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ARENA funds First Nations‑led microgrids to improve power reliability

28 Apr, 2026
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The Australian Renewable Energy Agency (ARENA) has announced AU$11 million in funding for two First Nations-led microgrid projects in the Northern Territory, aiming to solve chronic power reliability issues in some of Australia’s most isolated communities.

The projects, located in Borroloola and Ltyentye Apurte, will demonstrate how distributed energy resources such as solar and batteries can deliver cleaner, more reliable electricity in parts of regional and remote Australia where the main grid does not reach.

In Borroloola, located in the NT Gulf region, the Ngardara Project aims to be Australia’s first utility-scale solar microgrid owned and led by a First Nations cooperative. The project involves the design and development of a solar and battery microgrid to significantly reduce diesel consumption, improve reliability and lower energy costs.

Meanwhile, near Alice Springs, the community of Ltyentye Apurte is working with the Atyenhenge-Atherre Aboriginal Corporation (AAAC) to develop a microgrid that could supply roughly half of the community’s electricity needs.

AAAC CEO Ellie Kamara highlighted the human impact of the project, noting that recent long-term blackouts have left elders without heating or cooling and forced local stores to close.

“In the extreme hot or cold our old people suffer from either no heat or air-con, and the store cannot open – impacting food security for the community,” Kamara said.

“The microgrid aims to alleviate this challenge enabling a constant source of electricity in the event of a blackout.”

The funding is part of ARENA’s AU$125 million Regional Microgrid Program, which includes a AU$75 million allocation specifically for First Nations communities.

ARENA CEO Darren Miller said the projects reflect its commitment to supporting First Nations participation and leadership in Australia’s clean energy transition.

“These projects show the opportunities for First Nations-led design and co-development of local energy solutions, improving reliability, lowering costs and reducing reliance on diesel,” Miller said.

If successful, these two projects will serve as a blueprint for remote energy security across the country, ensuring that the clean energy transition delivers lower costs and greater independence to the most vulnerable Australians.

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