Solar and battery-backed microgrids planned for remote communities

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The Australian government has announced a fresh round of funding to drive the construction of renewable energy-based microgrids in the remote First Nations communities of Yalata, Pipalyatjara and Oak Valley in South Australia.

The Australian Renewable Energy Agency (ARENA) will match $13 million (USD 8.36 million) in funding from the South Australian government to help deliver high-penetration solar and battery-based microgrids in each of the three communities.

ARENA said Yalata, Pipalyatjara and Oak Valley residents are currently reliant on diesel generation and face some of the highest costs and lowest reliability in energy access in the country.

The microgrid project aims to achieve a renewable energy penetration of up to 75% in each community with the integration of solar and battery storage set to significantly reduce the use of costly diesel. Following installation of the microgrids, electricity bill payers in the communities will pay a subsidised tariff of 10c/kWh during the lifetime of the microgrids.

In addition to the cost savings, ARENA said the project will deliver a range of community benefits, including land lease agreements, opportunities for local employment and procurement, and capacity-building programs designed to support long-term economic development.

ARENA Chief Executive Officer Darren Miller said the aim is to ensure the communities are consulted and actively involved in the operation and maintenance of their energy systems.

“Aboriginal and Torres Strait Islander people living in remote communities should be able to participate in the energy transition and share in the benefits of Australia’s renewable future,” he said.

“This project is about uplifting communities and supporting inclusion and participation in the energy transition, while working together to reduce emissions.”

The South Australian project, funded under the First Nations Community Microgrids stream of the federal government’s $125 million Regional Microgrids Program, comes after ARENA announced $3.6 million in funding to help deliver a hybrid microgrid for the community of Blackstone in Western Australia.

That project, which has received a further $9.12 million contribution from the state government, will include up to 778 kW of solar PV, a 2 MWh battery energy storage system and 400 kW of diesel generation. Construction is due to start next month and be completed by the end of 2026.

ARENA has also announced $1.4 million to support the development of a new energy service delivery model for First Nations communities in the Northern Territory.

Alice Springs-based technical advisory firm Ekistica will lead a project to develop a standardised microgrid delivery model and an improved energy management unit (EMU) designed to enhance system performance and reliability in remote settings. The project aims to create a replicable model that can guide future developments across the Territory.

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