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What is a microgrid?

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 at a local level. They can incorporate renewable energy generation (for example, 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.

Community Microgrid and Sustainable Energy Program

After the extreme 2019–20 fire season, a feasibility study was undertaken. The study aimed 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 were announced in May 2021. It will support 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 program will provide a reliable power supply and build energy-resilient rural communities.

The locations identified through the feasibility study and receiving support include:

  • Mallacoota
  • Omeo
  • Corryong

Funding to help protect bushfire-affected communities media release

Building energy resilience to Storms and bushfires media release

Program update – February 2022

Visit Engage Victoria for community consultation information.

Energy Resilience Solutions

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:

  • Energy backup systems for essential services and community hubs, including:
    • Rooftop solar
    • Batteries
    • Diesel generators
  • Larger town-scale energy solutions.

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 will be allocated for the delivery of energy backup systems in up to 24 towns. Community consultation will continue, seeking feedback on proposed sites and solutions for the energy backup systems. Preparation works will commence with AusNet Services and Beon, and installations will begin in 2023.

These Energy Resilience Solutions are informed by the Electricity Distribution Network Resilience Review‘s Expert Panel Final Recommendations Report.

Energy Resilience Solutions focus on select towns within the following Local Government Areas:

  • Cardinia Shire
  • City of Greater Bendigo
  • Colac Otway Shire
  • Corangamite Shire
  • Hepburn Shire
  • Macedon Ranges Shire
  • Moorabool Shire
  • Mornington Peninsula Shire
  • Moyne Shire
  • Nillumbik Shire
  • Surf Coast Shire
  • Wellington Shire
  • Yarra Ranges Shire

Microgrid Demonstration Initiative

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.

Funded projects

Euroa Microgrid Demonstration Initiative video

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.

Euroa Microgrid Demonstration community members video

Watch the Euroa Microgrid Demonstration project 3-minute video, which includes interviews with community members.

SwitchDin – Birchip Cropping Group Microgrid Project

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: 04/01/23