Australian Government Award Supports Start of $11M Braidwood Renewable Energy Microgrid Project

The Australian Renewable Energy Agency (ARENA) has awarded more than $2.1 million (AU$3 million) to the Braidwood Renewable Microgrid Project in New South Wales.

The grant will help fund the development of an $11.15 million (AU$15.57 million) community microgrid pilot project in the rural town of Braidwood, which is renowned for its rare black truffles and historic colonial buildings.

Located roughly three hours southwest of Sydney, the microgrid will include a 7-MW solar array and 5-MW/10-MWh battery energy storage system.

The project was initiated in the wake of the catastrophic “Black Summer” bushfires in 2019 and 2020, when the town was nearly cut off from the main power grid. Braidwood is at the end of a single distribution line, making it prone to extended power outages, particularly during extreme weather events.

Developed by EDP Renewables Australia and Braidwood Clean Energy, a local community group, the grid-connected microgrid will power critical services in Braidwood and the nearby township of Majors Creek during emergencies.

“Together, we are not just safeguarding the local community from severe grid disruptions, we are also setting a new standard for Australia's energy transition,” Simon Franklin, Australia Country Director at EDP Renewables APAC, said in a statement.

Paving the way for other communities

As part of the Braidwood pilot, the developers will test operational protocols and ways to streamline commercial agreements and regulatory approvals.

“This island-able solar-generated power supply will demonstrate that Braidwood can be both historic and futuristic in a way that other towns will surely follow,” commented Paul Cockram, president of Braidwood Clean Energy.

The grant comes from ARENA’s Regional Microgrid Program, a $60 million (AU$125 million) program that funds microgrid development in remote communities.

“Through ARENA’s Regional Microgrids Program, we’re supporting solutions that not only improve resilience locally, but also provide a model that can be applied in other communities across Australia facing similar risks,” Darren Miller, CEO of ARENA, said in a statement.

The Regional Microgrids Program is also investing $11 million in two First Nations microgrids in Australia’s Northern Territories. In Borroloola, the Ngardara Project will be the first utility-scale solar and energy storage microgrid to be led by a First Nations Cooperative.

The second microgrid, located near Alice Springs, is still in the development phase. It will leverage solar, battery energy storage and have a diesel backup generator.

More resilience, lower emissions

In addition to providing community resilience, the Braidwood microgrid is expected to offset approximately 7,537 tons of carbon emissions annually.

"The Braidwood microgrid is exactly what Australia's energy transformation is about, cleaner, cheaper and more reliable power for the communities that need it,” Chris Bowen, Australian Minister for Climate Change and Energy, said in a statement.

Construction is expected to begin in early 2027 and the microgrid should be operational by February of 2028.