The scholarship will provide the current High5 rider with the chance to live, train and compete in Europe, racing for the 2017 High5-RMG Australian Women’s Road Development Team, supported by Cycling Australia.
Kennedy was delighted and a little overwhelmed at the news.
"I was kind of blown away I answered the phone and it was Simon Gillett," Kennedy said.
"To have that kind of faith put in you by a group of people to represent them in Australia and overseas...it's an extra special feeling."
2017 has been a break-out year for Kennedy, posting impressive results since January.
She finished third at the 2017 Australian Road National Championships behind WorldTour riders Katrin Garfoot and Amanda Spratt (Orica-Scott), and nabbed fourth behind Annemiek Van Vleuten (Orica-Scott), Ruth Winder (United HealthCare) and Wiggle High5's Mayuko Hagiwara at the Cadel Evans Great Ocean Road Race.
Her success continued with a recent win in the individual time trial at the Oceania Road Championships and a stage at the Mersey Valley Tour where she also took home Queen of the Mountain honours.
Now with the opportunity to race internationally, it's a bit of a dream come true.
"I'm really excited to be going to Europe. It feels like it's been a long time coming," she said. "Two years ago I first went to the selection camp at the AIS which really ignited the desire
"Now I'm finally going and being the scholarship holder, to be added to that list is icing on the cake."
The selection panel unanimously chose Kennedy not just for her sporting potential, but her life beyond professional cycling.
"My results on the bike are part of it particularly this year, that got me noticed. But a big part of the scholarship is everything else you do in your life as well.
"Amy (Gillett) came from a background where she had lots of other things going on in her life. And I have great respect for what the Amy Gillett Foundation do particularly for Queensland. It was the first state to implement the trial of the metre passing laws and the Amy Gillett Foundation was instrumental to those laws being implemented.
"It's something i'm really passionate about particularly as I worked as a traffic engineer and now a modeller. (Cycling safety) is definitely something I want to pursue and to now be associated with the Amy Gillett Foundation... it's a great platform to help in that space."
"We look forward to seeing Lucy revel in her new cycling opportunities and working with her to achieve a safer cycling environment in Australia," said Amy Gillett Foundation CEO Phoebe Dunn.
Now in its twelfth year, the scholarship is a joint initiative of the Amy Gillett Foundation, Cycling Australia and RMG Sports Management. It encourages the development of talent, self-confidence, leadership, sportsmanship and a positive approach in female cyclists to competition, educational pursuits and life, consistent with the way in which Amy Gillett lived her life.
Past winners of the scholarship: Louisa Lobigs (2016), Kimberley Wells (2015), Lizzie Williams (2014), Jessica Mundy (2013), Jessica Allen (2012), Jo Hogan (2011), Rachel Neylan (2010), Amber Halliday (2009), Carlee Taylor (2009), Carla Ryan (2007) and Jessie MacLean (2006).