Neighbourhood batteries – batteries in between individual household and grid-scale batteries – have the potential to deliver a series of benefits to consumers, including cheaper storage, lower electricity costs for households, and increased network capacity to integrate more Consumer Energy Resources (CER). This research project by the Australian National University set out to understand the nature of these benefits and under what conditions they can be best delivered.
Two reports were published as part of the grant:
1) How trial network tariffs impact the potential benefits of Neighbourhood Batteries
2) How neighbourhood batteries can unlock network capacity for Consumer Energy Resources
Key Recommendations
The key recommendations from the two reports include:
1. To ensure neighbourhood batteries are operated to unlock network capacity for the benefit of all energy users policies should consider a) the position of neighbourhood batteries, ensuring they are installed in parts of the network where they will provide benefits (better visibility of low voltage networks will help here). b) battery operation modes, and c) distribution network tariffs.
2. Complex tariff structures are burdensome for many energy users. By shifting the complexity of tariff management onto battery management systems energy users may be able to benefit from optimised network usage and cost savings without the burden of understanding and responding to complicated pricing structures.
3. Further research is required with the goal to generate a single NEM-wide optimised network tariff, with a two-way time-of-use tariff structure.
The research found, for the first time, that neighbourhood batteries have the potential to increase the network’s hosting capacity, and under what conditions. This means that more CER can be integrated into the grid, which ultimately benefits consumers. Significantly, it was also found that the benefits may be location specific, as the impact was not seen in all networks tested. The research also provided concrete policy recommendations for decision makers to ensure that choices regarding neighbourhood batteries are consumer centric.
Read Report One Read Report Two
This knowledge has been shared with key stakeholders, including providing significant support to the Commonwealth Department of Climate Change, Energy, the Environment, and Water as they established the $200 million Community Batteries for Household Solar program. This support has helped ensure that the delivery is in the best interest of households.
