Two Indigenous solar projects receive funding to tackle diesel shortage concerns and reduce power bills
- 5 days ago
- 2 min read
In the outback expanse of Australia’s Northern Territory, two remote Indigenous communities have received funding to take an unprecedented step toward energy independence, as they move to build locally owned solar farms and microgrids designed to reduce both costs and reliance on diesel fuel. Backed by $11 million in federal funding, the projects in Borroloola and Santa Teresa mark the first wholly Indigenous-owned initiatives of their kind to receive such support, a milestone that government and community leaders say could reshape energy provision across remote Australia.
For decades, communities like Borroloola, a township of roughly 750 residents in the Gulf of Carpentaria, have depended on diesel generators for electricity — an arrangement that is both costly and precarious, as fuel must be transported over long distances and can be interrupted by seasonal conditions. The new solar microgrid, combining a large-scale photovoltaic array with battery storage, is expected to supply most of the town’s electricity, dramatically reducing exposure to volatile global fuel prices that have strained already vulnerable households.
Developers of the Borroloola project say the shift could cut residents’ power bills by as much as half, a prospect that has generated palpable anticipation in a community where electricity outages are common and many struggle to afford basic energy needs.
"We think other communities will be looking at us and we'll be able to share what we've done, and hopefully we can lower the cost of living," said Scott McDinny, a community leader involved in the development.
Central to the initiative is a model of ownership that places control — and financial returns — in the hands of local residents. The Borroloola microgrid is being developed by Original Power in partnership with the community’s Ngardara cooperative, with profits to be reinvested locally rather than extracted by outside utilities. Advocates say this represents a fundamental shift from the traditional top-down infrastructure model, offering not only cheaper power but also long-term economic empowerment and job creation.
The companion project in Santa Teresa, near Alice Springs, remains in earlier planning stages but is expected to supply roughly half of the community’s electricity demand through renewable sources. Together, the two initiatives are intended to serve as proof of concept for a broader transition, demonstrating how decentralised solar and battery systems can deliver reliable power in regions beyond the reach of the national grid.
Officials and energy experts see the projects as part of a wider reckoning with the limitations of diesel-based power in remote Australia, where high costs, frequent outages and environmental concerns have long underscored the need for alternatives. If successful, the microgrids in Borroloola and Santa Teresa could provide a blueprint for dozens of other communities seeking greater control over their energy futures — and a measure of resilience in an increasingly uncertain climate and economic landscape.
References & further reading:
Bardon, J. (2026, April 24). Indigenous solar projects in Borroloola and Santa Teresa to tackle diesel shortage concerns and halve power bills. ABC News. https://www.abc.net.au/news/2026-04-25/nt-solar-farms-micro-grids-borroloola-santa-teresa-remote/106601050
Jesse.Benjamin. (2026, April 28). ARENA backs First Nations‑led microgrids to improve power reliability in remote NT communities. Australian Renewable Energy Agency. https://arena.gov.au/news/arena-backs-first-nations-led-microgrids-to-improve-power-reliability-in-remote-nt-communities/
MSN. (n.d.). https://www.msn.com/en-au/news/other/indigenous-led-solar-microgrids-win-11m-to-cut-diesel-use/gm-GM2BBD5CA4
