A standalone power system is an electricity supply arrangement that is not physically connected to an interconnected grid like the national grid. The term is often used to encompass both individual power systems and micro-grids, which supply electricity to multiple customers.86
A micro-grid can also be considered as an embedded subset of a broader network that has all the components to be capable of operating independently.87 This can increase the resilience of existing networks - for example enabling regional communities to 'island' and operate in isolation from the main grid while maintaining power in bushfires and other emergencies.
Standalone and micro-grid technologies have advanced significantly with the adoption of solar and batteries and are increasingly suitable for Small Towns, Rural Communities and Remote Areas at the edge of the grid. Using them to avoid over-built and unreliable long power lines can reduce cost, improve power reliability and reduce the risk of bushfires started by high-voltage failures.
Being able to choose to supply electricity through a standalone power system instead of the grid can also result in significant savings for electricity distribution network businesses, which will pass on the savings to customers as lower electricity bills. Supporting the development and expansion of these systems will help to reduce cost for all Australians and increase resilience, particularly for regional communities.
The current trials and planned deployment of these systems generally comprise a hybrid of solar, batteries and backup diesel generators.88 ARENA should maintain funding for these trials and expand it to emerging technology, including low-emission energy trials.