Renewable Energy Buyers Forum

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Renewable Energy Buyers Forum Renewable Energy Buyers Forum - Brisbane - Sponsored by: DLA Piper Thursday 26th July 2018 Chair: Ben Waters Welcome Jackie McKeon, WWF-Australia Business Renewables Centre - Australia Kate Papailiou, DLA Piper Update from DLA Piper Andrew Burnett, Department of Natural Resources, Mining & Renewable Energy in Queensland Energy, Queensland (DNRME) James Eskdale, Mars GloBal Corporate Mars Enters the Solar System Michael Wheelahan, Victorian Government Department of Intelligent Water Networks (IWN) Aggregation Environment, Land, Water and Planning (DELWP) Simon Crock, Sunshine Coast Council Sunshine Coast Council Solar Farm PPA Roger Price, WindLaB Optimising the renewable energy mix in Queensland Mantas Aleks, WePower Innovative purchasing model Ben Waters, Presync Discussion and wrap-up Networking Renewable Energy Buyers Forum Sponsored by: DLA Piper, Brisbane 26th July 2018 Business Renewable Centre - USA Business Renewable Centre - Australia • A not-for-profit, online Australian resource centre and market platform to accelerate Australian corporate uptake of large-scale renewable energy. • To help Australian organisations procure 1GW of renewable energy (installed capacity) by 2022 and 5GW by 2030. Primers & Guides for Industry… Business Renewable Centre - Australia Online Marketplace Platform Current and planned renewable energy projects Renewable Energy Buyers Forum Sponsored by: DLA Piper, Brisbane 26th July 2018 QLD’s 50% Renewable Energy Target WWF Renewable Energy Buyers Forum 26 July 2018 An evolving policy context As the energy market transitions, the focus is on getting the right mix of clean, dispatchable generation 2020 2030 2050 A new national market On 5 June 2018, the The Queensland mechanism is required Queensland Government Government has also set an after 2020 to ensure that committed to a target of 50 per economy-wide target for Australia meets its Paris cent renewable energy net-zero emissions by 2050 commitments generation by 2030 Department of Natural Resources Mines and Energy What are we trying to achieve? Transition to a low carbon electricity sector Stable electricity System security prices for and reliability Key consumers Objectives Investment to the Value for the State state Department of Natural Resources Mines and Energy Findings of the Expert Panel 50 PER CENT RENEWABLE ENERGY TARGET $ CO2 4,000–5,500 MW of 25-31% reduction in $6.7 Billion of Broadly neutral Current levels of electricity sector new large-scale investMent effect on residential reliaBility Maintained emissions By 2030 renewaBle capacity electricity Bills between 2020-30 Department of Natural Resources Mines and Energy Strategy Pre-2020 investment 50% Renewable Energy by 2030 Post-2020 trajectory Department of Natural Resources Mines and Energy Queensland’s Project Pipeline 2,164 megawatts Solar Wind $ $4.27 billion $ $ investment Biomass $ $ Operational 3,583 construction jobs 961,000 houses powered annually 5.2 million CO2 tonnes C02 avoided each year Department of Natural Resources Mines and Energy Queensland’s Renewables Output EXISTING 2018 – PROJECTED 2019 – PROJECTED 8.6% 17.6% 21.9% Non-Renewables Rooftop PV Large-scale renewables Department of Natural Resources Mines and Energy Tracking to the 50% Target 20,000 50% 50% 15,282 18,000 Solar Wind 40% 16,000 14,000 Hydro Biomass 30% 12,000 Geothermal Other 10,000 21.9% 8,100 20% 8,000 17.6% Megawatts (MW) Megawatts 6,000 2,164 10% 4,000 8.6% 1,032 7.7% 2,000 0% - Existing large- Financially Projects in early Requirement to scale committed stage achieve 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 renewable projects development 50% by 2030 capacity Department of Natural Resources Mines and Energy The bigger picture… 01 Leveraging 08 national policy What are the in Queensland economic opportunities? 02 Investment 04 facilitation Maintain social 07 licence What capabilities does Queensland 03 05 need? The role of Role of the Government GOCs 06 What is the Post-2020 trajectory? Department of Natural Resources Mines and Energy Thanks … Any questions? Andrew Burnett Director – Energy Division Department of Natural Resources, Mines and Energy [email protected] Department of Natural Resources Mines and Energy Renewable Energy Buyers Forum Sponsored by: DLA Piper, Brisbane 26th July 2018 COPYRIGHT © 2017 MARS, INCORPORATED | CONFIDENTIAL Mars Australia enters the solar system Mars Australia has signed 20 year PPAs with Total Eren to generate the equivalent of 100% of our electricity requirements for all of our Australian sites by 2020. Internal: Business Case Economic Aim Derivative account position Environmental claims Ownership of assets Level Complexity Wind/Solar / other Principles Term of the deal Offsite/ onsite Potential Loss limits Skills required Why get involved? Removing road blocks Key Once in a Career project Great communicator Real purpose Champion Complex into the simple Project Stretch project Influencer Huge economic benefit Learnings PASSION Calculate: Understand Risk Current vs Spot Risk Management Fixed vs Spot Understand retailer margin Current Strategy risk Long term Hedge vs Spot 21 COPYRIGHT © 2017 MARS, INCORPORATED | CONFIDENTIAL External: Insights ‘s BANKABILITY 22 COPYRIGHT © 2017 MARS, INCORPORATED | CONFIDENTIAL What we did 23 COPYRIGHT © 2017 MARS, INCORPORATED | CONFIDENTIAL Renewable Energy Buyers Forum Sponsored by: DLA Piper, Brisbane 26th July 2018 Victorian Water Sector – Intelligent Water Networks Renewable Energy Purchase Presentation to WWF Renewable Energy Buyers Forum Michael Wheelahan Project Director, Climate Risk 26 July 2018 Renewable Energy Purchasing Resources http://www.melbourne.vic.gov.au/business/sustainable-business/mrep/Pages/renewable-energy-procurement-guide.aspx http://www.wwf.org.au/what-we-do/climate/renewable-energy-buyers-forum#gs._qNSOuc 26 Victoria’s Nineteen State-owned Water Corporations 27 Victorian Water Sector Emissions To reduce government emissions, you need to reduce water sector emissions 28 Victorian Water Corporation GHG emissions Scope 1 emissions 29 Why? Shared Vision Government Policy: The Victorian Climate Change Act 2017 legislates a long-term target of net-zero emissions for Victoria by 2050. Water for Victoria: “Our water sector will be a leader in the state’s climate change mitigation and adaptation actions” https://www.water.vic.gov.au/water-for-victoria 30 Emission Reduction commitments Commitments are embodied the water sector’s Statement of Obligations (Emission Reduction): The water corporations to which this Statement of Obligations (Emission Reduction) applies must reduce their collective emissions to or below 504,828 t CO2e by 1 July 2025. This represents a reduction of 42% in emissions from the estimated total sector emissions of 868,800 t CO2e in the baseline period of 2011 to 2016. https://www.water.vic.gov.au/__data/assets/pdf_file/0017/120671/Statement-of-Obligations-Emission-Reduction.pdf 31 How are the water corporations reducing emissions? This is where the renewable energy buy sits 32 Participants NEM - $ Variable price e $ Capital $ Variable price & LGCs What do you have to offer $ Fixed price $ Capital + interest to satisfy the bank? 33 Key features of different approaches to energy procurement Business as usual Aggregated renewables buy Alignment of purpose - Significant alignment required Energy sector literacy – NEM, What are you talking aBout? Working knowledge required of decision PPAs, CfDs, makers Term Short term 10 years plus Price certainty Certain Exposed to market Transaction costs Low Medium up-front costs (But low in relation to value captured) CollaBoration with others - High level of collaBoration required Decision making Simple High level of coordination required Credit worthiness, financial - Leveraged staBility and scale Emission reduction - Significant Value-add for organisation - Significant 34 A new why: Climate Risk In the global corporate and financial world, there is increasing recognition of climate-related risks for companies and their investors. https://www.fsb-tcfd.org/ 35 Thank you & contact details Michael Wheelahan Project Director, Climate Risk Water and Catchments Group Victorian Department of Environment, Land Water and Planning [email protected] 0409 968 737 36 Renewable Energy Buyers Forum Sponsored by: DLA Piper, Brisbane 26th July 2018 Participating in an aggregated corporate PPA Can the Fourth Industrial Revolution be Sustainable ? Simon Cooper Chief Operations Officer What’s driving the world's huge amounts of data? These technologies have great “The past 250 years has seen a few potential to continue to connect select inventions, namely the steam The fourth industrial billions more people to the web, engine, electrification and the revolution, or industry 4.0, drastically improve the efficiency of microprocessor, spur the past three represents the combination business and organisations and help industrial revolutions and ‘catalysed regenerate the natural environment human progress’. The fourth will be of cyber-physical systems, through better asset management, driven by data – ‘the electricity of our the Internet of Things, and potentially even undoing all the age’, as well as the data centres that the Internet of Systems. damage previous industrial will make this massive use of data revolutions have caused. possible.” Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum 41 NABERS 5 STAR Energy Efficiency INDUSTRY LEADING PUE From NABERS 4.5 star
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