The Liberal National Government is supporting the installation of a hybrid renewable energy microgrid on Lord Howe Island to reduce emissions and improve energy security.

The Lord Howe Island community will benefit from the microgrid comprising more than 1.2'MW solar PV array and over 3.2 MWh of battery storage to be installed by the Photon Energy Engineering Group.

The remote island, located in the Tasman Sea 600km from the Australian mainland, faces a unique set of challenges and currently relies heavily on diesel powered electricity generation.

This system will significantly reduce the reliance of the Lord Howe Island community on expensive, shipped-in diesel, and provide energy security to the island community. It will also insulate the community against diesel price shocks.

The microgrid will provide at least two thirds of the electricity needs of the Lord Howe Island community and will importantly reduce emissions and fuel costs.

Through the Australian Renewable Energy Agency (ARENA), the Government has provided $4.5'million in funding towards this $11.1 million project, which is also supported by the New South Wales Government and the Lord Howe Island Board.

This project builds on the $105 million ARENA has already provided to support hybrid generating systems in remote communities of Australia.

The Liberal National Government is committed to supporting the energy needs of remote and regional communities through projects like this and the $50 million Regional and Remote Communities Reliability Fund.