Project Update Week ending 3 July 2020

Solar farm powering City operations and revenue 25 June City of Newcastle’s solar farm has exceeded “By combining solar installations, battery expectations in its first six months of storage and the purchase agreement to operation, generating almost twice the power all our operations, the City has created revenue it was expected to make annually. a resilient energy strategy that will protect us from future electricity price spikes. The five-megawatt solar farm installed at the Summerhill Waste Management Centre “Working in concert with the power purchase generated more than $420,000 in revenue agreement, these investments give us price between when it went live in mid-November stability, create financial savings for rate and the end of April, well above original payers and have already enabled us to reduce forecasts used in the business case’s our operational carbon emissions by 77 per projected average of $250,000 a year. cent, compared to the 2008 baseline.”

Selling energy back into the electricity market, The Climate Council’s Cities Power the solar farm further demonstrated its value Partnership Director David Craven said the during the January bush fires when the City solar farm was a “fantastic accomplishment supported the state’s damaged energy grid as by the City of Newcastle”. a net exporter. “They have again stepped up as leader in A renewable power purchase agreement with renewables and as a leader amongst local a that came into effect on 1 governments taking significant action on January, making the City the first NSW Council climate,” Mr Craven said. to be powered 100 per cent by renewables, saved a further $30,000. “Renewable energy is the cheapest form of new energy generation and is proving to save “The business case showed the solar farm Novocastrians millions, while creating a would save rate payers around $9 million, healthy future for this community.” after costs, over its 25-year lifespan - and so far, it’s on track to do even better,” Newcastle The City is also paving the way to an electric Lord Mayor Nuatali Nelmes said. transport future by converting fleet vehicles to electric and installing an electric vehicle “The solar farm helped us exceed our charging network powered by solar panels renewable energy goals under the Newcastle and battery storage. 2020 Carbon and Water Management Action Plan, which targeted 30 per cent of our Meanwhile, the City is increasing solar-energy electricity needs from low-carbon sources. generation on its buildings.

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“We recently added an additional 100- “The significant expansion of Neoen’s ‘Big kilowatt roof top photovoltaic system to our Battery’ is evidence of the innovation taking Waratah Works Depot, doubling the capacity place in South Australia’s energy sector, and of the system installed onsite in 2013 and the benefits that grid-scale storage can taking total generation of our 12 solar systems provide. to almost 9 million kilowatt hours of renewable energy each year,” Councillor “This milestone is a key demonstration of the Nelmes added. value being delivered by our election commitment to resecure our grid by “Our five-megawatt solar farm and over 660 expanding storage through the $50 million kilowatts of rooftop solar provide the Grid Scale Storage Fund. equivalent energy needs of more than 1,770 Newcastle households a year with clean, “After additional testing, the battery will renewable energy.” deliver a range of grid support services which mimick those provided by traditional For its commitment to renewables and generations, such as inertia which helps reducing carbon emissions, the City won the reduce shocks to the system. prestigious Local Government Sustainability Award in 2019 and is currently a finalist for “The increase in storage power and capacity Environmental Leadership and Sustainability mean a faster response to disturbances such in the 2020 NSW Local Government as network faults, so that within milliseconds Excellence Awards. the Hornsdale Power Reserve can help stabilise the grid. Source: City of Newcastle “In demonstrating the benefits that batteries can provide, this will help inform the Expanded big battery charges regulatory changes required to create new markets which attract new technologies to up for testing support renewable energy. 26 June The Marshall Government welcomes today’s “Independent modelling indicates that the announcement that Neoen has begun final Hornsdale Power Reserve has already testing of the expanded 150 megawatt delivered more than $150 million in savings to Hornsdale Power Reserve which was secured consumers in its first two years of operation. by $15 million from the State Government’s Upon successful completion of testing in the Grid Scale Storage Fund. next few months, we expect these savings will continue to grow. Minister for Energy and Mining Dan van Holst Pellekaan said the start of testing is a key “The State Government is providing $15 milestone for the Hornsdale Power Reserve, million across five years from the Grid Scale which will allow the world’s largest lithium- Storage Fund with the Australian Renewable ion battery to provide new grid support Energy Agency (ARENA) committing a further services at a scale unmatched in the world. $8 million.

“With the project entering its critical testing “The Commonwealth’s Clean Energy Finance phase, this means its full capacity will be Corporation (CEFC) is also backing this project activated and testing will check that the with $50 million in finance to support the battery is operating as intended and safely,” completion of the expanded facility,” he said. he said. Managing Director of Neoen Australia, Louis de Sambucy, said the Hornsdale Power

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Reserve’s testing phase will ensure that the goal of creating a viable domestic hydrogen completed expansion meets the highest economy and export opportunities. The performance standards. parties have been discussing the potential of hydrogen in New Zealand since 2017, when “The expansion will make Hornsdale Power Mitsui learnt of New Zealand government’s Reserve 50 per cent bigger and will deliver strong aspirations for green hydrogen ground-breaking innovations to increase grid initiatives and Hiringa’s activities. security and further unlock renewable energy performance in South Australia,” he said. Hiringa Chairperson Cathy Clennett says “We are very excited to announce our strategic “With the support of Tesla, the South partnership with Mitsui. Mitsui is a natural Australian Government, ARENA, CEFC, the partner for Hiringa, having already made Northern Areas council and construction significant energy investments in New Zealand partner Consolidated Power Projects including cleantech company LanzaTech, and Australia, the Hornsdale Power Reserve will having considerable experience in large scale keep South Australia at the forefront of the energy development and investment. Mitsui energy transition.” brings expertise, capital and international connections, including the capability to Source: South Australia Government market hydrogen internationally, and compliments the partnerships we have been forming in New Zealand to develop the supply Hiringa Energy and Mitsui & chain and market for green hydrogen”.

Co. sign strategic alliance The strategic alliance builds on the New agreement Zealand Government’s $19.9m funding investment announcement into Hiringa’s Joint 26 June Venture with Ballance Agri-Nutrients earlier New Zealand’s first company dedicated to the this year – a $50+ million project to create supply of green hydrogen, Hiringa Energy, and green hydrogen at Ballance’s Kapuni plant in global trading and investment enterprise, South Taranaki, and support from Hiringa’s Mitsui & Co. have signed a strategic alliance seed investors including Sir Stephen Tindall agreement to jointly pursue hydrogen related via his investment company K One W One. commercial projects in New Zealand.

The partnership and the projects provide a Through the Strategic Alliance Agreement significant growth opportunity for New with Mitsui, Mitsui secures access to Zealand’s economy with potential provision of participate in multiple hydrogen projects multiple jobs across the supply chain that developed by Hiringa including the JV project showcase New Zealand’s smart, technically with Ballance Agri-nutrients and Hiringa’s advanced and capable economy. nationwide refuelling network, which will see Furthermore, the resulting renewable energy hydrogen refuelling stations come online infrastructure and hydrogen production will throughout 2021. position New Zealand to be less reliant on

imported fossil fuels, providing greater energy Mitsui is one of the most reputable Japanese resilience and improving New Zealand’s companies in the energy sector with vast emission profile and sustainability credentials. experience and numerous investments in the oil & gas, power, and renewables sectors, Andrew Clennett, Hiringa’s Chief Executive including participation in a number of Officer, describes Hiringa’s approach as, megaprojects globally. “repeatable, scalable, and adaptable to other

countries, setting New Zealand as a global In forming this strategic alliance, both leader in the transition to a hydrogen companies are working towards a common

Page 3 (Click on relevant project links to go to online Project Database) economy. Strong partnership with our APAC tenderers, including world leading providers neighbours will be increasingly important for of resource recovery infrastructure, have our joint economic recovery and growth, been shortlisted to join the solution leveraging New Zealand’s potential for development stage of the procurement: renewable energy at large scale.” - Veolia Environmental Services Australia - Sacyr Environment Australia Divisional Operating Officer of Infrastructure - Pacific Partnerships and REMONDIS (A & Energy Division, Mitsui & Co. (Asia Pacific) consortium comprised of Pacific Partnerships Pte. Ltd. Kaoru Umehara says “This strategic and REMONDIS Australia, together with CIMIC alliance aligns with Mitsui’s global focus on Group Companies CPB Contractors and UGL) developing next generation energy solutions as a part of our goal to transition to a low- Landfills in the south east of Melbourne are carbon future. As the world emerges from a filling up and no more are planned to be built. dramatic upheaval, hydrogen could resolve a Household rubbish in the 16 councils is host of pressing global issues such as security projected to increase by 40% over the next 25 of energy supplies and greenhouse gas years. emissions. Mitsui looks forward to working closely with Hiringa on progressing New Veolia Environmental Services Australia, Sacyr Zealand's path to a global hydrogen Environment Australia and Pacific economy.” Partnerships and REMONDIS will work with the 16 councils to develop an advanced waste CEO of Mitsui & Co. (N.Z.) Ltd. Koichiro processing solution that delivers Yoneda says “Hiringa has demonstrated environmental, economic and social benefits extensive leadership and management to the community. capabilities collaborating with hydrogen players in New Zealand and internationally Best outcomes will be achieved by minimising and has developed a pipeline of projects and a our waste, reusing or recycling, and then what business model that provides a pathway to a is left over can go to advanced waste commercially viable hydrogen economy.” processing.

The New Zealand and Japanese Governments Advanced waste processing will help the have signed a Memorandum of Cooperation Victorian government deliver on its circular on hydrogen in 2018 to start the transition to economy strategy – Recycling Victoria – a a hydrogen economy to reduce emissions and 10year plan that will completely overhaul improve energy security. Victoria’s recycling sector and reduce waste going to landfill. Source: Hiringa Advanced waste processing solutions will play a significant role in achieving the new target Shortlisted companies to divert 80 per cent of household rubbish from landfill by 2030. announced in the search for alternatives to landfill The advanced waste processing procurement will ensure facilities: 29 June - meet best-practice environment protection In March 2020 MWRRG called for Expressions requirements and energy efficiency standards of Interest for solutions to provide an - reduce the amount of waste sent to landfill alternative to landfill for 16 councils in - do not displace or inhibit innovation to Melbourne’s south east. reduce or recycle materials

- reduce greenhouse gas emissions compared We’re pleased to announce that after a to the waste and energy services they displace competitive tendering process three

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- have sustainable business models creating Hydrogen energy research new jobs and economic development in local communities. centre to play key role in Australia’s energy transition Advanced waste processing technologies have 29 June been used successfully and safely overseas for A new UNSW-industry partnership will years as an alternative to landfill. The new prioritise commercialisation of hydrogen facilities are expected to attract investment of research to benefit society. around $650 million and create jobs during construction and permanent operating jobs. UNSW Sydney and Providence Asset Group (PAG) have launched a first of its kind It is expected that the process will take close university-industry partnership in hydrogen to two years to reach a final tender stage and technologies to translate leading university a 20 to 25-year contract will be awarded by research into real-world, commercial 2022, with construction starting in 2023. products.

Source: MWRRG UNSW and PAG have founded the Hydrogen Energy Research Centre (HERC) to support Australia’s vision to become a major player in May Large-scale Renewable the global hydrogen market. In its National Hydrogen Strategy published November 2019, Energy Target market data the federal government states its ambition for now available annual hydrogen exports to reach $10 billion 29 June by 2040. The Clean Energy Regulator has released the May 2020 Large-scale Renewable Energy UNSW Deputy Vice-Chancellor, Research, Target market data. Professor Nicholas Fisk said: “Australia has a huge competitive advantage over other Highlights include: countries in implementing hydrogen for green - Seven power stations were accredited with a energy storage, and UNSW has major combined capacity of 518 megawatts (MW). capability through its talented investigators, - Two utility-scale power stations were research and development, and patent- accredited, with a combined capacity of 516 MW protected intellectual property. wind farm in VIC – 204 MW, and “Together with Providence, HERC is set to - in VIC – 312 MW. integrate electrolysis, storage and fuel cells, to translate for both domestic and export 32 additional power stations, with a combined markets.” capacity of 56 MW, were approved with accreditation start dates in February, March Industry participation key and April. UNSW Engineering Professor Kondo-Francois Aguey-Zinsou, an expert in hydrogen storage The 400 MW Western Downs Solar Farm in technologies, will lead the new centre, in QLD was added to the probable list. which industry participation will be integral for translating new hydrogen technologies See into commercial production. http://www.cleanenergyregulator.gov.au/RET /About-the-Renewable-Energy-Target/Large- Prof. Aguey-Zinsou said: “Universities are very scale-Renewable-Energy-Target-market-data good at fundamental research but traditionally have not been so good at Source: Clean Energy Regulator developing products through to market

Page 5 (Click on relevant project links to go to online Project Database) launch. HERC will build a full innovation solutions capable of meeting much of ecosystem – where we have industry partners Australia’s power needs through renewable deeply engaged with research academics at energy by 2030. And under this new every step of the way – to generate innovation ecosystem model they already commercial outcomes.” have an early win.

UNSW produces world-leading research in Early success hydrogen production, storage and use. Its Lavo Hydrogen Storage Technology Pty Ltd, a specialties include fuel cell technologies, spin-out company based on UNSW intellectual power conversion, advanced manufacturing, property, has its first commercial product recycling and electronics. HERC will combine expected to go to market in late 2020. LAVO™ this expert knowledge with industry partners is a residential hydrogen energy storage in a new ecosystem that will include: system that can hold up to 60kWh of - an applied research and development, electricity – enough energy to power an prototyping and testing lab – to promote agile average Australian household for three days. product development and support global clients in their transition to using hydrogen CEO of PAG, Henry Sun, said hydrogen products technology has matured, the cost of - a production hub aimed at increasing the renewables has fallen more quickly than uptake of hydrogen products – including predicted, and there is unprecedented small-scale manufacturing, testing, political support. He said the timing is now certification and validation infrastructure right to capture the hydrogen opportunity for - an experience centre – to engage investors, all Australians. customers and partners, and a training facility to upskill the workforce. Source: UNSW

Prof. Aguey-Zinsou is confident that with involvement and co-investment from PROJECT NEWS industry, HERC will overcome some of the Jims Plain Renewable Energy biggest hurdles in taking hydrogen products to market. Park UPC Renewables’ proposed Jim's Plain “The problem in Australia is we lack the deep Renewable Energy Park in north-west expertise needed in consulting firms and Tasmania granted conditional approval by the industry to advise on the best hydrogen Federal Government under the EPBC Act. The technologies to pursue – not only in terms of 190 MW development will consist of up to quality and product life, but also accurate 160MW of wind, battery storage and financial modelling to secure capital associated infrastructure, with plans to add an investment. HERC’s ecosystem of expertise up to 30 MW solar farm component to the will overcome these barriers to original project. Approval conditions were commercialisation and ensure greater market included to minimise impacts to the Wedge- uptake of hydrogen products. tailed Eagle and the Tasmanian Devil.

“It’s not just about making hydrogen per se, it’s about changing the entire economy.”

The new HERC facilities will be established at UNSW over the next seven years with the help of an initial $5 million investment from PAG. The partners believe they can develop hydrogen energy storage and distribution

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City of Melbourne powers up "Renewable energy investments can and should play a significant role in supporting our renewable energy dealSHARE economic recovery from COVID-19. 30 June A group of prominent Melbourne universities "The purchase of renewable energy certainly and businesses has secured a multi-million- has a positive environmental impact, but it dollar deal to power their operations using also makes economic sense. We know the wind energy produced in regional Victoria. energy market can fluctuate a lot. Like MREP1, the MREP2 project allows the buying The purchasing group of seven large energy group to lock in price certainty. So it's not only users includes RMIT University, Deakin good for our planet, but great for the hip University, Cbus Property, ISPT, Fulton Hogan, pocket. Citywide Asphalt, and Mondelez International. "Our partners in the business and education Deputy Lord Mayor Arron Wood said this is sectors have shown enormous leadership by the second purchasing agreement facilitated stepping up to help transition Melbourne to a by Council through the Melbourne Renewable reliable clean energy future." Energy Project (MREP). Environment portfolio Chair Cr Cathy Oke said "Combined, the two projects represent the accelerating the transition to renewable equivalent of a five per cent reduction in the energy is key to reducing the municipality's city's emissions, and a tangible shift towards emissions, but this can only happen with renewable energy in the national grid," the private sector involvement. Deputy Lord Mayor said. "The second Melbourne Renewable Energy "The new group includes 14 shopping centres, Project will reduce greenhouse gas pollution nine office buildings, seven educational by 123,000 tonnes a year, that's the campuses, and four manufacturing facilities. equivalent of taking more than 28,000 cars off the road every year," Cr Oke said. "The agreement starts next month and most of the wind power will be produced at the "It's also a significant step towards our goal Yaloak South Wind Farm near Ballan, with the for all of Melbourne to be powered by 100 remaining energy coming from other wind per cent renewable energy." farm projects in regional Victoria." Earlier this year, the City of Melbourne moved Tango Energy will provide 110 GWh of to fast-track a range of initiatives to further renewable electricity per year to the reduce its carbon emissions, including purchasing group over 10 years. reaching Council's zero emissions target for the municipality 10-years earlier by 2040, The initiative follows the successful after declaring a Climate and Biodiversity Melbourne Renewable Energy Project, which Emergency in 2019. saw Council lead a consortium to purchase 88 GWh of renewable energy, and led to the "We have already reduced emissions from the construction of an 80 MW wind farm at City of Melbourne's operations by more than Crowlands, near Ararat. 50 per cent in six years and we're accredited as being carbon neutral – but we must do "The deal is equivalent to providing enough more, and we can't do it alone," Cr Oke said. renewable power for more than 22,000 households a year. When you add MREP1 that Source: City of Melbourne jumps to enough power for 40,000 households a year," the Deputy Lord Mayor said.

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AGL gets on with the business mechanisms to generate and supply carbon credits. of transition for Australia’s - Continue investing in new sources of energy sector electricity supply. We will continue both 30 June direct investment and offtake agreements as AGL today announced that from 1 July all of we have with projects like Barker Inlet Power its electricity plans will always offer a certified Station and . carbon neutral option. - Responsibly transition our energy portfolio. We will continue to run our coal-fired power AGL’s new Carbon Neutral electricity product stations responsibly, and support our people is certified by the Australian Government’s and communities during the transition. Climate Active Program and will provide a - Be transparent. We will openly and carbon neutral electricity option on all AGL transparently track our progress through our plans. annual report and hold ourselves accountable through our remuneration structures. Announcing the new product today, AGL CEO Brett Redman said that this was an important “As Australia’s largest and oldest integrated step in providing AGL customers with choice electricity generator and retailer, we play a to support the energy sector’s transition. vital role in Australia’s energy market and the wider transition,” AGL CEO Brett Redman said. “By the end of FY21 a carbon neutral option will be available on all AGL products - be they “Not only do our coal and gas fired generators electricity, gas or telecommunications – giving ensure Australia’s lights remain on, they all of our customers choice for the cleaner provide the financial strength for AGL to and more sustainable options many are progress the transition. seeking when it comes to their essential services,” Mr Redman said. “I am proud of the role our employees at all of our generation sites play, particularly as Offering all AGL customers choice is part of demonstrated during the recent crisis. AGL’s updated Climate Statement, which confirms AGL’s target of net zero emissions by “What the crisis has reinforced for us is that 2050 and recognises three major forces we need to continue to embrace change, driving Australia’s energy transition: customer innovate and move with speed in order to demand, how communities act, and how evolve as an organisation, drive technology evolves. transformation in our industry and provide the community with the type of essential The Climate Statement will shape AGL’s service they need. portfolio management, supply and technology investment, and customer offerings. “Many of our customers share our interest in shaping a more sustainable future. So, it’s AGL’s Climate Statement outlines five important to provide them with options and commitments: that’s what our new carbon neutral product - Offer customers the option of carbon neutral does – regardless of whether they are a prices across all our products. We will match family, a small business or a large commercial accelerating customer demand to support or industrial customer. decarbonisation of the energy system with a growing range of carbon neutral options. “To support this new product into the future - Support the evolution of Australia’s AGL has embedded changes in our policies, voluntary carbon markets. We will explore supply chain and systems to ensure a carbon ways through which we can participate in neutral option is offered every time a

Page 8 (Click on relevant project links to go to online Project Database) customer chooses an AGL electricity, gas or play in the transition and we want to hold telecommunications product. ourselves accountable to this.”

“We accept the science of climate change; the The metrics include the emissions intensity of more difficult aspect that needs to be AGL’s controlled generation fleet, the addressed is how we manage the transition in proportion of generation from renewable a way that reduces emissions and supports sources, and the share of total customer sales our customers and the community. coming from green energy and other lower carbon products and services. “I believe that Australia and Australians have the capability and the capacity to achieve Quote attributable to Climate Active Director, transition in our energy market in a way that Daniel Sheedy: drive us forward, unlocks the potential of new “We appreciate that AGL is in the business of technology and creates new industries and transition and that they're committed to opportunities.” doing this in a way that supports the community's needs and offers customers The commitment to build new generation choice. On top of their pathway for gradual continues AGL’s strong track record of decarbonisation of their generation portfolio investments in renewables, peaking and by 2050, they have just launched the option storage, which includes recent major projects of Carbon Neutral for their customers. across Australia: Congratulations AGL on your commitment, we - The $295 million AGL Barker Inlet Power are proud you've made the choice to be part Station in South Australia, which became the of the Climate Active network.” first major dispatchable into the NEM by a private company since 2012, Source: AGL when it opened in December last year. - The $450 million in New South Wales, which reached full output last Investors backing big batteries month. 30 June - The $850 million Coopers Gap Wind Farm in The level of investment in large-scale Queensland, which is expected to reach full batteries in Australia has doubled in the last generation later this year. six months, according to an analysis by the - Two major battery deals involving a grid- Clean Energy Council. From the end of Q3 scale battery with Vena at Wandoan in 2019 to the end of Q1 2020, the cumulative Queensland and an innovative large-scale capacity of utility-scale battery projects has battery deal with Maoneng in NSW. risen from 400 MW to 800 MW.

To maintain transparency and accountability "Battery technology is now proven and to these commitments, AGL reports under the scalable, and the costs have plummeted Task Force for Climate-related Financial rapidly. This has resulted in new investor Disclosures (TCFD) framework and is moving commitments to new batteries, growing to include carbon transition metrics in AGL's interest in battery development, and a clear Long-term Incentive Plan for its key recognition of the role of batteries to management personnel from FY21. complement and support wind and solar and

provide essential grid services," says Clean “AGL is a leader in the business community by Energy Council Chief Executive, Kane including carbon transition metrics in our Thornton. remuneration structure because we understand that as Australia’s largest carbon It is expected that these projects will create emitter, our management team has a role to 3,800 jobs in their construction. Energy storage currently accounts for around 6 per

Page 9 (Click on relevant project links to go to online Project Database) cent of Australia's renewable energy Vestas wins 210 MW order in workforce (excluding Western Australia and Northern Territory), as revealed in the Clean Australia Energy At Work report. 30 June Vestas has received an order for a project in This increased investment includes an Australia that includes the supply and expansion to Neoen’s Hornsdale Power installation of 50 V150-4.2 MW turbines, as Reserve, also known as the Tesla Big Battery, - well as a ten-year Active Output Management the largest lithium-ion battery in the world – 5000 (AOM 5000) service agreement. which is currently testing its recently increased 50MW storage capacity and will Commissioning of the turbines is scheduled to provide new grid services, such as inertia. commence between the third and fourth quarter of 2021. Utility-scale batteries help to smooth the output of wind and solar and are can also The project and customer names are provide critical system services, including undisclosed. swift response to frequency changes on the energy system. Source: Vestas

"There is no other technology that can Note: While the project has not been respond as quickly as batteries to changing confirmed it closely aligns with Iberdola/DP frequency on the energy system," said Energy’s Port Augusta Renewable Energy Park Thornton. which has approvals for 50 turbines to provide approximately 210 MW of wind generation However, the incentives for battery projects and 110 MW of solar PV generation. to provide these system services remains immature and poorly defined. Further investment in utility-scale batteries requires Environmental approval for more significant reforms. Reforms such as the shift to five-minute settlement and recent 2.0 changes to legislation in NSW that will 30 June support big batteries installed as stand-alone Australia’s largest ever renewable energy projects, rather than next to existing wind and project, Snowy 2.0, has been given the green solar farms, are welcome steps forward. light to create thousands of new jobs and put However, changes are also required to market downward pressure on electricity prices. arrangements to value the grid services provided by batteries and improve how Prime Minister Scott Morrison has announced batteries are integrated into the National that Commonwealth environmental approval Electricity Market. for the project has been granted after a rigorous environmental process. "Batteries, along with extended duration storage solutions such as hydro and pumped ”This marks the final step in the planning and hydro, will play a critical role in supporting the approvals phase and the beginning of a new generation of wind and solar as the lowest wave of jobs and investment for the region, cost forms of generation in Australia," which will guarantee clean, affordable energy Thornton continued. "Investors are clear that and position our country for the future,” the these are the energy technologies of the Prime Minister said. future." ”Just as the original Snowy Hydro project Source: Clean Energy Council brought jobs and prosperity to Australia after the Second World War, Snowy 2.0 will help

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Australia grow its way out of the economic “Snowy 2.0 will provide an additional 2,000 challenges from the coronavirus. megawatts of fast-start, dispatchable energy and provide 350,000 megawatt hours of large- “Already Snowy 2.0 is creating a jobs boom, scale storage, enough to power the equivalent with over 100 local businesses benefiting from of 500,000 homes for over a week during peak the Government’s investment to date, with demand,” Minister Taylor said. much more local investment to come.” “It will reduce volatility in the market, support Over the life of the project Snowy 2.0 will reliability and bring down power prices for create 4,000 direct jobs, as well as many more Australian families and businesses. indirect jobs as flow-on benefits are realised by local businesses and the broader region. “Snowy 2.0 is a key part of the Government’s agenda to deliver affordable, reliable power Minister for the Environment Sussan Ley said and ensure Australians get a fair deal on the rigorous environmental assessment energy.” underlined the importance of the bilateral assessment with NSW. More information about Snowy 2.0 is online at snowyhydro.com.au/our-scheme/snowy20. “Not only has the approval paved the way for critical infrastructure that will help the Source: Federal Government environment, it has ensured vital funding for protecting the area’s biodiversity,” Minister Ley said. Grid transformation to keep

“The final Commonwealth review resulted in downward pressure on bills additional conditions around heritage, public 1 July transparency on data used to underpin Recent reductions in wholesale electricity mitigation strategies and the protection of prices could be sustained by connecting more native fish species. renewables to the grid and more competition in wholesale markets, resulting in savings for “The approval process ensures the customers. development is built and operated in a way that sensitively avoids, mitigates and TransGrid’s Transmission Annual Planning rehabilitates environmental impacts while Report 2020 (TAPR), released today, outlines protecting the environment and its rich how new transmission infrastructure is biodiversity as we move to a clean energy essential to unlocking and sharing new future.” generation sources – resulting in lower wholesale prices and a better ability to meet As part of the approval, Snowy Hydro will peak demand, as coal power generation is invest almost $100 million in biodiversity and phased out. environmental enhancements, including establishing an offset fund of up to $73.8m After a brief dip in demand for electricity at through the NSW National Parks and Wildlife the height of the COVID-19 slowdown, there is Service to protect threatened species and clear momentum and a return to growth deliver long-term conservation outcomes. forecast in New South Wales.

Minister for Energy and Emissions Reduction TransGrid’s Head of Network Planning, Angus Taylor said Snowy Hydro 2.0 is a vital Andrew Kingsmill, said: “Relief from high project for the National Electricity Market. wholesale prices won’t last without the transformation of the power system, so a commitment is needed to develop more

Page 11 (Click on relevant project links to go to online Project Database) renewable energy sources and improve Kidston hydro project update interconnection to better share existing and 1 July new generation. Highlights:

- Extension of validity of offer of NAIF long- “Establishing renewable energy zones and term concessional loan funding of up to integrating new, low-cost generation will $610m to 30 September 2020 increase competition, helping to maintain - Confirmed final construction pricing and downward pressure on the wholesale capital expenditure of approximately $600 electricity market price and reduce electricity million, excluding transmission and financing bills,” he said. costs

- Updated Powerlink Offer to Connect with According to the TAPR, the summer peak validity to 30 September 2020 demand of 13,957 MW on February 1, 2020 set a record for the highest weekend demand Genex Power Limited (ASX: GNX) (Genex or in NSW. Extreme conditions on four days last the Company) is pleased to provide an update summer resulted in a tight supply-demand in relation to the development and financing balance that led to a lack of reserve condition activities for the 250MW Kidston Pumped being declared by the Australian Energy Storage Hydro Project (the Project). Market Operator.

NAIF Investment Decision – Extension of “Lack of reserve conditions will worsen if we Validity don’t address the tight supply-demand Genex is pleased to announce that the balance. It is essential to progress the Northern Australia Infrastructure Facility transformation of the power system in a (NAIF) has extended the validity of its offer for timely way. This will avoid excessive reliance a long-term concessional debt facility for the on gas peaking generation and market Project of up to $610 million, to 30 September interventions, which place upward pressure 2020. The NAIF concessional debt facility is on electricity prices,” says Mr Kingsmill. intended to provide 100% of the debt

financing for the Project. TransGrid continues to work with governments and regulators to kick-start The offer remains subject to a number of major projects and innovative solutions, conditions precedent including the finalisation including the development of: of negotiation and execution of various - Central-West Orana Renewable Energy Zone documentation. - EnergyConnect: NSW to SA Interconnector

- Powering Sydney’s Future The NAIF Board made its original Investment - HumeLink Decision on 8 July 2019 (refer ASX - Queensland NSW Interconnector Announcement dated 11 July 2019). Following

the Company’s announcement on 1 More information on our major projects is November 2019 of the requirement to available here. restructure the financing for the Project, the

validity of the offer for funding was extended Source: TransGrid to 30 June 2020 (refer ASX Announcement

dated 13 November 2019).

The decision to extend the offer to 30 September 2020 allows Genex to conclude all other aspects of the financing in a timely manner.

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Of critical importance to this, is the conclusion pricing has been supplied with validity to 30 of ongoing negotiations with the Queensland September 2020, to align with the extension Government for the co-funding of the new of the NAIF offer for funding. 185km transmission line from Kidston to Mt Fox to be built, owned and operated by In addition to the above construction Powerlink Queensland (the Transmission contractors, Genex has concluded terms with Line). On 4 September 2019, the Queensland ANDRITZ Hydro GmbH to act as the Government announced a funding package of Operations and Maintenance provider to the up to $132 million for the construction of the Project under a long-term Operations and Transmission Line (refer ASX Announcement Maintenance Agreement. dated 4 September 2019). Since this time, Genex has been negotiating with the Revised Offer to Connect from Powerlink Queensland Government to finalise terms for Genex is also pleased to advise that it has the co-funding of both the construction and received a revised Offer to Connect from ongoing operations & maintenance of the Powerlink for the Project (the Offer to Transmission Line, with the conclusion of Connect). The Offer to Connect includes the these negotiations remaining as a critical construction of the Transmission Line and condition precedent to the NAIF concessional contains updated pricing with validity to 30 debt facility and financial close. September 2020. In addition, Genex has secured the extension of its Generator Final terms agreed with Construction Performance Standards approval (refer ASX Contractors Announcement dated 14 June 2019) from the Since the announcement of the binding Australian Energy Market Operator, to 30 Energy Storage Services Agreement with September 2020 to align with the validity of EnergyAustralia Pty Ltd (refer ASX the Offer to Connect. Announcement of 30 March 2020), Genex has been extensively engaged with its Project Equity Investor Process construction contractors to update terms and Concurrently with the construction repricing pricing. Genex is pleased to confirm that it has exercise, Genex has been extensively engaged completed this exercise with the finalisation with a selection of potential equity investors of terms with its core contractors as follows: to take up to a 50% interest in the Project - Engineering, Procurement and Construction through an investment of new cash equity. (EPC) contractor – Joint Venture of McConnell This process has been well received and Dowell Constructors (Aust) Pty Ltd and John Genex will provide an update in relation to Holland Pty Ltd; the selection of its preferred equity partner in - Electromechanical Equipment subcontractor due course. to EPC – ANDRITZ Hydro GmbH; - Connection Assets Infrastructure1 – Beon Timeline for Financial Close Energy Solutions Pty Ltd; Genex continues its intensive engagement - Construction Camp Operator – ISS Facility with Project stakeholders to finalise its Services Australia Ltd; and arrangements for the financing of the Project. - Owner’s Engineer – Hydro-electric Subject to concluding these activities and in Corporation (Hydro Tasmania) (trading as particular, finalisation of terms with the Entura). Queensland Government for the co-funding of the Transmission Line, Genex continues to The construction program is scheduled over target financial close for the Project in the 3.75 years and has a total capital cost third quarter of the 2020 calendar year. (including all site costs and contingency allowances) of approximately $600 million, Commenting on today’s announcement, excluding transmission costs, financing costs Genex CEO, James Harding stated: and Genex’s development costs to date. This

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“Since the signing of the binding Energy project. It will help move renewable electricity Storage Services Agreement with generation in the lower South Island north EnergyAustralia in March 2020, the Genex during high inflow events and redirect hydro team has been extremely busy in reconfirming generation if the Tiwai Point smelter closes or arrangements with its other project curtails its operations, while enabling further stakeholders. With the extension of the NAIF medium-term investment in renewable offer for funding, confirmed terms with key energy projects in the lower South Island,” he contractors and revised Offer to Connect, we said. remain on track to close out the financing activities within our timeline, subject to “The CUWLP work will also form an important finalising the arrangements with the part of Transpower’s broader infrastructure Queensland Government for co-funding of the investment programme outlined in its transmission line. Whakamana i Te Mauri Hiko – Empowering our Energy Future report. We see early Kidston is a critical project for Queensland investment in the transmission network and Australia – it will be the first pumped playing a key role in accelerating storage hydro project in the NEM in almost 40 electrification, accelerating renewable years, will deliver over 500 direct construction projects and stimulating both the economy jobs over the next four years, and will provide and employment across the country in the much-needed synchronous firming capacity to coming years.” the North Queensland power network and by providing this support will immediately unlock In December 2019, Contact Energy and additional renewable Meridian Energy put forward up to $5 million projects in North Queensland. We remain each to allow enabling works to commence focused on delivering the financing such that early. Transpower has advised that the work is we can commence construction in the coming now likely to be completed by winter 2023. months.” Source: Contact Energy 1 Connection Assets Infrastructure relates to the interface between the EPC scope and the Powerlink Transmission Line scope, being a PROJECT NEWS new substation at Kidston, switching station Coonalpyn Solar Farm for the Project, 275kv interconnections and 6.6kv back up power supply. Streaky Bay Solar Farm Flow Power is seeking electricity generation Source: Genex Power licences for two its under construction South Australian solar farm projects, the 4.95 MW AC Coonalpyn Solar Farm and the 3.4 MW Update on Clutha Upper DC/3 MW AC Streaky Bay Solar Farm. Both projects were originally developed by Tetris Waitaki Lines Project Energy and will contribute to the City of 1 July Adelaide’s PPA with Flow Power to be 100% Contact Energy CEO Mike Fuge said the powered by renewable electricity. Both are company was “very pleased” that Transpower using ground-mounted PV Jinko panels, New Zealand was continuing with the Nextracker single axis trackers and SMA remainder of the Clutha Upper Waitaki Lines centralised inverters. Project (“CUWLP”) following consultation over the past month.

“We’re very pleased to see continued investment in this approved transmission

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Sydney flicks the switch to money and support regional jobs in wind and solar farms in Glen Innes, Wagga Wagga and 100% green power the Shoalhaven.” 1 July From 1 July, The City of Sydney will be The innovative green electricity deal is a powered using 100 per cent renewable power purchase agreement with retailer Flow electricity, generated from wind and solar Power. CEO Matthew van der Linden said the farms in regional NSW. City’s commitment to achieving 100 per cent renewable energy would help accelerate Valued at over $60 million, it is the biggest Australia’s transition to a net-zero carbon green energy deal of its kind by a council in future. Australia. “This is a landmark achievement for the City All the City’s operations – including street of Sydney. If organisations can follow in the lights, pools, sports fields, depots, buildings City’s footsteps, a net-zero carbon future is and the historic Sydney Town Hall – will now achievable,” Mr van der Linden said. be run on 100 per cent renewable electricity from locally-sourced clean energy. “The City is directly matched to these renewable projects, a move that supports the The switch is projected to save the City up to integration of renewables into the system.” half a million dollars a year over the next 10 years, and reduce C02 emissions by around Around three-quarters of the power will be 20,000 tonnes a year – the equivalent to the wind-generated, and the remaining quarter by power consumption of more than 6,000 solar. households. The project will see the City source renewable Lord Mayor Clover Moore said the new energy from three different generators - the agreement will generate jobs, support Bomen Solar Farm in Wagga Wagga, Sapphire communities impacted by the Covid-19 Wind Farm near and the Shoalhaven pandemic and create new opportunities in solar farm in Nowra. drought-affected regional NSW. The Shoalhaven project is being developed by “We are in the middle of a climate Flow Power in partnership with local emergency. If we are to reduce emissions and community group Repower Shoalhaven, a not grow the green power sector, all levels of for profit volunteer community enterprise government must urgently transition to that develops community solar projects. On renewable energy,” the Lord Mayor said. completion, the 3-megawatt Shoalhaven solar farm will have around 10,000 panels and “Cities are responsible for 70 per cent of generate enough energy to power 1,500 greenhouse gas emissions worldwide, so it is homes. critical that we take effective and evidence- based climate actions. On behalf of Repower Shoalhaven, member Bob Hayward said the power purchase “The City of Sydney became carbon neutral in agreement will directly support the regional 2007, and were the first government in community. Australia to be certified carbon neutral in 2011. This new deal will see us reach our 2030 “Shoalhaven solar farm could not have target of reducing emissions by 70 per cent by become operational without the City’s 2024, six years early. investment. By partnering with this project, we’re creating local jobs and helping the “This ground-breaking $60 million renewable renewables sector grow,” Mr Hayward said. electricity deal will also save our ratepayers

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“The City of Sydney decision to include a AER’s State of the Energy regional community-based scheme brings us a step closer to a sustainable decarbonised Market 2020 outlines rapid future while supporting regional investment evolution of energy sector and employment. We congratulate the City 1 July for this significant commitment.” The Australian Energy Regulator (AER) today released its State of the Energy Market Owned by the Australian-listed company, Spark 2020 report, a deep-dive examination of the Infrastructure, the 120MW Bomen Solar Farm Australian energy sector. has more than 310,000 solar panels on 250 hectares of land. It is one of the first projects in AER Chair Clare Savage said the exceptional Australia to use bi-facial panels that absorb market and consumer insights contained in sunlight on both sides, with tracking technology the report represent a vital tool for any that shifts each panel throughout the day to participant in the Australian energy sector. capture the sun’s energy. “There’s unprecedented change in the way Spark Infrastructure Chief Executive Rick we generate, distribute and use energy. Francis said this is an exciting milestone for the City of Sydney, and the regional “Consumers have increasing control in how communities playing an increasingly critical they consume and manage their energy. The role in the State’s energy supply. pace of technological change in the energy sector presents emerging challenges in “This project has not only delivered clean traditional market definitions and boundaries. energy for Australia’s largest city, but represents a significant investment in the “The AER actively monitors this evolution Wagga Wagga community and Riverina through our energy market performance region, anchoring the region’s role as a future reporting and the State of the Energy Market renewable energy hub for New South Wales,” 2020 report serves as a valuable resource for Mr Francis said. market participants and decision makers across the policy, legal and regulatory The near Inverell is the spheres,” said Ms Savage. largest wind farm in NSW, with a 270MW capacity generated by 75 turbines that stand Key elements of the energy market evolution 200 metres high. Partly owned by CWP identified in this year’s report include: Renewables, CEO Jason Willoughby said the  Investment in renewable generation company was proud to support the City’s is increasing but more work is needed renewables program. to support a smoother transition.  Networks have lower revenue than “Wind is a natural energy choice providing a before and are better at managing much needed alternative to fossil fuels. We their costs while also improving the hope this inspires other councils and reliability of their networks and their organisations to follow the City of Sydney’s engagement with consumers. lead,” Mr Willoughby said.  Gas production is at its highest ever level while prices are falling “The Sapphire Wind Farm produces enough internationally and this is carrying clean energy to power 115,000 homes and through to the domestic market. displaces 700,000 tonnes of carbon dioxide,  Innovations to support consumer while bringing economic benefits to the local behaviour during the transition are NSW New England region and the ACT.” emerging, such as demand response and cost reflective tariffs. Source: City of Sydney

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 Decreasing wholesale prices and The emergence of COVID-19 in early 2020 network costs, as well as new sparked a swift response by the AER as it initiatives such as the Default Market moved to ensure that energy consumers were Offer (DMO) are putting downward protected. pressure on retail prices, which is good news for consumers. “Our Statement of Expectations released in the wake of COVID-19 encouraged retailers to In addition to a chapter dedicated to analysis extend payment plans and not disconnect of the transition in the Australian energy customers under financial stress. Pleasingly, market, other key elements of the AER’s both networks and retailers quickly adopted 2019-20 work detailed in State of the Energy these expectations. Market 2020 include its activities to:  Review and approve transmission “We will continue to monitor the impacts of projects to strengthen the national COVID-19 on the Australian energy market grid and assist with the uptake of and encourage all parts of the supply chain to renewables. work together to support consumers and the  Approve innovative network tariffs industry,” said Ms Savage. and managing demand management initiatives to assist consumers make In July 2019, the Australian Government the most of new smart technology. introduced the DMO as a cap on the price that  Support innovations in gas electricity retailers can charge consumers on distribution such as Jemena Gas standing offer contracts. The AER developed Networks’ research into hydrogen as the DMO mechanism and sets price caps in a household fuel. south east Queensland, New South Wales and  Expand the EnergyMadeEasy website South Australia. to help consumers find the best energy deal for their needs. The report demonstrates that from July 2019  Support Australian consumers who to January 2020, standing offer prices for have been financially impacted by residential consumers fell by 11–13 per cent COVID-19. in NSW, 12 per cent in South Australia, and 10 per cent in south east Queensland. Major policy reforms on access to the pipelines used to transport gas to market and “We recognise that market and regulatory innovative work between energy networks frameworks exist to serve the long term and their consumers on how services should interests of consumers, but meeting their be shaped are also examined in detail in the diverse needs is challenging. report. “There are still many consumers who may not “These changes free up capacity on gas want to, or simply cannot, effectively engage pipelines which means more gas can be sent in what is a complicated market and the DMO more cheaply, resulting in lower prices for works to protect their interests. consumers when they use their appliances at home. “Our State of the Energy Market Report is a valuable resource that helps us all better “Networks are engaging ever more closely understand the drivers of change as we with consumers on issues like reliability and transition into a new model while managing access to innovations around how households the impact of COVID-19.” use and generate their energy. This means better outcomes for both businesses and Source: AER consumers when the AER makes decisions,” said Ms Savage.

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New solar farm registered in “The hard work, collective effort and collaborative approach utilised by AEMO and the West Murray Zone TransGrid, throughout this process, has been 2 July fundamental in achieving registration. A major step forward in the West Murray Zone was achieved with the Australian Energy Source: AEMO Market Operator (AEMO) granting registration for the RWE Renewables-owned Limondale 1 a 220-megawatt alternative current (AC) solar photovoltaic (PV) farm, located near Balranald VivoPower International PLC in south-west New South Wales. Announces Contract to Complete Electrical Works for In April 2020, AEMO lifted the generation constraints on five West Murray solar PV 39 MWdc Molong Solar Farm farms with the successful implementation of a 2 July new solution to voltage oscillations, which VivoPower International PLC (VVPR) was developed in close collaboration with (“VivoPower”), an international solar and industry. This allowed AEMO to progress critical power services company, is pleased to assessments of new generation projects in the announce that its wholly-owned subsidiary in West Murray Zone. Australia, J.A. Martin Electrical Pty Limited (“J.A. Martin”) has recently been awarded a AEMO’s Chief System Design & Engineering contract to complete all electrical works for Officer, Alex Wonhas, said that Limondale’s the 39 MWdc Molong Solar Farm. Located 40 registration is another milestone towards kilometres northwest of the town of Orange unlocking new generation in the West Murray in New South Wales, the project will be the Zone. second Australian solar farm completed by J.A. Martin in partnership with lead contractor “AEMO congratulates RWE Renewable in Grupo Gransolar (“GRS”). The Molong project achieving registration for the Limondale 1 brings J.A. Martin’s total of completed and solar PV farm and recognises the company’s contracted solar farms to over 150 MWdc, a collaborative and responsive approach milestone reached within 3 years of through the connection process to commencing solar operations. registration,” he said. Expected to be energised later this year, the “While the West Murray Zones presents very Molong Solar Farm will generate enough clean challenging network conditions, the collective energy to power nearly 11,000 homes and efforts from across the industry and TransGrid avoid over 53,000 tonnes of CO2 per year. in working with AEMO is helping address Construction of the facility will create about these emergent grid performance and 160 local jobs. stability issues,” he said. Phil Lowbridge, General Manager of J.A. The Limondale solar PV plant consists of Martin, said, “J.A. Martin is very pleased to Limondale 1 and 2, which includes of have been awarded this contract for the approximately 872,000 panels and an export Molong Solar Farm. We look forward to capacity of 249 MW AC. working once again with GRS to deliver another world-class solar farm, and to support RWE Renewables Senior Asset Manager, Peter infrastructure growth and economic recovery Veljkovic, said: “ would in regional New South Wales.” like to acknowledge the hard work of all parties involved to achieve this significant Source: VivoPower milestone.

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