Strategic priorities: optimise the transition to renewable electricity

Demonstrate new technologies or methods that can increase module efficiency towards 30 per cent, reduce manufacturing costs and risks, increase module lifetimes and increase bifaciality factors.

Improve cell efficiency

Applied R&D and commercialisation projects to improve the performance of various cell technologies such as silicon, perovskite and tandem cells. This may include increasing the efficiency of existing technologies or improving the performance for higher efficiency, earlier stage technologies (eg reducing degradation rates).

Projects to improve module efficiency are also of interest, including n-type and p-type modules.

Reduce cell & module manufacturing costs & risks

Pilot and demonstration projects that can reduce LCOE through novel manufacturing methods. Those that support onshore manufacturing with direct benefits for the Australian market are of particular interest.

ARENA will not be supporting manufacturing capacity in Australia unless there is clear innovation (eg pilot facilities for new technologies, pre-fabrication, novel automation tools).

Other cell & module innovations

Pilots and demonstrations for other innovations that can reduce cell and module costs or improve yield. For example, projects to improve bifaciality factor (eg novel ground covers to improve albedo), improve the lifetime of cells and modules, reduce input costs and materials requirements, and improve module design for a circular economy.

Demonstrate new technologies or methods that can reduce installed costs towards 30 cents per watt, such as simplified mounting designs, prefabrication, improved installation methods (eg, automation in the field) and other design innovations.

Applied R&D, pilot and demonstration projects for novel design configurations and deployment approaches. Projects should aim to reduce installed costs, project timelines and LCOE by focusing on levers such as foundation piles, tracking components, cabling, other materials and/or labour.

As with cells & modules, projects with direct benefits for the Australian market are of particular interest.

Demonstrate technologies or methods that reduce O&M costs, such as automation and robotics.

Improve O&M efficiency

Pilots and demonstrations of hardware or software that can reduce O&M costs, such as intelligent fault monitoring, detection and correction systems, automated vegetation clearing and automated solar panel cleaning.

Demonstrate other technologies or methods that can reduce the LCOE of solar PV through levers such as inverter efficiency, end-of-life management and soft costs.

Improve end-of-life management

Innovative solutions across any stage of the solar PV value chain that can ultimately improve recycling rates, reduce recycling costs and reduce overall supply chain emissions. This might include projects focused on upfront solar PV design, ‘reverse logistics’ (ie the way we retrieve solar panels from use) and end-of-life processing.

Reduce soft costs

While a more limited focus, ARENA will consider solutions to improve solar farm development processes such as permitting and inspections, and software that can help to reduce project risks and financing costs.

Demonstrate novel load shifting and shedding technologies or business models that inform the regulatory framework. This could focus on industrial, commercial and residential settings, including managed charging of electric vehicles.

Pilots and demonstrations of asset orchestration, with a robust approach for customer acquisition. This might include innovative programs or business models (eg bundling demand flex offers with other products such as rooftop solar, energy as-a-service or leasing models).

Although the vast majority of projects involving electric vehicles are expected to be funded under ARENA’s Decarbonising Transport investment priority, projects that involve electric vehicles combined with other technologies or flexible demand assets may be supported within this focus area.

Inform the regulatory framework and standards relating to supporting infrastructure and system integration required to enable flexible demand. For example, IT and interoperability, dynamic operating envelopes, data and analytics, market signaling, business models and access to value streams.

Improving supporting infrastructure and system integration

Trials and studies that can address challenges in areas such as technical standard development, the role of network tariffs to support dynamic and shaped operating envelopes, the use of cost-reflective tariffs, and effective measurement of demand flexibility when operationalised.

Innovating business models and value streams

Projects or studies that can demonstrate novel approaches to customer acquisition and engagement, especially for residential and EV customers. This might include ‘integrative business models’ where offers are bundled with other products to increase adoption, such as rooftop solar.

ARENA is also interested in behavioural and social research that will help to understand future customers beyond the early adopters, including insights on different incentives, business models, tariff structures, and ongoing communication methods with customers.

Accelerate the commercialisation of longer-duration energy storage (LDES) technologies (especially those capable of providing electricity over 8+ hours) including thermal, electrochemical, and mechanical storage.

Pilots and demonstrations of longer-duration technologies that are capable of providing 8+ hours of storage. Projects might focus on thermal, electrochemical, and mechanical storage. ARENA is largely technology agnostic but will require technologies to have a clear path to commercialisation.

ARENA is most interested in LDES technologies that have a clear pathway for use in grid-connected applications, but ARENA is happy to consider projects located in off-grid or embedded networks, where the technology has a clear potential to provide dispatchable capacity on the grid. There is also interest in EV batteries where it aligns with our Transport priorities.

Projects that can improve forecasting capabilities for longer-duration and seasonal discharge needs are also of interest.

Note: ARENA has provided significant grant funding to support the commercialisation of utility-scale lithium-ion battery storage and pumped hydro energy storage projects in the past. Given the relative maturity of these technologies, as well as the emergence of new sources of private and public support, ARENA does not intend to provide further funding support for new projects in these areas.

Improve performance and/or reduce the cost of novel battery chemistries and demonstrate innovative battery manufacturing or recycling pilots.

Novel battery chemistries

Support (including pilots and demonstrations) for novel battery chemistries that can lead to an improvement in cost, performance and/or reliance on scarce materials as compared to traditional lithium-ion.

ARENA will also consider supporting testing facilities for novel chemistries.

Innovative battery manufacturing & recycling

Pilots demonstrating innovative battery manufacturing that could lead to a material improvement in the cost and/or performance of batteries. This could focus on lithium-ion batteries or alternative battery chemistries, and also includes innovations in individual battery components where they can drive significant cost improvements.

Pilots demonstrating innovative battery recycling methods are also of interest where they can demonstrate lower costs, higher recovery rates and/or lower emissions processes. This could also include studies to support recycling infrastructure and/or regulatory changes.

Accelerate the commercialisation of thermal energy storage (TES) technologies for industrial heat.

Pilots and demonstrations of TES in industrial heat applications that can demonstrate the technical and commercial viability of TES. This is industry and technology agnostic, and projects can be with or without an attached concentrated solar thermal (CST) plant.

Deliver innovative trials and/or studies to support and accelerate the transition to 100% renewable energy penetration.

Examples include studies of grid subsets at 100% renewables, studies on voltage and stability constraints, and demonstration of new innovations in system services (including system restart)​.

ARENA is also open to supporting studies for syncon retrofits for existing generation assets.

Deliver innovative trials and/or studies in relation to the connection of new generation capacity to the grid and reducing transmission constraints.

Examples include studies, trials and/or innovative products that can streamline grid connection processes and/or reduce transmission constraints (eg virtual transmission).

Demonstrate novel technologies such as grid monitoring tools.

Projects to improve operations and reduce constraints in transmission and distribution lines. Examples include innovative technologies or tools that can support effective real-time operation of the grid and remote monitoring & management.