The Australian Renewable Energy Agency (ARENA) is ramping up its investment in community electrification projects, following a request from the Minister for Climate Change and Energy to explore expanding funding in this area.
According to ARENA, since 2018, it has committed $144.5 million to 49 projects aimed at accelerating electrification and reducing emissions.
Community electrification—where entire neighbourhoods shift to renewable-powered energy systems—has emerged as a key focus, promising to lower household bills while increasing consumer participation in the clean energy transition.
ARENA said it has already backed two major projects this year: the Energy Masters Project by SA Power Networks, receiving $6.2 million in May, and Electrify 2515 in North Wollongong, which secured $5.4 million in October.
Both initiatives demonstrate how targeted funding can drive local energy transformation.
As part of its Flexible Demand strategy, ARENA is seeking projects that integrate consumer energy resources—such as solar, batteries, and smart appliances—into the grid.
By overcoming infrastructure barriers and enabling coordinated energy use, these projects aim to improve reliability and maximise the value of renewable energy.
ARENA said it will continue engaging with industry and key stakeholders to identify high-impact opportunities, with funding allocated through a rigorous merit-based process.
Successful projects typically feature strong proponents capable of managing regulatory and technical risks, alongside co-funding arrangements to share costs.
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