Microgrids

What is a Microgrid?​

Microgrids are a small, local network of electricity users that coordinate local energy resources such as solar panels, battery storage and other distributed infrastructure.

The key characteristic of a microgrid is its ability to generate, distribute and regulate its own electricity within a specific geographic area.

A microgrid can operate independently or connected to the main utility grid. This allows for greater control over electricity supply and can improve resilience during grid outages. 

With increasing local generation, microgrids are becoming a viable way for networks to improve how they deliver electric power.

Bouddi Peninsula Mark Gable

Benefits of Microgrids

Microgrids can operate independently of the main grid, providing a reliable power source even during outages, grid disruptions or natural disasters.

Microgrids facilitate the integration of renewable energy sources, like solar panels, reducing reliance on fossil fuels. This leads to cleaner energy production and reduced greenhouse gas emissions.

Microgrids produce cost savings by:

  • optimising local energy generation and consumption to smooth out fluctuations in energy supply and demand
  • reducing grid losses by minimising long-distance energy transmission. 

Microgrids empower communities by giving them control over their energy resources and reducing their dependence on the national grid. 

Network-connected microgrids examples

The table below lists Australian examples of network-connected microgrids.

Examples of Australian Network-connected Microgrids
Name Sytem Scale Funding Approx. cost Status More info
Bawley Point & Kioloa, NSW 100 home batteries + rooftop solar systems + 3MW battery 1,000 residents Endeavour Energy, Bushfire Local Economic Recovery Fund, Participants $8m Awaiting commissioning More info
Corryong, Vic 4.99MW battery, 3MW diesel generator, home solar and battery systems 900 properties Disaster Ready Fund ($7 million), the Victorian Government's Community Microgrids and Sustainable Energy Program ($8 million), and AusNet Enterprise $28.6m Under development More info
Kalbarri, WA 1.6MW wind and rooftop solar (1MW) + 2 MWh battery storage 1,500 residents + 100,000 visitors Western Power $15m Active More info
Marlinja, NT 100kW centralised solar array and 136kWh community battery Around 20 homes (60 residents) + school 5B, Jacana Energy, Original Power, philanthropic donors $650,000-$750,000 Active More info
Merriwa, WA Rooftop solar power generation, battery storage and a back-up diesel generator 28 properties including the pharmacy, supermarket, and CWA hall Ausgrid's Network Innovation Allowance from the Australian Energy Regulator, with additional financial support from the Australian and NSW Governments Approx. $3m (2022) Under development More info

Further Information

Combines home-based solar and batteries with a large grid-connected battery to improve reliability during outages.

  • Large holiday crowds driving peak periods
  • The community is at the end of a long electricity line.

The microgrid is connected to Endeavour Energy’s network but will switch to its local ‘power island’ if the main electricity grid goes down.  Customers pay 40% of a battery or solar system, with Endeavour Energy paying the remainder.

First microgram community for NSW

Beach towns get state’s first microgrid

Will provide power for over 900 homes and businesses, capable of operating independently from the main grid during outages. 

Corryong Islandable Microgrid (CIM)

The largest remote microgrid in Australia, it uses wind and rooftop solar with battery storage to power the town

Main grid supplies are connected to Geraldton, 140 kilometres south, with infrastructure travelling through open countryside, making it vulnerable to environmental impacts.  Kalbarri is a popular tourist destination, presenting the town with large variables in energy demand across different times of the year.

Kalabarri microgrid

What is the Largest Microgrid in Australia?

See also: Perenjori, Bremer Bay and Ravensthorpe, WA

The first Indigenous community-owned microgrid in Australia, it provides reliable, grid-connected solar and battery power to the remote community.

The community’s 60 residents and 18 households access electricity services at the end of a 25km feeder line from a diesel/gas hybrid Elliott township. Essential services are supplied by Power and Water Corporation (PWC) and Jacana Energy is the retailer.

Households experience frequent disconnections from power due to an inability to afford ‘top up’ credit. Supply side outages are also common due to maintenance challenges on the transmission line.

Marlinja Microgrid

The Merriwa Microgrid, to be located at the Ausgrid Depot and on track to be delivered in partnership with Yurika in the first half of 2024, will combine locally installed rooftop solar power generation, battery storage and a back-up diesel generator, as well as a range of control technologies.

Merriwa Microgrid

Off-grid example

This large-scale microgrid supplies electricity to a gold mine using a combination of wind, solar, battery storage, and a gas engine. Total cost of $112m of which ARENA contributed $13.4m.

  • 5 wind turbines, (18MW)
  • 4MW solar farm
  • 4MWh battery
  • 25MW gas/diesel power plant