Four remote First Nations communities win funding to quit diesel, shift to renewables

Four remote First Nations communities will be transitioned away from a diesel powered electricity supply to solar and battery storage-based microgrids, as part of a federally funded program supported by the Australian Renewable Energy Agency (Arena).

Arena funding for three of the microgrids, which will power the remote communities of Yalata, Pipalyatjara and Oak Valley in South Australia, was announced by federal energy minister Chris Bowen on Friday at the First Nations Clean Energy Symposium in Queensland.

Each of these communities is currently reliant on high-polluting diesel generation for electricity and faces some of the highest costs and lowest reliability in energy access in the state.    

For these projects, Arena will match $13 million in funding from the SA government to help deliver high-penetration solar and battery based microgrids that will target up to 75% renewable energy penetration.

Following installation of the microgrids, electricity bill payers in the host communities will share in the savings through a subsidised tariff of 10c/kWh during for lifetime of the microgrids.   

Arena says the SA project will deliver a range of community benefits, including land lease agreements, opportunities for local employment and procurement, tailored training and other programs designed to support long-term economic development.

Part of the plan is to ensure the First Nations communities are not only consulted, but actively involved in the operation and maintenance of their energy systems well into the future. 

“This project is about uplifting communities and supporting inclusion and participation in the energy transition, while working together to reduce emissions,” said Arena chief Darren Miller on Friday.

“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,” Miller said.

“We recognise that solar farms provide a renewable energy source that immediately impacts the health and comfort of our community,” said David White, the CEO of Yalata Anangu Aboriginal Corporation.

“By reducing pollution generated by our current fossil fuel generators, along with the obvious noise reduction, will have a huge and immediate impact on the Yalata People and their way of life.” 

A separate Arena-backed microgrid project was announced on Thursday for a community in the far north-east corner of Western Australia, again to take it from high-cost diesel generation to a state-of-the-art renewable energy microgrid.

In this case, Arena is adding $3.6 million to a $9.12 million contribution from the WA state government to pilot a scalable, modular hybrid energy solution that, if successful, will be used as a blueprint for other, similar sized remote Aboriginal communities.

The microgrid at Blackstone, a community in Papulankutja, will combine up to 778 kW of solar panels, a 2 MWh battery energy storage system and 400 kW of diesel generation.

WA state-owned utility, Horizon Power, will also establish a Community Energy Fund which will share savings from the project to support community-nominated energy initiatives and return financial benefits directly to the community.

Horizon will also roll out a training program to develop local skills for ongoing operations and maintenance of the microgrid, creating employment opportunities within the Papulankutja community.

As part of the Friday announcement, Arena will also provide $1.4 million to Alice Springs based Ekistica, a technical advisory firm wholly owned by Indigenous controlled Centre for Appropriate Technology, to lead a project to co-design a scalable, culturally appropriate energy service model tailored for First Nations Homeland Communities.

Working closely with the NT government, National Indigenous Australians Agency, Land Councils, Aboriginal Housing NT and other partners, the project will tackle long-standing inefficiencies in service delivery and place communities at the centre of decision making. 

“All communities should be able to participate and share in the benefits of Australia’s renewable future,” Bowen told the Symposium on Friday. 

“And we’re also supporting the development of a new energy service delivery model for NT communities.  

“Both projects sit under Arena’s $125 million Regional Microgrids Program, which is a key initiative in our efforts to tackle energy inequality. 

“The program was established in response to changes to the National Agreement on Closing the Gap, which introduced new standards for delivering essential services. 

“It includes $125 million to develop and deploy microgrids in regional and remote areas, with $75 million allocated to projects in First Nations communities.”