Remote communities are more vulnerable to fuel price shocks – could microgrids help?
When diesel prices jump, most Australians notice it at the bowser.
But in parts of remote Australia, diesel is what keeps the lights on. That makes it indispensable.
That’s why the federal government’s decisions to temporarily relax fuel standards and release some of Australia’s domestic reserves matters beyond transport.
And these measures raise a broader question: how can we protect diesel-dependent communities from future fuel price shocks?
Tighter global oil markets don’t only affect petrol stations. Instead, they impact every link in Australia’s complex fuel supply chain. And people in regional and remote communities are often the first to be hit by fuel shortages and delayed deliveries.
In many remote communities, these global pressures directly impact the electricity supply. About 500,000 people, or 2% of Australians, live off-grid. This means they are not connected to the main electricity grid.
In the Northern Territory, about 25 million litres of diesel are pumped into generators that supply electricity to remote Aboriginal communities. Some of these communities are not protected by consumer laws that aim to keep residents informed about disruptions........
