Chapter 2: Victoria's Renewable Energy Resources
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Chapter 2: Victoria’s renewable energy resources Introduction Despite wide recognition of the urgent need to reduce carbon emissions, particularly in relation to the energy sector, renewable energy accounts for only a small percentage of Victoria’s energy production. The installed capacity of operating renewable energy projects by source is set out in figure 2.1. Hydroelectric power makes up the largest percentage – 56 per cent followed by wind (34 per cent), biomass (8 per cent) and geothermal (1.3 per cent).Total electricity installed capacity (the maximum rate at which power can be produced) in Victoria in 2008 was 9,290 megawatts.6 The renewable energy capacity component was approximately 1,151 megawatts.7 Figure 2.1 Renewable energy – installed capacity of operating projects in Victoria (as at 22 October 2009) Tidal: 0.15MW, 0% Biomass: 110.1MW, 8.1% Geothermal: 18.15MW, 1.3% Wind: 458.4MW, 33.7% Solar: 13.3MW, 1% Hydro: 760.1MW, 55.9% Source: Sustainability Victoria, personal communication, 22 October 2009 6 Victorian Government, submission no.21, p.3 7 Victorian Government, submission no.21, p.3 5 Inquiry into the Approvals Process for Renewable Energy Projects in Victoria Although the capacity represents approximately 10 per cent of total electricity, the amount of renewable energy actually produced ranges between 2 and 4 per cent. 8 Renewable energy production is currently at 1.8 per cent due to the falling water levels in hydroelectric dams. As Ms Marianne Lourey, Executive Director of Energy Sector Development, Department of Primary Industries explained to the Committee: The big issue with the numbers [percentage of renewable energy] at the moment is the drought. Much of our existing renewable energy generation is based on hydro generation. A couple of years ago our renewable energy generation was at about 4 per cent. Since then we have … had a number of new wind farms constructed in the state. If we had not had the drought, the number would be quite a bit higher than 4 per cent. As it is, it is 1.8 per cent. We have got a number of hydro generators that are unlikely to be operating for another few years at least, and obviously that depends on more rain coming in. That has impacted on figures over the last couple of years. 9 According to Sustainability Victoria data, wind was the largest source of renewable energy in Victoria, generating just over 656 GWh in 2008 (figure 2.2). This was approximately 36 per cent of all renewable energy generated in Victoria. Bioenergy and hydro accounted for 32 per cent and 31.7 per cent respectively. Figure 2.2 Generated renewable energy in Victoria, 2008 Tidal: 0.007 GWh, 0% Biomass: 595.3 GWh, 32.3% Wind: 656.7 GWh, 35.6% Geothermal: 5.4 GWh, 0.3% Solar: 2.85 GWh, 0.2% Hydro: 585.6 GWh, 31.7% Source: Sustainability Victoria, personal communication, 22 October 2009 8 Ms M Lourey, Executive Director, Energy Sector Development, Department of Primary Industries, briefing to the Environment and Natural Resources Committee – Melbourne, 22 June 2009 Capacity is defined as the maximum rate of production, for instance if all the state’s wind farms were operating 100 per cent of the time. However wind farms generally operate between about 30 per cent and 35 per cent of the time and solar facilities (depending on the location) operate approximately 20 per cent of the time 9 Ms M Lourey, Executive Director, Energy Sector Development, Department of Primary Industries, briefing to the Environment and Natural Resources Committee – Melbourne, 21 July 2009 6 Chapter 2: Victoria’s renewable energy resources The following table sets out the five largest producers of renewable energy in Victoria in 2008. Table 2.3 Top five renewable stations by generation in Victoria in 2008 Technology Generation Generation growth on 2007 Power stations (MWh) (per cent) 1 Maryvale Mill Bioenergy 166,000 -8.0 2 Challicum Hills Wind Farm Wind 139,000 -8.3 3 West Kiewa Hydro 116,000 -0.7 4 Yambuk Wind Farm Wind 86,000 -4.7 5 Springvale and Clayton Bioenergy 86,000 114.6 Landfill Gas Power Plant Source: The Climate Group, Australian electricity generation report 2008: Victoria, New South Wales, Queensland and South Australia, Greenhouse indicator series, July 2009, p.10 Note: A megawatt hour is how much energy is produced by a one MW generator in one hour. For example a 320 MW generator will produce 320 MW in one hour and 640 in two hours. MWh = MW/hours Victoria accounted for only 12 per cent of the renewable energy generated by Victoria, New South Wales, Queensland and South Australia in 2008.10 It is important to note that although Victoria has world class renewable resources, a number of additional factors determine the viability of projects including access to and capacity of the electricity grid; compatibility with and proximity to other land and water uses such as shipping channels and national and marine parks; and community and government support. The next section provides details of the state’s renewable resources and does not attempt to assess the resources in light of such determining factors. 10 The Climate Group, July 2009, Australian electricity generation report 2008: Victoria, New South Wales, Queensland and South Australia, Greenhouse indicator series, p.8 7 Inquiry into the Approvals Process for Renewable Energy Projects in Victoria Types of renewable energy in Victoria Renewable energy generators operate across the state as illustrated in figure 2.4. Figure 2.4 Renewable energy generators in Victoria Source: Sustainability Victoria, personal communication, 19 October 2009 Wind According to Sustainability Victoria, Victoria has access to world class wind resources.11 A Victorian wind atlas was released in 2003 to promote the resource. The atlas contains maps of the state’s wind resources and proximity to the electricity network. Wind resources by local government area are also detailed. The atlas states that across Victoria, the average wind speed is 6.5 metres per second. The windiest locations are along the coastline and following the Great Dividing Range as illustrated in figure 2.5. The significance of seemingly minor variations in wind speed to the viability of wind farms was explained by the Managing Director of NewEn Australia, Mr Ernst Weyhausen: 11 Department of Sustainability and Environment, <www.sustainability.vic.gov.au/www/html/2115- wind.asp?intSiteID=4>, accessed 22 September 2009 8 Chapter 2: Victoria’s renewable energy resources … the initial wind farms of course were built in Victoria along the coastline. The reason for that is there is more wind along the coastline, which makes the wind farm more economic. We all know that we should not go to the coast any more, but I would just like to point out that Victoria inland, in the Western District, has an average speed of around seven metres per second whilst at the coast it is eight metres, and the difference between these two wind speeds amounts to approximately 30 per cent of energy reduction and 30 per cent less energy inland versus the coast of course has a huge impact on the economic viability of a wind farm. 12 Figure 2.5 Average yearly wind speed (metres per second at 65 metres above ground) Key: Average Yearly Wind Speed (metres per second at 65 metres above ground) Source: Sustainability Victoria, <http://www.sustainability.vic.gov.au/www/html/2111-wind.asp>, accessed 5 October 2009 The first wind farm in Victoria was commissioned at Codrington in 2001 with a capacity of 18 MW. According to the Victorian Government submission, the state now has a cumulative capacity of 428 MW of large scale wind power. Wind farms are currently operating in the south west of the state (Portland, near Ararat and Port Fairy), in South Gippsland (Wonthaggi and Toora) and Waubra (35 kilometres north west of Ballarat). Additional projects totalling 1,554 MW have been approved, as set out in figure 2.6. Numerous other projects are in the planning system. 12 Mr E Weyhausen, Managing Director, NewEn Australia, Environment and Natural Resources Committee public hearing – Ararat, 24 August 2009, transcript of evidence, p.32 9 Inquiry into the Approvals Process for Renewable Energy Projects in Victoria Figure 2.6 Approval status of wind farms in Victoria 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 (Cumulative ) WindEnergy Capacity (MW) 0 Major Approved Planning Planning Permit Referred to Planning operating wind farms Permit Permit Application Minister for (feasibility) wind farms (not Application Application yet to be Planning for Stage operational) lodged with lodged with lodged with decision on the Minister for the Council Minister need for an Planning (permit EES (permit process process underway) underway) Source: Victorian Government, submission no.21, p.3 South west Victoria is a renewable energy rich part of the state and contains the highest number of wind farms. Figure 2.7 illustrates the status of wind farm projects in the Barwon South West Region (Department of Planning and Community Development) as at 8 September 2009. 10 Chapter 2: Victoria’s renewable energy resources Figure 2.7 The status of wind farm projects in the Barwon South West Region (as at 8 September 2009) Source: Department of Planning and Community Development, ENRC hearing, 8 September 2009 The focus of this inquiry has been on the approvals process for wind farms, as the technology is proven and amongst the most competitive forms of renewable energy in Victoria. Bioenergy Organic matter, or biomass, can be converted into heat and/or electricity and biofuels (to generate electricity or for transport) using a variety of technologies.