Microgrids are local energy networks that are able to operate connected to the grid but can continue to operate if there is a network outage in island mode. A microgrid consists of a number of Distributed Energy Resources (DER), sometimes called Community Energy Resources (CER) such as solar power systems and storage along with back-up generators if required. The elements of a microgrid are shown below.

The microgrid is designed so that it can continue to provide power within the microgrid when operating in island mode.
The DER can be Community DER, where it is centralised, or behind the meter which is where it is located at individual sites.
Ergon is currently developing microgrids in remote Queensland communities that are prone to network outages due to long network connections.
Mossman Gorge Microgrid
Ergon Energy are building a high voltage microgrid on Kuku Yalanji Country, at Mossman Gorge in Far North Queensland.
The project aims to improve electricity reliability for the community, which has historically experienced frequent power outages due to its position at the end of a 10 km power line from the Mossman Substation. The microgrid will feature a high-voltage, network-connected battery system capable of operating in ‘island mode’ during upstream network faults.
In August 2024, the project reached a significant milestone with the delivery of a custom-made battery and inverter system to Ergon’s Microgrid and Isolated Systems Test (MIST) facility in Cairns. This equipment is important for intelligent microgrid operations, including control, communications, safety, and stability testing.
The system is likely to be installed at the site at the end of 2025.
Microgrids, especially high voltage microgrids can be technically challenging – as the system needs to adjust as it switches to island mode to safely energise the islanded microgrid.
One of the challenges will be how to manage power consumption within the microgrid to ensure the system is able to operate in island mode as long as possible using battery power and local generation. Energy consumers in the microgrid may need to work together to reduce some energy consumption to ensure the microgrid can supply enough power while operating in island mode.
You can read more about this project here.
Clairview and Stanage Bay Microgrid Feasibility Study
A feasibility study has been conducted for the development of a coastal community microgrid for Clairview and Stanage Bay north of Yeppoon. The focus is on integrating solar energy and battery storage with smart communication devices to enhance electricity reliability at the fringe of Queensland’s network. The image below shows a schematic layout of a coastal community microgrid (source: Ergon Energy Network).

The study identified the potential for viable microgrids at Clairview and Stanage Bay and the projects are awaiting funding.
You can read more about this project here.
The Flow on Benefits of Microgrids for Agriculture
Queensland Farmers’ Federation worked with Cotton Australia, ReAqua, Constructive Energy, and Farm Renewables Consulting to investigate the potential for farming microgrids in four areas of Queensland and New South Wales. The study found that:
- Agricultural microgrids offer the opportunity for greater utilisation of electricity distribution networks.
- Other benefits would flow to participating farms and the distribution networks such as grid firming and emergency supply although these benefits are challenging to monetise in regional Queensland.
- There are a number of regulatory and financial changes that would encourage regional agricultural microgrids which are likely to benefit both energy customers and networks.
The final report and four case studies are available on the Queensland Ag Energy Hub here.
Localised Energy in Regions
Queensland Farmers’ Federation asked farms, businesses and Council officers in regional Queensland about their appetite for CERs in their area and the results are available here
Energy Information Service for Landholders
For help with energy matters and updates, contact The Energy Information Service for Landholders, a free phone service for farmers and landholders in Queensland.
The service is available Monday – Friday from 8:30am – 5pm and can assist by providing information and guidance on a range of energy matters.
Call 07 3329 7500 to access the service today.