ARENA unveils new funding to build microgrids for First Nations in Australia

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AU$75 million will be used to develop microgrid projects in First Nations communities. Image: iStock

The Australian Renewable Energy Agency (ARENA) has unveiled a new round of funding to develop and deploy microgrid technologies across regional and remote communities, including a major of it allocated for microgrid projects in First Nations communities.

ARENA said it would allocate AU$125 million (US$48.2 million) to the Regional Microgrids Programme, with AU$75 million being used to develop microgrid projects in First Nations communities, delivering cleaner, cheaper and more reliable energy and empowering First Nations communities to participate in their electricity supply arrangements and the development of energy infrastructure.

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Currently, electricity provision in remote First Nations communities is often heavily reliant on diesel. ARENA said the new funding will help overcome barriers to broader deployment of microgrid solutions.

“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,” said Darren Miller, CEO of ARENA.

ARENA said the funding follows amendments to the National Agreement for Closing the Gap to include new standards for the provision of essential services.

The programme of developing microgrid projects in First Nations communities also incorporates ARENA’s previous AU$50 million Regional Australia Microgrid Pilots Programme (RAMPP), bringing the total of the Regional Microgrids Programme funding pool to AU$125 million across both streams. Microgrid projects under the 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.

Applications are open now and will be assessed in two stages, with initial expressions of interest followed by full applications. The programme will run until December 2025 or until the funds are exhausted.

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