The First Nations Community Microgrids Program (FNCMP) is a $26 million initiative led by the Department for Energy and Mining (DEM) and supports the deployment of renewable energy microgrids in remote South Australian First Nations communities. 

This project received funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Regional Microgrids Program.

This initiative aims to deliver cleaner, more affordable and reliable energy, while empowering communities to actively participate in their energy supply and the development of renewable energy solutions.

Currently, the Remote Area Energy Supply (RAES) scheme operates hybrid power systems across six sites, combining solar and battery storage with diesel generation.  

The FNCMP will expand these benefits across three remote First Nations communities:  

  • Yalata
  • Pipalyatjara
  • Oak Valley

Community Benefits

The program is designed to deliver long-term, meaningful benefits to First Nations communities, including:

  • Affordable energy: A reduced residential electricity tariff of 10 cents per kWh, indexed to CPI, for residential customers in the Anangu Pitjantjatjara Yankunytjatjara APY Lands, Yalata, and Oak Valley over the 20-year life of the project.
  • Energy equity: Ensuring remote communities have access to the same renewable energy technologies available in metropolitan and regional areas.
  • Local opportunities: Creating jobs and procurement opportunities within the communities, during and post-construction, with a 30% minimum local employment target.
  • Community inclusion: Supporting training programs and involving communities in the installation process, naming of the microgrids, and signage design.

Environmental Benefits

The microgrids are designed to achieve up to 75% renewable energy penetration in each of the three communities, which will:

  • significantly reduce carbon dioxide (CO₂) emissions
  • lower diesel fuel consumption
  • improve air quality and reduce noise pollution
  • support South Australia's Net Zero strategy goal of net zero emissions by 2050.

RAES has partnered with GPA Engineeringto deliver the full design of the three community microgrids.  

A contractor will be selected in the first half of 2026, they will be responsible for the   procurement of equipment and the construction of the community microgrids.  

Yalata (approximately)

  • 1.3 megawatt (MW) of solar generation capacity  
  • 2.5 megawatt hour (MWh) of battery energy storage system  

Oak Valley (approximately)

  • 440 kilowatts (kW) of solar generation capacity  
  • 1 MWh of battery energy storage system  

Pipalyatjara (approximately)  

  • 880 kW of solar generation capacity  
  • 2 MWh of battery energy storage system