A $350,000 federal government grant has been awarded to Yackandandah for the town to continue investigating ways to become 100 per cent renewable.
Money from the Regional and Remote Communities Reliability Fund will help to explore electricity storage options, including batteries and pumped hydro, and establish a micro-grid for local households and businesses to generate and trade solar power instead of importing electricity from the grid.
Indi MP Helen Haines said the funding was "a welcome endorsement of the ingenuity and pluck of a local community".
"This funding is a welcome endorsement of the ingenuity and pluck of a local community that's among 13 in working in Indi, right here in rural Victoria, to build Australia's renewable energy future," she said.
But she was disappointed Corryong missed out on a similar program.
"(Energy Minister Angus Taylor) noted to me that the proponents of the Corryong project should be 'strongly encouraged' to apply for funding from future grant rounds," Dr Haines said.
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"If the network company believes there is a business case, if the community wants this, and if the government is looking for projects to stimulate the regional economy in the wake of Black Summer and COVID-19, here is a project ready to go.
"I invited the minister to consider my call for a suite of other renewable energy projects to be developed in the Upper Murray to ensure its energy security.
"What works for Yack should work for Corryong and all our other regional towns, too."
Matt Charles-Jones from Totally Renewable Yackandandah said he was thrilled the application had been successful and was part of the town's long-term effort.
"We are so fortunate that the courage of people across Yackandandah is being acknowledged and supported by business, utilities and all levels of government," he said.
"This funding allows us to finalise the micro-grid footsteps to a 100 per cent renewable and interdependent electricity supply."