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EDP secures ARENA grant for community energy resilience

BESS Australia
Business
Energy Transition

EDP secures ARENA grant for community energy resilience

Wednesday 20, May 2026
5 min read
  • EDP secures funding agreement from ARENA for the development of the Braidwood Renewable Microgrid Project, featuring 7MWp (5MWac) of solar capacity co-located with a 5MW/10MWh battery energy storage system (BESS).
  • When successfully demonstrated in Braidwood, the microgrid solution could provide the basis for replication in areas where the grid is vulnerable to unplanned outages.


EDP, through EDP Renewables Australia, has been awarded AUD$3 million in funding from the Australian Renewable Energy Agency (ARENA) to develop the Braidwood Renewable Microgrid Project.

The Braidwood Renewable Microgrid Project in New South Wales is a community-focused microgrid pilot designed to strengthen long-term energy resilience for Australia. This project provides energy security for local communities located on a vulnerable section of the national electricity network, where damage to distribution lines can cause prolonged power outages.

When deployed by EDP Renewables Australia, the ARENA-funded microgrid will enable the community to maintain power if grid connection is lost, keeping essential services running while repairs are underway. Once successfully demonstrated in Braidwood, the microgrid solution could provide the basis for replication in areas where the grid is vulnerable to unplanned outages.

Initiated in response to the 2019-20 “Black Summer” bushfire crisis, the project addresses the critical energy resilience challenges exposed during extreme weather events. Developed in collaboration with local community group Braidwood Clean Energy, the facility comprises a town scale 7MWp (5MWac) of solar capacity and a 5MW/10MWh battery energy storage system (BESS).

Central to its design is the "island-mode" capability, which allows the system to safely disconnect from a compromised national grid and operate autonomously as a self-sustaining local microgrid. This operational flexibility ensures a secure, continuous energy supply when the connection to the grid is disrupted.

The initiative is among the first projects funded under Stream A (Regional Australia Microgrid Pilots) of the ARENA Regional Microgrids Program. The grant funding will support the reduction of technical, commercial, and regulatory barriers for future developments. This includes the investigation and resolution of operational protocols, commercial agreements and regulatory approvals.

Under standard operating conditions, energy generated by the system will be exported to the national grid and is anticipated to offset approximately 7,537 tCO2e per year*. During extreme weather events, the system will pivot, if necessary, to supply the local Braidwood community and the nearby township of Majors Creek with the energy they need.

“Projects like Braidwood show how renewable energy and storage can be configured to keep communities powered during grid disruptions. Through ARENA’s Regional Microgrids Program, we’re supporting solutions that not only improve resilience locally, but also provide a model that can be applied in other communities across Australia facing similar risks,” commented Darren Miller, CEO of ARENA.

“Braidwood Clean Energy was established in 2019 to promote energy efficiency and solar energy for the region. Braidwood and its surrounding villages and farms are innovative, progressive and optimistic about the future. When we learned of possible funding to develop a modern approach to energy security, we formed a partnership with EDP Renewables Australia to help make it happen. This ‘island-able’ solar-generated power supply will demonstrate that Braidwood can be both historic and futuristic in a way that other towns will surely follow,” commented Paul Cockram, President of Braidwood Clean Energy.

“Our commitment to the local community is at the heart of this project. We are grateful to Minister for Climate Change and Energy, Chris Bowen, Minister for Emergency Management and local member for Eden-Monaro, Kristy McBain, and the Queanbeyan-Palerang Regional Council for their vital support in the project’s development. Together, we are not just safeguarding the local community from severe grid disruptions, we are also setting a new standard for Australia's energy transition,” said Simon Franklin, Australia Country Director, EDP Renewables APAC.

EDP Renewables Australia is also committed to working closely with Braidwood Clean Energy to establish an effective benefit-sharing framework for the local community. The project’s Development Application (DA) was lodged in March 2026 and is currently under review. If approved, construction works are scheduled to commence during the first quarter of 2027, with commissioning scheduled for February 2028.

*Using grid emission factor 0.64kg CO2-e/kWh, Australian National Greenhouse Accounts Factors 2025

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At a glance: 

1. Who is EDP Renewables Australia? 
A subsidiary of EDP, a global leader in renewable energy. In Australia, the company develops town scale and utility scale solar, battery and microgrid technology. EDP Renewables Australia aims to accelerate Australia's energy transition through integrated technologies, local partnerships, and the international expertise of EDP.

2. What is the Braidwood Renewable Microgrid Project? 
A community-focused microgrid pilot in NSW integrating 7MWp (5MWac) solar capacity and a 5MW/10MWh BESS. It provides self-sustaining power supply for the local community when the national grid is compromised. 

3. How does the project benefit the local community? 
It ensures energy security by providing a continuous supply of power for essential services such as pumping fuel and water during unplanned power outages. 

4. Who is ARENA and what is its role in this project? 
ARENA is an independent Australian Government agency established to accelerate Australia's transition to net-zero emissions. ARENA is providing AUD$3 million in grant funding to the Braidwood Renewable Microgrid Project under Stream A of its Regional Microgrids Program.

5. Who is Braidwood Clean Energy (BCE)? 
BCE is a local, community-led volunteer organization that represents the interests of the Braidwood community, advocating for energy efficiency and sustainable local power.

6. What makes this project a "first" for the Australian energy market? 
The initiative is among the first projects funded under Stream A of the ARENA Regional Microgrids Program. It serves as a pilot to resolve the operational protocols and commercial agreements required to roll out similar "island-able" microgrids across other communities. 

7. When will the project be operational? 
Following the Development Application (DA) submission in March 2026, construction of the Braidwood microgrid is slated to begin in the first quarter of 2027. The system is expected to be fully commissioned by February 2028.

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