Project Update Week ending 3 April 2020

QNI project progresses following regulator determination on RIT-T 29 March The project to upgrade the current TransGrid began working with Queensland Queensland NSW Interconnector, increasing transmission business Powerlink to initiate the the transmission capacity between the two RIT T process in November 2018 and a states, has advanced today following the number of network and non-network options decision by the Australian Energy Regulator were considered. (AER) to approve the Regulatory Investment Test for Transmission (RIT-T). The project has been supported by the Australian and NSW Governments which have Executive Manager of Works Delivery Michael provided joint-underwriting to enable Gatt said TransGrid welcomed the Regulator’s TransGrid to accelerate the delivery of the determination which supports the options upgrade. assessment, costs and net benefits of the QNI project. Mr Gatt says early works have commenced on the upgrade project which is expected to be “The QNI upgrade is important because it will delivered in September, 2021. increase the capacity to share electricity between Queensland and New South Wales “TransGrid is already working to deliver the and reduce current and forecast network upgrade, conducting environmental, constraints,” said Mr Gatt. geotechnical and site surveys and engaging with communities along the existing “It will ensure greater reliability of lowest cost transmission line corridor.” electricity, as we enable more efficient sharing on the NEM and introduce more For more information about the project, visit: innovative technology to the system. The www.transgrid.com.au/QNI project is expected to provide net benefits of $170 million to electricity customers and Source: ElectraNet and TransGrid producers,” he said.

TransGrid is upgrading the 20 year old transmission lines and three substations at Tamworth, Dumaresq and Armidale.

“It will allow 460MW more power to transfer into Queensland and 190MW more into New South Wales and the ACT when it’s needed and it will link customers to the National Energy Market.

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Genex signs binding Energy the ESSA. Following today’s announcement, and subject to agreeing suitable terms with Storage Services Agreement NAIF and , Genex is with EnergyAustralia for the now seeking to reach financial close on the Project in the third quarter of the 2020 Kidston Hydro Project calendar year. The Company will continue to 30 March keep the market informed of developments in Highlights: relation to this timetable as appropriate. • Binding Energy Storage Services Agreement signed with EnergyAustralia Pty Ltd Commenting on today’s announcement, • Full dispatch rights contract with a term of Genex CEO, James Harding stated: up to 30 years “Since November 2019, Genex has been • Significant step towards achieving financial actively working with all of its project close of the Kidston Hydro Project stakeholders, including EnergyAustralia, NAIF and the Queensland Government, to Genex Power Limited (ASX: GNX) (Genex or complete the restructuring of the project the Company) is pleased to announce that it financing for K2-Hydro and progress to has today finalised its offtake arrangements financial close as quickly as possible. for the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro or the Project) with We have been extremely pleased with the the signing of a binding Energy Storage support of our stakeholders and Services Agreement (ESSA) with counterparties during this period and now EnergyAustralia Pty Ltd (EnergyAustralia). A believe, with today’s signing of the ESSA with summary of the key terms of the ESSA is EnergyAustralia, that we have the basis to below: move forward to financial close of the Project. • A term of up to 30 years, with an initial term of 10 years and two options (at The K2-Hydro project will be the first pumped EnergyAustralia’s election) to extend for a storage hydro project in the National further 10 years each (Extension Options); Electricity Market in almost 40 years, and the • Genex will provide the full operational first to be developed under private dispatch rights for the K2-Hydro plant ownership. It will create over 500 jobs during (including P&L responsibility) to construction and deliver significant economic EnergyAustralia in exchange for a fixed annual benefits to Queensland through providing rental payment, escalating over the total reliable generation for the grid and applying term; downward pressure on wholesale electricity • Following the expiry of the full 30-year term prices. We look forward to keeping the and therefore conditional on the exercise of market informed as we progress toward the Extension Options, EnergyAustralia shall financial close, and to commencing have the right to acquire Genex’s construction at Kidston later this year.” shareholding in the Project for a fixed cash payment; and Source: Genex Power • The ESSA is subject to a number of conditions precedent, including achieving financial close for the Project, which must be satisfied prior to the financial close sunset date of 31 December 2020.

Genex remains deeply engaged with the other Project stakeholders, including the Northern Australia Infrastructure Facility (NAIF) to complete the restructuring of the project financing on the basis of the agreed terms of

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PROJECT NEWS - Generate a workforce of approximately 400 Macintyre Wind Farm over the life of the project - Result in the establishment of a Community Located approximately 50 km South-West of Enhancement Program to strategically deliver Warwick and 60 km South-South-East of added value to the local regional over the life Millmerran, the proposed MacIntyre Wind cycle of the project Farm is expected to have an export capacity - Provide a sustainable and renewable source of approximately 1,026 MW and up to 180 of energy for the region, with clean energy turbines. equivalent to the consumption of around

700,000 homes The MacIntyre Wind Farm will be located - To find out more about the MacIntyre Wind within 36,000 hectares of leased land Farm check out the Fact Sheet. approximately 200 kms south-west of

Brisbane and approximately 50 kms south- EMPLOYMENT OPPORTUNITIES: west of Warwick in Queensland. If you are seeking work opportunities, you can

submit an ‘Expression of Interest’ for the The MacIntyre Wind Farm will be constructed MacIntyre Wind Farm Project here. on land predominately used for sheep farming. Current farming practices will SUPPLIER AND CONTRACTING continue during the construction and OPPORTUNITIES: operations phases of the wind farm. - If you are interested in acquiring energy

from the MacIntyre Wind Farm, please find The site has been selected due to its exposure more information on Corporate Power to consistent winds across this part of the Purchasing Agreements (PPA’s) here. country and provides a suitable resource for - ACCIONA is committed to supporting local the development of a wind farm. industry participation and is encouraging local

suppliers and contractors that are interested CURRENT STATUS in conducting business for the project to The MacIntyre Wind Farm is currently in the register through the ICN Gateway – MacIntyre development phase of the project. ACCIONA Wind Farm Project page - via this link. plans to submit a development application seeking a development permit for a Material ENQUIRIES AND FEEDBACK: Change of Use (MCU) to allow construction For further information about the project, or and operation of the wind farm to the State to provide feedback: Assessment and Referral Agency (SARA) in Phone: 1800 283 550 mid 2020. Email: [email protected]

Post: ACCIONA 5/88 Creek Street, Brisbane, Expected capacity: 1,026 MW QLD 4000 Number of Turbines: Up to 180

Maximum Tip Height: 285 metres Source: Anticipated construction commencement: https://www.acciona.com.au/projects/energy Mid 2021 /wind-power/macintyre-wind-farm/ Anticipated construction duration: 18 – 24 months

BENEFITS: - Provide significant economic activity across the Goondiwindi, Southern Downs and Toowoomba Regional Council areas

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Plan for large Rockhampton Control Ancillary Services markets or providing Fast Frequency Response. hydrogen electrolyser 30 March This will be important as more renewable Renewable hydrogen could be produced on energy comes online, as the variability of wind the site of an existing power station in central and solar makes it more difficult to maintain Queensland. the steady 50 Hz frequency the electricity network needs. While these services were The plan by the Stanwell Corporation to install historically delivered by fossil fuel plants, a large Rockhampton hydrogen electrolyser work is underway to advance renewable alongside its power station has attracted alternatives like grid-scale batteries and even funding from ARENA. wind farms themselves.

The study will explore whether it is technically ARENA supporting hydrogen innovations and economically feasible for Stanwell to The project is the latest renewable hydrogen produce hydrogen at scale using a 10 MW or feasibility study to receive ARENA funding. In larger electrolyser. recent months, ARENA has announced support for Yara Fertilisers, Dyno Nobel and While the electrolyser will be co-located with Queensland Nitrates to explore the use of the existing Stanwell power plant, electricity renewable hydrogen to produce ammonia at will be supplied by renewables through a their large, regional facilities. power purchase agreement or large-scale generation certificates from renewable The funding has been allocated under the energy sources. agency’s work to position Australia as a leading producer and exporter of renewable The Rockhampton hydrogen electrolyser hydrogen. study aims to define the highest value end use for renewable hydrogen, and determine the ARENA CEO Darren Miller said the project will ideal conditions for operating electrolysers at help to drive innovations in the hydrogen scale. It will assess a range of commercial supply chain. pathways for renewable hydrogen, including liquid ammonia, compressing the hydrogen “Through Stanwell’s feasibility study we’re for sale as a gas, and use in a gas turbine or showing a new option for producing and using fuel cell to generate electricity. renewable hydrogen. This will create opportunities across the domestic economy Stanwell’s close proximity to the ports of and help to position Australia to become a Rockhampton and Gladstone will allow major renewable energy exporter,” Darren hydrogen to be shipped to domestic and Miller said. international markets. “The construction and operation of a utility Co-locating the facility with an established scale electrolyser is important to demonstrate power station offers a number of benefits. the costs associated with producing The hydrogen electrolyser can use pre- renewable hydrogen at scale.” existing land use approvals and take advantage of the existing connection to the “If feasible, this could help underpin future electricity network. The electrolyser can also commercial scale deployments leveraging tap into the site’s demineralised water existing network infrastructure at other supplies for hydrogen production. power stations, and play a role in driving down the cost of domestic hydrogen Using the power station’s grid connection will production,” Mr Miller said. also mean the electrolyser could improve system security by participating in Frequency

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Following the meeting of energy ministers at study, to better reflect the forecast operating COAG in November, ARENA announced a $70 conditions of impacted generators. million funding round for projects that produce renewable hydrogen at scale. A AEMO remains committed to providing the national round of consultations was market with as much transparency as possible conducted in February, and applications are about where new generation is expected to expected to open in the coming weeks. connect to the grid, publishing MLF updates more frequently to assist in identifying Source: ARENA changes and trends, as well as working with industry and the AEMC on possible options to reduce the impact of large year-on-year AEMO releases final Marginal changes. The forecasts do not factor in the impact COVID-19 may have on the economy Loss Factors for FY20-21 and energy sector, including MLFs. 31 March Today, the Australian Energy Market Operator Source: AEMO (AEMO) released its final report determining Marginal Loss Factors (MLFs) for the 2020-21 financial year. This report builds $4 million plus solar farm on the indicative and draft reports released in November 2019 and March 2020, which contract executed provided early insights into expected MLF 31 March changes across the National Electricity Market - Full design and construction contract (NEM). executed for 5MWAC solar farm - MPower specifically targeting 5MWAC solar In recent years, supply and demand patterns farms in the NEM have been changing at an - Contract further strengthens MPower’s increasing rate, driven by new technology and order book a changing generation mix. This has led to large year-on-year changes in MLFs that MPower, Australia’s leading specialist applied between 2017/18 the 2019/20 renewable energy, battery storage and financial years calculated under the current microgrid business, is pleased to announce regulatory framework and methodology, that it is proceeding with the full design and particularly in areas of high renewable construction of a 5MWAC solar farm in South penetration that are electrically weak and Australia with a subsidiary of Astronergy Solar remote from load centres. Australia Pty Ltd.

The final MLF report highlights small changes MPower and Astronergy have executed an between the 2019-20 and the 2020-21 MLFs Engineering, Procurement and Construction compared to preceding years, which are contract valued at over $4 million in relation mainly due to changes in projected power to one of the two solar farm projects that flow over the transmission network. Driving MPower commenced work on in January 2020 these changes is an increase in projected after securing a Limited Notice to Proceed. output from new renewable generation The contract execution further strengthens coming online across the NEM, particularly in MPower’s order book. Victoria, NSW and Queensland. MPower is specifically targeting solar projects System strength limits in north-west Victoria of this size due in part to their relative ease in and south-west New South Wales (collectively connection to the grid. MPower successfully referred to as West Murray), and in northern commissioned two 5MWAC solar farms in Queensland have been included in the MLF 2019 at Mannum and Port Pirie in South

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Australia and is actively pursuing further Carnegie is pleased to inform shareholders projects in this niche part of the renewable that the team has achieved the first energy sector. milestones of the new CETO Digital Development Pathway: MPower and Astronergy are working towards • Developed the machine learning based an Engineering, Procurement and Wave Predictor capable of predicting the Construction contract in respect of the second characteristics of waves that will reach the solar farm project that MPower commenced CETO Unit up to 30 seconds in the future. This work on in January 2020. In the interim, the is the first product in Carnegie’s suite of value of authorised work under the Limited intelligent control products which will be Notice to Proceed for that project has been capable of increasing the energy captured by increased from $125K to $500K to enable a CETO Unit and also has potential as a early design and other works to progress. standalone commercial product. • Undertaken a comprehensive landscaping & The two grid-connected solar farm projects market study on potential generator developed by Astronergy feature single axis technologies and suppliers, progressing the tracking technology and are expected to be development of a new fully electric PTO. The completed this calendar year. PTO converts the wave-driven motion of the CETO buoy into electricity. Comment MPower’s Chief Executive Officer Nathan Carnegie’s new CETO Digital Development Wise commented: “Working with a blue chip Pathway, as outlined to shareholders in company like Astronergy on these solar farm Carnegie’s July 2019 Prospectus, aims to projects is very exciting and is directly in line optimise the design of the CETO technology to with our stated strategy of pursuing solar significantly improve performance and reduce farm projects of this size with asset owners.” cost via the development and integration of several innovations. “MPower has developed an enviable capability in the successful delivery of 5MW Source: Carnegie Clean Energy solar farms and continues to strengthen its order book in the growing renewable energy sector.” Windlab Limited – execution of

Source: MPower subordinated loan facility agreement 31 March CETO Digital Development Windlab Limited (ASX:WND) (‘Windlab’ or the Pathway milestones achieved ‘Company’) announced today that it has entered into a $20m subordinated debt 31 March facility agreement with Squadron Energy Pty (Excerpt) Ltd(“Squadron”) and Federation Wind • Achieved first two CETO Digital Acquisition Pty Ltd(“Federation”). The facility Development Pathway milestones provides Windlab with access to the necessary • Wave Predictor developed and capable of funds to manage liquidity through any future accurately predicting waves 30 seconds in the project delays including future (“Kennedy”). Drawdown of the loan is subject • Potential standalone commercial to completion of customary conditions applications for Wave Predictor precedent, including the granting of second • Completed generator market study for new ranking security across the Windlab group. A electric power take-off (PTO) waiver to listing rule 10.1 has been granted by

the ASX to allow granting of this security. The

Page 6 (Click on relevant project links to go to online Project Database) terms of this waiver are disclosed as Annexure industrial sites to evaluate emissions A to this announcement. reduction strategies with the TESS.

Windlab’s Board examined alternative The Company is adapting to the capital approaches for raising capital to deal with market and business constraints by reducing liquidity including potential cash requirements hours, effecting redundancies and deferring for Kennedy and determined that this the upgrade of the silicon storage in the GAS- transaction was on the most favourable TESS. The board and senior management have commercial terms and is fair and reasonable participated by agreeing to between 25% to from the perspective of Windlab 75% cut in fees and salaries, with the shareholders. The commercial terms of the Executive Chairman taking a 50% pay cut. The subordinated debt facility were considered by board will consider issuing shares to key the Board to be reasonable and on arm’s employees to compensate for the reduction in length commercial terms. cash salary.

The availability of the funding under the Although we are anticipating commercial subordinated debt facility is not conditional decisions within six months, these measures, on Windlab shareholders approving the if carried forward, would reduce cash proposed scheme of arrangement announced outflows by about $2m to support operations by Windlab on 4 March 2020. into second half 2021.

Source: Windlab Source: 1414 Degrees

Sydney Metro Electricity & 14D confirms capital adequacy Offsets Procurement 2 April 1 April • Budget review confirms 14D has sufficient Expression of Interest for Pre-Qualification funds to maintain technology and project development Tender Details • GAS-TESS business case continuing Supply the electricity consumed by Sydney • Strong interest in the Aurora Project Metro Northwest and the electricity and • Staff and Board cuts offsets consumed by Sydney Metro City &

Southwest during augmentation of the City & 1414 Degrees is pleased to advise that it has Southwest line. reviewed its budgets and can confirm the

Company has sufficient funds to maintain its This Request for Expression of Interest (EOI) technology and project development. invites Applicants from appropriately licensed,

large-customer electricity entities wishing to Our business case modelling with SA Water be short-listed to tender for a contract to for the GAS-TESS integrated into the Glenelg deliver Sydney Metro’s electricity and offsets Wastewater Treatment Plant will continue requirements from 1 January 2021 to 31 until mid-year after which we are expecting a December 2025. commercial decision.

Closes 28-Apr-2020 10:00am Our commercial team has also been working with utilities and financial entities attracted by Contact Person the TESS-GRID as an energy solution for Valentina Alama renewable farms. There is strong interest to Phone: 0431 726 553 develop the Aurora Project in the near term. [email protected] They have also continued studies with large

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Rodds Bay Solar Farm issues Queensland across 2020 and 2021. Our vision for this solar farm has always been to create Notice to Proceed (NTP) to positive and enduring social and economic Powerlink legacies, including the creation of hundreds of 2 April jobs during construction. It will be one of the - 300MW Queensland solar farm achieves first renewable energy projects located close major milestone – work set to start to Gladstone and will play a pivotal role in enabling Gladstone to become the future On 31 March 2020, Rodds Bay Solar Farm energy capital of Australia. We are very (Rodds Bay) achieved a significant milestone grateful for the support from the Powerlink by issuing the Notice To Proceed (NTP) under team throughout the development cycle.” its connection agreement with . Mr Currie continued, “Renew Estate’s commitment since the beginning of this Rodds Bay is a 300MWdc project developed project to use local service providers, by Renew Estate and will be one of Australia’s contractors and industry remains steadfast. largest solar projects. It will connect to a We currently have nearly 400 businesses and strong part of Queensland’s 275kV individuals on our database who have transmission network south of Gladstone registered an interest in the construction or between Bororen and Rodds Bay. Rodds Bay operational phase of the solar farm. This has been granted planning approval from project can play a part in transitioning the Gladstone Regional Council including approval local skilled workforce and build resiliency in to develop an 82MW I 164MWh battery on this critical region for the Queensland site. The project has passed the required tests economy.” relating to system strength and generator performance standards and signed a Source: Renew Estate connection agreement with Powerlink in January. PROJECT NEWS Greenough River Solar Farm Construction is scheduled to commence by Tranex Solar Pty Ltd have completed the Q3/Q4 2020, making this one of the most Mechanical scope of 30MW Greenough River advanced solar developments in Queensland Solar Farm stage 2, located approximately that can now be accelerated into 50km southeast of Geraldton, WA. construction. Greenough River Solar Farm stage 1 (10MW) Tom Harrison, Director of Renew Estate, was the first utility-scale PV project in commented “We have enjoyed a close Australia, commissioned in late 2012. working relationship with Powerlink over the past 2½ years and are very happy to be The second stage of Greenough River project moving into the next stage of this project. I (30MW) was originally announced in would like to thank the entire Powerlink team November 2017 and was appointed to RCR for working so collaboratively with us to Tomlinson. However, in the wake of RCR realise the project, even amidst the Tomlinson’s collapse at the end of 2018, the exceptional challenges we have all faced over project came to a standstill. the past few weeks.” Following an extensive process associated Simon Currie, Director of Renew Estate, with RCR Tomlinson’s administration and commented “We continue to passionately liquidation, the developer (Bright Energy believe that this project will deliver significant Investments) signed a new contract with the and impactful benefits not just to Gladstone, German EPC, juwi Inc. for the project but also the wider regional economy in expansion.

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While Greenough River 1 supplies power to Offshore Wind report released the WA Water Corporation, Bright Energy A new discussion paper released by regional Investments has signed a PPA with power development agency Venture Taranaki has retailer Synergy Consulting Renewable Power highlighted offshore wind as an important Sector. energy opportunity for the region, and the

nation, and calls for further investigation of Tranex Solar Pty Ltd have installed over the resource. 300,000 of First Solar modules on NEXTracker,

Inc single-axis trackers. The paper, Offshore Wind – An Energy

Opportunity for Taranaki, identifies that Source: Tranex locations off the Taranaki coastline, especially

South Taranaki, offer a promising potential for

generating electricity from offshore wind, Hydrogen export study, based on the strength of the wind resource modelling tool and prospectus and suitability from a bathymetric - water depth - perspective. Taranaki’s deep Request for Tender experience in the marine energy environment The Department for Energy and Mining (DEM) also makes it a natural fit for this increasingly- would like to invite a supplier to deliver a deployed renewable energy source. landmark pre-feasibility study into large-scale clean hydrogen production in South Australia The paper highlights opportunities and for international export to prospective hurdles in making such an option a reality for markets in Asia. New Zealand, including the infrastructure and

processes required, consumer demand and Its findings will inform key considerations such economics, the technologies involved, as locations for hydrogen production and international developments, and the broad export, volume of supply potential, the range of social, environmental, regulatory and interdependencies of hydrogen supply chain other considerations which would need to be infrastructure, and the landed cost of clean assessed in more detail to enable this new hydrogen exported from South Australia. energy source for New Zealand to be

developed. The outcomes of the study will be used by the

Supplier to create an online modelling tool “If New Zealand is to realise its low emission and a prospectus to promote the findings of energy goals and meet future energy needs, the study to international hydrogen we will need to look beyond current efforts,” consumers, infrastructure developers, says Venture Taranaki chief executive Justine industry investors and other parties as Gilliland. determined by DEM, and support the development of clean hydrogen export “Offshore wind generation is a technology projects in South Australia. already in effect internationally, but which

hasn’t been fully explored in a New Zealand For enquiries in relation to this tender, please context. This discussion paper offers a first contact: step in that process and supports the Energy Mark Jackson Pathway Action Plan for Taranaki’s 2050 [email protected] Roadmap.” +61 466 621 976

The investigation by Venture Taranaki and Source: SA Government Taranaki-based Elemental Group explored both fixed and floating wind turbines as well as two indicative development scenarios - a

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200 MW windfarm and an 800 MW windfarm “We expect that there will be a range of - utilising 7-8 MW turbines. responses to the idea of wind energy generation off our coastline, and many steps “These scenarios were chosen on the basis would be required before any developments that a 200 MW windfarm would be indicative occur.” of a minimum size that could likely be developed and connected to the New Zealand Such steps range from solving the electricity grid, while an 800MW windfarm is fundamental engineering issues of fixing indicative of what could be developed in turbines to the sea floor and managing the association with a large scale industrial impacts of strong swell on foundations, to customer, for example a green hydrogen support vessel provision during construction production plant,” says Andrew Revfeim of and maintenance to regulatory implications, Elemental Group. the extensive environmental considerations, and the economics of investment, as well as “Offshore wind energy generation is a proven cultural and community buy-in. technology being rapidly developed and harnessed internationally, while at the same “There is a real opportunity to grow offshore time costs are reducing significantly.” wind as a renewable energy resource that could provide large quantities of low-cost “The two scenarios were explored for both clean energy, while using many of the South Taranaki and North Taranaki waters, complementary skills and resources that and showed that they would occupy around service the existing energy sector in New 30km2 and 120km2 respectively with turbines Zealand,” Justine says. spaced approximately 1km apart.” “In terms of skills, bathymetry and wind The paper also highlighted areas potentially resource, Taranaki is perfectly positioned to suitable for offshore wind utilising fixed lead New Zealand in the development of turbines. A 1,800km2 area off the South offshore wind energy generation. This paper Taranaki coast could accommodate up to presents the first step of many by identifying 12GW, while a 370 km2 area off North the resource and proposing its potential to Taranaki could host 2.4GW. Together these make a significant and positive impact on New would almost effectively double New Zealand’s energy landscape.” Zealand’s electricity supply. Read the report here. If floating wind turbines were utilised, a further 14,000 km2 of suitable area could be Source: Venture Taranaki developed, with the potential to deliver an additional 90GW for industrial application. Pilbara electricity reforms pass “This is a considerable resource and if fully developed could provide sufficient, State Parliament sustainable energy for New Zealand to meet 2 April its projected needs for the next three - Electricity Industry Amendment Bill 2019 decades,” says Justine. passes State Parliament today - Reforms expected to benefit large “It could also open opportunities for energy consumers and boost regional development exports and help New Zealand and Taranaki and jobs in the Pilbara contribute to the reduction of global emissions. It is an energy resource that has The McGowan Government has delivered on the potential to be globally significant.” its commitment to design a fit-for-purpose regulatory framework and system operator

Page 10 (Click on relevant project links to go to online Project Database) for the Pilbara region with the passing of the "Greater competition for industrial users will Electricity Industry Amendment Bill 2019. reduce the cost of electricity, and encourage investment and create jobs in the region. The Pilbara is critical to Western Australia's economy, yet it labours under an electricity "The reforms will assist in Western Australia's system that is fragmented, high-cost and economic recovery post the COVID-19 crisis." uncompetitive. These reforms will improve the efficiency of electricity services in the Source: WA Government region and support economic growth and development through: - enabling a competitive market that will Restarting the power system: lower the cost of electricity for large consumers; new rule to aid blackout - more efficient use of existing infrastructure, recovery and improved investor confidence and 2 April opportunities for new mining and renewable A new rule announced today by the Australian projects; and Energy Market Commission will make it easier - enhancing the security and reliability of to prepare for and respond to major supply electricity services in the region. disruptions – or black system events.

The reforms have been designed in close The changes include expanding the type of consultation with industry and this will technologies that can provide system restart continue through the development of the ancillary services (SRAS) after a major subsidiary legislation. blackout and clarifying the processes for

testing restart paths along the network. They The Bill includes provisions to support will mean that the Australian Energy Market Western Power's use of stand-alone power Operator (AEMO), transmission network systems and storage devices in the Great service providers and others involved in Southern, Goldfields, Wheatbelt, Mid-West resolving blackouts can operate more and Geraldton. effectively to restore the power system.

Stand-alone power systems have proven to be The rule change is critical to managing system more cost-effective, safer and reliable than security concerns and is particularly relevant traditional poles and wires in some areas - given the extra pressures the energy sector is while storage devices such as batteries will facing as the nation responds to the fast assist in managing some of the challenges moving COVID-19 threat. It is important in related to the high uptake of rooftop solar these times that Australia's energy systems panels. and markets are operating in a safe and

secure state with adequate consumer Comments attributed to Energy Minister Bill protections, including available mechanisms Johnston: to overcome major disturbances or shocks to "The Pilbara energy reforms have been talked the power system. about for 30 years - passing the Bill marks a key milestone in the McGowan Government's The AEMC is also currently working closely energy reform agenda. with our colleagues at AEMO and the

Australian Energy Regulator to consider the "The reforms will reduce the regulatory implications of the pandemic for our broader burden placed on Pilbara electricity owners workplan and implementation timeframes. and provide greater certainty to access seekers wishing to invest.

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This final rule makes changes to the way SRAS Pumped hydro plant could is procured, tested and deployed. AEMO procures these system restart services to kick- unlock New England start the process of restoring supply after a Renewable Energy Zone black system event. Generators with the 2 April capability to start or remain in service without On behalf of the Australian Government, the drawing power from the grid provide system Australian Renewable Energy Agency (ARENA) restart services by delivering energy to other has today announced it is providing $951,000 generators, which in turn restore supply to to Oven Mountain Pumped Storage Pty Ltd customers. (OMPS) to undertake a study analysing the benefits that Pumped Hydro Energy Storage The rule change will take effect in advance of (PHES) would have on the development of the AEMO’s next round of SRAS procurement New England Renewable Energy Zone (REZ) in contracts and responds to two rule change northern NSW. requests from AEMO and the Australian Energy Regulator. In particular, the final rule: OMPS will investigate how their proposed - allows AEMO to procure a broader range of Oven Mountain 600 MW / 7,200 MWh PHES services as SRAS. There are fewer traditional facility between Armidale and Kempsey can sources of SRAS (i.e. large, synchronous provide system-wide benefits, by storing and generators) available in some regions, and enabling variable renewable energy those that remain may be potentially less generation, improving system strength, capable of restoring the power system. By unlocking network constraints and helping to expanding the definition of SRAS, new reduce marginal loss factors. generators and other technologies, such as utility scale batteries, can offer these services The study will examine the degree to which - establishes a transparent framework for the the proposed PHES plant could unlock further physical testing of system restart paths along renewable energy investment and the the network. This will complement the development of the proposed New England existing testing of SRAS generators that is REZ. routinely undertaken - clarifies the communication processes A REZ is a region that has characteristics that parties must follow with respect to SRAS could make a substantial contribution to - clarifies that AEMO can take long-term costs increasing the supply of renewable energy into account when procuring SRAS. This will such as having excellent wind and sun make it easier for AEMO to enter into long- conditions. term contracts with new SRAS providers where this will result in the lowest long-term Alinta Energy has partnered with OMPS in the costs for consumers. $2.2 million study which is being undertaken with the assistance of consultants Lloyd’s Source: AEMO Register, EY and SMEC, along with the involvement of Australian Energy Market Operator and TransGrid. The study will also inform the development of the Oven Mountain PHES project, which is supported by the NSW Government’s Emerging Energy Program.

The proposed Oven Mountain site is an ideal location for PHES due to its steep topography, high hydrological head and the short distance between two reservoirs. If built, the proposed

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PHES plant could provide system strength to OMPS Director Dr Jeremy Moon said the New the wind and solar farms in the New England England REZ “sits close to the border of NSW area, provide rapid grid power response and and Queensland, and its abundance of meet requirements during peak demand. renewable resources places it strategically between the two states.” AEMO’s draft 2020 Integrated System Plan forecasts Australia’s generation to be “Pumped hydro technology evolution can dominated by large-scale solar PV and wind support Australia’s generation transition. by 2040, which requires new flexible and With its natural high hydrological head over a dispatchable technologies to ensure distance of around two kilometres, the Oven Australians have access to reliable electricity Mountain site allows for highly responsive when and where it is needed. PHES can help synchronous machines to provide grid to play a vital part with large amounts of stability services that have traditionally been storage capacity. provided by fossil fuel generation.”

ARENA CEO Darren Miller said this study will “We are excited for the opportunity to work help to provide vital knowledge on the with ARENA to demonstrate how pumped positive impacts pumped hydro can provide in hydro can provide large scale storage and the development of REZs. support the New England Renewable Energy Zone, networks, system security and “Pumped hydro projects like Oven Mountain increasing levels of low cost, dispatchable can play a key role in the provision of firming power,” he said. up and balancing the grid as increased levels of variable renewable energy generation such Alinta Energy Executive Director of Merchant as wind and solar come online. Energy Ken Woolley said “what we really like about this project is its potential to pair with “Renewable Energy Zones like New England low cost renewables and help us deliver more are sunny and windy areas with natural affordable and reliable energy for our renewable energy resources, but they may be customers.” in weak areas of the grid. Pumped hydro can provide system security services like Source: ARENA frequency and voltage support and it can provide bulk energy storage to help meet the evening peak,” he said.

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