Attachment 1 - Tender Consideration Plan - Community Battery Grant

                             meter battery” with the sole purpose of community benefit and
                             emission reduction;

                     C.      YEF successfully installed the first community battery not owned by a
                             DNSP in Fitzroy North, Victoria through the Victorian Government’s
                             Neighbourhood Battery Initiative (NBI) and are progressing a second
                             implementation project through the second round of the NBI. The
                             experience from these projects gives Noosa Council strong
                             confidence in YEF’s project management capabilities, resourcing,
                             procurement processes, and stakeholder and community
                             engagement strategies.

                     D.      ZEN Inc has undertaken considerable community engagement in the
                             limited time that was available within the identified area of the
                             proposed battery location

             (iv)    it is more likely that the Objectives will be achieved if Council partners with a
                     not-for-profit organisation which has market leading expertise and a
                     willingness to share its knowledge and expertise with Council rather than a for
                     profit company with objectives that are likely not aligned with Council’s net
                     zero emission targets.

6.    PROPOSED TERMS OF THE CONTRACT

6.1   The proposed terms of the Contract are contained in Schedule 1.

7.    RISK ANALYSIS OF THE MARKET

      (a)    Community batteries are a very recent piece of infrastructure and are currently
             expensive and complicated. There are several trials being conducted throughout
             Australia utilising different participation models. Noosa Council conducted a risk
             analysis of the market through publicly available information on the web, discussions
             with community groups, industry experts and universities. Council provided funding
             for ZEN Inc to commission a report to investigate the issues and potential for a
             Battery Storage System located on the local Energex Network in Noosa (2021).
             Council has also considered the ANU Knowledge Hub of Battery Storage and Grid
             Integration and the City of Melbourne Power Melbourne Project, as well as
             discussions with Energex and industry expertise. The operating models of community
             batteries is still being explored and understood. As of 2022, there was around 20
             community batteries installed in Eastern Australia. https://bsgip.com/knowledge-
             hub/neighbourhood-battery-trials-programs-in-australia/).

             Neighbourhood batteries are predominantly being installed in front of the meter by
             Distribution Network Service Providers (DNSPs). DNSPs are primarily interested in
             community batteries for grid support, frequency stability and reducing the need to
             replace inadequate infrastructure to support the emerging two-way electricity system,
             The DNSP focus is not necessarily on emissions reduction. There are a number of
             different models for participation in community batteries. Some trial battery programs
             require participating residents to subscribe to use the battery to deposit solar during
             the day and utilise in the evening (Powerbank WA). Other programs such as the
             Ausgrid Battery Trial reward the solar participants individually for depositing solar into
             the battery, however this widens the solar divide and rewards those who can afford
             solar. City of Melbourne (CoM) is currently developing the Power Melbourne Program
             to provide residents and small business with access to affordable renewable
             electricity in line with the CoM’s commitments to emission reduction across the LGA.
             City of Melbourne recently issued an Expression of Interest to potential solution
             providers to test the market to deliver, install and operate the community batteries and
             retail the electricity to interested participants on behalf of City of Melbourne. This
             process commenced in December 2022 and has not yet concluded.




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