FAQs

Microgrids, or stand-alone power systems, overseen by IES (Indigenous Essential Services) have a target of 70% by 2030.

IES is a subsidiary of Power and Water Corporation. It services 72 remote communities and 66 outstations across the NT. In total there are 430 homelands and outstations in the NT. 130 renewable energy systems were installed by Bushlight, with many more funded through other programs. This means there will be renewable energy generated which is not counted in the target, but the amount is fairly limited.

This is a subject of much discussion and study, and is even the focus of a current Australian Renewable Energy Agency (ARENA) funding opportunity. It does pose a looming waste management issue, with the design life of solar panels at 20 to 30 years, and many installed well over a decade ago. The International Renewable Energy Agency (IRENA) estimates there could be 60 to 78 million tons of photovoltaic panel waste accumulated globally by 2050. It also estimates the recyclable materials will be worth $15bn in recoverable value.

It is envisaged that recycling solar panels will create industry and employment opportunities, keep valuable resources out of landfill, help to retain rare elements, and prevent heavy metals leaching into the environment. There are a couple of companies working in this space in Australia.

All reputable installers are registered with the Clean Energy Council. You can find out more in the Consumer section of its website.

Many people in the Northern Territory rely upon off-grid power systems, especially in very remote settlements such as outstations and ranger stations. The Alice Springs grid provides interesting challenges because it is isolated, unlike the National Electricity Market which connects jurisdictions from Queensland to South Australia, including Tasmania. The more customers and generators that are connected to a grid, the fewer challenges are faced in maintaining grid stability. Therefore, removing yourself from the grid when you have the choice to be connected is not of any benefit to the community.

With solar PV and batteries it is technically possible to go off-grid, but Alice Springs residents would need a very big battery or backup diesel generator to cover occasions where there is limited sun for consecutive days. The most common option is to install PV and BESS in proportion to household needs, and let the grid come to the rescue when its needed. In the future, plentiful PV and BESS will create a very resilient system, because it’s highly unlikely that they could all fail at once. For most people it is not financially viable to go off-grid, but as centralised energy generation incorporates a growing proportion of renewables, it means everyone will eventually be provided with cleaner energy.

Plans are underway to build the world’s largest solar farm in the Northern Territory’s Barkly region, exporting the power via a High Voltage Direct Current (HVDC) cable. The $20bn project, known as SunCable, plans to send most of the power to Singapore, which relies on LNG for the majority of its electricity.

Producing green hydrogen (via renewable energy processes as opposed to fossil fuels) is another way to export solar. A National Hydrogen Strategy was developed by the COAG Energy Ministers and released in November 2019. It highlights the opportunity in the NT, given its proximity to Asia, and recommends a focus on exports and enhancing energy security in remote areas, amongst other market ideas.

There have been other projects around Australia carrying out investigations in many similar areas to Future Grid. The difference is that Future Grid looked at a series of interventions in aggregate and how they could integrate as a system on a technical, economic, and regulatory basis. This is what made Future Grid fundamentally different; it brought public utilities together with leading industry experts, and local organisations. We collaborated in a way that was simply not possible in other locations. For comparison, if we look to WA; Horizon Power has demonstrated many of the technical interventions we were working towards, but they are doing it in the context of being a vertically integrated energy supply company, so its activities don’t require complex engagement with other entities. In other areas, such as South Australia, there are fundamental differences in the market structure, which provide economic signals that are not available in the NT. What Future Grid did, which was different to other projects, is to work out how to bring parties and interventions together to collaborate.