The Victorian Government is supporting and developing microgrids. A microgrid can be thought of as a small ‘subset’ of the electricity grid that provides energy generation and storage to properties at a local level.
They can incorporate renewable energy generation from solar panels or wind turbines as well as battery energy storage.
Some microgrids can operate independently of the grid during power outages (also referred to as islanding), which can be particularly helpful for communities in regional and rural settings.
Hear how the microgrids and energy backup systems are helping the communities of Corryong, Mallacoota and Omeo.
After the extreme 2019–20 fire season, towns across Gippsland and the state’s north-east were disconnected from the electricity network. A feasibility study was undertaken to assess the potential of installing new resilient energy infrastructure options. These would support communities and households with power during high-impact and extreme weather events.
The Community Microgrid and Sustainable Energy Program was announced in May 2021 with $9.85 million allocated by the Victorian Government and a further $7.5 million from AusNet Services. It has supported the installation of a mix of solar, batteries and other distributed energy resources for a range of buildings.
These include essential service buildings, commercial and industrial buildings and households. The energy back-up systems provide a reliable power supply and build energy-resilient rural communities.
In Mallacoota, funding delivered an advanced microgrid using solar panels, batteries and generators on essential service and local business buildings. This was coupled with residents receiving hot water heat pumps to reduce energy use. An increase to the size of the town’s diesel generator also occurred to provide up to 5 days of back-up power when the town becomes isolated from the grid.
In Omeo and Corryong, the funding provided energy back-up systems for essential services and local business buildings consisting of solar PV, batteries and generators. Residents also received solar PV and battery energy back-up systems.
The microgrids and energy back-up systems will provide crucial back-up power in the event of a power outage caused by a bushfire.
In June 2024 $28.6 million was allocated to the construction of the Corryong Islandable Microgrid. Once complete the microgrid will be able to power more than 900 local households and businesses for up to five days.
The Corryong microgrid will operate independently of the grid during power outages – referred to as ‘islanding’ – helping isolated communities to keep their power on when the grid goes down. The Corryong Microgrid uses a centralised 4.98 megawatt battery, 3KVA diesel generator and advanced switching technology.
The project is funded through 2 programs:
The Microgrid is expected to be operating in summer 2026.
Find out more how our Energy backup systems are empowering communities at hubs across Victoria.
In response to the June and October 2021 major storm events and prolonged power outages, DEECA funded energy resilience design studies in affected towns across Victoria.
As more communities are looking to make energy work better for them, the studies investigated energy resilience solutions for towns, including:
Options focused on boosting network resilience in high-risk areas to ensure community relief hubs and key infrastructure maintain power during future extreme weather events.
DEECA worked with electricity distributors AusNet Services, Powercor and United Energy on the studies, consulting with key local stakeholders, including local councils and emergency services organisations, to discuss the location and function of potential energy solutions.
The studies were completed in October 2022.
$7.5 million was allocated for the delivery of energy backup systems across towns. Community consultation, seeking feedback on proposed sites and solutions for the energy backup systems, occurred during the program. Preparation works were commenced with AusNet Services and Beon, and installations have been completed in 24 towns.
These energy resilience solutions are informed by the Electricity distribution network resilience review‘s expert panel final recommendations report.
Energy resilience solutions systems are located in the following towns within the listed local government areas:
| Local government area | Town |
|---|---|
| Cardinia Shire | Cockatoo |
| City of Greater Bendigo | Heathcote |
| Colac Otway Shire | Apollo Bay |
| Corangamite Shire | Port Campbell |
| Hepburn Shire | Daylesford |
| Macedon Ranges Shire | Lancefield |
| Moorabool Shire | Blackwood |
| Mornington Peninsula Shire | Balnarring Flinders Red Hill |
| Moyne Shire | Mortlake Port Fairy |
| Nillumbik Shire | St Andrews |
| Surf Coast Shire | Lorne |
| Wellington Shire | Loch Sport |
| Yarra Ranges Shire | Healesville |
The $10 million microgrid demonstration initiative (MDI) supports the development and implementation of microgrid demonstration projects. These projects address key microgrid sector challenges. They also contribute to the unlocking of the microgrid sector in Victoria.
The MDI grant program funding supports statewide microgrid projects. These total over $27 million in value.
Euroa Environment Group has been awarded $680,000 towards a $1.6 million project.
The project will demonstrate the economic opportunities for shared renewable energy and battery assets in communities.
It will reduce the local demand for electricity from the grid and reduce the need for seasonal diesel generators. In doing so, the community of Euroa will demonstrate an economic alternative for local renewable generation for network operators.
Monash University was awarded $441,450 towards a $981,000 project.
The project aimed to demonstrate the market potential for a third-party entity responsible for microgrids.
The project will demonstrate how this microgrid operator can manage customers’ (campus buildings) energy use and bills and explore opportunities to develop economic value from microgrid operations.
Monash University’s Microgrid Electricity Market Operator (MEMO) project was completed in June 2021. The project:
Leveraging Monash’s physical microgrid, the project has also assessed the market potential of a Distribution System Operator (DSO) in the National Electricity Market (NEM).
Visit Monash’s MEMO toolbox to learn more about developing microgrids.
Origin Energy has been awarded $4.5 million to develop a $20 million cloud-based project that will distribute power from up to 650 customers with solar PV and batteries during peak periods.
The Virtual Power Plant (VPP) will boost grid stability by discharging power from solar PV and batteries located at homes and commercial and industrial sites to reduce their power bills.
Explore Origin Loop's virtual power plant.
Read Origin Microgrid demonstration initiative final report. (PDF, 953.6 KB)
SwitchDin was awarded $210,000 for a $330,742 project. The project was completed in September 2019.
The project delivered a microgrid at Birchip Cropping Group's local facility with 51kW of solar PV and 137kW of battery storage and includes
The project demonstrates microgrid technology and its ability to lower energy costs and improve energy reliability for the region's farmers.
Totally Renewable Yackandandah (TRY) has been awarded $380,389 towards a $767,014 project. The project established a microgrid in Yackandandah to reduce energy bills for local residents and help the community achieve their 100% renewable energy target by 2022.
The project increased the number of houses with solar PV and batteries on a 'single wire earth return’ (SWER) powerline, common in rural and end-of-grid locations across Australia, and included control technology to manage network security.
The TRY Microgrid Project was completed in July 2021. The project involved engagement with 33 network-connected households and subsidised the installation of:
The microgrid delivers lower power prices and more reliable and resilient power supplies for residents in a bushfire-prone area.
Read the Yackandandah microgrid public report. (PDF, 717.1 KB)
EnergyAustralia was awarded $889,154 towards a $1,876,955 project to develop a purpose-built microgrid in a mixed-use greenfield urban development located within the suburb of Wollert in Melbourne’s north.
EnergyAustralia partnered with Villawood Properties to build the demonstration microgrid in the sustainable precinct of Rathdowne.
The microgrid will utilise embedded renewable energy generation and storage and will test the optimisation of the distributed energy resources for the benefit of residents.
The project comprises an embedded electricity network with up to 190 kW of total solar generation capacity and 274 kW-hours of battery storage within a network of 36 townhouses and a common-owned Residents’ Club.
In October 2021, storms hit the small town of Loch Sport leaving its 2400 residents without electricity, running water and heating for over four days. Two years later, in December 2023, an energy back-up system was installed at the Community Centre. Establishing a community site that could provide phone charging, hot meals and hot running water during power outages.
In the first year, the Loch Sport Community Centre system has been activated twice. In one instance, around 50 residents arrived at the centre to charge their phones, access information, access running water, use the toilets and cook or heat meals.
‘During a fire, we had one lady here actually crying and saying she was just so grateful because she was just so frightened, and she didn't know where to go,’ said Loch Sport Community House and Public Hall Manager, Rachel Mulder.
Beyond access to power and water, the Community Centre has also provided an important space for social connection and inclusion during challenging times.
It has provided a meeting space for residents to have a chat, feel safe and have a hot drink together.
‘I probably hadn't anticipated the level of need for community to support each other in that time. That's actually been a really, really big thing,’ said Manager, Rachel Mulder.
Loch Sport was one of 24 towns that received funding from the Victorian Government’s Energy Resilience Solutions (ERS) Program, with electricity distribution network AusNet Services identifying the community centre as a key hub. Loch Sport Community Centre is an ideal place for the ERS because it can technically, logistically, and socially support the needs of the community during a power outage.
‘…one of the things that was a driver was that there was an organisation operating here five days...it’s a lovely big building with a big kitchen and rooms…I think the premises made a lot of sense that if you had to pull in a lot of community members for a variety of reasons, that this would be an ideal spot,’ Manager Rachel Mulder said.
While initially some community members were unsure about the site selection, sentiment has changed now that the town has experienced power outages and made use of the facilities.
Residents highlighted it provided a central back-up powered meeting space for residents to have a chat, feel safe and have a hot drink together. One attendee posted on social media describing how she was having a cuppa while her children played sport and used the Lego provided.
'The kids are playing dodge ball and some other games. They are having a ball! Thanks so much for this space.' (Zita, Facebook user).
As a result of the community connections, facilitated by these power outage events, some residents have expressed a desire to use the centre more often for catchups, coffee and other social gatherings outside of outage periods.
What’s more, for the site manager, the system, which includes 6.4kW of solar, a 28kWh battery and a 17kVA diesel generator, has been easy to maintain thanks to thorough handover and manuals, as well as seamless operation during power outage activations.
‘There’s not even been a glitch or a blip… The generator is the last thing to kick in during a power outage and it just all clicks straight over. Wow, it's an incredible system,’ Manager Rachel Mulder said.
Into the future, the Manager has plans to expand the services available. While the site currently offers running water during a power outage, there are not yet showers available. The Centre has been inspired by their new energy resilience capacity and are now seeking further grants to enhance the comfort and safety of the Centre. As well as training to support the mental wellbeing of their community during and after power outage events.
The Loch Sport Community Centre energy back-up system was funded by the Victorian Government’s Energy Resilience Solutions Program, designed by AusNet and Mondo and installed by RACV Solar. Wellington Shire and the Centre’s Committee of Management also supported the project as owner and operator of the site and energy back-up system.
Please visit the Victorian Government Community hubs with energy back-up systems website.
In the aftermath of the 2019/20 Black Summer fires, the Victorian Government committed $9.85 million in funding to deliver the Community Microgrids and Sustainable Energy Program. In Mallacoota, Omeo and Corryong, sophisticated power back-up systems were installed to support these small rural communities in the event of an emergency.
Omeo, a community of over 1300 people in East Gippsland Shire, is the perfect place for power back-up systems. It acts as a regional centre, supporting several satellite and agricultural communities in an isolated district that covers an expanse of nearly 600,000 hectares.
The local FoodWorks, an essential service for Omeo and its surrounding communities, provides an ideal spot for the energy back-up system, as it plays an active role supporting food security and community organisations.
‘We were one of the top priorities as a business because people needed to be able to come and get bread and milk. The next major supermarket is in Bairnsdale. If you go west, it's in Bright. And North would be Wodonga because there's nothing else around. So we serve a very large area of people,’ FoodWorks Manager, Glenda Pagram explained.
Omeo has a long history of power outages from storms and fires damaging power lines. This includes prolonged power outages in the 2003 fires and more recently the Black Summer fires of 2019/20, when Omeo was cut-off from the rest of Victoria’s electricity network, leaving some of the town’s residents and businesses without reliable power for up to three weeks. The township also experienced communication failures and limited road access, hindering relief and recovery efforts.
‘We can have the power out anytime. If a tree goes down between here and Bairnsdale, you've got 120 kms of remote power line. It takes them a while to find the fault and then a while to get in there and fix it. We can have the power out for hours,’ the Omeo FoodWorks Manager said.
Previously FoodWorks had relied on an insufficiently sized generator to provide small amounts of electricity in outages, alternating power between fridges, freezers and the store in general.
The new system includes a total of 40kW of solar PV, a 136 kWh battery storage unit, a 60kVA backup diesel generator, inverters and an energy management system. The system can operate up to 42 hours on battery back-up alone, and up to several additional days on the diesel generator before being refuelled.
Now the FoodWorks has reliable access to power for the store, as well as allowing them the ability to generate and store their own power. This has resulted in a significant cost reduction, with power bills ‘cut in half.’
What’s more the system has worked smoothly, keeping the fridges and freezers cool and shopping available through both planned and unplanned outages.
‘We've had two planned outage events where the network would be down, which we knew about. And for both of those we ran fully without the generator…. [and] there have been a few small power outages in town that we didn’t even notice at the shop,’ the Manager said.
For FoodWorks, that means there is now confidence they can stay open to provide groceries to the community, as well as ensuring food is safely refrigerated and kept fresh. And for residents, they know there is now access to food and other essentials during power outages.
The success of Omeo FoodWorks has demonstrated one way in which the energy resilience of communities can be improved across the state. Importantly, it has also improved community knowledge of energy back-up systems and upskilled technicians to be capable of replicating similar systems across the state.
The Omeo FoodWorks energy back-up system was heavily subsidised by the Victorian Government’s Community Microgrids and Sustainable Energy Program. It was designed by AusNet and Mondo and installed by RACV Solar. East Gippsland Shire Council also supported the project.
Please visit the Victorian Government community hubs with energy back-up systems website.
A local success story. This microgrid is reducing power bills and emissions for community members. It is also providing them with reliable power. The project supported small businesses and individuals with solar and battery installation.
They have also been connected to the microgrid.
This project demonstrates our support for communities transitioning to renewable energy.
Watch the Euroa Microgrid Demonstration project 3-minute video, which includes interviews with community members.
This is the first completed operational project under the microgrid demonstration initiative. It provides a working example of microgrid technologies in the Loddon Mallee region. It also demonstrates the benefits for the local community.
Page last updated: 06/05/25