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.
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:
Microgrids empower communities by giving them control over their energy resources and reducing their dependence on the national grid.
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 |
Combines home-based solar and batteries with a large grid-connected battery to improve reliability during outages.
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.
Will provide power for over 900 homes and businesses, capable of operating independently from the main grid during outages.
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.
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.
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.
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.