Supporting the transition to Renewables

Damian Vermey General Manager Technology and Planning Overview

• Transmission networks play a critical role in connecting renewable generation to the electricity system and delivering a decarbonised future

• Renewable Energy Zones (REZs) create significant opportunities for renewable generators to more effectively join the National Electricity Market

• Supporting the transition to intermittent renewable generation will require a balanced approach Powerlink and its role

• Queensland Government owned – leading Australian transmission network company • Owns, develops, operates and maintains the transmission network in Queensland • Network runs 1,700km from north of Cairns to NSW • Strong history of connecting customers to the energy they need, providing electricity to almost four million people • South-East Queensland is about 60% of total State load • Provides network connections to large-scale generators and major industrial customers • Connected to National Electricity Market via Qld/NSW interconnector transmission line Changing face of the energy supply chain Why Queensland?

• Combination of high UV/solar, plus diurnal wind in several parts of the State

• Powerlink currently has 13 renewable energy connection projects with a combined capacity of approx. 1,700MW

• Responding to more than 120 enquiries and 30 applications to connect to our network – totalling more than 30,000MW Renewable connections enquiries

Biofuel Combined (Wind/Solar) Solar PV Solar Thermal Wind Other

100 90 80 70 60 50 40 30 20

Number of Connection Enquiries Connection of Number 10

0

2007/08 2009/10 2010/11 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Integrated System Plan consultation

• Focus on facilitating development and connection of Renewable Energy Zones (REZ) across the NEM

• Consider what makes a successful REZ and, if identified, how to develop them

• Identify transmission/connection development options and pathways

• AEMO received 64 public submissions on draft ISP

• Key theme related to strategic planning to build resilience with strong consideration of security, reliability and total bill for consumers What makes a great Renewable Energy Zone? Zone 1 • Resource value – capacity factors and diversity of resources • Transmission development (upgrade or extension) Zone 2 • Cumulative effects on the area – MLFs, transmission constraints Zone 3 • Stability limitations – proximity to synchronous generation and/or backbone transmission Zone 4 • Environmental constraints/issues • Social impacts – local economy, acceptance of the project

Zone 5 REZs – the optimal mix

• Provision of diversity of firm dispatchable generation capability in future

• Focus is on wind and solar generation as cheapest resources at present – and predicted to continue – but need diversity in location and generation type e.g. pumped hydro, batteries (storage), solar thermal, gas powered

• What is the optimal combination of these and how do we get there?

• Need careful planning for power system reliability and to meet consumer expectations in a cost-effective way

• Allow for strategic, coordinated planning to connect to the existing transmission network Right balance Customer engagement

Transmission Customer & Network Consumer Forum Panel

Demand & Area Plan Energy Forums Forecasting Forum Non- Network Webinars Thank you!

For more info:

www.powerlink.com.au Aldoga Renewable Energy Project TIQ Renewable Energy Investment Program 22 June 2018 Lavinia Dack, Executive Director Regional Developments About Economic Development Queensland (EDQ) EDQ Industrial Development portfolio overview EDQ develops, sells and leases industrial land throughout Queensland Visit industrial.edq.com.au for land price and availability Advancing our cities and regions strategy

• Queensland renewable sites initiative aims to catalyse underperforming and surplus state government land for renewable energy development • EDQ has been working with a number of strategic partners: • Department of Natural Resources Mines and Energy • Powerlink and Energy Queensland • ARENA • CEFC Queensland Government land

The Queensland Government owns land across these highlighted parts of Queensland Selection criteria – proximity to network

Proximity of a site to the electrical network • – distribution Selection criteria – proximity to network

Proximity of a site to the electrical network • Energex – distribution • – distribution Selection criteria – proximity to network

Proximity of a site to the electrical network • Energex – distribution • Ergon Energy – distribution • Powerlink – transmission Selection process - renewable resources in Queensland

Queensland enjoys good resources for renewable energy

With high sunlight levels and longer days Queensland has enviable sunshine for solar power. • Global Horizontal Index >= 18 MJ/m2 (megajoules per square metre). Selection process - renewable resources in Queensland

Queensland enjoys good resources for renewable energy.

With high sunlight levels and longer days Queensland has enviable sunshine for solar power. • Global Horizontal Index >= 18 MJ/m2 • Direct Normal Irradiance >=20 MJ/m2 Selection process - renewable resources in Queensland

Queensland enjoys good resources for renewable energy.

With high sunlight levels and longer days Queensland has enviable sunshine for solar power. • Global Horizontal Index >= 18 • Direct Normal Irradiance >=20

The state also has relatively good wind resource. • Wind Speed measured at 100m above sea level >= 7m/sec Selection process – environmental constraints

A number of high-level environmental constraints have been considered within the site selection: • Wetland protection areas • Matters of State Environmental Significance: – Protected Areas (estate and nature refuges) – Marine Park – Declared fish habitat areas – Wildlife habitat – Strategic environmental areas – High ecological significant wetlands and waters – Legally secured offset areas – Regulated vegetation Selection process Following the high level filtering process across the Government’s land portfolio, there are substantial opportunities for further exploration Aldoga renewable energy site Market engagement and transaction process

Market sounding Expression of Interest Request for Proposal Aldoga solar farm announcement

• Successful proponent Acciona Energy • 30 year lease • Project Value A$500M • 265 megawatts (equivalent to 122,000 households) • Community benefits fund of $50k - $120k per year • Anticipated construction commencement Mid-late 2019 Questions Biofutures

Advancing the Biofutures industry in Queenland The world is changing rapidly…

• Traditional industries that have been the backbone of our state are strong but our economy is changing

• Our Advance Queensland program is providing support to diversify the economy by developing industries with a ‘global growth potential’

• Biofutures is one of these opportunities that will support future economic development, open the door to new investment and grow employment in regional Queensland Biofutures… • The development and manufacture of bio- based products from sustainable organic and carbon-rich waste streams • A renewable and environmentally beneficial alternative to conventional chemical and fossil fuel refining processes • Sustainable chemicals, fuels, plastics, cosmetics, detergents and textiles • Creating rural and regional jobs, supporting communities and building upon our agricultural industries Bioproducts from crops and crop residues… New crops for marginal lands… Wastes and residues…

Biofutures – a priority sector…

• The Department of State Development, Manufacturing, Infrastructure and Planning • Leads the delivery of economic development outcomes for Queensland with a vision for Queensland’s economy to be Australia’s strongest and most diverse • Biofutures Queensland • Dedicated sectoral team working across government, industry and the research sector to drive development, investment and R&D in Queensland’s industrial biotechnology and bioproducts sector Projects and Partnerships Other initiatives… • Biofuels mandate commenced in Queensland on 1 Jan 2017 • Linking projects with funding programs • Jobs and Regional Growth Fund: $130m for regional projects • Advance Queensland Industry Attraction Fund: $40m to attract business to Queensland • Market-Led proposals… • Biomass mapping project underway • Review of market and policy initiatives for to encourage higher order re-use of waste • Streamlining of approvals processes • Project facilitation and industry attraction • Fuel quality standards and excise treatment • Queensland Government procurement • Waste Management Strategy underpinned by Waste Disposal Levy Key messages…

• Queensland’s biofuels industry is small but expanding with commencement of the biofuels mandate on 1 Jan 2017 • Queensland is well placed to be at the forefront of the global biorefinery industry • The Queensland Biofutures 10 Year Roadmap and Action Plan will help to accelerate the development of biofutures industries in Queensland • The Queensland Government is committed to develop profitable and sustainable industries to diversify Queensland’s economy and grow regional jobs Department of State Development, Manufacturing, Infrastructure and Planning PO Box 15009 City East Qld 4002 Australia tel 13 QGOV (13 74 68) [email protected] www.statedevelopment.qld.gov.au/biofutures TIQ Renewable Energy Investment Program

Presentation by Nick Williams

22 JUNE 2018 To accelerate Australia's transformation towards CEFC a more competitive economy in a carbon constrained world, by acting as a catalyst to MISSION increase investment in emission reduction. WHO WE ARE • Specialist clean energy financier offering a unique mix of finance and clean energy expertise • Proven track record in clean energy investment • Focus on projects and sectors with the strongest potential for decarbonisation • National footprint

WHAT WE OFFER • Tailored finance for renewable energy, energy efficiency and low emissions projects • Private sector expertise with a public policy purpose • Access to $10 billion capital • Independently-run, operating with commercial rigour

45 EXPERT COMMERCIAL We have a breadth of expertise We take a commercial approach across our target sectors, to our activities, delivering a working closely with project positive financial return on our partners to deliver clean energy investments, while also delivering outcomes which make economic on our public policy purpose to WHY and commercial sense while increase finance for Australia’s lowering carbon emissions. clean energy transformation. WORK WITH US TRANSFORMATIVE INNOVATIVE We operate at the forefront of the We provide tailored debt and finance and clean energy sectors, equity finance to businesses and helping businesses meet projects which develop and sustainability and economic goals commercialise clean energy and benefit from rapid advances technologies at early and later in clean energy technologies. stages of development.

46 INVESTMENT STRATEGY FRAMEWORK

EMISSIONS DRIVERS CARBON INTENSIVE INEFFICIENT ENERGY LARGE EMISSIONS NON ENERGY ELECTRICITY USE FROM TRANSPORT EMISSIONS

THE CHALLENGE DECARBONISATION

DECARBONISATION LOW CARBON ENERGY ELECTRIFICATION & BIO-SEQUESTRATION & OTHER EMISSIONS ELECTRICITY EFFICIENCY FUEL SWITCHING PATHWAYS REDUCTION CEFC’S ROLE TRANSFORMING CLEAN ENERGY INVESTMENT

THROUGH WIND INFRASTRUCTURE & TRANSPORT LARGE SCALE SOLAR BIOFUELS & BIO-PRODUCTS FOCUSED GRID & STORAGE SOLUTIONS INDUSTRY SECTORS AGRICULTURE & BIO-SEQUESTRATION BIOENERGY (INC WTE) MANUFACTURING, RESOURCES & INDUSTRY

PROPERTY

CONTRIBUTING TO NET ZERO GLOBAL EMISSIONS IN 2ND HALF OF THE CENTURY THE OBJECTIVE 48 CEFC INVESTMENT

PORTFOLIO $4,772M

$3,427M

$1,741M $1,206M $932M $136M

2012-13 2013-14 2014-15 2015-16 2016-17 Jul-Dec 17

direct projects 9 co-finance and aggregation programs since inception $4.8B 85+ that have delivered $1.1B+ in finance investment portfolio* Total to ~4000 projects and businesses project across Australia value $16B

*After allowing for new investments in each year, minus loans fully amortised, repaid or exited, and expired or cancelled undrawn commitments, at 31 December 2017 49 MULTIPLE SOURCES OF CAPITAL

CEFC DEBT INVESTMENT INNOVATION DIRECT MARKETS FUNDS FUND Our direct investments We support smaller-scale We invest in major clean We invest in innovative can include both debt clean energy projects energy projects together technologies and products and equity alongside co-financiers, with other investment businesses that benefit investments, or a as well as invest in funds in order to catalyse from growth or early combination of both. climate bonds. additional investment. stage capital.

50 THE CEFC IN QUEENSLAND

FINANCE FOR AUSTRALIA’S FIRST FULL INTEGRATED WIND, SOLAR AND BATTERY PROJECT

CEFC PROGRAMS

56 FINANCING ENERGY EFFICIENCY CEFC’s SMALL-SCALE PROGRAMS HAVE DELIVERED ALMOST $625M VIA 4,700+ PROJECTS

Over 2,000 projects for lower Over 1,000 upgrades to buildings, Over 1,700 solar PV emissions light vehicles & farm manufacturing processes or installations (on or off grid) machinery equipment

Finance is available for energy efficiency equipment, clean energy infrastructure, buildings, energy from waste and bioenergy, vehicles, solar and storage

Source: CEFC as at 31 March 2018 CLEAN ENERGY INNOVATION FUND

▪ $200 million program supporting the growth of innovative clean energy technologies and businesses ▪ The Innovation Fund targets clean energy businesses that can benefit from growth or early stage capital ▪ Operated by the CEFC in consultation with ARENA ▪ Nearly $50m for 8 projects financed

Source: CEFC as at 31 December 2017 THE REEF FUNDING PROGRAM

The CEFC Investment Mandate Direction 2016 (No. 2):

“The Corporation shall make available up to $1 billion of investment finance over 10 years for clean energy projects and businesses that support delivery of the Government’s Reef 2050 Plan.” INVESTMENTS TO DATE – LARGE SCALE - CEFC PROJECTS IN GBR CATCHMENT

CEFC Commitment INVESTMENT Project Description Commitment Date [$AUD] Portfolio financing of 2 x utility scale solar farms totalling Daydream and Hayman 200MW - the 150MWac Daydream Solar Farm and 50MWac 10/08/2017 $89,905,924 Solar Farms Hayman Solar Farm near Collinsville, Queensland Palisade Partners IMA An investment in Ross River Solar Farm (135 MW solar farm investment in Ross River located near Townsville, Queensland) through the investment 16/12/2016 $24,050,000 Solar Farm mandate with Palisade Partners Whitsundays and Hamilton Portfolio financing of 2 x utility scale solar farms - 120MW in 10/03/2017 $53,304,059 Solar Farms Whitsundays (Collinsville, QLD)

Collinsville Solar Farm 42MWAC solar PV project at Collinsville, North Queensland 5/05/2017 $60,000,000

Clermont Solar Farm 90MW Solar Farm in Clermont, Queensland 14/12/2017 $93,243,924

$320,503,907 SUSTAINABLE CITIES INVESTMENT PROGRAM

Up to $1 billion over 10 years to be invested to make cities more: • Productive • Accessible • Livable Investments in: • Renewable energy • Low emissions technology • Energy Efficiency To Dec 2017, more than $1.4 billion in commitments to over 2,000 projects, with an estimated total project value of approximately $3.9 billion

CLEAN ENERGY FINANCE CORPORATION t. 1300 002 332 i. +61 2 8039 0800 e. [email protected] cefc.com.au EQL Major Customer Key Points

Sam Pocock, Connections Operations Manager, Energy Queensland Useful links https://ergon.maps.arcgis.com/home/webmap/ viewer.html?layers=4fa913ad88124719a50b3c e64d3754b3 - Public link for LV- Transmission Lines.

- Distribution Planning Reports, Forecasts, Constraints - providing insight on substation capacity and related forecasts Useful links

- Geospatial Information on Ergon Energy’s HV Distribution Network - downloadable from the Queensland Government (enter Ergon Energy in the Search box – can filter results by Organisation = Ergon) - Ergon's Major Customer Connections process for large scale generation - standards, guidelines, processes and Enquiry / Application forms Useful links

- Ergon Distribution Annual Planning report Map 2017 - interactive map allowing self assessment

- Energex Major Customer Connection Process for Large Generators

- Energex Distribution Annual Planning Report Map 2017 - interactive map allowing self assessment Useful links

Note: all information in these resources is provided solely to assist developers in early concept assessment, and as such are entirely non-binding. Connection Enquiries lodged via our Major Customer Connections process are the sole reliable source of information that may lead to an Offer to Connect to the Ergon Energy Network. Connection application - Rules (5.3.4) • Connection Applicant submits application to NSP, including: 1. Releasable User Guide (RUG) and Modelling Information. 2. Connection study report 3. Supporting documentation and information requested in NSP’s Enquiry response 4. Performance standards Performance Standard 1. Performance standards (GPS) set the agreed performance level. 2. Generator and Customer Applicant should provide supporting information when proposing a standard below the Automatic Access Standard 3. Negotiation based on: Connection point Size Technology Congestion • Current Rating • ≠ MW • MW + power factor + voltage • Approx. 20% premium • Variation of Load • Micro Embedded Generation • Generator Congestion Maps Congestion Map - North Congestion Map - Central Congestion Map - South TIQ Renewable Energy Investment Program

Steven Humphries Demand Response Specialist, Markets Friday, 22 June 2018 The changing generation mix

1998 2008 2018 2028 The changing generation mix

1998 2008 2018 2028 The changing generation mix

1998 2008 2018 2028 Consumer preferences

Decline in PV costs Growth in rooftop PV and battery storage The Energy System is transforming

“The rise in DER will continue as these technologies will get cheaper through scale, further technology innovation, deeper delivery capability and competitive pressures. This customer-driven, grid edge innovation is likely to accelerate as aggregated DERs start to gain access to new sources of value and become increasingly valuable.” Principles to guide our coordinated work program

• Facilitating effective customer choice • Promoting competition, technology neutrality and reducing barriers to entry • Promoting price signals that encourage efficient investment and operational decisions • Simplicity and transparency • The power system is secure and reliable through the transformation • To the extent possible, and without limiting commercial or sector innovation, work within the governance structures in place and minimise duplication of functions. Opportunities to have your thoughts heard on optimising DER in a coordinated way https://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/DER-program

AEMO and the ENA welcome responses to this consultation paper, which will close on 3 August 2018.

[email protected] ARENA Trade & Investment Queensland

Matt Walden Business Development & Transactions June 2018 Australian Renewable Energy Agency

Independent Board works to the ARENA Act 2012 Investment & market orientated Board, CEO and CFO

PURPOSE PORTFOLIO PIPELINE $1.18 billion funding committed to support over $500m funding available 378 projects to support innovative energy technologies Accelerate Australia’s 179 completed projects shift to a sustainable, +166 active projects 128 active projects in affordable and reliable (incl scholarships, our pipeline energy future fellowships)

Knowledge Sharing | Collect, analyse, interpret and disseminate ARENA’s New Investment Priorities (1 May 2017) World leading solar resource Transition to VRE

● Changing mix of generation Increase in VRE penetration ● Variable and non-synchronous generation expected to increase overtime

● Retirement of coal-fired power stations

● Distributed resources (mainly solar) to drive growth

● Storage will also be key in transition Large scale solar in Australia – Commercialisation pathway

2012 – 2014 2015 – 2016 2017 – 2018 ARENA – LSS competitive Programme Solar Flagships ARENA – ERP and ASCI round Broken Hill, Nyngan and Barcaldine, Normanton, Expected that Projects Various – 12 projects Moree Gullen and Lakeland solar PV would reach parity LCOE $182/MWh – 152/MWh $162/MWh - $148/MWh $134/MWh - $97/MWh with wind by MW (AC) 211 47 482 2020, parity is now expected ARENA $ $268.4m $50.5m $91.7m in 17/18, 3 years Grant $/W $1.59* $1.07 $0.19 ahead of expectations Capex $/MW** $2.2 (Fixed) $2.0 (Fixed) $1.6 (Tracking) •Include $65m of NSW Government grant funding ** Includes all costs, including financing for lowest cost project in sample Growth of Large Scale Solar PV in Australia

Approximately 3.3GW of cumulative solar capacity available by end of 2019

Source: ARENA, BNEF Innovation: Solar LCOE

● ARENA is aligned with the US DoE Sunshot goal of US3¢/kWh for utility scale solar PV by 2030 (under AU4¢/kWh).

● Lower module costs could account for 30% of the total cost reductions necessary to achieve the Sunshot 2030 goal. Innovation: Solar R&D Round

Research & Development

● ARENA Solar R&D Competitive Round 3 launched on 24 May 2017. ● Funding round contributes to ARENA’s Accelerating Solar PV Innovation investment priority. ● Key objective is to reduce the future cost of solar PV deployment through research and development. ● $29.2 million funding committed for 20 research projects. Innovation: Solar Forecasting Round

● ARENA is allocating up to $10 million of funding towards activities focused on 5-minute ahead self-forecasting for wind and solar farms operating in the NEM.

● Solar Forecasting Round is in partnership with AEMO seeking to demonstrate how wind and solar farms can provide accurate forecasts of their output in AEMO’s central dispatch system.

● Expression of interest round closed on 9 May 2018.

10 Future: National Energy Guarantee

National Energy Guarantee contains two new obligations on electricity retailers

Graduated process to encourage, Obligation on electricity retailers to before finally requiring, retailers to meet an annual emissions intensity cover peak load with contracts standard by demonstrating that they have been allocated the “rights” to generation from an individual plant. Future: LCOE Projections

Bulk generation Dispatchable generation Flexible generation

12 Source: Bloomberg, March 2018 Future: Integrated renewables

ARENA expects to see a rise in integrated renewable projects incorporating variable generation and storage (i.e. a combination of wind, solar, battery, pumped hydro)

Genex Power

Example: Kennedy Energy Park Example: Kidston Renewable Energy Hub ● First-of-a-kind hybrid project ● Stage 1: 50MW Solar Project ● Complementary wind and solar resource ● Stage 2: ● Demonstration project for “Big Kennedy” ○ 270MW Solar Project ○ 250MW PHES Project Project ARENA funding ● Solar: 15MW $18.0 million / $160 ARENA funding ● Wind: 43.2MW million $17.85m/$157.45m (in total for Stage 1 & Stage 2) ● Battery: 2MW/4MWh Future: Exporting renewable energy

Supply of energy Exporting intensive, large-scale Hydrogen export H2 H2 value South Korea Japan chains H2 H2

● South Korea aims to have 9,000 hydrogen cars by 2020 and 630,000 by 2030. Target for refueling stations is 520 by 2030. Broader demand to displace stationary energy ● Japan targets its hydrogen to be 100% renewable produced by 2040. ● Potential exportable renewables: hydrogen, biofuels, upgraded minerals Q&A

Thank you

www.arena.gov.au

15 Powering QLD Plan

TIQ Renewable Energy Investment Program 22 June 2018 Agenda

• Queensland’s renewable energy landscape

• Queensland Government’s commitment to renewable energy

New Commitments • What is the Government’s role in supporting projects

Department of Natural Resources Mines and Energy Queensland’s Project Pipeline

2,164 megawatts Solar Wind $ $4.27 billion $ $ investment Biomass $ $ Operational

3,583 construction jobs

961,000 houses powered annually

5.2 million CO2 tonnes C02 avoided each year

Department of Natural Resources Mines and Energy Queensland’s Renewables Output

EXISTING 2018 – PROJECTED 2019 – PROJECTED

8.6% 17.6% 21.9%

Non-Renewables Rooftop PV Large-scale renewables

Department of Natural Resources Mines and Energy Government’s Commitment

Powering Queensland Plan 50% Renewable Energy by 2030 New Commitments

Department of Natural Resources Mines and Energy Government’s role in supporting projects

The majority of renewable Solar 150 energy projects developed in Queensland and Australia are through Renewables 400 private investment and commercial arrangements. CleanCo – 1000 MW The Government has a limited number of programs that provide direct support to project. Solar Thermal – $50 million

Department of Natural Resources Mines and Energy Thanks for listening…

Any questions?

Andrew Burnett Director – Energy Division

Department of Natural Resources, Mines and Energy [email protected]

Information on developing projects in QLD www.business.qld.gov.au/industries/mining-energy- water/energy/renewable/project-development

Department of Natural Resources Mines and Energy