment building have its own neighbourhood battery?
Can an apartment building have its own neighbourhood battery?
An apartment building can install its own battery, but this is likely to serve just that apartment building, and not the wider neighbourhood. In this case, a battery can be installed ‘behind the meter’ to share energy efficiently within the building. As an example, an apartment block might install a battery to store energy from a rooftop solar system,and use this energy to power lighting in common areas. This is not the same as a neighbourhood battery as defined in this project, as the benefits are not shared across a whole neighbourhood but in one building. It is possible for apartments to install a battery associated with shared solar on the building.
- What are the benefits of neighbourhood battery over a household solar battery?
What are the benefits of neighbourhood battery over a household solar battery?
Neighbourhood batteries are significantly larger than household solar batteries. A neighbourhood battery stores between 100 kiloWatts and 5,000 kiloWatts (5 MegaWatts) of energy, whereas a typical household battery stores about 10 kiloWatts.
A 5-MegaWatt battery would store enough energy to power close to 280 average homes for a day. Neighbourhood batteries are a shared alternative to individual household batteries. The cost of a household battery means that many people can't afford one. A neighbourhood battery is a shared alternative and could be more efficient than if all homes in the neighbourhood had their own household battery.
FAQs
- What is a neighbourhood battery?
A neighbourhood battery is an energy storage system. It allows excess electricity from local households and businesses, or the electricity supply network, to be stored for later use.
Excess solar electricity generated from rooftops during the day can be stored in the battery for use during the evening, when its most needed. This makes the electricity network of ‘grid’ more efficient and increases the amount of renewable energy available to supply local homes and businesses.
Neighbourhood batteries can play a critical role in powering local neighbourhoods with renewable energy and meeting commitments to climate action. Many potential benefits include:
- increasing access to renewable energy for people who cannot easily install solar panels, such as renters, apartment dwellers and small businesses
- enabling more people in the local area to install solar panels
- reducing pressure on the electricity ‘grid’ by using it more efficiently and avoiding power outages and network upgrades
A neighbourhood battery is typically installed in public spaces or in or around buildings close to where electricity is being consumed.
Batteries can vary greatly in size and capacity, from household batteries around 5-10 kiloWatts to the 300 MegaWatt ‘Victorian Big Battery’ outside Geelong. A neighbourhood battery is a mid-scale battery, typically 100 kiloWatts to 5 MegaWatts (5000 kiloWatts) in capacity and is embedded in the electricity network.
Communities, retailers, third parties or the unregulated arms of the electricity distribution network service providers can own neighbourhood batteries. They can operate for profit or not-for-profit but must include an element of community benefit and engagement.
- How does a neighbourhood battery work?
Neighbourhood battery technology is new and there are several different ways they can operate. Each neighbourhood battery project can identify new opportunities for how they can best be delivered for the local community and network.
The following is one example of how a neighbourhood battery can work.
- The battery is installed and connected to a ‘low-voltage network’ that provides electricity to (usually) between 100-300 properties. The battery has a meter that records how much energy it imports and exports, similar to the way homes and businesses are connected to the electricity grid.
- The battery is charged by excess rooftop solar electricity ‘captured ‘during the day. A neighbourhood with lots of rooftop solar systems and low day-time energy use allows this surplus energy to be stored and utilised in the evenings when energy use is at its highest (usually between 5 and 9pm).
- In this example, the battery is not connected to any other properties and there is no subscription or service fees charged or credited to local households or businesses. Surplus energy is sold to an energy retailer, typically in the evening when the price of energy is high, allowing the battery to generate income.
- The income generated from selling surplus energy helps cover the operating expenses of the neighbourhood battery. There are trials current underway on whether neighbourhood batteries can become commercially viable.
- A neighbourhood battery could also provide affordable and renewable electric vehicle charging.
This is just one example. Neighbourhood batteries could also be connected to an electricity retail plan to which local homes and businesses could sign up.
- Why do we need neighbourhood batteries?
The impact of climate change means we need to work fast to reduce greenhouse gas emissions. People who rent or live in apartments are often unable to install solar panels, and it can be difficult to purchase renewable electricity or Green Power as an option. More storage of local excess renewable electricity means more people can access it. Neighbourhood batteries make the electricity ‘grid’ more efficient for use of cleaner, greener energy into the future.
- How big are neighbourhood batteries?
Neighbourhood batteries come in a range of sizes depending on their storage capacity and available space. They range in power capacity from about 100 kilowatts (kW) to five megawatts (MW). Typically, a 200kW battery would be the size of a bus shelter or four fridges.
- Will a neighbourhood battery be located in my neighbourhood?
The current scope of the ‘Fast-tracking Neighbourhood Batteries’ project does not include installing neighbourhood batteries. This project aims to identify locations that are technically viable for neighbourhood batteries and that have the support of the community. Potential locations could include public spaces or in or around buildings. This project will explore locations across the three municipalities, including Council buildings and Council-owned land. We also want to hear the community’s views on where neighbourhood batteries could be located.
Alongside this project, the City of Melbourne is delivering the Power Melbourne project which is aiming to deliver a network of coordinated mid-scale batteries across the city. While the City of Yarra has worked with the Yarra Energy Foundation (YEF) to install Australia’s first inner-urban neighbourhood battery and is working with YEF to install a second neighbourhood battery in Richmond. You can learn more about these on YEFs website
- What is the ‘Fast-tracking Neighbourhood Batteries’ project?
This ‘Fast-tracking Neighbourhood Batteries’ project tackles the challenge of lack of access to renewable energy. While solar power may be abundant, many communities, families and organisations at a local level are unable to collect, store or share it, effectively locking them out of accessing this resource. This project will identify the local potential and feasibility of neighbourhood batteries in the inner metropolitan Melbourne area. It will proactively engage and empower local communities to participate in neighbourhood battery projects. The project is being delivered by the Inner Metropolitan Partnership, a partnership between the Cities of Yarra, Melbourne, and Port Phillip.
- Who is the Inner Metropolitan Partnership?
The Inner Metropolitan Partnership is an advisory group established by the Victorian Government, and includes the local government areas of City of Yarra, City of Melbourne and City of Port Phillip.
The Partnership is a way for local communities to engage directly with state and local governments and advise the Victorian Government of the top priorities across the region. This advice ensures a community voice in government decision making.
The Inner Metropolitan Region is the traditional home of the Wurundjeri and Bunurong people of the Kulin nation.
The Inner Metropolitan Partnership’s vision for the region is to harness the opportunities growth provides in a way that supports a strong economy, a sustainable future and greater social inclusion.
- How is this project funded?
In mid-2022, City of Melbourne, City of Yarra, City of Port Phillip received Victorian Government funding through the Metropolitan Partnerships Development Fund Program (MPDF). The funding provides for the councils to undertake community engagement, an assessment of the electrical network, and design work to fast-track the roll out of neighbourhood batteries across these three municipalities. Funding for the installation of batteries will be sought once feasible locations are determined.
- How much can they power?
Neighbourhood batteries range in power capacity from about 100 kilowatts (kW) to five megawatts (MW). As an example, the Fitzroy North community battery has a storage capacity of 309 kW and supplies power to approximately 200 homes during evening peak demand.
- How much noise do neighbourhood batteries make?
Depending on the model and size, the sound of the battery could range from about 50-70 decibels at one meter from the unit. 70 decibels is as loud as a washing machine or a dishwasher. Batteries only make noise when they are charging or discharging.
- Are neighbourhood batteries safe?
Battery technologies are well-proven and have an excellent safety record. All batteries installed will comply with strict electrical safety regulations.
- How do neighbourhood batteries improve the network’s reliability?
Neighbourhood batteries increase network reliability because they store excess energy that can be used when demand is high, reducing the pressure on the main network. They can also provide back-up power during a grid outage. (TBC response)
- Why do we need neighbourhood batteries?
The impact of climate change means we need to work fast to reduce greenhouse gas emissions and achieve a net zero target by 2040. People who rent or live in apartments are often unable to install solar panels, and it can be difficult to purchase renewable electricity or Green Power as an option. More storage of renewable electricity means more people can access it. Neighbourhood batteries make the electricity ‘grid’ more efficient for use of cleaner, greener energy into the future.
- What are some of the ways the community can access the benefits of neighbourhood batteries?
Depending on the project, the community may be able to access the benefits of neighbourhood batteries in different ways. For example, by living or working in a building powered by energy stored in the battery, providing excess energy generated by their own solar panels to be stored by the battery, or by signing up to an energy plan which sources power from the battery. In some cases, it is possible to invest in a ‘share’ of the battery. Some neighbourhood batteries include chargers for electric vehicles.
The Councils involved in this project are exploring a range of different options and want to hear from community about their preferences and priorities.
- Do neighbourhood batteries only power the surrounding buildings and houses?
Depending on the particular project, neighbourhood batteries can power surrounding buildings on the same low voltage network, or the energy stored may be released into the grid when it is needed most.
- How will having a neighbourhood battery in my local area impact my energy bill?
Neighbourhood batteries can avoid costly upgrades to the ‘grid’, and in this way put downward pressure on energy prices. There are also reduced costs for customers compared to household battery storage systems. However, any changes to your energy bill will be dependent on the operating model of the battery.
- Do I need rooftop solar to benefit from neighbourhood batteries?
No, you don’t. Neighbourhood batteries can provide a range of benefits to residents and businesses who do not have solar panels. Depending on the particular project, neighbourhood batteries can power surrounding buildings on the same low voltage network whether or not they have rooftop solar. Where there is an electricity plan associated with a battery, you don’t need to have rooftop solar or be close to the battery to sign up and purchase affordable renewable power.
Households which do have rooftops suitable for solar may be able to connect more solar to the grid if a neighbourhood battery is installed locally, or they may be able tor reduce or avoid limitations on how much solar power they can export to the grid.
- How long do neighbourhood batteries last?
Batteries typically have a lifespan of 7-15 years, if they are operated within the technical limits sets by the manufacturer. End of life recycling and safe disposal will be factored into Council contracts and decisions to purchase.
- Where can I see an example of a neighbourhood battery?
City of Yarra partnered with the Yarra Energy Foundation to support the installation of the first inner-urban neighbourhood battery in Fitzroy North, launched in June 2022. The battery project was delivered through the Victorian Government’s Neighbourhood Battery Initiative. The battery soaks up excess rooftop solar to supply surrounding homes with local renewable energy.
You can visit the battery at the corner of Michael and McKean Streets in Fitzroy North, or find out more and watch the video explainers at the Yarra Energy Foundation’s website.
