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Senvion Australia(PDF 82.9 Senvion Australia submission: Inquiry into Community Energy Projects Senvion Australia submission: Inquiry into Community Energy Projects Introduction Senvion Australia has delivered approximately 10% of the Australian wind energy market with a total of 440 megawatts of wind capacity installed across 9 wind farms in Victoria and New South Wales. We are also currently constructing the wind energy component of EDL’s renewable energy micro-grid solution for the Coober Pedy community in South Australia. The majority of our work has been in Victoria, and we have delivered over 30% of the State’s 1,249 megawatts of operating wind farms. Senvion has developed a solid reputation for delivering and supporting community-scale wind farms in Australia. For example, Senvion has: • delivered and now operates Australia’s first community-owned wind farm at Hepburn; • signed a contract with EDL to supply wind energy to a hybrid micro-grid in Coober Pedy in South Australia; and • partnered with the Macedon Ranges Sustainability Group to fund the installation of a wind monitoring mast for a proposed community wind energy project. Senvion’s Australian team, based in Melbourne, is also responsible for the Senvion Group’s presence in the Asia Pacific region, including Japan and New Zealand. Submission Importance of wind energy The transition to clean, renewable forms of energy supply is inevitable. A report from Bloomberg New Energy Finance predicts1 that wind and solar will account for 64% of the new power generating capacity added worldwide over the next 25 years. The Victorian Government’s commitment to 25 per cent renewable electricity by 2020 and 40 per cent by 2025 will see a significant increase in the amount of renewable energy generation in the State. As a mature and cost-effective technology, wind energy has a critical role to play in Victoria’s energy future. In particular investment in wind energy will: • support the move to a low carbon economy; • contribute to supply diversity and security of energy supply; and • create regional development and employment opportunities. 1 https://www.bloomberg.com/company/new-energy-outlook/ Page 1 of 2 Senvion Australia submission: Victorian Community Energy Parliamentary Inquiry Benefits of community energy Based on our experience of delivering wind farms, we have seen that wind energy delivers significant benefits to regional Australia including providing local employment opportunities, and delivering economic benefits to farmers, local businesses and local communities generally. We have also seen spin-off benefits to the Australian supply chain, including expanded manufacturing capability of key components, such as towers, cables and transformers as well as increased haulage and cranage capability, and the expanded capacity of key transport hubs, such as the Ports of Portland and Hastings. Community energy projects have the additional benefit of helping build greater support for the transition to a clean energy future. The scale of transformation that our energy sector will see in the coming decades is enormous. Communities that have invested in and are benefitting from this transformation are likely to be more accepting of the scale of change required. Best ways to encourage and support the development of community energy projects Direct support The proposed Victorian renewable energy auction scheme will significantly expand the market for new renewable energy projects in the State. We support the establishment of a specific community energy target as part of this auction process. Planning restrictions Senvion supports the Victorian Government commitment to allow community wind farms in the Macedon Ranges. Senvion recommends expanding this commitment to allow community wind farms in other parts of the State that are currently ‘no-go’ zones due to landscape constraints or proximity to urban areas. Community energy proposals in these areas should be assessed through the current planning system which has been designed to balance the benefits of wind energy with the need to protect amenity and cultural and environmental values. Update Payment in lieu of rates (PiLoR) methodology The Victorian Government is currently consulting on the PiLoR methodology, which disadvantages smaller projects. Reducing or eliminating the fixed $40,000 amount per generation facility is one way to resolve this issue. Thursday 29 September 2016 Page 2 of 2 .
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