A community-owned solar and battery microgrid in the Northern Territory has secured $8.3 million from the Australian Renewable Energy Agency, paving the way for what backers describe as the first utility-scale microgrid project led by a First Nations cooperative on Aboriginal freehold land in Australia.
The Ngardara Solar Microgrid Project at Borroloola in the NT Gulf region was awarded $8.347 million from ARENA’s Regional Microgrid Program. The project is co-led by First Nations clean energy organisation Original Power and the community-owned Ngardara Cooperative, which will hold majority ownership of the asset.
The microgrid will combine a 2.1 megawatt solar array with a 1.8 megawatt and 6.6 megawatt-hour battery, designed to cover up to 80 per cent of Borroloola’s energy needs and save around 1.2 million litres of diesel a year. Borroloola currently relies on diesel generators for about 87 per cent of its power, supplemented by a 653 kilowatt solar array operated by Power and Water Corporation.
Financial close is targeted for mid-2026, with construction expected to begin in September. The project is one of two First Nations-led microgrids backed in the announcement, alongside an early-stage development at Ltyentye Apurte (Santa Teresa) near Mparntwe Alice Springs led by Atyenhenge-Atherre Aboriginal Corporation.
Ngardara Cooperative chair Scott McDinny said the funding marked a turning point for community-led energy in remote Australia.
“The Ngardara Solar Microgrid project shows when community-led solutions are enabled through the right policies, resourcing and partnerships, we can overcome decades-old challenges around the high cost of remote power generation, solve household disconnections and build genuine economic prosperity and independence for our regions” he said.
“With a workforce trained and ready to go, we’re looking forward to breaking ground on this visionary project in coming months.”
Original Power Co-Director Clean Energy Projects Madie Sturgess said the project would force long-overdue changes in remote energy regulation.
“The Ngardara Solar 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 challenges to energy access and affordability” she said.
“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.”
ARENA CEO Darren Miller said the projects would generate practical learnings to support other remote communities.
“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” he 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.”
Federal Energy Minister Chris Bowen said First Nations communities should be at the centre of designing the energy transition.
“This is what the energy transformation looks like in practice, communities leading change, cutting diesel use, improving reliability and building a stronger energy future,” he said .
Minister for Indigenous Australians Malarndirri McCarthy said reducing diesel reliance was critical to remote community wellbeing.
“These projects show what is possible when communities design and lead their own energy solutions” she said.
Atyenhenge-Atherre Aboriginal Corporation CEO Ellie Kamara said the Ltyentye Apurte project would address chronic reliability issues in her community.
“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” she said.
The Ngardara project is expected to deliver bill savings of up to 50 per cent for Borroloola households on prepayment meters, lease payments to Traditional Owners, ten Certificate II qualifications in Construction and Renewable Energy Pathways, and two electrical apprenticeships across its 25-year life. ARENA’s $125 million Regional Microgrid Program has earmarked $75 million specifically for First Nations communities.
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