26 September 2023

New fund to power microgrids in the bush

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The Department of the Environment and Energy has launched a fund to support regional and remote communities and organisations establishing ‘microgrids’ using solar panels or battery technology.

Minister for Emissions Reduction, Angus Taylor said the first round of the Regional and Remote Communities Reliability Fund was now open with up to $20 million in grants to be awarded.

“The grants will fund community organisations, electricity distribution businesses and other interested entities to undertake feasibility studies on the viability of microgrid solutions in off-grid and fringe-of-grid locations.” Mr Taylor said.

“Microgrids are stand-alone power systems that can operate independently or maintain a connection to the grid by harnessing distributed energy resources such as solar photovoltaics and batteries.”

He said microgrid technology was becoming increasingly cost effective, creating the opportunity for a reliable, low cost, off-grid supply.

“This is especially useful for customers in remote locations on the fringe-of-grid, reducing the need for expensive poles and wires,” Mr Taylor said.

“Supplying remote, grid supplied customers with a self-supporting microgrid could save hundreds of millions of dollars in costly network infrastructure and maintenance while improving reliability,” he said.

“Renewable-based microgrids can also reduce the use of diesel generators in remote communities.”

He said feasibility studies were the first step to unlocking investment in microgrids, and their benefits for individual communities and the grid as a whole.

“Where feasibility studies find that microgrids are economically viable, additional support can be sought from the Australian Renewable Energy Agency and the Clean Energy Finance Corporation,” the Minister said.

Round one applications close on 21 November.

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