The Australian Renewable Energy Agency (ARENA) has put up $5.5 million to support an off-grid hybrid power project off the coast of Tasmania.

The Hydro Tasmania project aims to use a combination of solar power, wind energy, diesel generation, flywheel and battery energy storage to reduce diesel consumption by more than 60 per cent on Flinders Island.

Flinders Island is located 54 kilometres off the north-eastern tip of Tasmania, and like many island communities it relies heavily on carbon-heavy, expensive diesel power generation.

One of the intriguing aspects of the Flinders Island project will be the use of modular power units, which are fabricated off-site to create a portable hybrid energy solution.

The team says that with many Australian interested in off-grid communities and industries, lessons from the Flinders Island project will help produce more competitive, reliable renewable energy power solutions around the country

The equipment could also be useful for disaster relief or in the mining industry.

“This low-cost, scalable approach has the potential to be a real game changer in remote areas – reducing the amount of construction and engineering work needed to be carried out on site would significantly reduce costs, risks and construction time,” said Mr. Frischknech.

The project will cost $12.9 million in total, and is scheduled for completion in November 2016.