The Australian Renewable Energy Agency (ARENA) is providing $14.4 million in funding for two projects that will deliver cleaner, more reliable and affordable electricity to remote First Nations communities in South Australia and the Northern Territory.
Funded under the First Nations Community Microgrids Stream of ARENA's $125 million Regional Microgrids Program, the two projects support locally-led energy solutions that respond to the unique needs and aspirations of First Nations communities, while strengthening community participation and leadership in the energy transition.
In South Australia, ARENA will provide $13 million to the Remote Area Energy Supply (RAES) First Nations Community Microgrids Project, led by the state Department for Energy and Mining with a matching financial contribution from the South Australian government. This project will deliver high-penetration renewable energy microgrids to the remote communities of Yalata, Pipalyatjara and Oak Valley. Each community is currently reliant on diesel generation and faces some of the highest costs and lowest reliability in energy access.
The project will target up to 75% renewable energy penetration, significantly cutting emissions and improving reliability. Importantly, community members will benefit from a long-term discounted electricity tariff of 10 cents per kilowatt hour indexed to inflation for the next 20 years, offering meaningful cost of living certainty and energy security. The integration of renewable energy and battery storage into the microgrid significantly reduces the use of diesel in generation, bringing down supply costs.
The project will deliver a range of community benefits, including land lease agreements, opportunities for local employment and procurement, tailored training programs and capacity-building programs designed to support long-term economic development and ensure communities are not only consulted, but actively involved in the operation and maintenance of their energy systems well into the future.
ARENA CEO Darren Miller said that the RAES project provided an opportunity to ensure First Nations communities have a stronger voice and can realise benefits from projects that drive critical net zero outcomes.
"Aboriginal and Torres Strait Islander people living in remote communities should be able to participate in the energy transition and share in the benefits of Australia's renewable future," Mr Miller said.
"By harnessing renewable energy and supporting microgrids in First Nations communities, ARENA is helping with energy access, sustainable development and First Nations empowerment. This project is about uplifting communities and supporting inclusion and participation in the energy transition, while working together to reduce emissions."
David White, Chief Executive Officer, Yalata Anangu Aboriginal Corporation said the Yalata Anangu Aboriginal Corporation board and its Chair, Mr Duane Edwards, appreciates and recognises the many positive aspects of a solar farm within the Yalata Community.
"We recognise that solar farms provide a renewable energy source that immediately impacts the health and comfort of our community. By reducing pollution generated by our current fossil fuel generators, along with the obvious noise reduction, will have a huge and immediate impact on the Yalata People and their way of life.
"Yalata is an excited and visionary community, proud to be a leading example of sustainable living. The construction and maintenance of the solar farm can create local jobs, boosting the economy."
In the Northern Territory, ARENA will also provide $1.4 million to Alice Springs based Ekistica, a technical advisory firm wholly owned by Indigenous controlled Centre for Appropriate Technology, to lead a project to co-design a scalable, culturally-appropriate energy service model tailored for First Nations Homeland Communities. Working closely with the NT Government, National Indigenous Australians Agency, Land Councils, Aboriginal Housing NT and other partners, the project will tackle long-standing inefficiencies in service delivery and place communities at the centre of decision making.
The project will develop a standardised microgrid delivery model and an improved energy management unit (EMU) designed to enhance system performance and reliability in remote settings. By embedding collaboration, capacity building and local ownership into the design process, the project aims to create a replicable model that can guide future developments across Homelands.
Ekistica General Manager Operations, Michael Tuckwell said: "having worked with Aboriginal Homelands for many years, we are thrilled with ARENA's support for this important project. The need for coordinated and outcomes-focused investment is key to improving the reliability of energy services in Homelands on a lowest-cost basis that supports regional economic development and local capacity building."
Both projects demonstrate the potential for First Nations communities to shape and lead their own energy futures - delivering cleaner power, lower energy costs, stronger resilience and new economic opportunities.
