Policy & Planning

Renewables key to making electricity supplies affordable in remote communities

Published by

Investments in renewables and energy efficiency measures could be the key to improving electricity services for remote communities, as new research shows households experience frequent disconnections during periods when temperatures surge to extreme highs.

In a policy paper published in the journal Nature Energy, researchers from The Australian National University argue that technologies like rooftop solar and energy efficient appliances could help address a significant gap in energy affordability and reliability for remote Indigenous communities.

The study found that nearly all households in dozens of Northern Territory communities experienced disconnections from the electricity grid during the 2018-19 financial year, including a one-in-three chance of same-day disconnections on very hot or cold days.

Many households in remote communities are subject to prepaid arrangements for their electricity services that require households to purchase electricity credits in the form of a token or swipe card used with their electricity meter to activate a supply of power.

These arrangements can make households vulnerable to disconnection, particularly in areas where electricity demand is high during extreme temperatures and where the cost of buying power is high.

The ANU researchers examined data collected from these prepaid smart meters installed across 3,300 households in remote communities, finding that around three-quarters of households suffered more than ten disconnections in the 12-month period.

“With prepayment, once credit runs out this disconnects the whole household from electricity supply, which can compromise the functioning of the home. We found that almost all households faced disconnection and the rates of disconnection are higher during either extreme temperatures,” report co-author Dr Thomas Longden said.

“Remote Indigenous communities suffer severe energy insecurity, which worsens during extreme temperatures. These households are more likely to experience disconnection from electricity on very hot or very cold days.”

“The impact is greatest in the central dry grassland climate zone, which is located in central Australia and experiences both cold nights during winter and hot days during summer. These temperature-related disconnections are driven by an increase in electricity used to heat and cool homes,” Dr Longden added.

The researchers point to the fact that access to electricity services can become inaccessible for remote communities during periods of high temperature extremes, preventing access to air conditioning and other services for which demand grows during hot periods.

“Households with high electricity use experience more disconnection events, so policy responses should account for household structure and occupancy, as well as the opportunity to use rooftop solar,” the policy paper says.

In an accompanying academic paper also published in Nature Energy, the research group says the installation of renewable energy technologies and investments in energy efficiency measures would help reduce the potential for electricity disconnections and work to share the direct economic benefits of clean energy.

“With respect to disconnections a key aim will be reducing the frequency, duration and effects of disconnection,” the academic paper says.

“This might include: improving the accessibility and affordability of energy through changes to tariffs or direct access to the benefits of renewable energy such as residential rooftop solar on community housing; improving energy efficiency of infrastructure, buildings and appliances; and improving energy provision for particular critical needs, for example, disconnection prohibitions or tariff reductions during temperature extremes, protections for critical care customers and the use of protected circuits for refrigeration, lighting and essential medical equipment.”

Report co-author Dr Simon Quilty said the frequent disconnections were occurring at a time and within communities impacted by a global pandemic and the worsening effects of global warming, leaving many remote households vulnerable.

“Energy poverty amplifies poor health in remote communities, and this runs hand-in-hand with very poor quality housing,” Dr Quilty said.

“In extreme weather, these houses regularly become dangerously hot. On an extremely hot Northern Territory day, the electricity is more likely to go off. As the inside temperature rises, air conditioners don’t work, food and medicines in fridges spoil, families can’t do their washing, and people crowd into other houses where the power is still on.”

“These communities are facing the failure of policy around the collision of climate change and energy regulation. It’s dangerous for Indigenous communities,” Dr Quilty added.

Michael Mazengarb is a climate and energy policy analyst with more than 15 years of professional experience, including as a contributor to Renew Economy. He writes at Tempests and Terawatts.
Michael Mazengarb

Michael Mazengarb is a climate and energy policy analyst with more than 15 years of professional experience, including as a contributor to Renew Economy. He writes at Tempests and Terawatts.

Recent Posts

First new steel mill in Australia in 35 years to be the first to be powered by 100 per cent renewables

The first new steel mill to be be built in Australia in more than 35…

25 October 2026

More batteries, both big and small, mean solar farms don’t have to shut down so often

One of the biggest headaches for owners of utility-scale solar farms in the last few…

24 October 2026

Concrete foundations completed for all 18 turbines at first and smallest wind farm to begin construction this year

All 18 of the concrete turbine foundations have been poured at the first wind farm…

24 October 2026

Grid Connections 2026: Who’s going where and doing what in Australia’s green energy transition

EnergyAustralia lures ex AGL COO out of retirement, Stanwell CEO forced out, ARENA looks for…

24 October 2026

Snowy profits steady amid pumped hydro strains, while CEO Barnes sees his take-home benefits sink below $2 million

Snowy Hydro reports a modest uptake in profits in the year to June 2026 while…

23 October 2026

“Reset 3.0” doesn’t answer the biggest questions about Snowy’s $25 billion-plus pumped hydro gamble

Engineering marvel or financial folly? We've been here before - a cost blowout and a…

23 October 2026