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Government unveils new microgrids and upgrades in twin energy push

20 May, 2026
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The federal government has announced two separate renewable energy initiatives targeting regional communities and social housing tenants, as part of its broader push to expand clean energy access across Australia.

In New South Wales, the government is supporting a new microgrid project in Braidwood, a township in the Southern Tablelands located at the end of a single distribution line in a high bushfire risk area.

The vulnerability of the town’s position on the grid has made it particularly susceptible to prolonged power outages during extreme weather events, prompting the development of a local energy solution.

The Braidwood Renewable Energy Project will deliver an islandable solar and battery microgrid capable of operating independently from the broader grid during power disruptions caused by bushfires, storms or severe weather.

The project will include 5MW of solar generation and a 5MW/10MWh battery energy storage system, reducing outage risks and lowering reliance on diesel generation for the township and surrounding communities.

The microgrid is being developed by EDPR Australia in partnership with Essential Energy and Braidwood Clean Energy, and is backed by a $3 million investment from the Australian Renewable Energy Agency through the Regional Microgrids Program.

Beyond its immediate benefits, the project is expected to provide valuable insights into the design, operation and economics of islandable microgrids in fire-prone and grid-constrained communities across the country.

The Braidwood project forms part of the federal government’s $125 million Regional Microgrids Program, which supports the development and deployment of microgrid technologies across regional and remote communities to improve reliability and expand access to renewable energy.

In Victoria, a separate but equally significant announcement will see more than 8,000 additional public and community housing households receive energy upgrades through a funding boost under the Social Housing Energy Performance Initiative, known as SHEPI.

The federal government is providing $120.3 million to enable works across the state, bringing the total investment in the Victorian partnership to $263.7 million.

Under the expanded program, around 19,000 public and community housing properties across Victoria will receive energy upgrades in total.

Upgrades include energy-efficient heating and cooling systems, hot water heat pumps, electric cooktops, ceiling insulation, draught sealing and solar panels.

The measures are designed to keep homes cooler in summer and warmer in winter while reducing household energy bills.

Victoria has already completed upgrades for almost 3,500 homes, delivering nearly 10,500 individual upgrades under the joint program.

Eight community housing organisations have received funding under Round 1 of the Community Housing Upgrades Stream, with grants averaging $18,000 per property.

The projects are expected to deliver approximately 3,000 energy efficiency upgrades across more than 900 Victorian homes.

The Victorian initiative is part of a broader $1.1 billion national commitment by the federal, state and territory governments to upgrade 100,000 social housing properties across the country.

Together, the two announcements reflect the federal government’s dual focus on energy resilience for vulnerable regional communities and affordability for low-income households.

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