Australia Microgrid Market

Australia Microgrid Market Overview:

The Australia microgrid market size reached USD 704.00 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,500.22 Million by 2033, exhibiting a growth rate (CAGR) of 8.77% during 2025-2033. The market is expanding due to rising energy costs, grid instability, and government support for renewables. Declining battery prices and abundant solar/wind resources enhance feasibility, while remote industries and communities seek energy independence. Policies such as ARENA funding and the SRES accelerate adoption, and extreme weather events drive demand for resilient power solutions. Corporate sustainability goals in commercial and industrial microgrid deployments are further augmenting the Australia microgrid market share.

Australia Microgrid Market Trends:

Increasing Adoption of Renewable Energy Integration in Australian Microgrids

The market is witnessing a significant shift toward renewable energy integration, driven by the country’s abundant solar and wind resources. With rising energy costs and growing environmental concerns, businesses, remote communities, and utilities are increasingly adopting microgrids powered by solar PV, wind, and battery storage. As of 2022, Australia's energy mix was still heavily dependent on fossil fuels at 90% of the total, where natural gas supplied 27% of the supply and 34% of power generation. At the same time, renewable sources expanded to 9.5%, led mainly by solar and biomass. Bioenergy accounted for 5% of the final consumption, supported by major projects, including the Malabar Biomethane Injection and Kwinana Waste-to-Energy. These projects demonstrate significant shifts towards more energy-efficient and grid-integrated infrastructure. The Australian Renewable Energy Agency (ARENA) has funded numerous projects to demonstrate the viability of hybrid renewable microgrids, particularly in off-grid and regional areas. Additionally, government incentives, such as the Small-scale Renewable Energy Scheme (SRES), are accelerating the deployment of distributed energy resources (DERs). As battery storage costs decline, more microgrids are incorporating advanced energy management systems to optimize renewable generation and ensure grid stability. This trend is expected to continue, with Australia aiming to achieve 82% renewable electricity by 2030, further enhancing microgrid development as a key solution for energy resilience and decarbonization.

Growth of Commercial and Industrial (C&I) Microgrids for Energy Resilience

The rising demand from commercial and industrial (C&I) sectors seeking energy resilience and cost savings is also supporting the Australia microgrid market growth. During the fiscal year 2022–23, Australia's net energy use grew 2% to 23,294 PJ, with residential and industrial consumption growing 3% and 4%, respectively. At the same time, renewable sources grew by 12% to 325 PJ or 33% of the nation's electricity supply. Energy use from the transport sector jumped by 19% and agriculture by 12%, while manufacturing fell by 4%. With increasing energy intensity and demand in other sectors, the use of microgrid systems has become more important within the industrial setup of Australia. Industries such as mining, agriculture, and manufacturing are investing in microgrids to reduce reliance on the main grid, mitigate power outages, and lower operational expenses. Mining companies, in particular, are deploying hybrid microgrids combining diesel, solar, and storage to cut fuel costs and meet sustainability targets. Furthermore, grid instability due to extreme weather events has pushed businesses to adopt microgrids for uninterrupted power supply. Advanced control technologies and AI-driven energy management systems are enhancing the efficiency of C&I microgrids, enabling real-time load balancing and demand response. With Australia’s energy market becoming more volatile, the C&I segment is expected to drive substantial growth in the microgrid sector, supported by favorable policies and corporate sustainability commitments.

Australia Microgrid Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on energy source and application.

Energy Source Insights:

• Natural Gas
• Combined Heat and Power
• Solar Photovoltaic (PV)
• Diesel
• Fuel Cell
• Others

The report has provided a detailed breakup and analysis of the market based on the energy source. This includes natural gas, combined heat and power, solar photovoltaic (PV), diesel, fuel cell, and others.

Application Insights:

• Remote Systems
• Institution and Campus
• Utility/Community
• Defence
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes remote systems, institution and campus, utility/community, defence, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Microgrid Market News:

• February 4, 2025: Ocean Sun and Canopy Power collaborated to introduce floating solar technology in Australia through Ocean Sun's 700 kWp membrane-based system that also features rainwater harvesting. This scalable and modular solution integrates renewable microgrids, battery storage, photovoltaic systems, and wind energy to address water and land scarcity challenges. The project aims to introduce sustainable energy solutions for energy producers, agricultural activities, and hydrogen facilities across the country.
• October 21, 2024: Aspen Technology announced its Microgrid Management System (MMS) for industries that have high energy demands, such as refining, chemicals, and mining. It is built upon the OSI monarch SCADA platform. It effortlessly integrates renewable energy resources, load control, and storage functions, hence increasing operation efficiency and contributing to the goal of net zero. The MMS provides real-time management, advanced forecasting, and enhanced security, offering Australian industries a trusted solution for the reliability and sustainability of energy.

Australia Microgrid Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia microgrid market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia microgrid market on the basis of energy source?
• What is the breakup of the Australia microgrid market on the basis of application?
• What is the breakup of the Australia microgrid market on the basis of region?
• What are the various stages in the value chain of the Australia microgrid market? 
• What are the key driving factors and challenges in the Australia microgrid market?
• What is the structure of the Australia microgrid market and who are the key players?
• What is the degree of competition in the Australia microgrid market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia microgrid market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia microgrid market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia microgrid industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.