Regional and remote communities can access a new energy fund which will bring down energy costs and increase economic growth.
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The Federal Government's new Regional and Remote Communities Reliability Fund is open to applications for feasibility studies on micro-grid projects.
In a press release, Energy Minister and Member for Hume Angus Taylor said up to $20 million of grants will be awarded in the first round of the fund.
It will focus on providing investment to create jobs and drive economic growth, similarly to the Lockhart Shire Council. The council in the Riverina region of New South Wales will be the first town powered by renewable energy and operate on a micro-grid.
According to an article in The Land, the town's residents will be offered discounted energy rates, about 20 per cent less than that being offered by major energy retailers, and the council will be offered the opportunity to buy the generation facility in 10 years if it so chooses.
It also has the potential to offer businesses discounted rates of electricity.
The government's $50 million program will support feasibility studies into micro-grids.
Supplying remote, grid supplied customers to a self-supporting micro-grid could save hundreds of millions of dollars.
- Angus Taylor's office
Micro-grids are a stand-alone power system that can operate independently or maintain a connection to the grid by harnessing distributed energy resources such as solar photovoltaics and batteries.
The technology is becoming increasingly cost effective, creating the opportunity for a reliable, low cost, off-grid supply. This is especially useful for customers in remote locations, on the fringe-of-grid, reducing the need for expensive poles and wires.
Supplying remote, grid supplied customers to a self-supporting micro-grid could save hundreds of millions of dollars in costly network infrastructure and maintenance while improving reliability. Renewable-based micro-grids can also reduce the use of diesel generators in remote areas.
Feasibility studies will unlock investment in micro-grids, and their benefits. Where feasibility studies find that micro-grids are economically viable, additional support can be sought from the Australian Renewable Energy Agency and Clean Energy Finance Corporation.
- Further information can be found at grants.gov.au
