Key takeaways
ARENA is offering funding of up to $125 million to support the development and deployment of renewable energy microgrids through the Regional Microgrids Program.
A separate stream of funding is available for microgrids in First Nations communities.
ARENA will accept and consider applications for the Program on an ongoing basis until 19 December 2025, or until all funds available under the Program have been exhausted.
The Australian Government, through the Australian Renewable Energy Agency (ARENA) is offering funding to support the development and deployment of renewable energy microgrids in regional Australia through the Regional Microgrids Program (the Program).
What is the funding for?
The Program applies to both embedded microgrids and standalone power systems.
The Program funding is allocated under two separate funding streams, which will support different outcomes. Applications for funding will be assessed based on the extent to which they contribute to these outcomes.
Stream A: Regional Australia Microgrids Pilots
Stream A is intended to fund projects which involve or contribute to the following outcomes:
- The innovation or acceleration of the development and deployment of technology or equipment which will enable the coordinated use of distributed renewable energy technologies.
- Improved resilience and reliability of electricity supply in regional areas.
- Resolving barriers to deployment of microgrid solutions
Stream B: First Nations Community Microgrids
Stream B is aimed at delivering cleaner, cheaper and more reliable energy in First Nations communities and is intended to fund projects that contribute to the following outcomes:
- Reducing the cost of energy and providing other community benefits in First Nations communities.
- Providing cleaner and more reliable energy in First Nations communities.
- Empowering First Nations communities to participate in electricity supply arrangements and the development of energy infrastructure.
- Resolving barriers to deployment of microgrid solutions.
How much funding is available?
The Program has an allocation of funding up to a total of $125 million. It is expected that $50 million will be allocated under Stream A, and $75 million will be allocated under Stream B.
The minimum grant amount for each Stream will be $1 million, with the anticipated grant ranges being:
- $5 – $10 million for Stream A projects; and
- $5 – $25 million for Stream B projects.
In respect of both Streams, ARENA will provide the minimum amount of funding required for the Project to proceed. ARENA expects that grant amounts will be for no more than 50% of the total funding required for the project, though grant amounts exceeding 50% of the project cost may still be considered.
Who is eligible for the Program?
To satisfy the eligibility criteria, an applicant must demonstrate that the project:
- involves the deployment of equipment and/or technology solutions;
- includes the use of a renewable energy technology or enabling technology and/or contributes to increased uptake of renewable energy; and
- is located in a regional, remote or very remote area in Australia as defined by the Australian Statistical Geography Standard (ASGS).
The applicant itself must also satisfy certain eligibility criteria, as described in the Regional Microgrids Program Guidelines.
What is the application process?
The application and assessment process consists of two stages. The first is an expression of interest (EOI) stage, with successful applicants then being invited to participate in a full application stage. Both application stages involve an assessment against eligibility and merit criteria.
Merit Criteria
Eligible applications will be assessed for merit, having regard to overall value for money and risk against the merit criteria. Only applications that satisfy the merit criteria to an overall high standard will be successful.
| Merit Criteria | Requirements |
|---|---|
| Merit Criterion A: Contribution to Program Outcomes | Assessment of the extent to which the project contributes to the program outcomes (Stream A or Stream B) |
| Merit Criterion B: Applicant Capability and Capacity | Assessment of the extent to which the applicant or its partner organisations have the capability and capacity to deliver the project. |
| Merit Criterion C: Project Design and Methodology | Assessment as to how well the applicant has designed and planned the Project, including identifying and managing risks (e.g. personnel, delivery, technical, regulatory and financial), in order to successfully deliver the Project within the timeframe and budget set out in the application. Full applications must include a Project Plan, a Risk Management Plan and a Community Engagement Plan. Stream B applications also require a Community Benefit Plan. |
| Merit Criterion D: Financial Viability and Co-Funding Commitment | Assessment of the Project’s value for money, financial ability of the applicant and any Project partners to deliver the project and the level of cost certainty over total project costs. A financial model is required for both stages. Evidence of financial capacity can be provided. |
| Merit Criterion E: Knowledge Sharing | Assessment of how the knowledge generated by the project in contributing to the program outcomes is targeted to specific audiences and shared. A Knowledge Sharing Plan is required for the full application. |
