Project Update Week ending 20 July 2018

Political distractions threaten energy consensus 12 July As the federal government attempts to land the National Energy Guarantee, politics is yet Energy Minister Josh Frydenberg have so far again proving to be the biggest stumbling stared down these distractions. block to long-term energy certainty. While all of this is going on, Minister As the economics of clean energy improve, Frydenberg is trying to negotiate the finer the clean energy industry no longer needs the details of the NEG with the states and same level of subsidies, but it does need long- territories ahead of the COAG Energy Council term certainty. The government is attempting meeting on 10 August. The Minister needs all to provide this with the National Energy of the states and territories in the National Guarantee (NEG), but the chaotic politics Electricity Market to commit to the policy for around energy continue to frustrate its efforts it to be approved, which puts him in the to lock in a long-term national energy policy. extremely difficult position of having to placate the conservatives within his own party The Clean Energy Council is disappointed with while still ensuring that the states and the government’s current emissions reduction territories remain supportive of the policy. target of 26 per cent. Such a low target means The Minister has so far managed to that future investment in clean energy would successfully walk this tightrope, but there is be reliant on state initiatives, corporate still some way to go before he and the NEG power purchase agreements and improving are on safe ground. economics of clean energy solutions relative to wholesale energy prices. Only a well- Beyond the political considerations, there are designed NEG that has a materially higher many other complex issues deep within the target and doesn’t allow the use of carbon NEG architecture being considered and offsets would drive new investment in parallel designed at the moment by the Energy with these other drivers. This would of course Security Board. Some of these include: require a NEG that allows for the emissions •ensuring that solar system owners can reduction target to be easily ramped up. decide what to do with their carbon abatement However, the underwhelming emissions •deciding the right level of transparency in reduction target is still too high for a number relation to the emissions register of conservative MPs, who are now openly •ensuring that GreenPower is treated as arguing against the NEG, agitating for additional to the NEG’s abatement targets Australia to withdraw from the Paris •ensuring that all innovative renewable Agreement and calling on the government to energy and energy storage solutions fund new coal generation. Prime Minister contribute to the reliability obligation. Malcolm Turnbull and Environment and

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While these issues are far more technical than "More generation and competition mean the political machinations around the NEG, lower power prices and Renew Estate looks they are no less important to the delivery of a forward to delivering the cheap solar energy policy that will provide us with the certainty produced by this project to consumers and that we need to continue the transition to a businesses in the greater Gladstone area.” clean energy future. Mark Hogan, Managing Director of Wirsol Source: Clean Energy Council Energy – a major shareholder of Renew Estate – said "Wirsol Energy owns the largest portfolio of solar PV projects in Australia. We Development Application are committed to Queensland and have over 200MW in operation and construction already approved for Rodds Bay Solar in the state. This is an exciting time for the Farm solar industry in Australia and Rodds Bay will help us quickly reach our target of 1GW in 16 July Australia." Australian renewable energy company Renew

Estate has been granted planning approval to Source: Renew Estate build Rodds Bay Solar Farm, a 300 megawatt

(MW) project located approximately 50 kilometres south of Gladstone, near the town of Bororen. NEW PROJECT Buronga Energy Station Rodds Bay will be one of the largest solar Developer: Renew Estate farms in Australia , providing enough Location: Wentworth, approximately 5km renewable energy to power approximately northeast of the Buronga township in south- 88,000 homes. Construction is expected to western NSW commence in late 2018 and the project will be Capacity: Up to approximately 400 MWac fully operational in Q1 2020. (500 MWp), with battery system of approximately 250 MW / 500 MWh Director Simon Currie stated that the Rodds LGA: Wentworth Shire Council Bay project will play a pivotal role in the Description: Key elements of the proposed development of Gladstone as the energy infrastructure include PV modules mounted capital of Queensland, and will provide on tracking arrays, power conversion units substantial opportunities to local businesses, (PCUs) containing inverters and electrical contractors and workers. switchgear, a battery energy storage system, operation and maintenance (O&M) facilities, Mr Currie said that “Renew Estate is an onsite electrical substation, and a 220 or committed to delivering tangible, meaningful 330 kilovolt (kV) transmission line for and enduring benefits to the people, the connection to the existing Buronga Switching businesses and the communities who are our Station. The proposed site for the neighbours. development is approximately 1,200 hectares in size. "At its peak, a solar farm of this size requires Estimated cost: $625mil about 300 workers on site. We will Construction jobs: 400 collaborate with local training organisations to Operational jobs: 10 ensure local job-seekers have the skills Contact: Byron Serjeantson needed to construct and operate a solar farm, Renew Estate and we will prioritise the employment of Email: [email protected] locals in enduring roles once the project is operational.

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PROJECT NEWS AEMO releases inaugural Biala Integrated System Plan for the The transmission line development application (DA) is progressing. In March National Electricity Market 2017, we submitted a DA for an underground 17 July electrical transmission line linking Biala Wind The Australian Energy Market Operator Farm to our existing substation at Gullen (AEMO) has today released the inaugural Range Wind Farm. It is required to transmit Integrated System Plan (ISP) – a energy generated by the Biala wind turbines comprehensive evaluation of the likely to the electricity grid. changes that will be occurring over the next 20 years across the National Electricity Market Using the existing Gullen Range Wind Farm (NEM). substation would avoid having to build a whole new substation in another location. The As the independent market and system existing substation would receive some operator and national transmission planner, upgrades, which are detailed in the DA. AEMO’s role is to promote efficient investment in, and efficient operation and use We’ve volunteered to put this cable of, electricity services for the longterm underground to minimise its visual impact and interests of consumers. The ISP builds on the to ensure minimal restriction on farming work of AEMO’s annual National Transmission activities. To avoid disrupting traffic and Network Development Plan, and has been damaging the road surface, we’re proposing developed in response to the COAG Energy to use directional drilling to install the cable Council’s decision in 2017 to adopt the under Grabben Gullen Road. recommendations made in the Independent Review into the Future Security of the Upper Lachlan Shire Council referred the DA National Electricity Market, specifically to the Joint Regional Planning Panel (JRPP) pertaining to the need for a strategic national who reviewed the application on the 14th plan. March 2018 and requested more information from us. We submitted the additional “AEMO’s analysis confirms that we are in the information and Upper Lachlan Shire Council midst of transformative and unprecedented placed the updated DA on public exhibition rate of change in this sector. We are from 17th April 2018 to 15th May 2018. witnessing disruption across almost every element of the value chain. Due to the vital Council received several submissions, which importance of affordable, reliable and secure were given to us. We've responded to Council power as the engine of a strong economy, on each submission. The Council will now care must be taken now more than ever to prepare a report for the JRPP. The JRPP will manage this transformation in order to then organise a date to sit again to consider minimise costs and risks and maximise value our application. to consumers,” said AEMO Managing Director and Chief Executive Officer Audrey Zibelman. Approvals, design work and surveys are now expected to continue until end of September The ISP’s analysis is predicated on sound 2018. engineering and sequenced approaches to investments in the transmission system, Source: BJCE providing an identified least cost pathway to managing the transition. The ISP applies probabilistic scenario-based analysis and system optimisation to project the reliability and security needs of the power system while simultaneously identifying the lowest cost

Page 3 (Click on relevant project links to go to online Project Database) combination of resources to meet system and transmission development to be the most consumer needs. The ISP also incorporates efficient approach. projected Federal emissions policy and State renewable policies. AEMO looked at various transmission reinforcement options, assessing the costs “The reality of the NEM is that the energy and time to implement these relative to sector is strengthened by an approach that modelled benefits, to determine the optimum allows regions to work together to take immediate investments and staging of future advantage of diversity and size to deliver the development. The ISP delivers economic best outcome for consumers. The ISP benefits under all scenarios. The timing of demonstrates that in the future, this feature some elements varies under different becomes even more critical due to both the assumptions, particularly relating to the rate footprint required to support renewables, and of change and the progress of proposed major the value of diversity to support resiliency,” energy storage initiatives. said Ms Zibelman. Group 1: Near-term construction to AEMO’s analysis displays the fundamental maximise economic use of existing resources changes occurring in the energy sector: - Immediate action is required to maximise - Grid demand is flattening due to the growth the economic use of existing low-cost of rooftop photovoltaic (PV) and increasing generation. - Investment is also required to use of local storage, as well as overall facilitate the development of projected new increases in energy efficiency. This is true renewable resources to replace retired and even with the anticipated electrification of the retiring resources, and to provide essential transport sector over the period. system security. - Over the next 20 years, approximately thirty - Immediate investment in transmission percent of the NEM’s existing coal resources should be undertaken, with completion as will be approaching the end of their technical soon as practicable, to: lives, and will likely be retired, which - Increase transfer capacity between highlights the importance of mitigating New South Wales, Queensland, and premature retirements as these resources Victoria by 170-460 MW. currently provide essential low-cost energy - Reduce congestion for existing and and system support services required for the committed renewable energy safe and secure operation of the power developments in western and north- system. western Victoria. - The investment profile and capabilities of - Remedy system strength in South various supply resources have changed and Australia. are projected to continue to change radically. - In particular, costs of new renewable plant Group 2: Developments in the medium term continue to fall, and advances and availability to enhance trade between regions, provide of storage technologies, particularly pumped access to storage, and support extensive hydro, flexible gas-powered generation and development of Renewable Energy Zones distributed energy resources (DER) are (REZs) emerging as core components to a low cost - The ISP shows that an interconnected energy and reliable energy future. highway would provide better use of The ISP finds that a portfolio approach of resources across the NEM, through both supply resources includes both retention of access to lower-cost resources and realising existing resources and continued growth of the benefits of diversity from different utility-scale renewable generation, energy resources in different locations with different storage, DER, flexible thermal capacity, generation profiles. including gas-powered generation, and

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- Action should be taken now, to initiate work progress developments that will enable an on projects for implementation by the mid- affordable, reliable, and secure energy system 2020s which would: for Australian energy consumers now and into - Establish new transfer capacity the future. between New South Wales and South Australia of 750 MW. To view the full Integrated System Plan - Increase transfer capacity between report, click here. Victoria and South Australia by 100 MW. - Increase transfer capacity between Source: AEMO Queensland and New South Wales by a further 378 MW. - Efficiently connect renewable energy Alliance to develop $100m sources through maximising the use of the existing network and route selection bioenergy portfolio finalised of the above developments. and 1st investment completed - Coordinate DER in South Australia. 17 July - AEMO will coordinate work with project Highlights proponents on a design for transmission • All conditions precedent for the networks to support strategic storage establishment of the Alliance between ReNu initiatives (Snowy 2.0 and Battery of the Energy and Resonance Industrial Water Nation). Infrastructure Fund (RIWIF) to develop

A$100m bioenergy portfolio finalised. Group 3: Longer-term developments to • RIWIF completes 1st Alliance investment by support REZs and system reliability and acquiring a 70% interest in the Goulburn security Bioenergy Project for A$2.8 million. - In the period from 2030 to 2040, a significant • Due diligence for the AJ Bush Bioenergy amount of the NEM’s coal-fired generation is Project proceeding well, with final investment expected to reach end of technical life and decision and execution of development retire. As noted, given the scale of the agreements by all parties still anticipated in investment and building time required, it will Q3 2018. be important to retain existing coal-fired • Pipeline of additional Alliance bioenergy generators until the end of their technical life project opportunities rapidly developing. to maintain reliability.

- In the longer term, to the mid-2030s and ReNu Energy Limited (ASX: RNE) is pleased to beyond, the capability of the grid should be announce that all conditions precedent to enhanced to: establish the Alliance with RIWIF, including - Increase transfer capacity further Foreign Investment Review Board approval for between New South Wales and Victoria by the A$2.8 million acquisition of a 70% interest approximately 1,800 MW. in the Goulburn Bioenergy Project by RIWIF, - Efficiently connect renewable energy have been satisfied and both agreements sources through additional intra-regional have completed. network development.

As previously announced, the purpose of the “The NEM is at a critical point, and the 2018 Alliance between ReNu Energy and RIWIF is to ISP is a first, and very significant, step in jointly develop a A$100 million bioenergy adapting the national transmission system to portfolio on a 30% ReNu Energy, 70% RIWIF meet current and future needs,” said Ms basis. Zibelman.

AEMO will continue to work with fellow market bodies, industry and governments to

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ReNu Energy CEO Craig Ricato said: “The consideration of $2.8 million. The ownership Alliance with Resonance Industrial Water and management of the Project is governed Infrastructure Fund is strongly aligned with by a shareholders’ agreement which will also our strategic plan and sets our bioenergy govern the operation of the Alliance and business on a strong path for growth for the future Alliance projects. ReNu Energy will coming years. provide O&M Services for the Goulburn Bioenergy Project under a longterm O&M “The introduction of a 70% equity partner will Services Agreement with the Alliance. greatly assist ReNu Energy in more rapidly developing its portfolio of bioenergy projects, Proposed 2nd Alliance project – AJ Bush enabling us to look at opportunities that Bioenergy Project, including acquisition by would have otherwise been beyond our RIWIF of a 70% interest in the exiting current financial capabilities. We have some operation and the 'G4' Expansion Project great projects currently under review, which Due diligence for RIWIF’s investment in ReNu we are looking to present to the Alliance over Energy’s other existing bioenergy asset, the AJ the coming months and are poised for what Bush Bioenergy Project, together with the we anticipate to be a busy 2018/2019 Alliance investment in the AJ Bush ‘G4’ financial year. With an Alliance target of Bioenergy Expansion Project is continuing establishing a portfolio of up to $100m of with all parties anticipating finalisation of an bioenergy investments in Australia and New investment decision and execution of Zealand over the next four years, we are at development agreements in Q3 2018. the start of what will be a transformative period for ReNu Energy.” Source: ReNu Energy

In addition to the development of its bioenergy portfolio under the Alliance, ReNu Battery of the Nation - an Energy is also continuing to progress all other aspects of its business and further develop integral part of national energy pipelines of opportunities in its three other planning key growth areas: 17 July • Solar PV Power Purchase Agreements Hydro Tasmania welcomes the first release of • Solar PV Embedded Networks the Australian Energy Market Operator’s • Solar PV grid connected operations Integrated System Plan (ISP) and its support

for developing the Battery of the ReNu Energy – RIWIF Alliance Agreement Nation initiative. Under the Alliance Agreement, ReNu Energy has agreed to provide RIWIF with a first right Battery of the Nation is one of two major of refusal over the next four years to take a existing energy storage proposals (along with 70% interest in the development of its next the Snowy 2.0 project), identified in the ISP $100m of bioenergy projects in Australia and released by AEMO. New Zealand. For all projects developed by the Alliance, ReNu Energy will be engaged as Hydro Tasmania’s Battery of the head engineering procurement and Nation Project Director, Chris Gwynne, said construction (EPC) contractor and to provide the business supports strategic national ongoing operations, maintenance and energy market planning, as the ISP seeks to management services (O&M Services). provide.

Acquisition of a 70% interest in the Goulburn

Bioenergy Project by RIWIF

RIWIF has acquired a 70% interest in the existing Goulburn Bioenergy Project for a total

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“There’s major uncertainty and risk in the AEMO backs Turnbull future NEM. As the ISP notes, the market needs credible options (like Battery of the Government’s energy plan Nation) ready to deploy when needed,” Mr 17 July Gwynne said. The Australian Energy Market Operator’s (AEMO) Integrated System Plan for the AEMO supports the continued development National Electricity Market is an important of the Battery of the Nation initiative to step towards ensuring our energy system is ensure it can be made available to the market, based on engineering and economics rather when needed, with the shortest possible lead than ideology. times. The Turnbull Government welcomes today’s “We’ll keep working with AEMO, TasNetworks release of the plan, the first of its kind, which and others to deliver the most reliable and was a key recommendation of Chief Scientist affordable clean energy future for Australia,” Alan Finkel’s Independent Review in order to Mr Gwynne said. achieve better system planning.

“Battery of the Nation is about locking-in The report underlines the significant energy security and giving Tasmanians the transition underway in Australia’s National lowest possible power prices. It offers a future Electricity Market (NEM), the world’s longest that’s clean, reliable and affordable. interconnected energy system, with an unprecedented level of disruption and “As our recent analysis has shown, Tasmania distributed energy resources entering the has huge natural advantages - including our system. existing hydropower system, exceptional wind resources and our existing expertise. In order to maintain an affordable and reliable energy system into the future, the report “Doubling Tasmania’s clean energy underscores the importance of energy storage capacity, and introducing pumped hydro projects, flexible thermal capacity and greater storage, would also create plenty of surplus interconnection which could result in energy to support mainland Australia as it potential savings of around $1.2 billion over phases out coal power,” he said. the next 20 years. Early modelling shows Battery of the Nation would create billions of dollars of The Turnbull Government is taking a investment and thousands of jobs in regional technology-neutral approach to energy policy. Tasmania over 10 to 15 years. AEMO confirms the need to retain existing coal-fired generation as the cheapest current Battery of the Nation was recently added form of generation, finding that the continued to Infrastructure Australia’s Priority List. The operation of existing coal delivers the lowest Tasmanian and Australian Governments have cost outcome. committed to pursue the next stage of a business case for a second Bass Strait It endorses the Turnbull Government’s focus interconnector. on storage, including through major investments such as Snowy 2.0 and the Source: Hydro Tasmania Tasmanian Battery of the Nation, and makes the case for a more integrated energy system as a means to harness these projects and deliver the best outcomes for consumers.

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The report lends strong support to the Australian PV installs a record National Energy Guarantee which AEMO says will provide enduring policy and investment 1.3GW of solar capacity in certainty, resulting in efficient investment 2017, and is on target to decisions as well as removing risk premiums on investment. eclipse that in 2018 16 July Following recent advice received from the 2017 was a record year for Australian PV Energy Security Board and Australian installations, with 1.3 GW recorded according Consumer and Competition Commission to a report to the report to the IEA, released (ACCC), this report provides another by the Australian PV Institute. The report by independent expert input into the Turnbull the APVI is the latest annual update to the IEA Government’s energy plan which is focussed on Australian market statistics and shows on better consumer outcomes. solar energy generation to be meeting 3.9% of Australia’s electricity demand. The report will be discussed at the Council of Australian Government (COAG) Energy Australia boasts the highest per-capita Council meeting on 10 August. number of PV systems internationally, with 20% of households hosting one of 1.8 million Source: Federal Government PV systems – over 160 000 of which were added in 2017. At the end of 2017, the cumulative installed capacity of Australian PV PROJECT NEWS installations was 7.25GW, accounting for 13% of national electricity generation capacity and Crowlands Wind Farm 3.9% of electrical energy generation. 17 July Construction progress The average PV system size continued to grow Most of the civil works to establish roads and steadily as residential system sizes increased and hardstands are now complete at the as a growing number of businesses purchased Crowlands Wind Farm. Eight concrete PV. Panel prices continued to decline, and system foundations are now complete. These have prices reached record lows. been constructed using concrete from the on- site batching plant, and quarry products Residential installed capacity was declining sourced from local suppliers. Each foundation year-on-year from 2012 until 2016 when it used over 750 tonnes of concrete, which is stabilised at 541MW. 2017 saw a marked more than 50 truckloads. turnaround in the residential market, growing 44% to 779MW. The small-commercial (10- Movement of Large Components 100kW) segment grew by 60% to reach a In the coming weeks, major components record 331MW. The large commercial and (blades, hubs, and nacelles) will begin to industrial sized systems in the 100-5000kW arrive at the Port of Portland. This will be a range grew by 123% to a record 76MW. major milestone for the project. Between now 114MW of solar farms were commissioned in and the end of this year, there will be some 2017, though a far greater volume were under large “over-dimensional” truck movements on construction at the end of 2017. local roads accompanied by escort vehicles to deliver these components. Further growth in the Australian market is expected in 2018. Mid-way through 2017, Source: Pacific Hydro 1.1GW of PV has been commissioned, including 560MW of solar farms. With over 1900MW of solar farms currently under construction and 35GW at various stages of

Page 8 (Click on relevant project links to go to online Project Database) development, 2018 looks certain to be PROJECT NEWS another record year for Australian PV. Springdale Solar Farm

EIS for Renew Estate’s proposed Springdale Some key findings from the report include: Solar Farm placed on exhibition by NSW - Cumulative installed PV capacity was over Department of Planning and Environment 7.2 GW until 15 August. The EIS is for a project - PV now accounts for 13% of national including solar generation equipment and electricity generation capacity and 3.9% of associated infrastructure. The project has a total electrical energy demand capacity of up to 120 megawatts of direct - The value of the solar industry to Australia current (MWdc) and 100 megawatts of export was 1.6 Billion dollars, creating 8170 direct capacity (alternating current) (MWac). The jobs. project site (the Site) is generally greenfield - Panel prices continued to decline, and and is located approximately 3.5 km north of system prices reached record lows the border with the ACT, and approximately 7 - 160,000 new PV installations took the total km north west of the Sutton village. number of PV installations to over 1.8 million by the end of 2017 The project would include the following key - Residential penetration levels exceed 20% components: and are over 65% in some areas. - Photovoltaic (PV) solar modules on a single-

axis tracking system mounted on steel piles The report also provides an overview of policy - Approximately 22 containerised power mechanisms and incentives as well as a conversion stations, containing electrical summary of research activities related to switchgear, inverters and transformers photovoltaics carried out at institutes and - An electrical switchyard and substation that companies around Australia. would be connected to the existing 132

kilovolt (kV) TransGrid transmission line that Source: APVI traverses the Site

DC and AC cabling for electrical reticulation NEW PROJECT - A control building including office, Chaff Mill Solar Farm supervisory control and data acquisition Developer: FRV Services Australia (SCADA) systems, operation and maintenance Location: 3.5km north-east of Mintaro (O&M) facilities, staff amenities, and Capacity: 100 MW with a 50 MW battery associated carpark LGA: Clare & Gilbert Valleys Council - Two meteorological stations Expected cost: $240-260mil - Internal all-weather access tracks Description: Consent sought to construct a - Security fencing solar farm and associated infrastructure, - Landscaping including arrays of solar panels mounted on - Subject to the execution of a Voluntary single-axis tracker framing, inverter stations, a Planning Agreement with Yass Valley Council 50MW battery energy storage system, (YVC) and agreement with YVC on the substation (containing a minimum 100MVA relevant works, construction of a new public transformer), overhead line from substation road connection between Tallagandra Lane to existing 132kV transmission line, site office, and Tintinhull Road onsite parking, refuse storage area, internal - Subject to the execution of a Voluntary access roads and perimeter security fencing. Planning Agreement with YVC and agreement The development site is situated on 380 with YVC on the relevant works, subdivision of hectares of vacant farming land adjacent to Lot 202 DP754908 to create a proposed new the existing Mintaro substation. lot to be dedicated as a public road for the Contact: Damien Hegarty proposed Tintinhull Road re-alignment FRV Australia - Subdivision of Lot 209 DP754908 to create a Email: [email protected] new lot for the proposed substation

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NT Utilities Commission’s It is noted that the three regulated systems have different levels of solar PV penetration, 2016-17 Power System Review and weather patterns. It is likely that the The following is an extract from the Northern regulated systems may require different Territory Utilities Commission’s annual Power solutions at different times. This may include System Review for 2016-17. different pricing regimes in the individual systems, to provide appropriate incentives for The full report is available here. customers.

Challenges The modelling highlights that, with a Increased levels of renewable energy are continuous growth in solar generation, there likely to increase system costs, especially in will likely be technical issues in a few years in the provision of ancillary services necessary to Alice Springs. For simplicity, the modelling has ensure system security. However, new solar assumed that the 50 per cent renewable generation will potentially increase energy target is achieved on a pro rata basis generation capacity, investment and diversity across the various systems. However, in of supply. Existing higher-cost generation practice and taking into account the technical capacity may be retired earlier than planned issues of each system, it is likely that a more as it is displaced by new low-cost generation. holistic approach will be required to achieve that target. This will impact both returns to the asset owner and future system reliability. PROJECT NEWS If left to grow unmanaged, solar generation will detrimentally affect the secure operation 2.0 of the power system. This is a significant issue The federal Department of the Environment & when system demand is reduced to the Energy gives Snowy Hydro the go ahead to spinning reserve requirements, and also when conduct exploratory works in support of the system demand is being met primarily by Snowy 2.0 pumped hydro project in NSW. The large-scale solar generation and the level of proposed works, including the construction of online dispatchable synchronous generation an exploratory tunnel to the site of the (for example gas or diesel generation) reaches underground power station for Snowy 2.0, the spinning reserve requirement. Spinning was declared not a controlled action under reserve is generation in addition to system the EPBC Act. Other proposed geotechnical demand to ensure a secure system. Where and geophysical exploratory works activities system demand or the amount of include: dispatchable generation drops further, System • the establishment of a construction pad and Control may have to constrain solar portal generation, to ensure there is sufficient levels • excavated rock management of dispatchable synchronous generation • subaqueous rock placement online. In the longer term, investment may be • the establishment of an accommodation required in equipment such as batteries and camp synchronous condensers to maintain a secure • the construction of a road and upgrades to system, leading to higher operating costs. the road to provide access to the proposed construction areas Careful coordination of solutions to these • construction of barge access infrastructure issues will be required to ensure an efficient on Talbingo reservoir outcome. This will include understanding the • establishment of supporting power and trade-offs between strengthened Generation communication infrastructure Performance Standards (GPS) currently being • a program of geotechnical investigation to considered by System Control, ancillary inform the detailed design services and network investment.

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Bluescope underwrites target to reduce electricity sector emissions by 26% on 2005 levels by 2030. By investing in investment in 500,000 panel solar energy, we are helping accelerate the solar farm decarbonisation of the electricity grid by 20 July reducing greenhouse gas emissions by around Offtake equivalent to 20% of BlueScope’s total 300,000 tonnes of CO2e each year. This is Australian electricity purchases comparable to taking 90,000 cars off the road and is enough to power 60,000 homes.” At a signing ceremony today at BlueScope’s Port Kembla Steelworks, BlueScope and its Attending the signing ceremony was NSW partners ESCO Pacific and Schneider Electric Energy Minister, the Hon. Don Harwin, who announced a landmark 7-year Power said: Purchase Agreement (PPA), where BlueScope Delivering affordable and reliable energy for will offtake 66% of the 133MW of energy households and businesses is a priority for the generated from ESCO Pacific’s Finley Solar NSW Government. NSW takes a technology Farm. neutral approach to energy and we want to see a diverse range of generation sources to The 500,000 solar panel farm to be located at ensure the reliability and affordability NSW Finley, 100km West of Albury in the Riverina needs for the future. of NSW, is expected to be online by mid-2019. The ground-mounted solar farm will be “I applaud the innovation, industry leadership located on a 300 Hectare (Ha) site which is and example set by BlueScope, ESCO Pacific almost half the size of BlueScope’s Port and Schneider Electric in taking advantage of Kembla Steelworks. the opportunities of our evolving energy market as they enter into this historic BlueScope’s, Chief Executive, Australian Steel agreement. This is one of many great Products, John Nowlan said: opportunities for NSW industries to harness BlueScope’s approach to energy has always the power of our state's abundant natural been about balancing the ‘Trilemma’, resources.” whereby we have access to affordable and reliable energy whilst reducing emissions The Solar Farm will provide 130 jobs during where we can – which is why we support the the construction phase and create 8 intent of the National Energy Guarantee permanent jobs (2 full-time and 6 part-time) (NEG). once fully operational. Investment in the project is expected to exceed $250m. “This PPA is one of Australia’s largest corporate offtake agreements, and is the ESCO Pacific, Managing Director, Steve largest with a solar farm to date, and Rademaker, said: complements our firm electricity supply ESCO Pacific is delighted to be partnering with arrangements, which provide the reliable BlueScope, an iconic Australian company that electricity supply we need for manufacturing has identified the substantial energy cost processes that must operate 24/7. The PPA savings that a solar corporate PPA can deliver will help keep downward pressure on our to its business. energy costs, and will support the gradual transition to renewable energy. The volume “By transacting directly with ESCO Pacific’s under the agreement is equivalent to 20% of , BlueScope’s PPA will enable BlueScope’s total Australian electricity the project to commence construction later in purchases. the year, creating jobs and injecting much needed value into the local economy. “BlueScope supports Australia’s 2030 emissions target, including the government’s

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“ESCO Pacific strategically identified the site at Finley as an ideal location for a solar farm due to its high solar resource and direct connection to the existing TransGrid owned Finley substation. These factors were critical in helping deliver to BlueScope a cost effective solar corporate PPA.

“As a leading Australian solar developer, ESCO Pacific is seeing significant inbound interest from a diverse range of corporates looking to secure low cost electricity. With a substantial pipeline of projects at an advanced stage of development in New South Wales, Victoria and Queensland, we are well placed to bringing more of our solar projects to market.”

Schneider Electric’s, Managing Director, Gareth O’Reilly, said: As the world’s largest renewable energy and cleantech consultant, Schneider Electric has long been committed to helping businesses benefit from adopting low-cost renewable energy sources through PPAs and other projects. Today, we are delighted to see our partnership with BlueScope come to fruition in the form of a landmark renewable energy PPA with ESCO Pacific, and to see them join a growing cadre of local and global companies committed to sourcing renewable energy.

“Australian businesses have been left struggling with inflated energy bills and budgets, with both wholesale electricity and LGC prices more than doubling between 2015 and 2018. Through Schneider Electric’s leading Energy & Sustainability Advisory Service, we worked closely with BlueScope Steel to identify a longterm renewable energy PPA as a strategy to reduce cost in the short term and reduce volatility over the longer term.”

Source: BlueScope Steel

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