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Islandable Microgrids Trial Waiver Application - Essential Energy

The AER is consulting on proposed waivers for Essential Energy’s islandable microgrids sandbox trial. Submissions close 12 November 2026.

Overview

The proposal would enable Essential Energy to test islandable microgrids across its network. These systems would normally operate as part of the connected electricity network but could temporarily supply local communities independently during outages.

The trial is intended to test whether islandable microgrids can improve reliability and resilience in remote or fringe-of-grid communities, while maintaining consumer protections, operational safety and market integrity. The trial would also test various configurations for generation and storage ownership, technical operation and market interfaces.

Key Trial Documents

AER - EIT - Consultation notice - Essential Energy Islandable Microgrids Trial Waiver Application 2026.pdf (pdf 9.34 MB)

We are seeking stakeholder feedback on all aspects of the proposal, including the proposed waiver framework, potential consumer benefits and risks, impacts on other market participants, appropriate safeguards and conditions, and transition arrangements at the conclusion of the trial.

Submissions should be lodged at regulatorysandbox@aer.gov.au by 12 November 2026.

Following consultation, the AER will consider submissions and may seek further information from Essential Energy before making and publishing its decision.

Related Content

Submissions

Submissions will be published following the close of consultation.