$11M ARENA Funding Backs First Nations Microgrids in NT

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ARENA backs First Nations‑led microgrids to improve power reliability in remote NT communities

News | 23 April 2026 Microgrid The Australian Renewable Energy Agency (ARENA) is supporting two First Nations‑led microgrid projects in the Northern Territory with $11 million in funding, helping remote communities design, develop and lead their own local energy solutions to improve power reliability, affordability and energy security.

The projects, located in Borroloola and Ltyentye Apurte, will demonstrate how distributed energy resources such as solar and batteries can deliver cleaner, more reliable electricity in parts of regional and remote Australia where the main grid does not reach or is currently unreliable.

ARENA CEO Darren Miller said the projects reflect ARENA’s commitment to supporting First Nations participation and leadership in Australia’s clean energy transition.

“These projects show the opportunities for First Nations-led design and co-development of local energy solutions, improving reliability, lowering costs and reducing reliance on diesel,” Mr Miller said.

“Just as importantly, they help de-risk future community microgrid projects by generating practical learnings that other communities can draw on as they plan their own energy solutions.”

The first project ARENA is supporting is the Ngardara Project in Borroloola in the NT Gulf region, co-led by Original Power and the Ngardara Cooperative, a First Nations community owned and led cooperative that represents the community interest in the project. The project aims to be Australia’s first utility scale solar microgrid led by a First Nations cooperative and involves the design and development of a solar and battery microgrid to significantly reduce diesel consumption, improve reliability and lower energy costs.

Clean Energy Projects Co-Director at Original Power Madison Sturgess said “The Ngardara Community Microgrid Project directly challenges legacy energy systems to innovate and evolve to the emerging reality that First Nations communities are seeking to drive renewable energy solutions that can overcome long-term challenges to energy access and affordability.

“Despite underdeveloped regulatory frameworks and traditionally monopolistic energy arrangements, the Ngardara Project has driven the Northern Territory energy sector to engage and co-deliver a viable and replicable pathway for genuine ownership, decision making and benefit for diesel-reliant, vulnerable remote communities and their energy future.”

In the second project, ARENA is supporting the design and development of a proposed First Nations-led microgrid in Ltyentye Apurte, near Alice Springs in the NT, being developed with Atyenhenge-Atherre Aboriginal Corporation (AAAC). If constructed, the project has the potential to improve reliability, supply renewable energy for the equivalent of around half of the community’s electricity demand and create economic opportunity for the community.

Chief Executive Officer of Atyenhenge Atherre Aboriginal Corporation Ellie Kamara said “The Ltyentye Apurte community prides itself on meeting the challenges of the community, on being innovative, and doing everything possible to improve the lives of the people in the community.

“One such challenge is electricity reliability; in the past few years blackouts have occurred for significant lengths of time, and there is no alternative if power is down in the community. In the extreme hot or cold our old people suffer from either no heat or air-con, and the store cannot open – impacting food security for the community. The microgrid aims to alleviate this challenge enabling a constant source of electricity in the event of a blackout.

“Selling the energy back into the grid seeks to enable a contribution to the electricity for each household, and create the opportunity for someone from the community to upskill and help support the maintenance of the microgrid and other infrastructure around the community. This may appear small to an outsider, but every contribution towards a household, and each person employed in the community contributes to the overall economy and wellbeing of the community.”

Both projects are subject to a number of conditions before they can progress to construction. If successful, they have the potential to provide a blueprint for scalable, community-led microgrid models in other remote communities.

About the Regional Microgrid Program

ARENA’s Regional Microgrid Program was established in response to changes to the National Agreement on Closing the Gap, which introduced new standards for the delivery of essential services.

The Program includes $125 million in funding to develop and deploy microgrid projects in regional and remote communities, with $75 million specifically allocated to support microgrid projects in First Nations communities.

The Program is now closed to new applications. For more information, please visit the ARENA funding page.

About ARENA’s commitment to First Nations Inclusion

ARENA is embedding First Nations inclusion across its operations and funding programs. In 2024, eight First Nations people were appointed as assessors and advisors to the ARENA Advisory Panel, bringing lived experience and cultural knowledge into project evaluation. ARENA has also expanded merit criteria in key funding programs to better reflect First Nations engagement, inclusion and benefit-sharing.

In its 2025 Statement of Intent, the ARENA Board affirmed the importance of empowering First Nations peoples to benefit from the energy transition through self-determined initiatives, guided by best-practice engagement principles. These principles are at the core of the Regional Microgrid Program.

ARENA’s first Reconciliation Action Plan (RAP) was published in September 2025, a formal commitment to reconciliation and to enabling First Nations communities to thrive through the energy transition.

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