ARENA Funding Unlocks Solar Microgrids: Cheaper, Reliable Power for Remote Aboriginal Communities

For too long, remote First Nations communities have relied on expensive, noisy diesel generators. Now, the Federal Government's ARENA program is investing $14.4 million to build modern solar microgrids in South Australia and the Northern Territory, promising reliable, cleaner energy, 20 years of price stability, and the opportunity for local jobs and community ownership.

The reliance on trucked-in diesel fuel for power in remote settlements creates enormous financial strain, environmental impact, and frustrating power quality issues that affect everything from refrigeration to essential health services. The Australian Government, through ARENA’s $125 million Regional Microgrids Program, is directly addressing this vulnerability by backing two innovative projects that put communities in control of their energy future. This funding is a critical step towards achieving diesel free power and building long-term energy stability across remote Australia, focusing on projects that deliver cultural appropriateness alongside technical reliability.

The first major investment is in South Australia, where the Remote Area Energy Supply (RAES) First Nations Community Microgrids Project has secured $13 million from ARENA, matched by the state government, to target the remote communities of Yalata, Pipalyatjara, and Oak Valley. The plan is to reach an incredible 75 per cent renewable energy penetration, drastically cutting the need for diesel fuel and the noise and pollution it brings, leading to immediate health and quality of life benefits. Crucially, this investment locks in a discounted electricity tariff for twenty years, indexed only to inflation, giving these communities unparalleled long-term price stability and relief from volatile energy markets.

Up in the Northern Territory, a separate project led by Ekistica is developing a culturally appropriate energy service model for Homeland Communities, with $1.4 million in ARENA support. This project’s goal is to co-design a simple, reliable, and standardized approach for future microgrid delivery, creating a template that is replicable across other homelands and communities. This focus on local leadership and a streamlined energy management unit (EMU) means that when a blueprint is found to work well, it can be easily and quickly deployed elsewhere, significantly boosting power reliability in some of Australia's most remote locations.

These initiatives illustrate a profound shift in how remote energy solutions are designed and funded, and they offer a tangible outcome for other communities striving for energy independence. Reliable power is the foundation for a resilient community, supporting essential services, education, and local economies. Furthermore, community-led clean energy projects generate local jobs and training in installation, maintenance, and management, fostering skills that support broader rural development and keep wealth within the community. These microgrids, which are small, self-contained power systems using solar storage and smart controls, are the key to unlocking consistent power without the diesel dependency.

If your remote Aboriginal community, homeland, or community-controlled enterprise is struggling with high diesel costs, unreliable power, or is ready to access this vital ARENA funding for your own microgrid solution, securing the grant is the essential next step. Surge Energy specializes in designing these reliable, sustainable power systems, and we are proud to offer comprehensive grant writing services where we will write your grant application for you and manage the submission process. This is the moment to secure your community’s clean energy future. Reach out to Surge Energy today to find out how we can start the ARENA grant process for your project and deliver cheaper, reliable, solar-powered energy.