Future Potential Pumped Hydro Energy Storage
Total Page:16
File Type:pdf, Size:1020Kb
Future Potential Pumped Hydro Energy Storage in Australia For personal use only OCTOBER 2015 WHAT IS PUMPED STORAGE? Upper Reservoir Pumping Mode Lower . During Off-Peak Reservoir . Wholesale prices at their lowest . Power is drawn from the grid to pump Powerhouse water from the lower to the upper reservoir Upper Reservoir Generating Mode Lower . During daily Peaks Reservoir For personal use only . Wholesale prices at their highest Powerhouse . Water is released from the upper reservoir to the lower reservoir to generate electricity 2 PUMPED STORAGE IN THE MARKET Peaking power generation is usually supplied by Open Cycle Gas Turbines Diesel Generators Pumped Hydro $/MWh Demand (MW) 100 8000 Price Demand 80 7000 Baseload 60 6000 40 5000 For personal use only 20 4000 0 3000 12:00:00 AM 5:00:00 AM 10:00:00 AM 3:00:00 PM 8:00:00 PM 1:00:00 AM 6:00:00 AM 11:00:00 AM 4:00:00 PM 9:00:00 PM 3 Illustrative interaction of price and demand PUMPED STORAGE AND RENEWABLE ENERGY GROWTH OF RENEWABLE ENERGY GENERATION UNIQUE ENERGY GENERATION MIX IN QUEENSLAND . Intermittent generation . Coal fired Baseload Power . Excess generation during low demand . Gas Peaking Power . Need for large scale energy storage . Effect of rising gas prices on OCGTs & CCGTs . Potential for integration with renewable . Opportunity for low cost/low emission generation peaking generation Generation by Fuel Type (MW) QLD NSW VIC Royalla Solar Farm SA TAS For personal use only 0 3000 6000 9000 Black Coal Brown Coal Gas Liquid Fuel Other Hydro Wind Large Solar APVI Small Solar* Cathedral Rocks Wind Farm 4 PUMPED STORAGE AND RENEWABLE ENERGY . Solar and wind will have higher penetration in electricity market over the coming decade; leading to . Increasing proportion of the overall generation mix being renewable sources . Renewable generation increases volatility in the electricity Network ‒ Intermittency inherent to solar and wind, which are by nature relatively unpredictable ‒ Intermittent generation places a burden on power system operators in managing supply and demand . In order to manage the intermittency issues and keep demand and supply in balance, storage capacity must also grow in line with renewable deployment ‒ Installation of large scale storage projects typically involve very long lead times ‒ Storage options need to be "in place" rather than play "catch up" to renewable developments Illustrative generation pattern of renewables and storage Storage Wind Solar 100% 80% 60% For personal use only 40% 20% 0% 12:00 AM 2:00 AM 4:00 AM 6:00 AM 8:00 AM 10:00 AM 12:00 PM 2:00 PM 4:00 PM 6:00 PM 8:00 PM 10:00 PM 5 PUMPED STORAGE GLOBALLY & IN AUSTRALIA Tumut 3, Snowy Hydro Scheme, NSW Australia . Pumped Storage is an established technology since 1890s Wivenhoe PSP Scheme, Queensland Australia . Hundreds of installed schemes around the world . Only three pumped storage schemes in Australia For personal use only 1. Tumut 3 – 1,500MW 2. Wivenhoe – 500MW 3. Shoalhaven – 240MW Shoalhaven Scheme, NSW Australia 6 TRADITIONAL BARRIERS TO ENTRY • Topography - National parks • Significant environmental impacts • High capex costs • Long construction lead times • Lengthy/complex approvals process For personal use only 7 GENEX’S KIDSTON PROJECT Company Summary Renewable energy and Focus storage Project Location North Queensland IPO 8 July 2015 Current Shareholders >420 Project Summary Project Status Feasibility commenced Max Generation Capacity 330MW Continuous Generation 5 hours Max Storage Capacity 1,650MWh FirstFor personal use only Generation Target 2019 Capital Cost Estimate $282 million 8 GENEX’S KIDSTON PROJECT The Kidston Site . Two large adjacent pits ‒ 52ha and 54ha respectively ‒ Lower Reservoir 300m deep ‒ Approximately 400m apart at surface . Site substantially rehabilitated since mine closure in 2001 . Water license in place for top up water . Site 100% held by Genex Power . Site covers 1,237ha For personal use only . Bankable Feasibility Study underway 9 GENEX’S KIDSTON PROJECT Pre-Feasibility Outcome Nameplate Capacity 330MW First Generation Target 2019 For personal use only Continuous Generation 5 hours Total CAPEX Estimate $282m Cyclical Efficiency ~82% Transmission Losses 3-4% 10 GENEX’S KIDSTON PROJECT Tangible Assets Intangible Assets Fixed Assets Licenses and Permits Data and Information Term lease in place for land over Water Quality Existing Reservoirs Kidston Mine Site Onsite building materials and Council supportive of Rainfall/Runoff infrastructure Development Application Access to existing 132kV Geological/Historical Drilling Pastoral Lease extinguished transmission line Ergon substation on site Native Title extinguished Surveys and mapping Environmental Authority (EA) in Hydrology In-situ water in pit place Access to Copperfield Dam (water Water License in place with top up) allocation of 4,650ML p.a. For personal use only Genex owned water pipeline from Copperfield Dam 11 GENEX’S KIDSTON PROJECT Key Risks Mitigating Factors Water Closed loop system Top up water supply available from nearby dam Project located in tropical North Queensland Counter Party State and local government support No private land owners at site Top Up Dam – connected to site by Genex pipeline (over flowing in 2015 wet season) Environmental Environmental Authority in place Site is already disturbed due to previous mining operations For personal use only CAPEX Third Party cost estimates used in Pre- Feasibility Analysis 12 PUMPED STORAGE ACROSS AUSTRALIA • Potential for duplication across Australia Mount Leyshon Queensland Old mine site in Queensland For personal use only Mount Morgan Queensland 13 PUMPED STORAGE ACROSS AUSTRALIA For personal use only https://www.youtube.com/watch?v=rn5f3NGWbok 14 THE GENEX ENERGY HUB • Genex engaged in planning a large scale “Energy Hub” • Integration with large scale solar ~150MW For personal use only 15 .