What is a community microgrid?

A community microgrid is emerging as a potential solution to help build a more resilient and sustainable energy future for regional, rural and remote communities. Community Microgrids can be islandable and operate independently from the main electricity grid during planned or unplanned outages using local energy generation and battery storage, coupled with a microgrid control system.

A key characteristic of a microgrid is its defined electrical boundary which subsequently limits the number of customers who can maintain power during an outage. This can create social, technical and economic challenges that require bespoke solutions to meet the needs for each community microgrid solution.

A community microgrid can also have different forms of ownership concepts and business models with a common theme of how benefits are shared with the community. The below information graphics show how 3 conceptual business models could work for community owned, third party owned, and Essential Energy owned microgrids.

There are several forms of Microgrid operating models. These include community owned, Essential Energy owned and third party owned.

Read more about community owned, Essential Energy owned and 3rd party owned models

Community led microgrid research

Research with eight communities - NSW South Coast communities selected for microgrid studies - Battery Storage and Grid Integration Program

About SµRF

The Southcoast Microgrid (µ-grid) Reliability Feasibility (SµRF) project was a community-led initiative transdisciplinary microgrid research project that explored ways to bolster the energy resilience for residents in the New South Wales south coast shire of Eurobodalla, where communities’ experienced power supply challenges during the Black Summer of 2019-2020.

With scientific experts predicting that extreme weather events such as bushfires and floods will increase in frequency and intensity in the future, local communities, electricity providers and researchers are looking for ways to build more reliable, resilient and decarbonised power systems.

The project centred around the process of installing islandable microgrids capable of keeping local energy networks powered when cut off from the main electricity grid during an extreme weather event. Learn more about islandable microgrids (add in link to info page)

The  SµRF project was funded by the Federal Government’s Regional and Remote Communities Reliability Fund. The study modelled the use of renewable energy, including household, commercial and community solar, and small- and medium-scale batteries to provide power independent from the main grid.

Looking to install your own community microgrid but don’t know where to start?

When looking to install a community microgrid, we encourage energy groups to familiarise themselves with the information below. While Essential Energy has a role to play in the installation of a community microgrid, there is a lot of planning and work that needs to be completed before submitting a connection application. A preliminary feasibility study, site selection, a business model design and financing considerations are paramount to the process.

Community engagement and stakeholder considerations - Social research for communities

Developing a community energy project requires a comprehensive and detailed plan to engage with the right stakeholders and to ensure community requirements are defined and delivered. Significant resources are required to develop the correct approach to your community energy project, such as:

• Establishment of a community group with appropriate governance
• Engage and establish appropriate support from industry stakeholders such as council and Essential Energy
• Access to suitably skilled and trained research professionals to engage with and collaborate with the community and stakeholders to develop the requirements and outcomes of the project that meet community expectations.

The reports and examples on the Battery Storage and Grid Integration Program website provide information on how to approach this, examples of community feedback and requirements, and how to develop community research into tangible outcomes for technical consideration.

The householder report addresses community perspectives, expectations and responses to the potential of a community microgrid.

Download the Community perspectives on microgrids and resilience in the Eurobodalla report.

Other examples of community engagement material can be found at bsgip.com