AGL Energy, an Australian integrated energy company, is building what it says will be one of the largest privately owned, non-mining microgrids in Australia for Koompartu Farms, a 23,000 acre (9,340 hectare) almond farm in the country’s Riverland region.

The installation will span roughly 37 acres and include more than 15,600 solar panels generating 9.2 MWh of electricity, and a 10.2 MWh battery energy storage system. Backup power will be provided by 16 diesel generators.

The utility will also underground roughly 12 miles of high voltage power lines.

AGL will build, own, operate and maintain the microgrid under a 20-year power purchase agreement with RRG Capital Management (RRG), which currently owns the farm.

“RRG is making a significant investment in more sustainable infrastructure, and we’re proud to be delivering an energy solution that supports Koompartu’s operations now and into the future,” Brendan Weinart, general manager of sustainable business energy solutions for AGL, said in a statement.

Although RRG is partnering with AGL on the microgrid, the Los Angeles-based sustainable asset manager and investment advisor is selling Koomparu Farms. The site was listed with real estate giant Colliers in June. The asking price was not disclosed, but the microgrid was featured prominently in the listing.

A tasty, but thirsty crop

Australia is the world’s second-largest almond producer, behind the U.S. The country has more than 15.4 million almond trees producing some 185,000 tons of nuts in the shell per year.

The state of South Australia, where Koompartu Farms is located, accounts for 20% of the country’s production.

The nuts are increasingly popular with consumers looking for gluten free flours, dairy alternatives and a healthy snack.

Almond trees are thirsty. They require regular irrigation to thrive — in California, where most of the world’s almonds are grown, each nut requires 3.2 gallons of water.

Koomparu Farms, which was designed as a single, master-planned orchard, planted nearly 6,200 acres of almond trees between 2023 and 2024 (the rest of the farm is native vegetation). Its expansive irrigation system, which will be powered by the microgrid, draws water from a nearby river.

The microgrid is expected to generate around 85% of the farm’s annual electricity load and reduce diesel consumption by 88%.

It will also support the nearby town of Berri, which has nearly 3,000 residents.

“This is a first-of-its-kind project and has been designed to improve local grid capacity and provide the reliability needed to keep critical irrigation systems operating,” Weinart said.