Rural and regional communities tend to be at the end of the grid or have long distribution lines, leading to quality deterioration of the electricity supply. These communities and their businesses are seeking a balance of reliable, sustainable and low-cost electricity tailored to their needs.

Communities are becoming increasingly aware of alternative energy supplies to either enhance their existing supply or to explore alternative supply options, such as microgrids. Distribution Businesses (DBs) often receive queries on exploring microgrid opportunities for their communities. Several community groups across the Loddon-Mallee area have sought to investigate whether microgrids are a better energy solution for their electricity needs.

Microgrids are becoming increasingly commercially feasible in Australia under certain circumstances, in part driven by technical and cost improvements. However, their analysis is complex and balancing the needs, benefits and costs across the varied stakeholder groups is a challenge. There is also lack of understanding on microgrid reliability, benefits, operation, ownership and the governing market rules.

The project is a balance between the technical, cultural and social elements of understanding the feasibility of microgrids. In-depth project milestones include community engagement, area hosting capacity assessment, concentrated generation and storage impact, network assessment, islanding design and cost analysis, microgrid impact study, stakeholder impact investigation, economic and risk assessment, microgrid assessment tool development and recommendations to regulators. The project will run for approximately 3 years.

This feasibility study is supported by the Department of Industry, Science, Energy and Resources and C4NET.