The Australian Renewable Energy Agency (ARENA) and the Northern Territory Government are teaming together to provide $55 million in funding for 30 Indigenous, remote communities to get solar power installed.

The $55 million project, called Solar SETuP, will ensure that 10MWs of solar power are installed in remote communities. ARENA and the NT Government are both inputting $27.5 million in funding for the project that will be managed by NT Power and Water Corporation (PWC).

The project aims to create diversity for communities that are possibly off-grid and heavily reliant on expensive diesel – because it was their only option until now.

ARENA CEO Ivor Frischknecht, Minister for Industry Ian Macfarlane and Northern Territory Chief Minister Adam Giles announced the project in Darwin over the weekend.

“ARENA is very pleased to be partnering with Indigenous Essential Services – a subsidiary of PWC – to deliver this exciting project, which will see a total of 10 MW of solar PV constructed at more than 30 remote communities in the NT,” Mr Frischknecht said. “This project will open the door to a more diverse, secure energy mix for off-grid communities, and will also create local jobs and boost skills during construction and operation.”

Most of the installations (9MW’s) will displace around 15% of diesel use. There will be one 1MW solar PV system at Nauiyu (Daly River) which will displace a massive 50% diesel.

“Importantly, the project will demonstrate the enormous advantages of solar/diesel hybrid systems in delivering cost-effective, reliable and safe power to remote locations,” says Mr Frischknecht. “One of our goals with this project is to show it makes good economic sense to utilise existing infrastructure in off-grid communities and to roll out robust solar PV that is suited to the environment and conditions in remote Australia.”

“Not only does this project have the potential to catalyse further renewable energy investment in other isolated communities, it also sets up each of the participating communities to plug in more renewables as costs continue to decline.”

Click here to read ARENA’s Media Release for the Project.