First Nations the focus as new microgrid funding seeks to ditch diesel

The Albanese government has launched a fresh round of funding to drive the construction of renewable energy-based microgrids in remote and regional parts of Australia, with a big chunk of the finance set aside for First Nations communities.

The Australian Renewable Energy Agency says another $125 million had been allocated to the federal Regional Microgrids Program, with $75 million of that sum dedicated to delivering a cleaner, cheaper and more reliable energy supply to Indigenous Australians.

Arena CEO Darren Miller says the First Nations stream of the funding will address the “unique challenges” facing Indigenous communities that currently rely on costly and polluting fossil fuels like diesel for their energy supply.

“It’s vital we make sure Aboriginal and Torres Strait Islander people living in remote communities are able to participate in the electricity transition and share in the benefits of Australia’s renewable future,” Miller said.

A federal funding scheme to support the rollout of renewable energy based microgrids in remote and regional Australia has been in place for the past five years, with grant recipients varying from government network companies to universities and smaller, private power companies.

Arena says the establishment of a separate First Nations Community Microgrids Stream follows amendments to the National Agreement for Closing the Gap to include new standards for the provision of essential services.

Applications for the grants in both streams will be assessed in two stages, with initial Expressions of Interest followed by Full Applications.

Microgrid projects under the First Nations stream will be developed in consultation with Aboriginal and Torres Strait Islander groups, First Nations renewable energy experts and state and territory governments across Australia.

Arena says both streams of the program have the overarching goal of resolving remaining barriers to final investment and full deployment of microgrid solutions.

Applications are open now, with the program to run until December 2025 or until funds are exhausted.