The power systems are designed to store and circulate renewable energy within a local grid and are particularly well suited to solar, which Australians have installed on their roofs in droves.
The concept is praised for decreasing power costs, increasing reliability and being a game-changer for rural and isolated businesses.
In 2017, the Victorian Government backed microgrids with $10 million of funding.
Then in July 2021, Victorian Senator Bridget McKenzie praised microgrids when announcing $25.6 million in federal funds for further microgrid feasibility studies.
“Microgrids reduce regional communities’ reliance on diesel generation, bringing down power bills for households and businesses,” Senator McKenzie said.
“Every Australian — no matter where they live — should be confident that they will have the power they need, when they need it and at an affordable price.”
Increasing energy costs have been one of the biggest challenges faced by the agriculture industry in recent years.
Shirley Saywell has been involved in the Euroa microgrid since its infancy.
“Euroa has got really bad power supply. A single line comes from Benalla and if something falls across it the power goes out,” Ms Saywell said.
“Everyone was waiting for someone to fix the problem and I thought as business owners we’re dependent on power, why don’t we do it?”
Ms Saywell committed her trucking business, Brady & Kibble, to the idea and was joined by the local printers, timber yard, hardware store, bakery and a legal practice.
“Our microgrid involves six businesses and all our power bills are down 25 to 40 per cent,” she said.
“It’s like anything — at first it’s a novelty then everyone has one. In five years I think batteries will be affordable and microgrids will be everywhere.”
The price reductions come from the fact solar power is cheap to produce — especially when it’s from your own neighbour’s roof.
The batteries put in by Euroa Environment Group three years ago were more expensive and less efficient than those on the market now, but Ms Saywell said they’ve paid for themselves.
“Now we’re looking at doing a bulk buy of new batteries soon and that will really take us to the next level,” she said.
“The great thing about microgrids is you don’t need those long wires running across the country. You make the power where you need need it and store it where you need. Those long wires decrease the efficiency of electricity.”
After the Euroa microgrid’s success, Ms Saywell said the idea was ripe for use in agriculture.
“I grew up on a dairy farm; the vats alone use an enormous amount of power,” she said.
“In the Goulburn Valley you’ve got big dairy and coolstore businesses who would have enormous power costs ... with a battery and shed roofs, these guys could practically be self-sufficient.
“Over here in Euroa we’ve got a lot of poultry. Once again — huge roof.”
As a trucking business, Ms Saywell dosen’t have a huge power bill — in fact, she hasn’t had one in years thanks to her solar power system.
But one day she hopes to run electric trucks, and at that point a strong and well-built microgrid will be essential.
“I’ve called the guys in Sydney developing the electric trucks. They are only running Brisbane to Sydney right now, but I told them when they start running Melbourne I’ll be there,” she said.
“If I’m charging a truck battery, why shouldn’t I be able to use the power 20 empty houses a street over are producing? Then when they come home and switch all their aircons on, they can draw from my (microgrid) battery.”
The addition of semi-enclosed grid systems and batteries in the national grid also solves the surge problems created by renewables, which aren’t able to maintain a steady voltage and volume output like power stations can.
“Batteries spread the demand load across the grid,” Ms Saywell said.
“Australia has one of the highest adoption rates of solar panels in the world.
“We’ve all got panels and once we’ve all got local batteries we will have enormous local supply available to us.”
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