Bushfire-Prone Town Secures Funding for Island-Mode Solar Microgrid

Funding Approved for Critical Energy Project

The Australian Renewable Energy Agency (Arena) has awarded funding for a solar-plus-battery microgrid that will provide energy resilience to a remote town at the end of the grid in a high bushfire risk area.

“This microgrid can operate independently from the main grid during emergencies, ensuring power remains on when it’s needed most,” said Arena CEO Darren Miller. “It’s a vital step for communities facing climate risks.”

The project, developed by local utility Horizon Power, will combine a 1 MW solar farm with a 2.5 MWh battery storage system, allowing the town to “island” itself from the grid during outages or fire threats.

Background

The town relies on a single transmission line that runs through heavily forested bushfire zones, making it vulnerable to power cuts. Previous fires have caused multi-day blackouts, endangering residents and emergency services.

Microgrids that can disconnect and operate in “island mode” are increasingly seen as a solution. Arena’s funding covers 40% of the $8 million project, with construction expected to begin in early 2025.

What This Means

For residents, the microgrid means reliable power during disasters—keeping fridges running, medical devices operational, and communications online. “This isn’t just about convenience; it’s about safety,” said Mayor Sarah Thompson. “We’ve seen how fragile our connection is.”

Beyond this town, the project could become a blueprint for other edge-of-grid communities across Australia. Arena noted that similar systems could reduce costly grid upgrades while boosting renewable energy uptake.

“We’re demonstrating that clean energy and disaster resilience go hand in hand,” added Miller. The microgrid is expected to cut diesel generator use by 80%, slashing both emissions and fuel costs.

This article was updated from an original Renew Economy report.