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Nambucca Shire Council: Renewable Energy Action Plan

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Nambucca Shire Council: Renewable Energy Action Plan Nambucca Shire Council: Renewable Energy Action Plan Nambucca Shire Council Renewable Energy Action Plan Submitted by 100% Renewables Pty Ltd Date: 08 April 2019 Page 1 Nambucca Shire Council: Renewable Energy Action Plan Contents 1 EXECUTIVE SUMMARY FOR NAMBUCCA SHIRE COUNCIL......................................................................... 4 1.1 SHORT TERM REAP .................................................................................................................................... 4 1.2 MEDIUM TERM REAP ................................................................................................................................. 5 1.3 LONG TERM REAP...................................................................................................................................... 7 1.4 SUGGESTED RENEWABLE ENERGY AND CARBON EMISSIONS TARGETS ..................................................................... 8 2 BACKGROUND ....................................................................................................................................... 10 2.1 METHODOLOGY ....................................................................................................................................... 11 3 CONTEXT FOR ACTION BY NSC ON RENEWABLE ENERGY ....................................................................... 12 3.1 GLOBAL CONTEXT ..................................................................................................................................... 12 3.2 NATIONAL CONTEXT .................................................................................................................................. 13 3.2.1 Energy management ....................................................................................................................... 13 3.3 NSW STATE CONTEXT ............................................................................................................................... 14 3.3.1 Energy management ....................................................................................................................... 15 3.4 REGIONAL TRENDS – MID-NORTH AND NORTH COAST OF NSW........................................................................ 16 3.5 LOCAL TRENDS – WHAT IS OCCURRING IN NAMBUCCA SHIRE? ........................................................................... 17 3.6 NAMBUCCA SHIRE COUNCIL – WHAT HAS COUNCIL BEEN DOING? ...................................................................... 18 3.7 SUMMARY............................................................................................................................................... 19 4 NSC’S STATIONARY ENERGY BASELINE................................................................................................... 20 4.1 COUNCIL’S OPERATING ASSETS .................................................................................................................... 20 4.2 COUNCIL’S OWNED LAND ........................................................................................................................... 20 4.3 BASELINE ELECTRICITY USE.......................................................................................................................... 21 5 NSC’S EFFICIENCY AND RENEWABLE ENERGY OPTIONS.......................................................................... 23 5.1 APPROACH TO EVALUATING EFFICIENCY AND RENEWABLE ENERGY OPTIONS.......................................................... 23 5.1.1 Omitted technologies ...................................................................................................................... 23 5.2 ENERGY EFFICIENCY................................................................................................................................... 25 5.2.1 Short term energy efficiency action plan......................................................................................... 26 5.2.2 Medium term energy efficiency action plan.................................................................................... 26 5.2.3 Long term energy efficiency action plan ......................................................................................... 26 5.3 ONSITE RENEWABLE ENERGY....................................................................................................................... 32 5.3.1 Short term onsite renewable energy action plan ............................................................................ 34 5.3.2 Medium term onsite renewable energy action plan ....................................................................... 36 5.3.3 Long term onsite renewable energy action plan ............................................................................. 38 5.4 OFFSITE RENEWABLE ENERGY ...................................................................................................................... 41 5.4.1 Council-owned land......................................................................................................................... 41 5.4.2 Purchased renewable energy .......................................................................................................... 43 5.4.3 Recommended offsite renewable energy action plan for NSC ........................................................ 43 6 GOVERNANCE OF NSC’S RENEWABLE ENERGY ACTION PLAN................................................................. 45 6.1 RESOURCING REQUIREMENTS...................................................................................................................... 45 6.2 PROJECT POST-IMPLEMENTATION MONITORING.............................................................................................. 45 6.3 PROGRAM REVIEW PROCESSES .................................................................................................................... 45 7 FUNDING OF NSC’S RENEWABLE ENERGY ACTION PLAN........................................................................ 46 7.1 SUMMARY OF OPTIONS AND HIERARCHY........................................................................................................ 46 7.2 WHY IS A FINANCING PLAN NECESSARY?........................................................................................................ 47 Page 2 Nambucca Shire Council: Renewable Energy Action Plan 7.3 ATTRIBUTES, PROS AND CONS OF VARIOUS FINANCING OPTIONS......................................................................... 47 7.4 RECOMMENDED APPROACH TO DEVELOP A FINANCING PLAN FOR COUNCIL .......................................................... 48 APPENDIX A: LIST OF NSC SITES...................................................................................................................... 49 LIST OF LARGE SITES (>100 MWH PER YEAR ELECTRICITY CONSUMPTION) ........................................................................ 49 LIST OF SMALL SITES ............................................................................................................................................... 49 APPENDIX B: SITE VISIT OBSERVATIONS......................................................................................................... 53 APPENDIX C: SOLAR PV FEASIBILITY ASSESSMENT ......................................................................................... 58 APPENDIX D: MID-SCALE RENEWABLES AND PPA MARKET ............................................................................ 84 ELECTRICITY AND LGC MARKET FACTORS .................................................................................................................... 84 Wholesale market trends and futures pricing .............................................................................................. 84 The LRET and its influence on the business case .......................................................................................... 86 Potential impact on TRC ............................................................................................................................... 87 CONNECTION AND POTENTIAL RESTRICTIONS ............................................................................................................... 88 VIRTUAL PPAS AND CONTRACTS FOR DIFFERENCE......................................................................................................... 88 OFFTAKE PRICING .................................................................................................................................................. 89 CONTRACT DURATION AND FLEXIBILITY....................................................................................................................... 89 COST-BENEFIT OUTCOMES FOR SIMILAR COUNCIL PROJECT EVALUATIONS.......................................................................... 90 SSROC ........................................................................................................................................................... 90 Build/EPC v PPA assessments ....................................................................................................................... 91 ENERGY MARKET DISRUPTION................................................................................................................................... 91 LACK OF RETAIL COMPETITION AND TAKE UP................................................................................................................ 92 APPENDIX E: REAP FINANCING GUIDE...........................................................................................................
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