21 August 2019

Dear Environment and Planning Committee.

Re: Submission to the Parliamentary Inquiry into Tackling Climate Change in Victorian Communities

The Hepburn Shire, home of Hepburn Wind and Daylesford the first Australian zero-net energy town has a bold and ambitious plan to be the first zero-net energy shire in Australia and to reach zero-net emissions in 10 years. This Z-NET Community Transition Plan is attached here for your reference.

In 2018, Hepburn Shire declared an ambition to be the first Shire in Australia to source 100% of its energy requirements from renewable sources by 2025. The declaration was made in collaboration with Hepburn Wind, with the support of the five sustainability groups. This declaration set the aspiration to become a “lighthouse community” demonstrating the economic, social and environmental benefits of locally owned, renewable energy generation facilities. In addition, the declaration sets out a zero-net emissions target for the Shire by 2030.

Hepburn Z-NET is Zero-Net Emission Transitions, an open-source pathway and replicable model for a local community to set targets and achieve zero-net emissions. The Z-NET Community Transition Pilot was funded by Sustainability Victoria, Hepburn Shire Council, Hepburn Wind, Samsø Energy Academy and Diversicon Environmental Foundation. The pilot aimed to act as an incubator for locally appropriate best practice actions and strategies to meet a target of zero-net emissions.

The purpose of the project was: 1. To provide an expanded blueprint for how rural communities could satisfy 100% of their energy needs, 100% of the time from renewable energy sources in a cost competitive way (price, quality, reliability, security of supply, etc) 2. To create a holistic masterplan – The Community Transition Plan (CTP) - to achieve this transition to 100% renewable energy and, ultimately, zero net emissions. 3. To ensure the CTP would enable fair distribution of benefits and mitigate potential burdens on vulnerable community members.

The project was undertaken from February through December 2018 and is the most in-depth, place- based, carbon emissions profile ever created in Australia. It is also the first local government area CTP for Zero-Net Energy and Zero-Net Emissions. This CTP was co-developed with the local community. It is was developed for the local community as well as stakeholders from important sectors to engage on the journey, all levels of government, technical experts and industry.

Hepburn Shire has a population of 15,000 residents. In the 2018 baseline year, emissions within the Shire were 262,041 tCO2-e (tonnes CO2 equivalent) per year. In order to address this, the project has delivered a holistic suite of outputs to help guide the transition to zero-net emissions, including: - Carbon emissions inventory - Options model - Community Transition Plan - Capacity building training materials - Project feasibility reports - Governance & financing options

Some of the flow on activities include: - A local, collective brand has been developed for Z-NET Hepburn - Concurrently ran a successful and ongoing bulk buy with over $1m spent and 600kW of new renewable energy generation - Hepburn Wind secured $500,000 grant for their 3MW+ co-located solar farm - University of NSW Practical Justice Initiative partnered to bring a social justice lens - A collaborative local Z-NET / Climate Resilience Fund was developed with the three Bendigo Banks, Hepburn Shire Council and Hepburn Wind to fund project ideas. The first program - a free energy audit and retrofitting support pilot has been fully funded for 12 months to the value of $37,000. - Working closely with Powercor to reach high penetration of renewables in the local grid - From $80,000 of funding from Sustainability Victoria the project team was able to leverage an additional $38,000 in cash and a 3-1 ratio of additional in-kind from the 30 project partners - Solar Savers was deployed by council and fully subscribed (45 homes) - Council deployed a bioenergy pilot project

The Z-NET project was a resounding success however funding ran out on delivery of the CTP and no further funding has been allocated. Given the significant local support and momentum being built, it is fundamental that a baseline of funding be established to guide the project forward. Importantly Council has allocated some staff resource to the Z-NET delivery, however the project is currently unfunded going forward. Grant applications have been made for targeting aspects of the community (e.g. farming) however there is no fund currently available that could support this necessary facilitation role. What would enable the next phase of delivery is funding to facilitate the implementation of years 1-4 of the Community Transition Plan and track and monitor the progress towards the zero-net energy and zero-net emission targets. Hepburn Z-NET has created a lot of interest from other Victorian communities looking to replicate it as a model for other communities to set targets and take action within the IPCC 12 year limit for action to keep global warming to within 1.5C.

If you would like to learn more about Hepburn Z-NET you can read the attached CTP or view the documents and interactive materials at www.z-net.org.au/hepburn

Kind regards,

The Hepburn Z-NET Roundtable Community Transition Plan

A 10-year Masterplan for the Hepburn Shire to reach 100% renewable electricity supply, zero-net energy and zero-net emissions 2019 - 2029

Generating energy

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Sustainable Firewood This project is a strategic initiative of the Abbreviations The Z-NET Blueprint, detailed in this report is freely usable under a Coalition for Community Energy CTP Community Transition Plan Creative Commons license, specifcally Attribution-NonCommercial-ShareAlike 3.0 Project team tCO2-e Tonnes of carbon dioxide equivalent Unported (CC BY-NC-SA 3.0). Taryn Lane (Renew) MW Megawatt Brendan Lim (Little Sketches) kW Kilowatt This means you are free to: Damien Moyse (Renew) kWh Kilowatt hours Share – copy and redistribute the information in any medium or format MWh Megawatt hours Adapt – remix, transform and build upon the material Partner contract and in-kind support kV Kilovolt Adam Blakester (Starfsh Initiatives) CAP Community Advisory Panel Under the following terms: Dominic Murphy (Sustainability Offcer Hepburn Shire) - Attribution — You must give appropriate credit, provide a link to the license, and Gavin Ashley indicate if changes were made. You may do so in any reasonable manner, but not in Jon Morgan and Phillip Koeting (Moreland Energy Foundation) any way that suggests the licensor endorses you or your use. Marie Lakey (Hepburn Wind) - Non-Commercial — You may not use the material for commercial purposes. Lisa Shadforth Take2 (Sustainability Victoria) - ShareAlike — If you remix, transform, or build upon the material, you must distribute Jeremy Moss (University of New South Wales) your contributions under the same license as the original. Dylan McConnell (University of Melbourne) - No additional restrictions — You may not apply legal terms or technological measures Rob Law (Central Victorian Greenhouse Alliance) that legally restrict others from doing anything the license permits. Andrew Reddaway (Renew) Donna Luckman (Renew) Disclaimer This report was prepared by Renew in good faith exercising all due care and attention, Additional support, data and information but no representation or warranty, express or implied, is made as to the relevance, Trentham Sustainability Group accuracy, completeness or ftness for purpose of this document in respect of any Transition Creswick particular user’s circumstances. Users of this document should satisfy themselves Clunes Sustainability Group concerning its application to, and where necessary seek expert advice in respect of, SHARE their situation. Hepburn Relocalisation Network Localising Leanganook The views expressed within are not necessarily the views of Sustainability Victoria (SV) Powershop and may not represent SV policy. Powercor Latitude Group This project was made possible by the funding from The report has been constructed based on information current as of January 2019. Climate Council Sustainability Victoria, Hepburn Shire Council, Diversicon Since this date, material events may have occurred which are not refected in the report. Engineers Without Borders Environmental Foundation, Samsø Energy Academy, DNV GL Hepburn Wind and the University of New South Wales. Neither Renew, nor the parties which have endorsed or been involved in the Daylesford and Macedon Tourism development of the report, accept any responsibility for use of the information Ausnet contained in the report and make no guarantee nor accept any legal liability whatsoever Meat and Livestock Australia arising from or connected to the accuracy, reliability, currency or completeness of any Central Highlands Water material contained in this report. Renew and all other parties involved in the preparation Farmers for Climate Action and publication of this report expressly disclaim all liability for any costs, loss, damage, injury or other consequence which may arise directly or indirectly from use of, or The project team would like to recognise and thank the reliance on, the report. seventeen members of the local community advisory panel who helped to guide the CTP.

hepburn wind community energy

Community Transition Plan 2 3 Community Transition Plan Sustainability Victoria CEO Foreword 6 Table of contents Hepburn Shire Mayor’s Message 8 Executive Summary 10 Section A What’s the Context? 21 Local Historical Context Global Context Defnition Uralla Z-NET 1.0 to Hepburn 2.0 Social Justice A Place-based Carbon Emissions Inventory 31 B Global Standards and Going Beyond Whole of Shire fndings Ward by Ward Stationary energy Tourism What’s Possible and Will it Work? 47 C Identifying Projects and Options The Options Model What does the options analysis tell us? Network Considerations The ‘Cost’ of the Transition How Might it Work? The Role of Enablers 97 D Sector partnerships Role of Households, Farmers, Landowners & Businesses The Role of Local Government The Role of Networks Knowledge Generation, Education and Engagement Governance Funding Tracking Progress E The Pathway to Hepburn Z-NET 107 Implementation Plan Appendices 115 F Appendix A - Z-NET Options Model Appendix B - Network Considerations

Community Transition Plan 4 5 Community Transition Plan Victorians overwhelmingly told us that all sectors should be contributing to action Sustainability on climate change. To help Victoria on the pathway to achieving the 2050 target, Sustainability Victoria is delivering TAKE2, the state’s collective, multi-sector Victoria CEO climate change pledge program. We’re supporting individuals, local governments, businesses, community groups and other organisations to reduce their emissions. Foreword Over 1,000 organisations in Victoria have pledged to act on climate change through TAKE2. This includes local governments that represent more than 80% of Victoria’s population, businesses that employ more than 404,000 people and have close to 16.5 million customers, and community organisations with more than 187,000 members. These organisations represent a combined annual turnover of approximately $283 billion nationwide.

In the spirit of engaging whole communities to realise their ambition to act on climate change, Sustainability Victoria has supported the Zero Net Emissions Transition (Z-NET) pilot with the Hepburn Shire community. It includes the development of this 10-year Community Transition Plan for the Hepburn Shire to reach 100% renewable electricity supply, zero-net energy and zero-net emissions by 2029.

Sustainability Victoria saw the potential of this project to provide guidance on a pathway for communities across the state, because of its highly collaborative, partnership driven approach, that applies a social justice lens to the Hepburn community’s transition to net zero emissions. It couples Hepburn’s aspiration Victoria is establishing itself as a climate change leader, to be a ‘lighthouse community’ for community-owned energy, with a transition becoming the frst state government in Australia to pathway that supports a fair distribution of benefts and seeks to mitigate potential legislate for net zero greenhouse gas emissions by 2050. challenges for vulnerable community members. Sustainability Victoria’s social research on climate change highlights that 78% of Victorians’ support the 2050 net zero emissions target and believe climate change needs The aspirations of the Hepburn Z-NET Community Transition Plan align with urgent action now. 79% of Victorians said they’d be proud Sustainability Victoria’s approach to working with the community to support a to live in a state that’s leading the way on climate change. thriving, sustainable Victoria. Working together we are sharing ideas, knowledge and connections, to save both money and the environment. Victoria is an amazing place to live and we want to keep it that way. It’s up to all of us to help shape the state of the future.

We look forward to continuing our work with Victorian communities to support pathways to achieving net zero emissions for the state by 2050.

Stan Krpan CEO, Sustainability Victoria

Community Transition Plan 6 7 Community Transition Plan Hepburn Shire Council strongly supports the community to develop and Hepburn Shire implement a 100% Community Renewable Stationary Energy Plan, as stated in the Council Plan (2017-2021). We are also aware that emissions extend far Mayor’s Message beyond stationary energy to sectors such as transport, industry, agriculture, waste and tourism. By acknowledging this fact and planning for a well structured transition in practices, it will be possible to achieve improved economic and environmental outcomes for our Shire both now and into the future.

This Community Transition Plan is the work the Z-NET team of experts; there has also been extensive consultation with community, industry and government. Our Shire’s strong history of community led sustainability action means that there has been no shortage of engaged and knowledgeable stakeholders throughout the process. The increasing interest shown by industry and the broader community is also encouraging, as it is evidence of a desire for direct action across all sectors. The background work in developing this Plan has already provided invaluable insight into what is possible at the community level and what the challenges for our Shire may be. Council is actively working to make this transition possible and a number of projects have already been delivered. This Plan will assist Council and community in delivering suitable projects into the future.

We know that the Plan will be continually reviewed and adapted as parameters In December 2018, Council formally endorsed support for change, but it is an impressive and comprehensive frst step. Based on what the Z-NET Community Transition Plan as the masterplan for has already been delivered in a few short months, we at Council are excited reducing energy use and emissions across the Hepburn Shire. about what can be achieved in the coming years.

Cr Don Henderson Mayor – Hepburn Shire Council

Community Transition Plan 8 9 Community Transition Plan Z-NET is Zero-Net Emission With support from Sustainability The project was conducted from It should be noted that some Executive Transition, an open-source pathway Victoria’s Take2 Community February through to October 2018. elements of the CTP are easier and for a local community to set targets Transition Pilot, Hepburn Shire was It is the most in-depth, place-based harder to control than others. To and achieve zero-net emissions. selected to conduct Victoria’s frst carbon emissions profle yet created make the CTP as meaningful and Summary real as possible it was necessary to Z-NET pilot. Hepburn Shire in Australia. It is also the frst local pioneer new approaches to tricky In February 2017 an ambitious target was selected because of its government area CTP for zero-net problems. As a living document that was requested by the Hepburn Shire demonstrated track record in energy and zero-net emissions. will need to be updated in the future community. community energy with Hepburn it should be considered as the frst Wind strong support shown by This CTP has been co-developed iteration. the Hepburn Shire Council, local In August 2018 Hepburn Shire with the local community and Council and Hepburn Wind, with the sustainability groups, community is written for them, as well as Through development of the CTP support of the local sustainability members and business stakeholders from important sectors it was found that in Phase 1 - the Baseline year groups: SHARE, Hepburn to pursue 100% renewable energy. to engage on the journey, all levels of focus can be largely on further Relocalisation Network, Trentham The pilot aims to act as an incubator supporting the activities that were emmissions Sustainability Group, Transition for locally appropriate best practice government, technical experts and in progress (quick wins) as well as Creswick and Clunes Sustainability actions and strategies to meet a industry. building the momentum for Phases 2 Group formally declared an ambition target of zero-net emissions, then to and 3. to be the frst Shire in Australia to take strategies from pledge to action The following opportunities have achieve 100% electricity generation 262,041 and implementation. been identifed to progress towards The three phases are explored below from renewable sources. the goal of zero net energy and zero and accompanied by fow charts net emissions. These opportunities Tonnes of carbon dioxide The project is an initiative of the representing the conceptual journey This declaration sets out the are grouped as: Coalition for Community Energy to implement these three phases. equivalent in 2018 aspiration to be a ‘lighthouse and was led by Renew and Little - Using less energy The cross-hatching in the bars community’ for community-owned Sketches, with support from - Generating energy onsite represent sources of emissions, energy facilities, demonstrating the Starfsh Initiatives, Moreland - Fuel switching clear bars represent zero emission economic, social and environmental Energy Foundation, Hepburn Shire - Generating energy nearby sources, and solid bars represent benefts of locally community The vision for the Hepburn Shire is a Council, Hepburn Wind and many carbon ‘sinks’. Size of the bars owned, local renewable generation three phased roadmap These opportunities respond directly represents the relative sizes of infrastructure. Further, it other local and sector partners. to emissions associated with the stationary energy sources (or lays out a target of zero-net energy The Z-NET Community Transition following sectors which are detailed emission sectors) within the Shire. by 2025 for the Hepburn Shire, Pilot was funded by Sustainability Phase 1: 2019 - 2021 below: with an aspirational target of 100% Victoria, Hepburn Shire Council, (quick wins) - Stationary Energy Zero-net energy for this CTP is defned as renewable by 2021. Hepburn Wind, Samsø Energy a community that reduces and matches its - Transportation Academy (Denmark) and Diversicon local energy needs with a 100% renewable Phase 2: 2022 - 2024 - Agriculture Currently Hepburn Shire’s emissions Environmental Foundation. energy supply. Practically, that means that (zero-net energy) - Waste and Waste water energy can be imported from the grid or are 262,041 tonnes of carbon per The purpose of this project was two - Land use change elsewhere, but this needs to be matched Phase 3: 2025 - 2029 year. This document explores how with local renewable generation. This Hepburn Shire - with a population of fold. Firstly, to provide an expanded calculation is averaged over an annual (zero-net emissions) The project has delivered: 15,000 residents will meet the zero- blueprint for how rural communities period of time. net energy target by 2025 and then can frstly satisfy all of their own - A Z-NET Blueprint for the Hepburn Shire (including carbon emissions zero-net emissions by 2030. This energy needs at all times from Zero-net emissions for this CTP is defned inventory) is the frst community in Australia to renewable energy sources in a way as reaching carbon neutrality, in that - A co-developed CTP declare these ambitious targets and which is competitive with the current the local carbon emissions are reduced, - Feasibility analysis and business sequestered or offset. implement a plan to achieve them. system of energy (in terms of price, There has been much work done cases for local energy options quality, reliability, security of supply to identify how the community can - Energy and emissions related and so on). Secondly, to create a achieve this, and provide a roadmap resources and capacity building for others to follow. holistic masterplan – The Hepburn within the community Community Transition Plan (CTP). Community Transition Plan 10 11 Community Transition Plan Key Elements of Phase 1 Key Elements of Phase 2 2019-2021 2022-2024

The frst stage celebrates Hepburn’s Similarly, this frst phase is also Phase 2 includes delivery of Waste reduction measures would leadership in sustainable energy, proposed to develop capacity and signifcant investment in mid-scale continue to further reduce reliance with a concentration on energy commence delivery of reforestation, renewable energy projects (40MW on waste offsets. The emissions effciency opportunities and energy capable of balancing a renewable, of new capacity) to create a 100% reduction actions by Central generation on-site. This is consistent sustainable supply of frewood and renewable electricity supply and Highlands Water are proposed to with adopting the least-cost ultimately creating the land use achievement of zero-net energy. The continue. approach, which will help to reduce change required to offset agricultural potential of battery storage should the amount of ‘nearby’ renewable emissions. Further, improvement be considered for some of the Knowledge and capacity would be energy projects required to achieve in detailed knowledge around mid-scale projects as this will allow further built around key agricultural a 100% renewable energy supply. opportunities to reduce transport, higher levels of generation to be production changes required to These options are also based on agricultural and land use emissions achieved, without network capacity reduce emissions; including ‘climate proven technologies which have a will ready the community for a shift constraints. Delaying delivery of smart’ farms, with pilots occuring for high level of social support. in focus away from stationary energy these projects to approximately 2022 a number of strategies designed to towards other emissions sectors in - 2024 will also allow for costs of reduce emissions associated with This phase includes the delivery the later two phases. solar and wind generation to further meat and dairy livestock and carbon and celebration of a second stage decline (somewhat absorbing the sequestration into soil. These are solar farm at the Hepburn Wind The frst phase includes improving cost of battery storage required). scheduled to be piloted in 2024, site to complement the existing upon knowledge and delivery of Should the level of required mid- informed by industry research 4.1MW capacity of Gale and Gusto early transport actions, with an early scale community wind and/or that improves the animal welfare (wind turbines). It also includes focus on improving fuel effciency solar projects not be pursued (due associated with responses to reduce the delivery of a local bioenergy at vehicle replacement, rideshare to fnancial viability or network enteric emissions. Programs will demonstration project of 65kW and active transport. A waste to constraint reasons), the option of be designed in this phase which capacity. energy project would be delivered procurement from larger solar or can forge a new kind of leadership by Council, capturing a portion of wind farms outside the Shire will in Hepburn around reduction of The frst phase helps lay the emissions associated with organic need to be considered. agricultural emissions. development work for mid-scale waste; Council’s commitment to renewable energy projects via meet zero net emissions from waste The output from these mid-scale Signifcant sector partnerships Hepburn Wind’s leadership and local would be met during the latter part of ‘nearby’ projects would involve (see Section D) will need to be sustainability group engagement, this phase. some export of electricity to other established to usher in this phase, as as well as a micro-grid / virtual communities when solar or wind well as fnancing to actualise it. power plant project (VPP), which The Central Highlands Water plan to production is high and usage in would then be delivered in Phase reduce emissions from wastewater Hepburn Shire is low. The delivery 2. This project is essential to commences in earnest. of a local micro-grid / Virtual Power allow continued growth in on-site Plant (VPP) project is required during generation. These listed actions are considered this phase to maintain growth in on- ‘quick wins’ that are largely site electricity generation. underway through various initiatives with different stakeholder groups.

Community Transition Plan 12 13 Community Transition Plan Key Elements of Phase 3 2025-2029

During Phase 3, the electric vehicle Agricultural emissions are forecast to transition will commence in earnest. reduced to approximately half of the It is proposed that this is matched 2018 benchmark, through soil carbon with increasing deployment of actions and livestock initiatives. The renewable electricity generation to remaining agricultural emissions meet the charging requirements. are offset through land use change Programs involving on-site energy (reforestation) within the Shire, actions come to fruition with the resulting in zero net emissions by transformation of building stock 2030. Reforestation also supplies through energy effciency and on- (above and beyond land use change) site solar investments. a local ‘renewable’ frewood supply.

Through a combination of further The commitment from Central effciencies and reduction in travel Highlands Water will be met in 2029. demand, but predominantly as a Council and community actions result of electric vehicle transition, continue to reduce waste emissions. transport related emissions decline The combination of these activities to approximately two-thirds of the can reduce total waste emissions to 2018 benchmark. The Hepburn Shire a negligible level by the 2030 target. is forecast to continue to be a net exporter of renewable electricity, which offsets the remaining balance of transport emissions.

There are hundreds of operating ‘energy towns’ around the world, and a desire or offcial mandate from several communities across Victoria. However, there is only one operating zero-net energy town example as yet in Australia - Hepburn Wind which generates enough renewable energy to offset Daylesford. As yet, there is no local government area. This project has established clear targets and pathways to answer the question of ‘what will it take’ for the Hepburn Shire to reach and go beyond zero-net energy and how to tackle the broader objective of zero-net emissions.

This CTP provides a holistic and workable blueprint for the Hepburn Shire that is grounded in technical and fnancial rigour. Section A of the CTP explores Hepburn Shire’s local context and grounds it within the global perspective. Section B details the approach taken to create Hepburn’s Place-Based Carbon Emissions Inventory and the fndings that emerged. Section C explores the transition options and local electricity network capacity, to understand what’s possible and how it will it work. Section D looks to ‘how might it work?’ The role of enablers section considers the role of key stakeholders as well as tracking the progress of the CTP. Section E lays out the Pathway to Hepburn Z-NET through an implementation action plan.

Community Transition Plan 14 15 Community Transition Plan Chart 1: Meeting zero-net by 2025 Meeting zero-net energy by 2025

Community Transition Plan 16 17 Community Transition Plan Chart 2: Meeting zero-net emissions by 2030 Meeting zero-net emissions by 2030

Community Transition Plan 18 19 Community Transition Plan A What’s the Context?

Community Transition Plan 20 21 Community Transition Plan Section A — What’s the Context? Local Hepburn Shire is a resource and to drive towards a completely Documentation going back to 2009 biodiversity rich area and renowned renewable energy base across was reviewed by the project team to Historical as the home of Hepburn Wind – the Council organisation and the inform this CTP, harvesting historical Context Australia’s frst community-owned broader community. After a period of ideas and avoiding reinventing wind farm. Over 2,000 people, feasibility analysis, Council is now the wheel. Pivotal documentation most of whom are local, pooled actively pursuing a waste-to-energy included an Energy Descent Action Hepburn Shire is located in Victoria’s Central Highlands, about one and a quarter hours $10m to build a two turbine, 4.1 facility. Plan (2011) and the most recent drive northwest of Melbourne. The Shire is in the heart of the Goldfelds region of Victoria MW wind farm at Leonards Hill. On Carbon Free Conversations (2017. and abuts the Central Goldfelds Shire to the northwest, Mt Alexander Shire to the north, average, the wind farm produces Local sustainability groups Pyrenees Shire to the west, City of Ballarat to the south, Moorabool Shire to the southeast and more energy than required by the Carbon Free Conversations Macedon Ranges Shire to the east. It covers an area of 1,470 square kilometres. The Dja Dja Hepburn Shire is remarkable for its houses in nearby Daylesford and Warrung people are the Traditional Owners and the original inhabitants of the Hepburn Shire. high level of sustainability activity. The Hepburn Shire Carbon Free much of the surrounding area. It The location of Hepburn Shire in regards to broader Victoria can be seen in the following map. Signifcant historical work in Community Conversations were is one of the frst examples of an sustainability has been undertaken held across the Shire in mid 2017. Australian town-scaled zero-net by the following organisations: Focussed sessions were held in the energy project. At the project’s Map 1: Hepburn Shire within the State of Victoria - Hepburn Wind four largest towns of Daylesford, core is the shared desire to take - SHARE (originally Hepburn - Trentham, Clunes and Creswick. constructive action to mitigate Renewable Energy Association) the Around 80 participants attended and Hepburn Shire climate change and in the process - Shire region of <15,000 people, tourism area, resource abundant founding organisation for Hepburn some 90 project or program ideas directly beneft the community. The - Community groups: SHARE, Hepburn Wind, Trentham Wind were generated. Sustainability Group, Hepburn Relocalisation Network, Transition project has demonstrated that, under - Hepburn Relocalisation Network Creswick, Clunes Sustainability Group the right conditions, communities - Place of the frst community-owned wind farm in Australia The workshops showed that while will overwhelmingly support - Trentham Sustainability Group participants expressed a desire for renewable energy and the benefts - Transition Creswick action, their focus was on setting can be spread widely throughout a - Clunes Sustainability Group a vision for the community around community. renewable energy and exploring During the Council planning period viable models for engagement and in 2017, all of these sustainability Council funding. This was refected in the groups requested Council Hepburn Shire Council has high level of interest in developing endorsement of a Zero-Net Energy committed through the Council a ‘lighthouse community model’ to Target by 2025 for the whole Shire. Plan 2017-2021 to delivering identify resources and criteria for This was confrmed in August 2018 a sustainable, vibrant and potential projects, and to equip the via a Memorandum of Understanding economically active community. community to better understand between Council and Hepburn The Plan focuses on fve key the steps required to implement Wind. There is also a new emergent strategic areas of Quality Community projects. The CTP incorporates these group - the Mollongghip and District Infrastructure, Active and Engaged intentions. Communities, Sustainable Community Power Hub - that is Environment, Vibrant Economy and actively pursuing a local community High Performing Organisation. In energy project across the Hepburn August 2017 Council endorsed a and Moorabool Shires. Towards Zero Emissions Roadmap that outlines the actions required to achieve zero net emissions for Council’s operations. These endeavours follow through on a long-standing (2009) commitment

Community Transition Plan 22 23 Community Transition Plan 123456 Section A — What’s the Context? Global However, even with an emissions One of the key strategies for transition, Australia is particularly communities to reach a target of Context vulnerable to the impacts of climate zero net emissions is to transform change that are already underway. their energy system to become 100% To avoid dangerous climate This is particularly apparent in rural renewable. This is already a global change the world must transition and regional Australia. Further, there movement with more than 300 from emitting high amounts is the question of how state and cities, municipalities and regions of greenhouse gases (GHGs) local governments can contribute to setting targets for 100% renewables to emitting very low, zero, or achieving the emissions reductions and implementing strategies to even ‘negative’ emissions or committed to in the Paris Agreement. ethically address climate change. sequestration. The transition has already begun but needs to expand The Victorian Government’s The emergence of competitive and speed up considerably if the response to the Paris Agreement distributed renewable generation world is to meet its global emission has been to align with the zero- and energy technologies offers a targets. The majority of the world’s net emissions by 2050 target, to genuine sustainable development countries have, by signing the 2015 establish renewable energy targets opportunity for regional villages, Paris Agreement, endorsed the for 2020 and 2025 and to establish towns and shires to create energy common goal of keeping global the Take2 climate change pledge. systems that can affordably meet temperature rise below 2°C. For Understanding the role and potential their needs in a way that also creates the frst time, local government of community led energy transitions economic, social and environmental through the Compact of Mayors will greatly enhance local efforts. benefts. had a signifcant impact on global Communities taking control of their negotiations. own pathway to zero-net emissions The following fgure illustrates the can greatly assist these ambitions to magnitude of the challenge required The Intergovernmental Panel on become reality. to achieve zero-net emissions by Climate Change (IPCC) Global 2040, relative to the 3x buildup in 7891011 Warming of 1.5 °C Report released The overarching Climate Change emissions from 1960 to 2020. in October 2018 sets the scene Framework is its long-term plan for a necessary drop to zero-net stating: Figure 1: Net global CO2 emissions within a 12 year period, • vision for a net zero emissions, emissions pathways to remain within 1.5°C, which would climate-resilient Victoria in 2050; signifcantly limit the impact in C02 emissions decline • how action on climate change 60 from 2020 to reach net comparison to a 2°C target. The zero in 2055 or 2040 aligns with jobs, cost of living and following chart from the report 50 health; shows the level of actions required 40 • the steps required by Government to meet zero-net globally within the 30 to commence the transition; next 12 years. This sets the impetus 20 for the Hepburn Shire to have a • how the Climate Change Act 10 Community Transition Plan that is 2017 will drive action to 2050; 0 achievable in 10 years. • the challenges to be addressed for 1980 2020 2060 2100 a net zero emissions economy; and • how Victoria is preparing for a changing climate.

Community Transition Plan 24 25 Community Transition Plan 12 13 14 15 16

17 18 19 Section A — What’s the Context? Defnitions Community Social The CTP applied a social justice lens ‘The energy transition means huge ‘The community’ in this Community In the Hepburn Shire, there is a long- to better enable fair distribution change as well as huge potential Transition Plan (CTP) refers to standing history of environmental Justice of benefts and mitigate potential beneft for the community. We need to the local government area of the leadership, as evidenced by burdens on vulnerable community ensure that all people, rich and poor Hepburn Shire. The CTP recognises Hepburn Wind and various renowned members. are included in decision making and that people within this geographic individuals, such as the long- future beneft programs.’ boundary may identify with standing work of David Holmgren Such an assessment is important different regions within this area (and Su Dennett) in co-founding to bring awareness of who benefts, ‘It’s all integrated into the one eco- e.g. specifc townships within the and expanding the permaculture and who is burdened, by the system, which requires balance. I Shire. Signifcant data collection movement, and the Shire’s fve particular transition path taken. think social justice is the framework and analysis has been carried out sustainability groups. Hepburn Z-NET Energy choices must be justifed not from which all goals relate to.’ to provide insights into the carbon therefore had a signifcantly different only in terms of how they will help emissions footprint of the individual starting point. The acronym was mitigate climate change, but also ‘Climate Change and energy poverty local government Wards as well. adjusted for Hepburn to represent in terms of their fairness to those are two great issues of the modern This provides the localities and the broader scope of the second already disadvantaged. In this sense, age.’ townships of Trentham, Clunes, Z-NET program to instead mean addressing questions of justice is Creswick, Glenlyon and Daylesford Zero-Net Emission Transition. The essential, and ought to play a central (Community Advisory Panel and Hepburn Springs with their own Z-NET project team, under this new role in planning climate mitigation. members June 2018) context and opportunities for tailored defnition, has developed a detailed Moreover, such an assessment can solutions. roadmap for transition to renewable play a key role in determining social energy and a high level strategy for acceptance of transition plans. A Community Advisory Panel (CAP) emissions. of 17 local representatives helped to The most appropriate infrastructure The Z-NET Blueprint has evolved guide the project and ensure it was and technologies have been to encompass a wider carbon locally appropriate. The CAP assisted assessed to ensure that the needs emissions inventory than stationary the project team to develop key of all community members, and energy. It also considers transport, areas of understanding, relationships especially those who are vulnerable, agriculture, waste and land use. Due and networks for Z-NET Hepburn, were considered. This combined to the signifcant tourism sector in particularly to inform and guide: the focus is key to achieving a fair the Hepburn Shire, the tourism profle analysis of the initial options and sharing of the benefts occur from has also been communicated to projects for implementation; drafting climate mitigation. Climate mitigation bring awareness to how signifcant of the CTP; and design of the involves signifcant changes to the the impact this sector has. However, governance arrangements. generation and delivery of energy, tourism is not considered within the the organisation of infrastructure boundary for emission reduction Uralla Z-NET 1.0 to Hepburn 2.0 and social practices (lifestyles) of opportunities. This approach The frst Z-NET program in Uralla communities. allows for future programs to be stood for Zero-Net Energy Town. designed to engage and work with The Uralla Z-NET team focussed on More specifcally, social justice the tourism sector to mitigate their building a framework for addressing considerations were integrated into environmental impact. stationary energy. Additionally, as the project assessments and CAP there were no existing sustainability engagement. groups in Uralla at the time, the team needed to engage the local community and build energy literacy.

Community Transition Plan 26 27 Community Transition Plan Section A — What’s the Context?

‘There are hundreds of operating ‘energy towns’ around the world, and an expressed desire or offcial mandate from several communities across Victoria to become one. However, there is only one operating zero-net energy town example in Australia - Daylesford. Hepburn Wind generates enough renewable energy to offset the town.’

Community Transition Plan 28 29 Community Transition Plan B A Place- based Carbon Emissions Inventory

Community Transition Plan 30 31 Community Transition Plan Section B — A Place-based Carbon Emissions Inventory Global The purpose of the baseline Bottom-up and Top-down approach Z-NET emissions boundary Figure 2: Sources and boundaries of GHG emissions 1 emissions profle is to identify, The general approach applied for the The emissions profle maps Standards and quantify and report on Hepburn emissions baseline profle was to: activities that mainly occur within Going Beyond Shire’s distinct greenhouse gas 1) Identify all emission activities the boundary of the Hepburn Shire. emissions (GHG). The baseline 2) Apply methodology to activities as However, some activities also create Scope 1 Scope 3 emissions can also help guide required emissions that need to be mapped Primary to the purpose was to meet where action must be taken to have 3) Apply scaling factors outside of municipal boundaries. in-boudary global standards for quantifying waste & out-of-boundary the greatest impact. Whilst there 4) Apply GHG emissions factors to Methodologies and approaches used wastewater waste & emissions whilst creating a are global standards for emission convert all emissions to a CO2 for the baseline emissions profle are Agriculture. wastewater pioneering approach relevant to forestry & other other indirect profles, methods for meeting the equivalent in accordance with the Greenhouse land use emissions Scope 2 local communities that sought global standards are often based on Gas Protocol which offers a detailed to fnd meaningful data sets and aggregated data sets (scaled down A combination of top-down and framework for calculating GHG stationary fuel combustion ground truth the baseline. data from Victoria for example). This bottom-up approaches was used to emissions. transmission & reduces duplication and gaps with calculate the emissions from each As shown in Figure 2, emissions can grid-supplied distribution The ‘baseline’ emissions inventory energy other communities, but can lack key sector. occur within (Scope 1) and outside industrial or ‘profle’ provides an estimate processes & meaning for community members (Scope 3) of the Shire boundaries product use of Hepburn Shire’s current (2018) and makes it diffcult to measure A top-down approach was utilized in-boundary as well as a consequence of the transportation emissions and their sources. progress in emissions reduction. when the available activity data did out-of-boundary consumption of grid-supplied energy transportation not perfectly align with the boundary (Scope 2). inventory boundary (including scopes 1,2 and 3) Geographic city boundary (including scope 1) Grid supplied energy from a regional grid (scope 2) This project has created a bespoke of Hepburn Shire. This was the case profle, which not only meets the for the following area of activity: The analysis undertaken was based global reporting standards, but uses on a production-based method of more granular data when available. - Land Use Change emissions accounting (as this is It has brought together household more established and consistent survey data, local farming data sets, A bottom-up approach was utilised with global reporting). However, if inputs from Hepburn Shire Council when ‘on the ground’ activity data a consumption-based method was and signifcant data from Powercor, for Hepburn Shire was available. applied, much of the emissions the electricity network distributor. This was the case for the following associated with agricultural activity sectors: in particular would apply where the The origins of Hepburn Shire’s food was consumed. emissions have been categorised - Stationary Energy into: - Agriculture - Wastewater - Stationary Energy - Solid waste - Transportation - Council - Agriculture - Transportation - Land Use Change - Tourism - Waste Localised data collection was supported by the fve sustainability groups: SHARE, Trentham Sustainability Group, Transition Creswick, Clunes Sustainability Group and Hepburn Relocalisation Network as well as Hepburn Wind. 1 Greenhouse Gas Protocol: Global Protocol for Community-Scale Greenhouse Gas This enabled 500 households to Emission Inventories. An Accounting and Reporting Standard for Cities. participate in the Household Survey. Community Transition Plan 32 33 Community Transition Plan Section B — A Place-based Carbon Emissions Inventory Whole The 2018 baseline year shows that Chart 3: 2018 baseline year emissions of Shire agriculture, stationary energy and fndings transport dominate the sources of the Shire’s emissions.

More than 20,000 tonnes of emissions are offset through renewable energy (solar and wind). The land sector provides a net carbon sink with forestry activities in the Shire estimated to draw down 11% of gross emissions (i.e. emissions prior to carbon credit activities).

Baseline year emissions 262,041 Tonnes of carbon dioxide equivalent in 2018

Farming sector emissions (i.e. associated with agriculture activities) is the largest source of emissions (41% of net emissions), this is followed by residential (34%), commercial (26.2%) and industrial (4.4%) sector emissions. The municipal sector includes all Council emissions, public land (including land use sector) and other emissions unable to be allocated from source data. Electricity is the main contributor of emissions in the residential, commercial, industrial, municipal sectors. Transport fuels (petrol, diesel and aviation gas) are the highest contributors of emissions in the tourism sector, but these are not within the defned emissions boundary. Emissions breakdowns by economic sector are shown in the following table and chart.

Community Transition Plan 34 35 Community Transition Plan Section B — A Place-based Carbon Emissions Inventory

Table 2: Baseline by Table 1: Baseline by The ‘Sectors’ Emissions Source Economic sector Economic sector

Emissions sector Residential Commercial Industrial Farming Municipal Total Emissions sector and source Residential Commercial Industrial Farming Municipal Total

Agriculture 0 0 0 106,325 0 106,325 (40.6%) Stationary energy

Stationary Energy 48,739 25,242 2,006 5,906 6,464 88,357 (33.7%) Electricity 38,409 21,439 1,982 2,487 6,398 70,715 (27.0%)

Transport 34,963 41,272 9,097 1,396 602 87,330 (33.3%) Gas (mains) 8,353 3,803 24 - 67 12,246 (4.7%)

Waste 5,442 2,164 437 0 0 8,043 (3.1%) Gas (bottled) 1,767 - - - - 1,767 (0.7%)

Land use, land use change and forestry 0 0 0 0 (28,014) -28,014 -(10.7%) Wood 210 - - - - 210 (0.1%)

Total emissions in tonnes 89,143 68,679 11,540 113,627 -20,947 262,041 tCO2-e Diesel - - - 3,419 - 3,419 (1.3%)

(34.0%) (26.2%) (4.4%) (43.4%) -(8.0%) Transport

Petrol 28,958 12,833 2,838 - 46 44,675 (17%)

Diesel 4,186 26,914 5,922 1,396 556 38,974 (14.9%)

LPG 1,819 1,525 337 - - 3,682 (1.4%)

Agriculture

Cropping - - - 7,788 - 7,788 (3%)

Grazing - - - 98,537 - 98,537 (37.6%)

Waste -

Landfll waste 3,661 1,977 437 - - 6,075 (2.3%)

Waste water 1,781 187 - - - 1,968 (0.8%)

Land use, land use change and forestry

123456Forestry (carbon sink) - - - - -50,551 -50,551 -(19.3%)

Land use (change) - - - - 22,537 22,537 (8.6%)

Total emissions in tonnes CO2-e 89,143 68,679 11,540 113,627 -20,947 262,041 tCO2-e

Community Transition Plan 36 37 Community Transition Plan 7891011

12 13 14 15 16

17 18 19 Section B — A Place-based Carbon Emissions Inventory

Chart 4: Modelled activities by economic sector Chart 5: Business as Usual growth

Under the Business as Usual scenario (BaU), the local emissions are forecast to grow by 13.% by 2029 (or 34,300 tCO2-e per annum). Growth paths are modeled for all emission activities based on expected growth in activity in their respective sectors, including factors such as population growth. The ‘BaU’ represents a ‘no action’ pathway and does not include modelled adoption of renewable and energy effciency technologies (which are part of the ZNET profle).

Community Transition Plan 38 39 Community Transition Plan Section B — A Place-based Carbon Emissions Inventory Ward by Ward

The Hepburn Shire has many distinct towns, villages, and hamlets located across the 1,470 square kilometres, Chart 6: Ward emissions profle inclusive also of native forests and farmland. Within those locations, there is strong local pride and identifcation. In order to give visibility to the distinct footprints of some of these areas, the following table and accompanying chart, refects a high-level breakdown across the fve local government Wards in the Shire.

Table 3: Baseline by Shire Wards

Emissions source Birch Cameron Collban Creswick Holcombe Total

Agriculture 7,873 56,903 6,925 17,341 17,283 106,325

Stationary Energy 37,142 9,509 10,328 24,290 7,087 88,357

Transport 29,788 10,955 12,200 23,802 10,585 87,330

Waste 2,748 1,007 1,121 2,193 973 8,043

Land use, land use change and forestry -5,696 -2,202 -6,581 -4,173 -9,361 -28,014

tCO2-e 71,855 76,172 23,993 63,453 26,568 262,041

Emissions sector Birch Cameron Collban Creswick Holcombe Total

Residential 37,865 10,931 8,881 30,586 6,185 94,448

Commercial 36,966 8,177 6,287 20,950 2,765 75,145

Industrial 6,933 988 1,001 3,796 243 12,961

Farming 10,091 61,387 5,841 23,130 11,182 111,630

Municipal -20,000 -5,312 1,983 -15,008 6,193 -32,143

tCO2-e 71,855 76,172 23,993 63,453 26,568 262,041

The Ward of Cameron has high emissions and is largely skewed from the agriculture sector due to its relatively high share of grazing area compared to the other Wards. Birch has the highest electricity emissions among the Wards and produces more than twice as many emissions in total as Coliban. This can be explained by higher poulation in comparison to other Wards, but also due to the impact of business and tourism. Hepburn Wind is located in Birch and all electricity generated by the wind farm is allocated to the Ward for the purpose of modeling the local on-site generation impact. Coliban produces the lowest emissions among the Wards in Hepburn Shire and is fairly balanced across the sectors, including a signifcant carbon sink due to forestry activities that reduced the emissions profle by 27%. Holcombe ward hosts the largest forestry carbon sink, which creates a reduction of 35% to their emissions.

Community Transition Plan 40 41 Community Transition Plan Section B — A Place-based Carbon Emissions Inventory

Figure 3: The 2018 electricity baseline postcard Figure 4: The 2018 energy usage postcard

Table 4: Renewable Electricity Mix Stationary Energy and Transport

The broader energy context in regards to emissions is described in the above postcard and considers electricity, Electricity Source MWh Energy (TJ) natural gas, LPG, frewood, diesel and petrol - this relates to energy usage in buildings as well as transport fuels.. Grid electricity (77.2%) 60,961 219.5

Solar (9.2%) 7,258 26.1

Wind (13.6%) 10,761 38.7

Total electricity demand (per annum) 78,980 284.3 TJ

As is represented in Table 4 and in the accompanying postcard, (fgure 3) the electricity data is a highly accurate baseline as at 2018, bringing in data sources from Powercor, Clean Energy Regulator, OpenNEM, Hepburn Wind, Australian Bureau of Statistics and Hepburn Shire Council. The current demand is 79,633MWh.

Community Transition Plan 42 43 Community Transition Plan Section B — A Place-based Carbon Emissions Inventory Tourism

In high tourism areas such as the Hepburn Shire, exactly who should take responsibility for the footprint of tourism is In regards to the CTP, the impact of weekender or tourist households is highly debatable. It is not standard practice for the destination to account for the impact, however, for the purpose of also signifcant when considering future options for engaging with the engagement with that sector and best practice, tourism has been accounted for as a breakout piece of analysis, but tourism sector. 30% of households across the Shire are for weekender is not represented in the emissions profle. or tourism purposes as is illustrated in the table below.

As a signifcant economic base for the shire, a major fnding from this work is that the tourism sector produces almost as many emissions as the agriculture sector.

Table 5: Baseline tourism impact Table 6: Ward tourism profle Chart 7: Tourism by Ward

A look outside the Z-NET boundary # Households Ward level data Population Total Tourism footprint per ward

Birch 5,570 3,057 Emissions sector Local Visitor Holcome 12% Agriculture 106,325 - Cameron 1,889 1,037

Stationary Energy 80,466 7,891 (9.2%) Coliban 2,107 1,157 Birch 34% Transport 87,330 76,567 (89.4%) Creswick 4,338 2,381 Cameron 12%

Waste 6,885 1,158 (1.4%) Visitor transport makes up the Holcombe 1,850 943 bulk of visitors emissions but is Land use, land use change and forestry -28,014 - Hepburn Shire 15,754 8,575 excluded from the ZNET boundary Total emissions in tonnes CO2-e 252,992 85,616 as those emissions are captured Coliban 14%

(74.7%) (25.3%) in the ‘home’ footprint of visitors.

Total emissions in tonnes CO2-e 252,992 9,049 Occupied households * 6,029

(96.5%) (3.5%) Tourist / Weekender households 2,546 Creswick 28%

* Occupied households assumed from numbers reported in ABS census Once extrapolated out across the wards, the tourism profle tells an interesting story on the carbon footprint of the local areas. In particular the signifcant weighting of the Brich Ward, which includes tourism hot spots Hepburn Springs and Daylesford. Transport to Hepburn Shire which includes national and international fights and car miles is the signifcant contributor to the emissions profle.

Community Transition Plan 44 45 Community Transition Plan C What’s Possible and Will it Work?

Community Transition Plan 46 47 Community Transition Plan Section C — What’s Possible and Will it Work? Zero Net Energy and Zero Net Emissions

Zero net energy for this CTP is the equivalent energy to other defned as a community that communities. This includes a goal of reduces and matches its local energy zero-net energy by 2025, with a goal needs with a 100% renewable of zero net emissions for the Shire by energy supply. Practically, that means 2030. that energy can be imported from the grid or elsewhere, but this needs The following opportunities have to be matched with local renewable been identifed to progress towards generation. This calculation is the goal of zero net energy and zero averaged over an annual period of net emissions. These opportunities Generating time. are grouped as: energy

Zero net emissions for this CTP - Using less energy is defned as reaching carbon - Generating energy onsite neutrality, in that the local carbon - Fuel switching Farming Sustainably emissions are reduced, sequestered - Generating energy nearby or offset. These opportunities respond directly Daylesford was the frst example to emissions associated with the of a zero-net energy town through following sectors which are detailed the development of Hepburn Wind, below: Australia’s frst community-owned wind farm. The original Zero Net - Stationary Energy Energy Town program (Uralla, NSW) - Transportation defned energy in terms of stationary - Agriculture GenerATing energy only. Therefore opportunities - Waste and Waste water energy focused on reducing energy use and - Land use change developing or importing suffcient renewable energy to balance Opportunities which focus on energy consumption of stationary energy will be defned frst. (electricity, gas and wood). Sustainable Firewood Given the achievement of the Hepburn Shire to already have a zero-net energy town, the focus has expanded to meet the objective Shire wide, enable the electric vehicle transition and balance remaining gas and transport emissions by exporting

Community Transition Plan 48 49 Community Transition Plan Section C — What’s Possible and Will it Work?

Community Transition Plan 50 51 Community Transition Plan Section C — What’s Possible and Will it Work? From 23% to Meeting Identifying 100% Renewable Projects and Electricity Supply Options

The CTP considers that it is vital manner, however, it must be noted To reach 100% renewable electricity This section of the CTP presents The identifcation of potentially forward during the Carbon Free to focus on how much is needed that it is a moment in time - the 2018 supply in the most realistic fashion, fndings of the ‘Options Model’ feasible projects was drawn from a Conversations are already underway, over time, as it is a far more useful baseline year that is represented and the electricity component of and recommends a pathway for number of sources and methods: including: and accurate way to plan for and other years will vary. The baseline approximately 60,000MWh is to be tackling emissions using a least- - Around 90 project or program ideas communicate the magnitude of the can be seen on the electricity offset cost approach. This requires an were harvested from the Carbon 1. Masterplan for Shire task. To inform this, the CTP has postcard on page 42 (Figure 2) the assessment of opportunities using Free Conversations held across 2. Hepburn Solar Bulk Buy program undertaken forecasting through current status is 23% renewable This could be supplied by rooftop detailed fnancial modelling. the Shire in 2017. Participants 3. Solar Savers rates program for low the Options Model to consider a electricity supply as at the 2018 solar and mid-scale generation. were able to log ideas onto the income households number of dynamic factors that baseline year. OurSay platform or provide them at 4. Business and Farm energy audit will infuence the task of reaching Rooftop solar PV: workshops matching zero-net energy, which includes Given these considerations, it is - 50% penetration - A literature review of local historical 5. Training for energy audits electricity, gas, wood and transport. possible that an interim target of - 1254 households documents as part of an early 6. Fund to support zero-net These dynamic factors include the 100% renewable electricity supply - 6.2MW new solar deployed in the context report. Ideas from these emissions impact of energy effciency actions will be met either within Phase 1 Shire were also brought into the project in demand reduction, population or early into Phase 2. This could - 10,000MWh assessment process The natural environment projects put increases, the transition off gas be monitored and be a cause for - New projects were able to be forward were still quite conceptual, based appliances and the transition community celebration as well as Mid-scale grid connected generation nominated on OurSay during the as were the suggested planning to electric vehicles. These factors monitoring. projects Z-NET pilot project regulation changes. There was all infuence the total emissions - 50,000MWh provided through - There were also emergent a strong focus on community profle and therefore the task at To reach 100% renewable electricity 2-5 local projects dependant on opportunities that came up through education and awareness raising. hand. The information presented supply an additional 60,961MWh per technology and scale deployed the process that were considered The Z-NET CAP were presented shows how the community can aim annum will need to be generated to - Examples: 20MW of wind or 30MW with the recommendation that there for enough installed capacity to offset the consumption. Hepburn of solar (or a combination of 21 technology postcards2 were was the need for foundational work achieve the 2025 milestone. Further Wind supplies 10,760MWh and technologies) designed specifcally for the Z-NET – further investigation, design or consideration can also be given rooftop solar contributes 7,260MWh. process and were tested around feasibility on key issues rather than to state and federal government This means that the existing wind These strategies are realisable the Shire with 250 community site specifc projects. Community targets. For the baseline year of 2018, generation is 4.1MW and the existing in part through expanding on members. The fndings from this readiness was brought up the Victorian grid is supplied by 16% rooftop solar PV installations are the current programs such as infuenced the opportunities which throughout the consultation process renewable electricity. 5.3MW. Current rooftop solar PV the Hepburn Solar Bulk Buy and have been modelled for the CTP. as a necessary consideration of penetration across the Shire is at Hepburn Wind actions. They are The postcards showed that highest what could be done with existing However, despite these interrelated 19%. further enabled by state and local levels of community interest capacity. The projects suggested by factors, it can also be useful to government incentives. were for battery storage, rooftop the community are integrated into understand on a high level the task It should be noted that this high level PV, hot water and building fabric the implementation table at the end to deal with only electricity as this is view of moving to 100% renewable upgrades (retroftting). For mid- of this document. a common approach for communities electricity supply includes the scale technologies, solar farms were with ambition to reach 100% consumption of Council. Therefore the most popular, followed by wind renewable. The electricity baseline their own activities to reach zero-net energy. has been completed in a thorough emissions by 2021 will infuence the It is important to note that many strategy deployed. of the achievable projects put

2 www.littlesketch.es/experiments/ZNET-Hepburn-postcards/

Community Transition Plan 52 53 Community Transition Plan Section C — What’s Possible and Will it Work? Opportunities The immediate fnancial return Balancing the frewood supply The opportunity groups are defned source of wood energy). for some on-site activities is with reforestation is capable of below: Generating energy nearby relating to zero- complicated by the high proportion delivering a 100% renewable wood Generating renewable energy within net energy of weekenders. This results in the supply within the 10 year transition Using less energy the Shire boundary from places fnancial payback being lower, timeframe. Reducing energy consumption such as appropriately located due to periods of time where the through behaviour changes and wind turbines and solar farms. For 12Hepburn Shire is an established property is vacant. However, with the As an example for the34 Hepburn Shire, measures, such as increasing the wood energy, this means improved 56 leader in renewable energy, and is payback from solar power improving with over 45% of their stationary thermal performance of homes and management and reforestation on learning (like other communities) all the time it can still represent a energy profle relating to wood businesses (e.g. through insulation) sites in and around Hepburn, that will how to address other emissions worthwhile investment. usage, the Uralla Z-NET group are and installing energy effcient help match the frewood usage and sectors. Many of the ‘shovel ready’ undertaking a three year project appliances. These actions reduce supply of the region. opportunities are in stationary For businesses, options for energy titled ‘Elephant in the Woodland’ the amount of energy required to energy, such as the proposed solar effciency and renewable energy looking at sustainable frewood, power the town - making the goal of Opportunities analysis method farm by Hepburn Wind and the have the potential to reduce biodiversity on farms and the impact zero net energy more achievable. An assessment approach was current, and already successful, stationary energy emissions by of wood collection, the education of applied to 16 possible energy residential solar PV bulk buy program. 10.4%. collectors to collect sustainably and Generating energy on-site abatement options. The majority There is the opportunity, given the education of users as to what is Generating energy on local of options were communicated this local knowledge and capacity, The contribution of household (9.8% sustainable wood. residential, commercial and through a ‘postcard’ which evaluated to move very quickly to achieving of total emissions) and business community properties, both to offset the technology and resource in 100% renewable electricity supply abatement options (2.3%) need to Gas (both mains and bottled) and energy consumption (behind the relation to the local context. Those and then zero net stationary be supplemented by utility scale to a lesser extent diesel generation meter) and to potentially export options that were applicable in the energy using an established mix renewable and sustainable energy are likely to remain as a signifcant energy to the grid for use by others. local context were then modelled of on-site opportunities within projects that can reduce stationary form of energy use at the end of the Battery storage could enable energy according to their impact in meeting residences,businesses and energy emissions by a further 42.8% transition period. However, in energy generated on-site to be stored for zero net energy, zero net emissions community-scale renewable energy by 2029. terms these could be offset by the later use. This also includes frewood (within their emission sector) and projects. surplus electricity exported to the resource replenishment on site. their fnancial implications. 78Achieving this relies upon signifcant grid subject to the renewables91 target 011 For households, a total of fve on- uptake in energy effciency within being met. Fuel switching site energy effciency options were business and households; signifcant Switching fuels from a fossil fuel identifed with an average simple on-site generation; and signifcant to a source more easily matched payback of 5.8 years, including new solar and wind capacity with renewable energy. This opportunities outlined in Table investments across at least 2-3 sites. includes replacement of gas and 7 on page 54. These options are The distribution network (22kV) is wood appliances with electric estimated to reduce household unable to handle greater than 10MW ones. These activities drive energy energy consumption by 40% by export at a single location but the use from other sources towards 2029. On site renewable energy 220kV line will be able to support electrical energy, which can then (solar PV) is expected to reduce larger capacity. be matched with greater renewable energy demand by a further 18.9%, energy generation locally (including while another 15.3% of stationary The successful delivery of all electricity generation and nearby energy (by GJ) currently from gas the identifed stationary energy forest management and reforestation combustion could be switched to opportunities provides a 100% which can create a sustainable (clean) electricity. renewable electricity supply by as early as 2024. This would signal a 12 landmark achievement13 for a rural 14 15 16 community.

Community Transition Plan 54 55 Community Transition Plan

17 18 19 Section C — What’s Possible and Will it Work? The following table outlines the opportunity within the stationary energy sector:

Table 7: Stationary energy opportunities and options

Opportunity Opportunity Abatement option Option description Opportunity Opportunity Abatement option Option description group set group set

Using less Home energy Residential Hot More than 50% of households in Hepburn Shire have electric storage Fuel switch Home fuel Residential Dual Over 80% of Victorian homes operate as “dual fuel” - meaning the effciency Water - Heat pump hot water systems, and a further 30% run from gas or wood. These Fuel to all-electric use of both electricity and gas. Gas is used most commonly to supply upgrades are a very ineffcient way of heating water and a large contributor to cooking, space heating and water heating - with the last two typically household energy use. Powering the electric hot water systems from comprising 50% to 75% of a household’s energy use. Electricity offers solar PV, or replacing any of these with a heat pump or solar hot water the potential for far more effcient space and water heating (through unit offers signifcant savings. heat pump technology) and the ability to supply these loads from renewable energy - saving both emissions and money. Solar powered, Using less Home energy Residential lighting Lighting makes up around 10% of Australia's energy consumption. all-electric homes typically cost between zero and $1,000 per year effciency The relatively recent use of halogen downlights in some households to run - as compared with almost $3,000 per year for typical Victorian upgrades means that the proportion of energy used for lighting in these homes dual fuel homes. is even higher. 50% of all lamps are incandescent or halogen types Generate Home Residential solar Hepburn has excellent climatic conditions for solar. The total rooftop which are obvious targets for replacement. Replacing halogen with on-site generation photovoltaic solar capacity in Hepburn is estimated to be nearly 6 MegaWatts (the high quality effcient LED alternatives can save 80% of the energy equivalent of 1,250 large household systems of 4kW each), based on used in lighting. an available rooftop area of 82,000 sqm. Using all of this roof space could meet about 40% of Hepburn's total household annual electricity Using less Home energy Residential Older electrical appliances can account for the largest proportion demand. effciency appliances of household consumption (up to 35%). Older appliances (such as upgrades fridges) generally draw higher operating and standby power and are Generate Home Residential battery Should some form of community micro-grid or virtual power plant be particularly good targets for upgrades. Measures such as Minimum on-site generation storage with solar possible in the future, medium scale storage options may be attractive Energy Performance Standards (MEPS) and Energy Labelling, help to to store and supply power locally. At a household level, storage guide improvement in energy effcient appliances. enables high utilisation (e.g. 80-90%) of on-site solar generation with the grid being used as a back up during low generation periods (e.g. winter). Substations and power lines around the Hepburn Shire Using less Home energy Residential heating Energy used for residential space heating throughout most of Victoria, are not currently constrained and should be able to accommodate a effciency and cooling and Hepburn specifcally, is high. Of total heating/cooling energy reasonable increase in solar PV across Hepburn. The introduction of upgrades used, often somewhere between 80-90% is associated with heating. battery storage on the low voltage side of the substation reduces the The availability of timber means a high proportion of space heating impact of high penetrations of solar PV and may avoid the need for in Hepburn uses wood (58% of households) with an average 3.5 punitive solar export limiting or even refusal. tonnes burnt annually per home. Many homes will have reverse cycle air conditioning, however the use of these for heating is often quite Generate Business Business Solar PV Businesses typically have excellent “load profles” for integration of low. The best options for space heating are effcient pelletised wood on-site Actions solar PV - that is, they tend to use a lot of electricity during the day heaters or reverse cycle (heat pump) air-conditioners. when solar PV generates electricity. Many businesses can also take advantage of larger solar PV systems, having larger roof spaces, higher Using less Home energy Residential thermal Most houses built before the year 2000 have limited or no insulation. electricity use and higher connection capacity to the grid. As such, effciency fabric Houses without insulation have poor thermal performance. Draughts the economics of solar PV at small, medium and large commercial and upgrades and large glazed areas are also factors in poor thermal performance. industrial sites tends to be even more attractive than for residential. An average house without insulation can be improved by 2 to 3 stars with insulation and some other basic effciency measures. This Nearby Shire / Restoration and Over half of Hepburn homes (58% according to the ZNET Hepburn equates to a 50% energy saving for space conditioning. Grid scale reforestation for Household Survey, 2018) use wood for heating, with around 20% of electricity frewood(energy those households harvesting frewood from their own properties. Using less Business Business energy Small to medium local businesses often have signifcant energy use actions component And while this wood (including fallen timber), may seem 'renewable' Actions effciency associated with heating/cooling, lighting and appliances (e.g. servers, or 'grown on-site', the defnition of wood as a 'sustainable resource' computers etc). Businesses can also have high standby power loads is more complex. Moreover, sustainable frewood is more accurately from leaving equipment running 24/7. Larger commercial and industrial defned as coming from a (usually certifed) sustainable source where businesses often have very high heating loads - for space and water regrowth of any consumed wood is managed. Purchasing sustainably heating, as inputs to other processes. A number of options exist for grown frewood ensures that the net emissions from burning frewood more effcient management of large electrical and gas loads. are offset by the regrowth of timber (i.e. a net zero emissions outcome). However, sustainable frewood has a cost premium.

Community Transition Plan 56 57 Community Transition Plan 123456

Section C — What’s Possible and Will it Work? Opportunity Opportunity Abatement option Option description group set

Nearby Shire / BioEnergy Council is developing a pilot project, with views to expand to a Grid scale 65kW system which delivers 252 MWh of electricity into the grid per In communities with limited renewable electricity annum and a 257MWh heating load. Whilst it is unlikely that the bio- actions energy will be a signifcant contributor to the CTP the Hepburn Shire energy potential, importing or procuring Bioenergy Plant will make a modest contribution. Productive land in 7891011 the Hepburn Shire is primarily pasture land for grazing. Crop stubble is green energy would generally be minimal. Forestry activity and saw milling occur in neighbouring shires, but not within the Hepburn Shire. Fallen hardwood is available as a resource in the area, but this is currently used for space heating (a considered. However, opportunities high percentage of households use wood heating). The Shire's waste is a reasonable source of biogas. analysis suggests that Hepburn can reach Nearby Shire / Micro Grid / VPP Community microgrids utilise local resources to meet local demand. Grid scale They enable high local penetration and sharing of technologies 100% renewable electricity supply without electricity such as solar, wind, hydro, storage, combined heat and power and actions demand response. Microgrids also reduce losses in the electricity the need for procurement from other network. A Virtual Power Plant (VPP) is a similar concept that is less constrained by geography. VPPs use internet technologies to aggregate consumption and production from multiple households and communities. businesses: this allows distributed energy resources (DERs) like solar, batteries and 'fexible' loads to participate in markets for energy generation and grid support services.

Nearby Shire / Utility Scale Solar Hepburn has a medium solar exposure and plenty of available land for Sourcing bottled biogas and sustainable Grid scale PV (23MW) utility scale solar. Engagement with the local electricity distributor has electricity indicated that a single large utility scale project would be feasible in wood would also contribute to Hepburn actions Hepburn Shire on the 220kv line. Further, a number of small to mid- scale projects could be integrated on the 22kv. This option includes meeting its zero-net energy target. the proposed 3MW solar PV farm which will be integrated with the Hepburn Wind project.

Nearby Shire / Utility Scale Wind The total wind resource in the region is high. Accounting for Grid scale (20MW) appropriate land uses, elevations, and population data, the wind 12 13 14 15 16 electricity farm capacity in the Hepburn area has been estimated at 1,500MW, actions however the lack of access to the grid renders many of these sites inappropriate, as does proximity to households. Hepburn lies on tablelands with a reasonable to good wind resource and predominantly grazing farmland that is suited for wind turbines. The wind is already being harvested by Hepburn Wind's two community- owned turbines at Leonards Hill, generating enough power for 2,000 homes at around 11,000MWh per annum. Current turbines are scaled at 4-5MW, a mid-scale wind farm could meet this quota easily.

Fuel switch Transport Electric vehicle (EV) Australia has been slow to embrace EVs - partly due to a lack of model transition availability, current premium costs and concerns about vehicle range and charging infrastructure. However, EVs are forecast to comprise over 50% of light vehicles sales within 20 years. Recent modelling suggests that the replacement of all internal combustion engines with battery EVs in Australia would increase total electricity demand by around 26%. For Hepburn, the electrifcation of transport is an opportunity to target around 50% of energy demand and 33% of total emissions.

Community Transition Plan 58 59 Community Transition Plan 17 18 19 Section C — What’s Possible and Will it Work? Table 8: Impact of Stationary Energy Actions

Grouped stationary energy Opportunity Opportunity Modelled uptake Impact (yearly) Financial Overall Notes group set (group) (2018) assessment opportunities are presented on the (fnancial viability, technical feasibility and following page according to their social desirability) impact in meeting zero net energy, zero Energy Emissions NPV $ Tech :) (GJ) (% (t CO2-e) of total (% of total net emissions (within their emission stationary emissions) sector) and their fnancial return. energy) Use less Home energy Based on between 85,223 GJ 10,246 t $11,964K 2 3 3 Established effciency 14% and 80% -9.80% -3.50% technology, business upgrades uptake for case slightly reduced individual energy by high number of An overall assessment of their value effciency actions. weekenders according to a human-centered Use less Business Based on 80% 9,927 GJ 3,199 t $2,743K 3 2 2 Very positive business design framework (fnancial viability, actions uptake rate for -1.10% -1.10% case, but businesses small businesses. have historically been challenging technological feasibility and social to motivate to take desirability) is also provided. Social action.

Generate Home & Based on 50% 50,243 GJ 18,847 t $15,668K 3 3 3 Declining costs has desirability was correlated through on-site Business target of solar -5.80% -6.40% made onsite PV penetration very attractive and community forums in which 250 for households the technology has and 80% of signifcant support citizens engaged and voted on the 21 businesses. locally. technology postcards. Fuel switch Residential Based on uptake 32,720 GJ 3,752 t -$15,227K 1 2 2 Business case on dual fuel to all of 50% of dual fuel -3.80% -1.30% an individual level electric households. improves markedly when only one gas Reference to the methodologies used are available appliance left to in the Options Model (see Appendix A). replace. Nearby Reforestation Based on uptake 193,321 GJ NIL -$8,705K 1 3 2 Poor fnancial viability, (for frewood) of the 58% of -22.2% but necessary to homes using wood deliver net zero heaters. energy for wood.

Nearby Solar, Wind & Based on the 387,613 GJ 126,812 t N/A 1 2 3 Declining costs will Bioenergy deployment of -44.5% -42.8% see the fnancial case 43MW of new continue to improve renewable energy over the next few capacity. years.

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7891011

12 13 14 15 16 Section C — What’s Possible and Will it Work? Opportunities Relating Transport to Zero-Net Emissions

The opportunities that contribute to Fuel switching In pure energy terms, the transport energy LOW EMISSION Contribution to 1% of emissions emissions reduction beyond energy This includes the emissions beneft profle is approximately two times stationary reaching -NET PASSENGER 2.9% of transport have been developed at a high level of re-directing fossil fuel based energy, but is similar in emissions terms. As VEHICLES 2.9% of transport energy to inform the CTP. Further work will emissions to electricity where they a rural community with high levels of private be required to refne these options can be more easily mitigated through transport use, focusing in the short term as detailed analysis of options increased renewables and switch on promotion of other transport modes or ELECTRIC Contribution to 10.6% of emissions reaching Z-NET outside energy was not included out of diesel in favour of sustainably preferably purchasing more fuel-effcient VEHICLE 30.5% of transport emissions within the current scope of the work. sourced biodiesel. vehicles makes sense technically and TRANSITION 18.9% of energy The pathway for addressing these fnancially. 20.9% of transport energy opportunities including research and Generating nearby pilot trials are outlined in Section E Generating or producing offsets In the medium term, an accelerated shift RESIDENT RIDE Contribution to 0.8% of emissions reaching Z-NET - Implementation Plan. The detailed at the community scale, such as to electric vehicles will deliver signifcant SHARE / ACTIVE 2.4% of transport emissions opportunities analysis for emissions vegetation management through benefts, by signifcantly reducing the TRANSPORT 2.4% of transport energy reduction outside energy is not to carbon capture (reforestation) energy use associated with private exhaustive, but includes the major and Greenpower options or carbon- transport and directing emissions towards LOW EMISSION Contribution to 0.9% of emissions reaching Z-NET opportunities for a pathway towards neutral electricity options (such as renewable electricity. This change allows the LCVs AND TRUCKS 2.5% of transport emissions zero net emissions. The opportunity Powershop). community to absorb transport emissions 2.5% of transport energy groups are defned below. through existing and new community-scale Opportunities analysis method renewable energy projects. Using less An assessment approach was BIODIESEL FOR Contribution to 1.5% of emissions TRUCKS reaching Z-NET Reducing emissions through applied to 14 possible (non- The model17 forecasts a transition of 4.5% of transport18 emissions 19 0.0% of transport energy measures such as reduction in the stationary energy) abatement Hepburn’s vehicle feet to electric vehicles emissions intensity of agricultural options to contribute to zero over the 10 year Z-NET timeframe. It production and waste reduction net emissions. Options were frstly acknowledges that the predicted practices. communicated through a ‘postcard’ uptake in (full plug-in) electric vehicles is which evaluated the opportunity in highly uncertain and contingent on policy Generating on-site relation to the local context. Those decisions, the willingness of manufacturers, Generating or producing offsets options that were applicable in the and the development charging infrastructure on site, through practices such local context were then modelled etc. However for the purpose of illustrating as emissions capture (capturing according to their impact in the potential impact of EVs on transport and destruction of methane meeting zero net emissions (within emissions and energy demand (particularly from manure) and soil carbon their emission sector) and their the increase in electricity demand in the sequestration. abatement cost. Shire for charging), this option targets the ‘owners case’ for both passenger and LCVs - heavy trucks are not considered as EV- versions are in further in their infancy for these large trucks. An overview of the contribution of each transport opportunity to reaching Z-NET are listed to the right. The opportunities are further detailed in the table on the next page.

Community Transition Plan 62 63 Community Transition Plan Section C — What’s Possible and Will it Work? The following table outlines the opportunity within the transport sector: Table 9: Transport opportunities and options

Opportunity Opportunity Abatement option Option description Opportunity Opportunity Abatement option Option description group set (group) group set (group)

Using less Local transport Low emissions This option considers the (encouraged) transition of Using less Local transport Resident ride Ride sharing (e.g. car pooling) and choosing active passenger Hepburn's current residential and commercial/industrial share / public transport modes (e.g. walking and cycling) are two simple vehicles passenger vehicles to newer and more effcient models (i.e. transport ways to reduce the number of trips made using transport smaller internal combustion engine vehicles). Modeling in fuels, and therefore emissions generated. This option looks this option assumes that average vehicle mileage remains at how each of these options could reduce emissions from: consistent over time (i.e. does not include behavior change a) Trips "to and from work" by Hepburn residents able to and modal shift impacts). The option targets four vehicle ride share/carpool, and b) 'Personal' (i.e. non-work related) types for a combination of replacement with smaller (i.e. short trips (under 5 kms) that could be shifted from car 6 cylinder to 4 cylinder and 8+ cylinder to 6 cylinder) and/ travel to active mode of either walking or cycling. Trip "type" or more effcient (newer) engines, based on Australian data is taken from the ABS Motor Vehicle Survey (2016) for average fuel effciencies for newer (less than fve years old) Victoria and from the ZNET Hepburn Survey (2018). Already vehicles. there are local programs such as the ‘Creswick Car Pool’ initiative that can be expanded on. Using less Local transport Low emissions This option considers the (encouraged) transition of LCVs and trucks Hepburn businesses' light commercial vehicles (LCV) Fuel switch Local transport Biodiesel for Biodiesel is a near zero emission alternative to regular and assorted trucks to newer and more effcient models. trucks diesel that can be used in (most) existing diesel vehicles. Modeling in this option assumes that average vehicle This option models the transition of Hepburn businesses' mileage remains consistent over time (i.e. does not include diesel trucks to using B20 Biodiesel (i.e. Blended 80% behavior change and modal shift impacts). Opportunity diesel and 20% biodiesel). Modeling in this option assumes modeling using Australian datasets (ABS, 2016) shows that that average vehicle mileage remains consistent over time newer model LCV and non-freight trucks have tended to be (i.e. it does not include behavior change and modal shift more effcient (around 5%) than older models, however the impacts). effciency of heavy trucks (i.e. Rigid and Articulated) has on Fuel switch Local transport Electric vehicle Electric vehicles (EVs) use electric motors to drive their average not improved. Accordingly, while LCV/non-freight transition wheels. Electricity is either stored in batteries in the effciency is modeled as a natural turnover (with zero vehicle, or generated by a secondary motor powered by marginal cost), modeling of the changeover of Rigid and petrol or diesel (i.e. a hybrid-electric vehicle). Battery Articulated trucks to more effcient versions is assumed to powered EVs and 'plug-in' hybrids can be charged have a marginal cost (i.e. a 'premium' model assumed to be using (high capacity) home charging units or at public 'more effcient'). charge stations. Similar vehicle electrifcation trends are happening in commercial and public transport. Importantly, the replacement of vehicles with electric versions increases overall electricity demand, meaning that EVs are a way to 'switch' from fossil fuels to renewable (electricity). Already there are three local public EV charging stations in the shire.

Community Transition Plan 64 65 Community Transition Plan 123456

Section C — What’s Possible and Will it Work? 7891011 Victorian pilot project case studies are listed below. Agriculture

The overall trajectory for reaching zero net emissions in MLA perceives the co-benefts of working to a carbon sectors like agriculture is much more reliant on non-local neutral goal as: Bimbadeen factors. There are industry challenges which cannot be - increased productivity in the red meat industry Bimbadeen is a 300 head cattle farm on Phillip Island that has been producing carbon immediately solved. For example, further industry research - additional farm income from carbon mitigation neutral beef since 2014, sequestering around 200 tonnes per hectare. To reach its is required to better understand how more humane projects goal of carbon neutrality, the farm has deployed an action plan based around: measures can be taken to reduce enteric emissions of - contribution to government targets on emissions livestock. There is action that Hepburn can take, but it will reduction - Continuous grazing - cycling the cattle and cell grazing need to be respond to the risks to ensure that the local - high quality product for consumers - Animals - genetic selection and changing feedstock to impact methane emissions industry is not overly or unfairly burdened by the impact of - Energy - vehicles, waste products, building and equipment innovation cost. The practices listed in the two case studies on the - Vegetation and soil management - sequestering carbon, soil retention, habitat following page are recognised and approved under creation, stock protection, tree planting There are two broad patterns on sustainable agriculture the Australian Government’s Emissions Reduction and food. The frst presents the case for humanity to move Fund (ERF), which “provides incentives for Australian Bimbadeen’s carbon sequestration comes from mulching deep rooted crops and to a ‘plant rich’ diet. This means reducing the increasingly businesses, farmers, land holders and others to adopt reforestation on site. The farm has been able to increase the total organic carbon ‘meat rich’ diet now being adopted by middle-income new practices and technologies to reduce Australia’s from 160 tonnes/ha to 220 tonnes/ha within three years in selected paddocks. For countries as well. The other aims to maintain the same greenhouse gas emissions”, (CER, 2018). These farmer Bob Davie, the frst step was to calculate the carbon footprint per Angus cow ‘meat rich’ diet albeit with high technology, effciency, ‘incentives’ are in the form of Australian carbon credit with the formula of 19 kilograms of C02-e per kilogram of carcass. For soil carbon, a holistic management and a focus on biology, soil health units (ACCUs), which are generated from each project government-approved test for carbon credit units was deployed. Up to two tonnes of and eco-system services. and sold to the Australian Government. The context for carbon can be sequestered to the soil from a fve tonne crop. Bimbadeen now is host referring to the ERF methods is that these are the types to honey production, free-range eggs and agri-tourism. The case for reducing agricultural emissions is emerging of actions that should work and are robust. It should within Australia and internationally. Therefore it is useful also be considered that the same to continue to monitor where the sector is at, from a top actions (at smaller scale, that may be more suited Meredith Dairy down approach as well as on the ground pilot projects. to Hepburn farmers) can still be done and reduce Meredith Dairy deploys a comprehensive sustainability portfolio of actions including: In the case of the peak body for livestock - Meat and emissions outside the ERF. 12 13 14 15 Livestock Australia (MLA), there is a project with CSIRO to 16 - annual tree planting program to promote biodiversity and C02 sequestration identify pathways to reach the target of carbon - no till cropping, direct drill sowing of crops, stubble retention neutrality by 2030. Current strategies under investigation - monitoring & replenishing soil nutrients include genetic selection, vegetation management, - rotating plantings of clovers & lucerne to promote soil fertility feedlotting, feed supplements, fre - purchasing green power and using renewable Biofuel (when available) management, dung beetles and legumes. - solar hot water systems - solar panels and a solid fuel boiler, which uses waste timber instead of non- renewable LPG - stock rotation and exclusion from sensitive landscape areas like waterways - monitoring via surveys of biodiversity, stream quality & carbon consumption.

Community Transition Plan 66 67 Community Transition Plan 17 18 19 Section C — What’s Possible and Will it Work?

The pathway developed therefore recognizes that whilst farmers are able CLIMATE SMART Contribution to 14.2% of emissions to impact agricultural emissions, the opportunity to go signifcantly ahead reaching ZNET FARMS 2.9% of stationary energy of an industry wide transition is somewhat constrained. For this reason, 1.7% of electricity the analysis included evaluation of offsets within the sector, within the community boundary. In practice, this means that land use change emissions are offset in Hepburn by reforestation within the shire boundary as a priority SOIL CARBON Contribution to 5.9% of emissions reaching ZNET before equivalent offsets are sought beyond Shire borders. SEQUESTRATION IN 16.5% of agriculture emissions GRAZING SYSTEMS

HERD MANAGEMENT Contribution to 0.8% of emissions reaching ZNET FOR BEEF CATTLE 2.1% of agriculture emissions

BEEF CATTLE: Contribution to 0.8% of emissions reaching ZNET FEEDING NITRATE 2.1% of agriculture emissions SUPPLEMENTS

DAIRY CATTLE: Contribution to 0.3% of emissions reaching ZNET FEEDING DIETARY 0.9% of agriculture emissions ADDITIVES

New South Wales examples include The Carbon Farm at Bingara, which is a community owned asset. It consists of an area of 100 hectares of formerly degraded grazing land. It is being regenerated to showcase the options for sequestering carbon into soil. The Carbon Farm will provide a site for farmers, researchers, and visitors to participate in, to see and to consider the many and varied options for soil management and carbon capture.

Another community project builds on the Natural Sequence Farming pilot project at Mulloon Creek. The project scales up the outcomes from the Mulloon Community Landscape Rehydration Project (MCLRP) which now involves around 20 landholders. The project aims to rebuild the natural landscape function of the entire Mulloon catchment and boost its resilience to climatic extremes. This will lead to more reliable stream fows, improved ecosystem functioning and enhanced agricultural productivity.

Community Transition Plan 68 69 Community Transition Plan Section C — What’s Possible and Will it Work?

The pathway developed recognizes that whilst farmers are able to impact agricultural emissions, the opportunity to go signifcantly ahead of an industry wide transition is somewhat constrained. For this reason, the analysis included evaluation of offsets within the sector and within the community boundary. In practice, this means that land use change emissions are offset in Hepburn by reforestation within the Shire boundary as a priority before equivalent offsets are sought beyond Shire borders. The following table outlines the opportunities within the agricultural sectors.

Table 10: Agriculture opportunities and options

Opportunity Opportunity set Abatement Option description Opportunity Opportunity set Abatement Option description group (group) option group (group) option

On-site Agriculture Climate smart This option targets small and medium sized farms for implementing a On-site Agriculture Dairy cattle - Feeding high fat dietary supplements to dairy cattle reduces methane farms suite of zero net carbon actions on farm that include: addressing on-farm feeding dietary produced in the cows’ rumen and emissions of nitrous oxide and fuel and energy use, reducing animal (enteric) emissions via feed stock additives methane in dung and urine. This practice is recognised and approved and capturing carbon in soils through various practices and technologies. under the Australian Governments Emissions Reduction Fund (ERF)3. Feeding nitrate supplements may be adopted without participation in the ERF (which is more suited to larger or aggregated herd sizes). Moreover, the benefts of participating in a “Reducing greenhouse gas emissions On-site Agriculture Herd Better herd management practices for beef cattle can reduce the in milking cows through feeding dietary additives” ERF project are management for emissions intensity of production. These practices are recognised and expected to cover the costs. The economic case for those participating beef cattle approved under the Australian Government’s Emissions Reduction Fund under the ERF are expected to include costs of supplements, monitoring (ERF), which "provides incentives for Australian businesses, farmers, land and auditing (for ERF), and benefts of improved productivity (i.e. as holders and others to adopt new practices and technologies to reduce cattle are expected to beneft from improved digestion) and the value of Australia’s greenhouse gas emissions", (CER, 2018). These 'incentives' ACCUs. are in the form of "Australian carbon credit units" (ACCUs), which are generated from each project and sold to the Australian Government. On-site Agriculture Soil carbon - The soil in grazing systems can be managed to sequester carbon dioxide. Under the "Beef Cattle Herd Management" method, crediting is based sequestration in Some of these methods relate to: on emissions reductions achieved through effciency gains, where grazing systems emissions are reduced while beef production is maintained or increased. 1. Shifts within an existing cropping or mixed enterprise system, such as: rotation to eliminate fallow with a cover crop, rotation to increase the proportion of pasture to crops and pasture, rotation pasture cropping. and organic matter and other offsite additions 2. Shifts within an existing pastoral system: Increasing productivity through irrigation or fertilisation, rotational grazing and shifts to On-site Agriculture Beef cattle - Feeding nitrate containing supplements to beef cattle, by replacing urea perennial species feeding nitrate lick blocks with nitrate lick blocks for pasture-fed beef cattle, can reduce 3. Shift to different system: Conventional to organic farming system, supplements emissions from enteric fermentation (i.e. in the cow’s stomach). This Cropping to pasture system, and Retirement of land and restoration of practice is recognised and approved under the Australian Governments degraded land Emissions Reduction Fund (ERF). Feeding nitrate supplements may be adopted without participation in the ERF (which is more suited to larger Any combination of these practices that sequesters carbon in grazing or aggregated herd sizes). Moreover, the benefts of participating in a system soils may form the basis of an eligible ERF project under the “Feeding Nitrates to beef cattle” ERF project are expected to cover the “Sequestering carbon in soils in grazing systems”. However it should be costs. The economic case for those participating under the ERF are noted that soil carbon projects under the ERF require highly technical expected to include costs of new practices, monitoring and auditing (for measurement and verifcation methods. ERF), and benefts of improved productivity (i.e. as cattle are expected to better utilise the pasture they consume) and the value of ACCUs.

3 www.cleanenergyregulator.gov.au/ERF Community Transition Plan 70 71 Community Transition Plan 1234Section C — What’s Possible56 and Will it Work? Waste & Waste Water Land Use

Emissions associated with waste and wastewater are in the control of community, Council and the local water The principal opportunity in the land use sector is through authorities (Central Highlands Water and Coliban Water). Both Council and the water authorities have made public reforestation of land as carbon sinks, as outlined below. commitments to zero net emissions within the timeframe of the Transition Plan, which means that the waste emissions sector will reduce to negligible levels by 2029. The community can assist in the transition through a reduction in waste going to landfll which would otherwise need to be offset under the Council’s commitment to reach zero emissions in waste. The following table outlines the opportunity within the waste and waste water emissions sector:

Table 11: Waste and waste water opportunities and options Table 12: Land use opportunities and options

Opportunity Opportunity set Abatement Option description (from postcard) Opportunity Opportunity set Abatement Option description group (group) option group (group) option (opportunity) (opportunity)

On-site Waste Reduce waste to Landfll waste - particularly of organic content - emits greenhouses Nearby Land use change Restoration and Carbon sink forests are for the dedicated purpose of carbon landfll gases as waste decomposes. This option provides a general reforestation sequestration (absorbing carbon from the atmosphere). Reforestation opportunity assessment for reducing the amount of waste to landfll (carbon projects not used for frewood (or other wood products) act as through a combination of actions to use/waste less, increase sequestration) carbon sinks in the Shire. The Wombat State Forest acts as a recycling rates and to compost organic materials on site. These signifcant carbon sink in the Hepburn Shire. are just a handful of the household and business-level behavioral change opportunities outlined into the Hepburn Shire’s Waste There are three primary categories of land use changes: Management and Resource Recovery Strategy (2014). Policy and 1. Land clearance, and the resulting loss of stored biomass (land strategic actions at the Council and Regional level - outlined clearance may either be new land clearance, or re-clearance) in the Grampians Central West Waste and Resource Recovery Group’s Regional Waste Management Plan - are assumed to be 2. Afforestation implemented to support the outcome of reduced landfll waste. 3. Bushfres It should be noted that reducing organic waste for collection will impact the amount of available feedstock for waste to energy projects, however the priority should be on waste minimisation measures as this will deliver greater environmental benefts. 78Nearby Waste Hepburn Council is actively working towards91 diversion of waste from landfll. 011 Council Zero In addition to the detrimental environmental impacts of sending Emissions Waste waste (particularly organic waste) to landfll, the economic burden commitment is signifcant for a rural local government area. Diversion of waste from landfll is well supported in community, however the particular methods used for this diversion must be assessed on a case by case (material, community, cost) basis.

Nearby Waste Central Central Highlands Water is committed to minimizing its Highlands environmental impact by responding to the challenge of climate Water Zero change. Emissions Waste commitment This will be achieved by:

- Preparing an annual inventory of greenhouse gas emissions and energy consumption - Forecasting greenhouse gas emissions over a fve year period - Identifying and assess greenhouse gas reduction opportunities - Incorporating cost effective and sustainable greenhouse gas and energy reduction opportunities into strategic and regulatory planning processes

Community Transition Plan 72 73 Community Transition Plan 12 13 14 15 16

17 18 19 Section C — What’s Possible and Will it Work? Zero Net Emissions Cost-Curve

The CTP is underpinned by the least-cost pathway. That is, it is a strategic prioritisation and planning tool as well as a ‘communication’ tool. In order to communicate the relative costs of opportunities to reach zero net emissions, a cost- curve has been developed which summarises the impact against the goal of zero net emissions and the relative cost or beneft.

The following fgure represents how to read the cost-curve chart (Chart 8) on the following pages 76-77. References to the costs are available in the Options Model (Appendix A) and it is modelled through to the 2030 target.

Figure 5: How to read the cost-curve chart

Community Transition Plan 74 75 Community Transition Plan Chart 8: Emissions abatement cost curve Section C — What’s Possible and Will it Work?

Community Transition Plan 76 77 Community Transition Plan Section C — What’s Possible and Will it Work? The Options Model

The Z-NET Options Model was used where to focus attention and this options The immediate focus of this CTP is energy, and abatement options for scenario mapping of 138 emission model is no exception. It is in no way have been developed with the intermediate goal of delivering zero reduction activities. These activities exhaustive, but helps to understand the net energy for the community. were selected for their technical costs, benefts and impacts of a suite of Figure 6: The Options Model diagram feasibility, economic viability and energy and other ‘emissions abatement social desirability (incorporating actions’ that have been selected social justice considerations). for their combination of technical What will emission be like if Options modelling enabled the feasibility, economic viability, and social we did nothing? project team to compare the costs, desirability (incorporating social justice benefts and impacts of emission considerations). MODELLING THE BUSINESS AS USUAL What emissions are we What does the transition to reduction activities and prioritise EMISSIONS Where emissions come trying to reduce? zero net emissions look MODEL PURPOSE their implementation. These “Essentially, all models are wrong, from today? like? individual abatement options were but some are useful” (George Box, THE ZNET INVENTORY To support the design of then grouped and staged logically statistician) BASELINE INVENTORY establish an emissions ZNET PROFILE the Hepburn Shire ZNET estimate emissions and profile and boundary that Bringing together BaU and Community Transition energy use in 2018 makes sense for Hepburn abatement options to develop the CTP. All models Shire What can we do to reduce Plan emissions? are versions of the real world that How the various sets of data intersect is Which options work together Importing footprint work from Refining the baseline to support simplify complexity and help better depicted in the graphic opposite: How might we get to ZNET? with other actions as part of a external models community option models Community Transition Plan EMISSIONS ABATEMENT understand what really matters and OPTION MODELS

Why have a model purpose?

What options have most impact Every model must have a 'purpose': and what do they cost? we have used the purpose above as foremost guiding principle to make decisions on what is 'in scope' for modeling and for designing the model architecture and outputs. BOUNDARY OF THE HEPBURN ZNET OPTION MODEL

Community Transition Plan 78 79 Community Transition Plan 123456

Section C — What’s Possible and Will it Work? The following section details the three phase pathway to zero net emissions. Table 13: Summary of modeled Z-NET options What Does the Options Analysis Option ZNET Abatement Contribution to ZNET Responsibility Option Name Cost of carbon Tell Us? place Phase potential Emissions by 2029

$ per t CO2-e t CO2-e p.a. % of total emissions The options analysis over the 10 year targetted timeline, indicates that a three

Residential Hot Water: Heat Pump I -18.6 (13) 3,599 (15) 1.2% stage pathway to zero net emissions is an ambitious but realisable approach for the Hepburn community. The modelled options are summarised Residential Lighting I -158.9 (6) 1,393 (24) 0.5% in the table opposite and the key phases are then explored. The three phases Residential Appliances I -115.5 (7) 3,394 (16) 1.1% are: Phase 1: 2019 - 2021, Phase 2: 2022 - 2024 and Phase 3: 2025 - 2029.

Residential Heating And Cooling I 5.6 (17) 703 (28) 0.2% Households 7891011 Residential Thermal Fabric I -381.5 (4) 1,157 (25) 0.4%

Residential Solar Photovoltaic I > II -61.2 (11) 10,543 (8) 3.6%

Residential Battery Storage With Solar I > II -52.8 (12) 4,563 (11) 1.5%

Residential Dual-Fuel To All Electric I > II 280.3 (30) 3,752 (13) 1.3% On-site Business Energy Effciency I -108.8 (8) 3,199 (17) 1.1% Business Business Solar Pv I > II -72.1 (10) 3,741 (14) 1.3%

Climate Smart Farms I > III 13.4 (22) 42,056 (3) 14.2%

Herd Management For Beef Cattle I > III 11.6 (21) 2,229 (22) 0.8%

On farms Beef Cattle: Feeding Nitrate Supplements I > III 10.3 (19) 2,229 (22) 0.8%

Dairy Cattle: Feeding Dietary Additives I > III 9.3 (18) 926 (27) 0.3%

Soil Carbon: Sequestration In Grazing Systems I > III 10.7 (20) 17,539 (6) 5.9%

All premises Reduce Waste To Landfll I > III 0.0 (16) 971 (26) 0.3%

Land Reforestation (for frewood) I > IIII na - 0 (31) 0.0%

owners Reforestation (for carbon sequestration) I > III 18.0 (25) 17,600 (5) 5.9%

Microgrid / VPP II > III -83.5 (9) 13,690 (7) 4.6%

Hepburn Wind Solar Farm (3MW) I 62.1 (27) 6,264 (9) 2.1% Renewable Nearby energy project Hepburn Shire Bioenergy Plant (65kW) - energy component I -9.7 (14) 292 (30) 0.1% (Shire-level owners Utility-scale Solar PV (20 MW) II > III 69.0 (28) 42,533 (2) 14.4% projects) Utility-scale Wind (20 MW) II > III 51.7 (26) 64,032 (1) 21.6%

Hepburn Shire Bioenergy Plant (65kW) - waste component I > III -9.7 (14) 5,482 (10) 1.9% Organisations (service Hepburn Council Zero Emission Waste Commitment I 15.0 (23) 632 (29) 0.2% providers) Central Highlands Water: Zero Emissions Commitment I 15.0 (24) 2,324 (21) 0.8%

Low-Emission Passenger Vehicles I > III -518.6 (2) 2,928 (18) 1.0%

Low-Emission Lcvs And Trucks I > III -450.9 (3) 2,600 (19) 0.9%

Mobility Biodiesel For Trucks I > III 69.3 (29) 3,965 (12) 1.3%

Electric Vehicle Transition I > III -225.0 (5) 31,303 (4) 10.6%

Resident Ride Share and Active Transport I > III -532.4 (1) 2,448 (20) 0.8%

Community Transition Plan 80 81 Community Transition Plan 12 13 14 15 16

17 18 19 Section C — What’s Possible and Will it Work? Key Elements of Phase 1 2019-2021

The frst stage celebrates Hepburn’s capable of balancing a renewable, leadership in sustainable energy, sustainable supply of frewood and with a concentration on energy ultimately creating the land use effciency opportunities and change required to offset agricultural energy generation on-site. This is emissions. Further, improvement consistent with adopting the least- in detailed knowledge around cost approach, which will reduce opportunities to reduce transport, the amount of ‘nearby’ renewable agricultural and land use emissions energy projects required to achieve will ready the community for a shift a 100% renewable energy supply. in focus away from energy towards These options are based on proven other emissions sectors in the later technologies which have a high level two phases. of social support. The frst phase includes improving This phase includes the delivery upon knowledge and delivery of and celebration of a second stage early transport actions, with an early solar farm at the Hepburn Wind focus on improving fuel effciency site to complement the existing at vehicle replacement, rideshare 4.1MW capacity of Gale and Gusto and active transport. A waste to (wind turbines). It also includes energy project would be delivered the delivery of a local bioenergy by Council, capturing a portion of demonstration project of 65kW emissions associated with organic capacity. waste; the Council commitment to meet zero net emissions from waste The frst phase helps lay the would be met during the latter part development work for mid-scale of this phase through a number of renewable energy projects via supporting actions. Hepburn Wind’s leadership and local sustainability group engagement, The Central Highlands Water plan to as well as a micro-grid / virtual reduce emissions from wastewater power plant project (VPP), which commences in earnest. would then be delivered in Phase 2. This project is essential to These listed actions are considered allow continued growth in on-site ‘quick wins’ that are largely generation. underway through various initiatives with different stakeholder groups. Similarly, this frst phase is also proposed to develop capacity and commence delivery of reforestation,

Community Transition Plan 82 83 Community Transition Plan Section C — What’s Possible and Will it Work? Key Elements of Phase 2 2022-2024

Phase 2 includes delivery of Waste reduction measures would signifcant investment in mid-scale continue to further reduce reliance renewable energy projects (40MW on waste offsets. The emissions of new capacity) to create a 100% reduction actions by Central renewable electricity supply and Highlands Water are proposed to achievement of zero-net energy. continue. The potential of battery storage should be considered for some of Knowledge and capacity would be the mid-scale project as this will further built around key agricultural allow higher levels of generation to production changes required to be achieved, without contravening reduce emissions; including ‘climate network capacity constraints. smart’ farms, with pilots occuring for Delaying delivery of these projects a number of strategies designed to to approximately 2022 - 2024 will reduce emissions associated with also allow for costs of solar and meat and dairy livestock and soil wind generation to further decline sequestration. These are piloted to (somewhat absorbing the cost of 2024, informed by industry research battery storage required). Should that improves the animal welfare the level of required mid-scale associated with responses to reduce community wind and/or solar enteric emissions. Programs will projects not be pursued (due be designed in this phase which to fnancial viability or network can forge a new kind of leadership constraint reasons), the option of in Hepburn around reduction of procurement from larger solar or agricultural emissions. wind farms outside the Shire will need to be considered. Signifcant sector partnerships (see Section D) will need to be The output from these mid-scale established to usher in this phase, as ‘nearby’ projects would involve well as fnancing to actualise it. some export of electricity to other communities when solar or wind production is high and usage in Hepburn Shire is low. The delivery of a local micro-grid / VPP project is required during this phase to maintain growth in on-site electricity generation.

Community Transition Plan 84 85 Community Transition Plan Section C — What’s Possible and Will it Work? Key Elements of Phase 3 2025-2029

During Phase 3, the electric vehicle Agricultural emissions are forecast The diagram below sets out the proposed pathway to zero net emissions transition will commence in earnest. to be signifcantly reduced, to a by 2029. A comparison with the business as usual emissions highlights the It is proposed that this is matched level approximately half of the 2018 projected abatement of 296,300tCO2-e by 2029. with increasing deployment of benchmark, through soil carbon renewable electricity generation to actions and livestock initiatives. The The forthcoming pages host Figure 8: Reaching zero-net energy including meet the charging requirements. remaining agricultural emissions transport and visualise the signifcance of transport, which is often Programs involving on-site energy are offset through land use change unaccounted for in planning for zero net energy. actions come to fruition with the (reforestation) within the Shire, transformation of building stock resulting in zero net emissions by Chart 9: Equalising emissions with abatement through energy effciency and on- 2029. Reforestation also supplies site solar investments. (above and beyond land use change) a local ‘renewable’ frewood supply. Through a combination of further effciencies and reduction in travel The commitment from Central demand, but predominantly as a Highlands Water will be met in 2029. result of electric vehicle transition, Council and community actions transport related emissions decline continue to reduce waste emissions. to approximately two-thirds of the The combination of these activities 2018 benchmark. The Hepburn Shire can reduce total waste emissions to is forecast to continue to be a net a negligible level by the 2030 target. exporter of renewable electricity, which offsets the remaining balance of transport emissions.

Community Transition Plan 86 87 Community Transition Plan Chart 10: Reaching zero-net energy Section C — What’s Possible and Will it Work?

PETROL DIESEL NATURAL GAS EXP WOOD O R GREE GRID T N ELECTRICITY POWER LPG FOR TRANSPORT

DIESEL FOR STATIONARY ENERGY OD FIREWO SUSTAINABLE LPG FOR STATIONARY ENERGY

BIOMASS

Community Transition Plan 88 89 Community Transition Plan Section C — What’s Possible and Will it Work?

A sector based breakdown tells a more nuanced story, noting the balancing of transport emissions Network with export of renewable electricity to other communities and the offsetting of remaining agricultural emissions with land use change. The following table describes the impact of options to the 2030 target. considerations

Table 14: Z-NET options impact The Hepburn Shire hosts three 22kV distribution network feeders and other lower voltage lines operated by Powercor. It does not have any higher voltage 66kV Emissions reduction by emissions sector distribution lines within the geographic boundary. The western part of the Shire is also traversed by a 220kV transmission line, operated by Ausnet Services. Further and economic sector details on network considerations can be found in Appendix B.

BaU 2029 ‘target’ Abatement Emissions after Emissions sector % reduction Emissions option impact impact The Distribution Network In contrast, DNSPs are not regulated connect around 1-2MW, however Agriculture 106,325 60,624 45,700 57% According to Powercor, the capacity to ensure a transition to a high under 1MW is cheaper. 1-2MW of the distribution network (i.e. the penetration of renewable energy in typically requires the installation of a Stationary Energy 105,705 167,209 -61,504 158% total power rating of feeders and any given part of their network area. dedicated transformer, at the project Transport 102,567 43,244 59,322 42% transformers) in and around Hepburn As such, they typically do not lead developer’s cost. Shire is relatively low. This refects such transitions. In this context, any Waste 9,724 9,409 314 97% the historical nature of development community that wishes to move to a The best locations for new Land use, land use change and forestry -28,014 17,600 -45,613 63% in the area, particularly without any high penetration of locally generated generation facilities are sites that are

Total emissions with ZNET actions (t CO2-e) 296,307 298,087 -1,780 101% signifcant number of large industrial renewable energy (potentially with close to the zone substation, namely or commercial electricity users. or without storage), must work within Creswick and Clunes. At either BaU 2029 ‘target’ Abatement Emissions after the technical constraints faced by location, in the order of 4-10MW Economic sector % reduction Emissions option impact impact Distribution Network Service DNSPs in their management of the should be possible. By way of Providers (DNSPs) such as Powercor network. contrast, given their further distance Residential 105,858 132,606 -26,748 125% are regulated to carry out several from the Castlemaine substation, a Commercial 82,571 61,470 21,101 74% different functions associated With regard to the distribution project near Glenlyon or Trentham with providing the physical grid network, only ‘medium’ scale would likely need to be installed with Industrial 13,722 7,103 6,619 52% infrastructure (i.e. the poles and (mid-scale) renewable energy some level of storage. Farming 113,870 68,956 44,914 61% wires that carry our electricity projects can be connected to this

Municipal -19,715 27,951 -47,666 142% from power stations and other local network. The 22kV lines can In line with their latest Distribution smaller generators to homes and carry around 8-12MW of exported Annual Planning Report (December Total emissions with ZNET actions (t CO2-e) 296,307 298,087 -1,780 101% businesses). electricity each, fully loaded. This 2017), Powercor has no plan to results in around 36MW of total augment or increase the capacity Amongst other things, DNSPs must export capacity within the Shire. of transformers, lines or substations Beyond the life of the plan maintain minimum reliability levels However this is only on the basis within the Shire area over the next Noting the risk of making long term projections, the emissions profle of Hepburn will continue to evolve (the current standard requires that the 22kV lines are not already decade. This means that the costs beyond the life of the CTP. The electric vehicle transition will continue beyond the life of the plan. New that 99.998% of annual demand constrained. of any infrastructure upgrades mid-to-large scale renewables will be required to ‘keep pace’ with this transition. Capacity in the order of for electricity is met); manage associated with installing new 55MW of additional solar or 37MW of additional wind will be required by 2040 to meet these new electric voltage levels in local parts of the Any new generation must consider renewable energy projects will vehicle charging requirements. Agricultural emissions will continue to decline as practices improve, but network; and, plan and maintain grid the existing rooftop solar and/ likely need to be met (either fully or will continue to need to be balanced by some land use change. infrastructure. or other mid-scale embedded partially) by project proponents. generation on the same line. Lower Meeting the zero net emissions target before 2030 will set the Hepburn community up to be a carbon voltage lines are assessed at that positive community. level, not as a total inclusive of the 22kV lines. The low voltage lines can

Community Transition Plan 90 91 Community Transition Plan Section C — What’s Possible and Will it Work?

The Transmission Network Opportunities for Z-NET A potential way to increase the Map 2: BAN 11 focus area for projects The 220kV Ausnet transmission line Discussions between the Z-NET level of new renewable generation runs from Ballarat to Bendigo, directly team and Powercor led to the on sites where signifcant grid through the centre of Hepburn Shire. suggestion that the feeder BAN11 connection limits apply is to oversize should be the focus for mid-scale the solar (and potentially storage), as Ausnet has currently determined (1 to 10 MW) renewable energy and relevant to the site’s grid connection this line as having the potential for storage projects, as well as virtual export limit. As an example, previous ‘some’ to ‘high’ network access, power plant-type programs where analysis has found that oversizing with the potential for up to a 50MW a portion of the embedded storage a solar farm by a factor of almost connection. could be reserved for strategic double (as compared with its grid network use. The particular area of connection limit) can still lead to Were 30MW to 50MW possible to need and opportunity within BAN11 only a small (i.e. <10%) of the annual be connected into the 220kV line, can be seen on Map 2 opposite page. solar generation being lost through this would constitute the majority export curtailment. of the new renewable generation Demand response (e.g. reducing required in Hepburn Shire to support load such as turning air conditioners Storage can assist with further the Z-NET plan. A small number of off or down during peak demand increasing the utilisation of distribution-connected, mid-scale events) can assist with power renewable generation behind the projects could be built frst, the larger outage issues in this regard, however site’s grid connection limit, albeit project could then supplement the it should be noted that demand at an increased cost to the project. transmission-connected generator response is typically implemented Previous high level analysis has to meet the remainder of the Z-NET over short durations and as such, found that for a small, 2MW grid requirement. A 40MW wind farm was does not deliver signifcant energy, connection limit on a 22kV line, up abandoned in this area due to low and therefore carbon, savings. to 8MW of solar PV and 30 MWh of wind conditions, therefore it is likely storage can be installed, ensuring that either high wind turbines (such Implementing the CTP requires that over 10 GWh is exported to the as a 4MW turbine with over 100m a signifcant level of new, larger grid annually (within the 2MW limit) Chart 11: Solar clipping hub height) or solar would be most scale renewable energy projects. and with only 2% of the generated suitable. To achieve zero net energy by energy being lost to ‘clipping’ (or 2025, approximately 40 MW of grid curtailment). Whether this type new renewable energy generation of project is economically viable capacity will be needed. To achieve would need to assessed on a case by zero net emissions by 2030, this case basis. The solar clipping ratio is increases to 70 MW. represented in Chart 11.

It should be noted that a combination of projects is most likely rather than a one size fts all approach.

Community Transition Plan 92 93 Community Transition Plan 123456

Section C — What’s Possible and Will it Work? Given the network capacity constraints in the project area, a breakdown of The cost of potential project scales to achieve the 2025 and 2030 goals are as follows: the transition

Table 15: Solar farm scales The Options Model for the project ‘Levelised Cost’ is the cost of the activity measured over its identifes 22 different project project lifetime, taking into account all upfront and ongoing No. Projects Timeframe Capacity Required Grid Connection Oversizing No. of 220kV types or areas of activity that can costs, along with all savings compared with a Business as Usual Required for Zero Net Energy/ Limit (MW) Factor Projects Transmission be implemented to achieve the approach. The activities that result in a net positive fnancial Emissions (MW) Line 10 year vision. Each of these have return with benefts exceeding their up-front investment and any At Grid by 2025 40 2 20 been costed, taking into account ongoing costs (e.g. maintenance) are: 7891011 current and likely future prices Connection Limit of technology, likely uptake and other relevant factors. These are - Residential hot water, lighting, appliances, thermal fabric, solar by 2025 40 5 8 represented in Table 13 on page 80. PV and battery storage; by 2025 40 10 4 Further details on the methodology - Business energy effciency and solar PV; by 2030 70 2 35 1-3 for these costings and assumptions - Effcient passenger vehicles and effcient commercial vehicles; are located in the Options Model by 2030 70 5 14 1-3 (Appendix A). - Electric vehicle transition; by 2030 70 10 7 1-3 - Modal shifts (including rideshare); Oversize Solar by 2025 40 2 2 10 Most of these activities have an associated initial capital investment. - Hepburn Shire Council Bioenergy Plant; and by 2025 40 5 2 4 Over time, many of these activities - Micro-grids: shared solar and storage. by 2025 40 10 2 2 actually save more money than they by 2030 70 2 2 18 1-3 cost (e.g. residential lighting or 12 13 14 15 16 solar PV). Others have a cost that by 2030 70 5 2 7 1-3 will never be fully recouped over the by 2030 70 10 2 4 1-3 lifetime of the activity. Oversize Solar by 2025 40 2 4 5 & Storage Costs and benefts are also relevant by 2025 40 5 4 2 to different parties. For example with residential solar PV, households by 2025 40 10 4 1 fund the up-front capital outlay and by 2030 70 2 4 9 1-3 beneft from the energy bill savings by 2030 70 5 4 4 1-3 delivered by the project over the life of the system. by 2030 70 10 4 2 1-3 17 18 19

Community Transition Plan 94 95 Community Transition Plan D How Might it Work? The Role of Enablers

Community Transition Plan 96 97 Community Transition Plan Section D — How Might it Work? The Role of Enablers Sector Role of requirements. For example, hot water The Role To date, Council has shown strong utilise voluntary local government is met variously with electricity support for actions which help to or regional resolutions as partnerships Households & storage tanks, bottled gas storage of Local reduce emissions. Their future role planning recommendations that tanks, or mains gas instantaneous in the implementation of Z-NET may are neither legally binding nor Businesses Government include: enforceable. However, what has systems (as well as solar and occurred in general since these heat-pump technologies). Space - Staff resourcing to assist the have been implemented, is a There is a broad spectrum of Individual householders, farmers, Leadership heating is similarly diverse and is coordination of the governance and signifcant positive impact on the The collaboration of local sectors that contribute to local landowners and business owners being met with a mix of electric programs characteristics of the new projects government with industries and emissions and stand to gain from have a very important role to play. resistive heating, gas ducted or wall - Monitoring, refning, expanding developed. communities is vital for success reduction strategies. To engage The realisation of the CTP is in part furnace heaters (mains or LPG), and promoting the Z-NET CTP and of the CTP. As industries and with these sectors and enhance the based on all of those stakeholders wood, hydronic and reverse cycle air Blueprint The Steinfurt County in Germany communities seek lower carbon effectiveness of the various Z-NET undertaking actions in key areas - Continuation of targeted projects have implemented Community Wind conditioning technologies. alternatives to current practices, which support an increase in energy Guidelines. These emphasise the phases, the project team will be - particularly demand reduction, there are a number of changes which effciency or renewable generation importance of local neighbourhood looking to develop new partnerships energy effciency upgrades, shifting For businesses, space heating/ need to occur to facilitate these in the broader community participation and benefts, including and collaboration approaches to sustainable transport and cooling, lighting and computing are transitions. Hepburn Shire Council - Continuation of current programs minimum community equity stakes throughout the Z-NET program. expanding micro- and small-scale often the largest energy loads. is already active in these areas and which assist vulnerable groups and of 25% with a $1,000 investment These approaches for collaboration renewable energy generation. has potential to amplify their work individuals within the community minimum and the use of regional proactively to further facilitate these will need to be structured early, There is an opportunity for Hepburn to access energy effciency and banks for fnancing. changes. considering the particularities of the Supporting local households, farmers homes to become more effcient renewable generation technologies, Z-NET phase and sector involved. and businesses to understand what as well as increase their use of including fnancial support Given the background of Hepburn as Key to supporting these specialised This could be as Roundtable groups they can achieve is an engagement renewable energy as a power - Facilitating and advocating for an initiator of community energy in sectors will be engagement with coming together for discussion, and educational goal of the improved planning and building Australia, a similar approach would source. This means reducing space peak bodies and complementary outcomes to ensure a more be suitable for the Shire to ensure expert presentations, or as more Plan. Pivotal to this is increasing heating and hot water loads through programs that may aid them to sustainable shire into the future the new developments deliver formal working groups as the sector awareness of the economic benefts insulation (ceilings, walls and foors), progress from business as usual - Continuation of current goals to local benefts that improve social becomes more engaged. for households and businesses. draught sealing, effcient windows trajectories. achieve emission neutrality for and environmental wellbeing - in This requires timely and readily and upgrades to heat pump or solar Council operations line with the CTP’s commitment to Deepening the engagement understandable information for Hepburn Shire Council joined hot water technologies. Following - Proactively seeking other securing social justice outcomes. the Cities Power Partnership, an with the agriculture, transport, builders, renters and homeowners this, on-site solar PV generation and innovative methods to improve initiative of the Climate Council, waste, land use, tourism and local about the potential for energy storage can substantially meet most the environmental and economic In Cornwall UK this is also occurring in October 2018. Local councils business sectors will be especially savings. Practical workshops about of the remaining load (up to 80- sustainability of the region with municipality renewable energy who join the partnership make fve key. Collaborative approaches these measures are recommended. 90%). planning advice for proponents. action pledges on tackling climate will be sought for local solutions, A free energy audit program is also Planning support Different expectations are detailed change, renewable energy, effciency, There is signifcant opportunity in the for different technologies. For solar frstly as trials and then broader recommended to inform these Businesses typically have and transport. Networks such as Hepburn Shire for renewable energy developments they recommend implementation. This approach actions and ensure they are more predominantly daytime electricity this can stimulate peer leadership development given the existing agricultural solar with grazing, would follow the same trajectory as readily taken up locally. Transport is loads that match well with solar and sharing of learnings. Council 1234council and community aspirations56 ecological enhancement of the the options modelled here for the an individual or business decision PV generation. The use of high has also pledged to the Victorian to be a ‘lighthouse community’ for landscape through biodiversity stationary energy component. that people can make. Government’s TAKE2 program effciency heat pump air conditioning community-owned energy facilities, activities, and the inclusion of visitor delivered by Sustainability Victoria, systems can signifcantly reduce demonstrating the economic and attraction and education facilities. which is another initiative supporting Households in Hepburn are diverse their heating and cooling loads. environmental benefts of local These types of recommendations community, industry and government and can be complex to retroft, with Aside from farmhouse opportunities, ownership and energy generation. would also be appropriate in the collaboration on climate change different appliance mixes leading farmers can apply energy effciency Council could consider additional context of the Hepburn Shire. action. The Victorian Government’s to different choices regarding the supportive policies or resolutions and renewable energy opportunities Climate Change Framework has a to ensure that new developments transition. For all Hepburn homes, to their farming practices such focus on working with ‘sectors’ to and the transition occurs in a highly space heating and water heating as solar powered water pumps. set emissions reduction targets and effective and benefcial way. are the two biggest uses of energy. Landowners can consider carbon pathways to achieve the 2050 net For example, countries such as However different homes use zero net target legislated, inclusive farming opportunities on site to Germany and Denmark commonly different appliances to meet these enhance local carbon sinks. of mandatory targets for certain sectors. Community Transition Plan 98 99 Community Transition Plan 7891011

12 13 14 15 16

17 18 19 Section D — How Might it Work? The Role of Enablers The Role of Knowledge Networks Generation, Education and Engagement

Planning for Utility Scale capacity, which is key to utility scale which signifcant penetrations of As a community energy leader, there postcards and to deepen Renewables renewable energy projects – in order renewables can be accommodated; is a high level of energy literacy engagement with the signifcant A signifcant local resource for A partnership approach is needed to deliver on the overall level of new advising on the best locations within in the Hepburn Shire regarding local actions that are occuring. The how to move to more productive for the network to respond to generation capacity required by the project area to locate small and renewable energy generation and potential exists for Z-NET curriculum and resilient households has been the intentions of the community 2029. utility scale battery storage – to the perception of what is possible to to be developed for local usage as developed by Hepburn Springs local to transition. As detailed earlier, deal with reliability and network achieve locally. However, like all other well as for non-local schools that and co-founder of the permaculture Powercor has advised that the DNSPs do not have this type of constraint issues; investment in communities in Australia, local data are touring sites such as Hepburn movement David Holmgren. Currently capacity of the Hepburn Shire data readily available. Typically, an strategic renewable energy and on emissions from other sectors has Wind. Embedding climate change in its second print RetroSuburbia is distribution network (i.e. the individual assessment is made each storage projects where they will previously been somewhat invisible education into local schools will a manifesto for household action, total power rating of feeders time a specifc project applies for actually beneft their network so there hasn’t been an opportunity ensure the next generation are more especially in regards to the approach and transformers) in and around grid connection to ascertain its planning and management as well as for detailed engagement and informed, engaged and capable of of using less as an action of climate Hepburn Shire is relatively low. This impact on the network and its likely the goals of Hepburn Z-NET. awareness raising on the task ahead sustaining Z-NET in our community. adaptation and mitigation. The is particularly the case given the connection capacity. to reach carbon neutrality. There is There are also opportunity for citizen book outlines options available to historical development of the area, A joint project between Powercor a need for continuing to build this science projects to be initiated with retroftters in three ‘felds’ – the Built, without signifcant amounts of large In order to strategically plan for and Hepburn Z-NET, and potentially awareness locally. the broader community. Biological and Behavioural. industrial or commercial electricity project implementation, feasibility Ausnet Services as well, is users. work will need to be undertaken, in recommended so as to understand Community engagement Tailored Z-NET Hepburn partnership with Powercor, to assess how and where to deploy renewable Community engagement must be materials could be created with At the same time, there is no major (in particular) the 22kV feeders for energy and storage assets that can seen as the cornerstone of local WithOnePlanet.org.au, which is a expansion (or “augmentation”) of their level of capacity and ability to support the 10-year strategic vision. actions. The Community Transition climate change education portal. the distribution network in Hepburn accommodate larger (i.e. 5MW to Such a project could occur as part Plan can be seen as a ‘next-step’ It is designed to support teaching Shire planned for the next decade. 10MW) renewable energy projects, of the Australian Energy Regulator’s and be used for localised place- about environmental viability, culture with and without storage. (AER’s) Demand Management based planning and engagement awareness, and active citizenship. The 220kV Ausnet transmission line Incentive Scheme (DMIS) – whereby across the Shire to stimulate local It’s an inquiry- and challenge-based however, appears to offer signifcant Working together funding is available to undertake action. A dedicated website to teaching and learning method that University partnerships opportunity for a utility scale DNSPs and TNSPs can and should network investigations as well as host elements of the Plan as a focuses on environmental education The Z-NET project already has renewable generation project. work with communities to assist in provide project investment for local practical destination would be through three themes: carbon university partners including the the transition to high penetration generation, storage and demand useful. As would ensuring there is (our environment), culture (our University of New South Wales A key challenge for implementation of renewables - through network management. an engagement component to all community) and citizenship (our (working on social justice) and of the Z-NET plan is to understand planning, joint projects, partnerships programs and projects deployed as responsibilities). It forms the premise Melbourne University (technical how constrained the three 22kV and being clear and transparent part of the Plan. that understanding climate change support). Going forward, in order feeders in the project area are, about what is required from a from these three perspectives, to generate further knowledge on what ability they have to be able technical standpoint. Local education curriculum will support students in making the transition and to aid projects, to connect mid-scale renewable Schools based engagement around decisions about how best to live activities and programs, these generation projects, and at what For the purposes of the Z-NET the Z-NET Plan is a signifcant successfully in a low/zero emissions partnerships should continue to be cost. This will guide the location of Hepburn project, ideally Powercor opportunity, both to utilise the world. maintained and explored. University new utility-scale renewable energy and Ausnet Services will assist with: resources developed through this partnership can bring in-depth projects so as to maximise their identifying parts of the network in project such as the 21 technology investigation into certain aspects of the transition process as well as assist in the scalability and replicability of the Blueprint.

Community Transition Plan 100 101 Community Transition Plan Section D — How Might it Work? The Role of Enablers Governance

Harnessing existing local capacity Matching governance with Phases As the Plan reaches the - Collaborating around Z-NET Establishing and developing a The CAP was established for the implementation and action phase programs: enhance the impact of framework to formalise an engaged purpose of the Z-NET development it is considered that over time the individual sustainability groups local group with agency over the phase and to assist the project team Z-NET Roundtable may be replicated through collective actions, open Z-NET Community Transition Plan to refne the Plan. The activities of for new sector engagement such and continuous communication was a mandate of the project. In the the CAP were structured as: as Z-NET Tourism Roundtable or the across the many players to build case of the Hepburn Shire, there is Z-NET Farm Roundtable – dependent trust, assure mutual objectives, an abundance of existing community - Phase 1: Community engagement on programs and resourcing. create common motivation. organisations: community energy - Phase 2: Feedback on the - Council role: provide backbone co-operative Hepburn Wind, opportunities The Z-NET Roundtable would look support to help participating sustainability groups and others organisations coordinate. - Phase 3: Formalising the to: create and/or recommend local of relevance such as community governance structure projects that could be funded by banks. Although these organisations the Z-NET Climate Resilience Fund; - Phase 4: Taking the Community It is proposed that there should be may have narrow mandates and be be local advocates for Z-NET; and, Transition Plan forward funding for implementation of the in different levels of activity, it is ensure local community members CTP and that a coordination role important to ensure that the Z-NET and businesses are aware of Z-NET. should be established – the Z-NET Taking the Plan forward plan can harness this existing local Leadership Group which would Given the pre-existence of many capacity rather than reinvent the An overview of the Z-NET Roundtable further support the Roundtable formal organisations, it is more wheel. A further consideration is mandate is proposed to be: and be made up of a Hepburn Shire how the Z-NET governance structure effcient for the governance going - Z-NET Targets: having a common Council representative and members could seek to serve the mandates of forward be a collaborative/collective agenda for change including of the Z-NET project team. The these groups rather than create more impact group – with a set of guiding a shared understanding of the Z-NET project team is currently onerous activities for volunteers. principles and mandate in the form problem and a joint approach to made up of members of Renew and of Roundtables, rather than forming solving it through agreed upon Little Sketches , with support from a new incorporated association. The original Community Advisory actions. local organisations such as Hepburn The Council is proposed to convene Panel (CAP) was comprised of 17 Wind, but may evolve over time to the primary Roundtable, with future - Tracking implementation and community representatives who include other partners. The auspice sector based Roundtables to be emissions reduction: overseeing came together on three occasions of this role could be hosted through convened by sector partnership and measuring results consistently to learn about the Z-NET Hepburn a number of pathways dependant experts. to ensure shared measurement for Shire program, what current alignment and accountability. on the focus of the activities and strategies and opportunities exist; the available funding. In lieu of - Championing the CTP: a plan and to develop and recommend a The CAP is proposed to transform funding, the Roundtable will progress of action that outlines and set of goals and priorities for the into the Z-NET Roundtable, activities without a paid backbone coordinates mutually reinforcing Community Transition Plan. The with participation from the fve support role. activities. approach aimed to provide a way for sustainability groups, Hepburn ‘everyday citizens’ to collaborate as Wind, Hepburn Shire Council and a mix of selected and self-nominated interested individuals for the frst participants; all with a common phase which is highly focused on interest and connection to the energy. Hepburn Shire.

Community Transition Plan 102 103 Community Transition Plan Section D — How Might it Work? The Role of Enablers Funding Tracking progress

A signifcant amount of personal and institutional funding and fnance will The concept is that partners Effectively monitoring progress 1. Evaluating projects and programs - 4. Enhancing sector engagement need to be leveraged for implementation, as detailed in the ‘Cost’ section could allocate a portion of their towards achieving the 10 year goals tracking implementation - Monitoring how key partnerships on page 95 and within the Options Model (Appendix A). Some of this will funds annually to the Z-NET of the Z-NET Hepburn project is As the CTP has an implementation are progressing such as with be through government and philanthropic initiatives, some will be bank or Climate Resilience Fund and that crucial to the ongoing success of the focus, the current Shire-wide projects Powercor and Ausnet, and other impact investment fnanced, others will be through community donations the host could be Bendigo Bank model. It is imperative to consistently and programs should be the primary ecomomic sectors. and investment. In particular, key to the deployment of multiple mid-scale Community Enterprise Foundation, understand where emissions are focus in order to map their impact. projects, will be the need for a stable long term support scheme for mid- so that communities and not-for- coming from and how successful the This would give insights into the initial 5. Tracking behaviour change scale community energy projects to unlock fnance for such projects. proft organisations can raise and CTP’s interventions are in meeting changes to the emissions profle - Building upon the household distribute tax-deductible donations. emission reduction targets. This due to the programs. For example, energy and behaviour survey, the impact of the Hepburn Solar Z-NET Climate Resilience Fund was the frst mover in the community understanding will enable future the survey will be refreshed and Bulk Buy will be easy to assess and implemented in accordance with As government and philanthropic energy space through the provision programs to be more targeted and The Roundtable would assist the measure. Programs and projects could the three phases. funding can wane, within the of $3.1M project fnance for Hepburn effective. creation of this Funders group and be measured annually and provide Hepburn Shire there are several Wind in 2010. The three community make recommendations regarding interim statistics on progress. As with other projects of this type, grant making entities dispersing banks in the Shire are well future projects. These are currently Whilst the current emissions the ability to evaluate and develop micro-grants to various community positioned to provide project fnance forecast to be small scale behaviour profle shows where Hepburn Shire 2. Evaluating methodology - the profle will be dependent on the projects, inclusive of Council, three for any signifcant projects. change grants, however could emissions are coming from, it improving the profle level of funding available in future. community banks and Hepburn escalate to project fnance over the does not illustrate what is causing - Identify sectors with highest In order to strive towards the frst Wind. There is an appetite across Given the existence of these timeline of Z-NET. The aim of the emissions to change over time. mitigation potential and gather more goal of zero-net energy by the end these organisations to create more current funds, the funding gap is for fund is complement the community, These dynamic factors range from detailed and sophisticated data for of 2024 to meet the Shire-wide targeted, better quality projects and projects that are mostly focussed government and instutional funding local, state and federal policy to further analysis. target of 2025 (and potentially programs that create ‘legacy’ or on behaviour change, engaged with that will also be available. technology uptake and shifting social - Evaluating the usefulness of each the aspirational goal of zero-net ‘intergenerational’ impact. To create climate resilience opportunities and norms. Tracking progress is enabled dataset and level of granulation electricity by 2021), the frst three this, and to enable some of the education oriented. Primarily projects by the setting of clear, tangible and reached as part of this baseline The fund is proposed to have three years should ensure at a minimum objectives of Z-NET, it is proposed include those that are diffcult to measurable actions (see Phase and setting priorities for future initial streams: the focus on tracking the impact that a local Z-NET Climate Resilience otherwise secure funding for, given 1, 2 and 3) that can be monitored development of the profle. 1. A granting scheme for project of renewable energy, demand Fund is established. that there are few climate funds effectively over the time period and - Engage community stakeholders ideas, enable behaviour change management and energy effciency currently available. will have to consider these dynamic at critical points of the program – programs with no return on projects. It is recommended that Already there are community energy infuences. generate new data, consultation etc. investment, project feasibility and Council takes ownership and is grants occurring locally. Hepburn The fund concept has been business case studies to occur – a accountable for monitoring and Wind Energy Fund and Hepburn Shire recommended to potentially be 3. Updating the emissions inventory high risk stage for projects The following methods12 are evaluating the emissions34 inventory. 56 Council Towards Zero Grants are between: 2. Zero or low interest project fnance recommended to monitor and - Adapting baseline emissions as doing donation funded solar power fund, once the feasibility had been evaluate program effectiveness, necessary and updating inventory. systems on community facilities – - Hepburn Shire Council proven, this could fund small – track progress and create - Track emissions against BaU nine systems were funded in the - Daylesford, Creswick and Trentham mid-scale projects accountability within future scenario. Progress can be tracked 2018 fnancial year - and energy project delivery to ensure Community Bank 3. Leverage funding – having a by updating the emissions tool on a effciency upgrades. Hepburn Wind actions are undertaken. The regular basis. - Hepburn Wind small cash amount available to has also delivered the frst electric leverage other grants as a cash monitoring framework should - Develop sensitivity analysis for vehicle charging station through - other local partners co-contribution create accountability of different different sectors. their energy fund. Bendigo Bank stakeholders through an information sharing and feedback mechanism to improve program implementation. Community Transition Plan 104 78105 Community91 Transition Plan 011

12 13 14 15 16

17 18 19 ZNET abatement in 2029 the impact of modeled options 298,087 Tonnes of C02-e reduced by abatement actions by 2029 100.6% E or a reduction in emissions by 2029 The Pathway to Hepburn Z-NET

Community Transition Plan 106 107 Community Transition Plan Section E — The Pathway to Hepburn Z-NET

This fnal chart showcases the Chart 11: Connectivity of who and how multifaceted range of factors at play in considering the driving factors, the locations, as well as the opportunities to meet the emissions challenge.

The activities are translated into actions in the following Implementation Plan.

Community Transition Plan 108 109 Community Transition Plan Table 16: Implementation Plan Section E — The Pathway to Hepburn Z-NET

Implementation Plan MAIN INITIATIVES TO INITIATIVES Engagement Analysis & Tests & Implementation Scaling up 2029 / sector Strategy Demonstration partnerships

Community Education Curriculum Phase I Phase II Actions listed in the following table Engagement 2019 - 2020 2022 - 2025 Community Transition Plan Phase I are community based actions that engagement 2019 Website - Z-NET practical Phase I have emerged through community actions 2019- 2020 Tourism: Z-NET energy trail Phase I Phase II Phase II engagement. The Council action plan 2021 2022 2023 - 2024 Sustainable streets program Phase I Phase I Phase I Phase I Phase II for zero-net emissions due to Council 2019 2019 2020 2021 2022 - 2025 Sector Engagement Tourism: carbon neutral Phase I Phase I Phase I Phase I Phase II operations by 2021 details their tourism campaign for visitors 2019 2019 2020 2021 2022 - 2025 3 mandate and is available online . Agriculture Phase I 2019

Business: network of Phase I Phase I Phase I ambassadors 2019 2019 2019 Who will take responsibility Schools: Network distributor: strategic Phase I Phase I Phase I Phase I Phase II & III feasibility for local generation, 2019 2019 2020 2021 2022 - 2029 for specifc actions within the storage and demand management projects

Implementation Plan will need to be Transport: options Phase I Phase I Phase I Phase I Phase II & III development for sustainable 2019 2019 2020 2021 2022 - 2029 explored with the local community, transport Energy Home energy effciency Phase I Phase I Phase I Phase I Phase I & II Council and CAP in the next phases audits 2019 2019 2019 2019 2020 - 2024 Home energy effciency Phase I Phase I Phase 1 & II retrofts and upgrades 2019 2020 2020 - 2024 of Z-NET. (including heat pump, solar hot water bulk buy etc)

Farm energy effciency audits Phase I Phase I Phase I Phase I Phase I & II and upgrades 2019 2019 2019 2020 2020 - 2024 Modelled costings for individual Business energy effciency Phase I Phase I Phase I Phase I Phase I & II audits and upgrades 2019 2019 2019 2020 2020 - 2024 actions are available in the Options Hepburn Solar Bulk Buy: 2018 Phase I & II households 2019 - 2024 Model (Appendix A). (including Solar Savers) Residential dual fuel to Phase I Phase I Phase I all electric: community 2020 2020 2020 campaign and appliance switch

Reforestation (for frewood)

Hepburn Shire council Phase I Phase I Phase I 3 https://www.hepburn.vic.gov.au/hepburn/wp-content/uploads/2017/08/ bioenergy project 2019 2019 2020 ATTACHMENT-2-Toward-Zero-Emissions-Road-Map-Hepburn-Shire-2017-21-002.pdf

Community Transition Plan 110 111 Community Transition Plan Section E — The Pathway to Hepburn Z-NET

MAIN INITIATIVES TO INITIATIVES Engagement Analysis & Tests & Implementation Scaling up MAIN INITIATIVES TO INITIATIVES Engagement Analysis & Tests & Implementation Scaling up 2029 / sector Strategy Demonstration 2029 / sector Strategy Demonstration partnerships partnerships

Hepburn Wind solar farm Phase I Phase I Hepburn Council Zero Phase I 2019 2020 - 2021 Emissions Waste commitment 2019 - 2021

Additional mid-scale Phase I Phase I Phase I Phase I & II Central Highlands Water Zero Phase I - III generation projects / 2019 2020 2021 2021 - 2024 Emissions commitment 2019 - 2029 community battery storage Village scale composting Phase I Phase I Phase I Phase I Phase II Virtual Power Plant Phase I Phase I Phase I Phase I Phase I & II 2019 2020 2020 2021 2022 - 2024 2019 2020 2020 2021 2021 - 2024 Plastic Free Town initiative, Phase I Phase I Phase I Phase I Phase I & II Large-scale solar farm for Phase I Phase I & II Phase II Plastic Wise Policy 2019 2019 2019 2020 2020 - 2024 220kv transmission line 2020 2020 - 2022 2023 Land use change Restoration and reforestation Phase I Phase I Phase I Phase I Phase II Micro-hydro electric at Phase I Phase I (carbon sequestration) 2019 2020 2020 2021 2022 - 2029 Daylesford Lake 2019 2020 Land use: options for Phase I Phase I Phase I Phase I Phase II & III Transport Resident rideshare Phase I Phase I Phase I Phase I Phase I & II enhancing local carbon sinks 2019 2019 2020 2021 2022 - 2029 2019 2019 2019 2020 2020 - 2024 Planning & housing Sustainable building code Phase I Phase I Phase I E-bike share program Phase I Phase I Phase I Phase I Phase II 2019 2019 - 2020 2021 2019 2020 2020 2021 2022 - 2024 Prefab / tiny house Phase I Phase I Phase I Phase I Safe walking and bicycle Phase I Phase I Phase I Phase I Phase I & II demonstration for affordable 2019 2019 - 2020 2021 2021 paths 2019 2019 2019 2020 2020 - 2024 housing

Biofuel programs Phase I Phase I Phase I Phase I Phase II 2019 2020 2020 2021 2022 - 2024

Electric vehicle transition: EV Phase I Phase I Phase I Phase I Phase II public car charger stations 2019 2020 2020 2021 2022 - 2024

Electric vehicle transition: EV Phase I Phase I Phase I Phase II Phase II & III car share program 2019 2020 2021 2022 2023 - 2029

Community bus project: Phase I Phase I Phase I Phase II Phase II & III electric or biofuel 2019 2020 2021 2022 2023 - 2029

Agriculture Climate smart farms local Phase I Phase I Phase I Phase I Phase II & III pilot 2019 2019 2020 2021 2022 - 2029

Herd management for beef Phase I Phase I Phase I Phase I Phase II & III cattle awareness raising and 2019 2020 2021 2022 2023 - 2029 pilot

Beef cattle - feeding nitrate Phase I Phase I Phase I Phase I Phase II & III supplements awareness 2019 2020 2021 2022 2023 - 2029 raising and pilot

Dairy cattle - feeding dietary Phase I Phase I Phase I Phase I Phase II & III additives awareness raising 2019 2020 2021 2022 2023 - 2029 and pilot

Soil carbon - sequestration in Phase I Phase I Phase I Phase I Phase II & III grazing systems awareness 2019 2020 2021 2022 2023 - 2029 raising and pilot

Waste Reduce waste to landfll Phase I Phase I Phase I Phase I Phase II 2019 2020 2020 2021 2022 - 2024

Community Transition Plan 112 113 Community Transition Plan F Appendices

Community Transition Plan 114 115 Community Transition Plan Appendix A Appendix B Network Considerations

In order to model the impact of 2. the ‘Z-NET Profle’ which models by technology or program). The The Hepburn Shire hosts three 22kV DNSPs face severe penalties for not Technical issues options over both the period, and how the aggregated impact of Z-NET inventory is also used to distribution network feeders and delivering on these requirements. High penetrations of renewables can over each option’s lifetime (which is emission abatement options could set a ‘boundary’ or scope of which other lower voltage lines operated by cause technical issues in distribution often longer than 12 years), all global reduce the BaU Profle to reach emissions are included in the Powercor. It does not have any higher By contrast, DNSPs are not regulated networks. These can include: assumptions require the capacity Z-NET in 2029. Z-NET target; voltage 66kV distribution lines within by external parties (such as the to be ‘forecast’ into the future. - individual emissions abatement the geographic boundary. AER or any part of Government) - Voltage rise – where signifcant Accordingly, the model has a forecast options are modeled to design and To support these scenarios: to ensure a transition to a high amounts of renewable generation length out to 2050 to enable the choose actions and programs to - a baseline inventory is an The western part of the project penetration of renewable energy in in one part of a distribution network economic evaluation of options with support the Z-NET CTP. externally modeled dataset that area is also traversed by a 220kV any given part of their network area. push voltage above acceptable long asset lives (using a Discounted estimates Hepburn’s emission and transmission line, operated by As such, they typically do not lead limits. This is a near term issue that Cash Flow approach). These ‘growth energy use by emissions source, The Z-NET Technology Postcards Ausnet Services. such transitions. In this context, any is starting to be experienced now forecasts’, or escalation paths, allow emissions sectors of Stationary community that wishes to move to a in Hepburn Shire as well as other modelling of changes over time The Z-NET Technology Postcards are Energy, Transport, Agriculture, high penetration of locally generated parts of Victoria; and in variables such a energy tariff an educational and engagement tool The Distribution Network Waste (including waste water) and renewable energy (potentially with prices, grid emissions factors, and available here: Distribution Network Service - Exceedance of grid capacity – Land Use (Land Use Change and or without storage), must work within by granular end use’ item in the The Postcards have been developed Providers (DNSPs) such as Powercor where the level of energy being Forestry), end user sector (e.g. the technical constraints faced by emissions inventory using a set of distinctly for the Hepburn context are regulated by the Australian exported from renewable energy Residential, Commercial, Industrial, DNSPs in their management of the proxy growth factors (e.g. population and can be adjusted and added Energy Regulator (AER) to carry in one part of a distribution net- Farming and Municipal) and end network. growth to infuence the to as more options are developed out several different functions work exceeds the capacity of local user type (i.e. Hepburn Community emissions from household waste). to support the Z-NET Plan associated with providing the power lines and transformers. This or Visitors); implementation. physical grid infrastructure (i.e. is a medium-term issue (e.g. 5-10 - a ‘Z-NET inventory’ is modeled the poles and wires that carry our years) that may only be experi- The model contains economic and which refnes the baseline into electricity from power stations and enced where signifcant amounts of energy/emissions modelling for the more granular components of other smaller generators to homes new renewable energy investment Hepburn Z-NET plan, covering the ‘end use activity’ which can be and businesses). occurs in the Hepburn Shire; period from 2018 (the ‘baseline’ targeted at an option level (e.g. year) to the ZNET ‘target’ year of 2029. The model produces Amongst other things, the AER Powercor will likely have specifc estimates of emissions and energy ensures that DNSPs: requirements and constraints on The Z-NET Options Model new renewable energy and storage consumption for each year for two - maintain minimum reliability levels The Z-NET Options Model is available scenarios: investment. In Hepburn Shire, these - the current standard requires that at www.z-net.org,au/hepburn may include: 99.998% of annual demand for 1. the ‘Business as Usual’ (BaU, or The Z-NET Technology Postcards electricity is met; ‘Reference case”) Profle which - limits on the capacity of solar or http://littlesketch.es/experiments/ZNET-Hepburn-postcards - manage voltage levels in local parts wind that can be connected to the models how the baseline inventory of the distribution network (e.g. at grid at any specifc site; of emissions and energy use is a street level) within a range (e.g. Interactive Tools expected to change over the 216 volts to 253 volts); and - limits on the amount of energy Z-NET period due to external http://littlesketch.es/experiments/ZNET-Hepburn-particles that can be exported to the grid, - plan and maintain grid drivers such as population and from either small (e.g. household) http://littlesketch.es/experiments/ZNET-Hepburn/ infrastructure to ensure these economic growth; systems or larger (e.g. solar farm) http://littlesketch.es/experiments/ZNET-Hepburn/bubbles/ reliability levels are met. scale projects.

Community Transition Plan 116 117 Community Transition Plan Export limiting As an example, a typical Hepburn Network Capacity/Planning Powercor’s DAPR sets out the ‘load - contingency plan to transfer load Limiting export to the grid from “dual fuel” home consuming 10 to With regard to the distribution at risk’ from network constraints at away via 22kV links to adjacent rooftop solar is an increasing issue 15 kilowatt hours per day with a network, only ‘medium’ scale (mid- substations and feeders that are zone substations of Melton (MLN) within Hepburn Shire and throughout 5 kilowatt solar PV system could scale) renewable energy projects forecast to approach capacity over the and Ballarat North (BAN) up to a Victoria. Distribution businesses export approximately 75% of its can be connected to this local next fve years (until 2022). The three maximum transfer capacity of 3.2 place maximum limits on solar export solar electricity to the grid (time of network. 22kV lines can carry around closest substations of relevance are: MVA; where they believe that adding to the use depending). If this system was 8-12MW of exported electricity each, - install a new 25/33 MVA third unable to export at all, at current level of embedded solar in that part fully loaded. This results in around - BAN (Ballarat North); transformer at BMH zone of the network will lead to voltage feed-in tariff prices, this would 36MW total export as an estimate substation for an estimated cost of - BMH (Bacchus Marsh); and problems during periods of high reduce the annual bill savings by within the Shire - however this is on $6.5 million; around $500 – between half and the basis that those 22kV lines are - CMN (Castlemaine) solar exports (e.g. sunny, cloudless - augment the network at MLN to three quarters of the potential annual not already constrained. afternoons). establish new 22kV feeder ties to beneft. These are all substations that take permanently transfer 6 MVA of load 66kV and transform it to 22kV, taking In practice this means either a Any new generation must consider from BMH zone substation to MLN power from the sub-transmission maximum inverter size is allowed at Export limiting policy needs to be the existing rooftop solar and/ zone substation for an estimated network. a site (e.g. 2 kilowatts) or a maximum applied by DNSPs in a nuanced way. or other mid-scale embedded cost of $1.8 million. export limit is required of an inverter Ultimately the risk of voltage rise in generation on the same line. Lower local parts of the network is only on voltage lines are assessed at that at a site (e.g. a 5 kilowatt inverter Chapter 7 of the DAPR outlines near- Powercor’s preferred and committed a small number of days per year (and level, not as a total inclusive of the with an export limit of 2 kilowatts). term zone substation constraints option is to establish new 22kV only for parts of those days). Export 22kV lines. The low voltage lines can As a worst-case scenario, exports and potential mitigation measures network ties and permanently limiting policy should be dynamic connect around 1-2MW, however may be limited to zero (i.e. no export by substation. BAN and CMN are not transfer load to the MLN zone and should only restrict solar exports under 1MW is cheaper. 1-2MW allowed). mentioned at all in Chapter 7. BMH substation. Whilst not their preferred during these critical times (and typically requires the installation of a (Bacchus Marsh) is anticipated, in the option, it would seem that BAN dedicated transformer, at the project ideally using more sophisticated case of a failed transformer during From the perspective of a household developer’s cost. (Ballarat North) has capacity. inverter technology). high load periods, to not be able to or business with solar, there is a supply all customer loads. To address signifcant difference between: a Separately, the Maryborough (MRO) The best locations for new this anticipated constraint, Powercor system that can export some energy substation is mentioned with 4.9 generation facilities are sites that are considers that the following network (e.g. with a 2 to 5 kilowatt limit); MVA of load at risk for 75 hours close to the zone substation, namely solutions could be implemented to versus one that is not allowed to in 2022. This is forecast as a low Creswick and Clunes. At either manage the load at risk: export (i.e. zero export). The former location, in the order of 4-10MW priority (Powercor aren’t forecasting will still allow a signifcant amount should be possible. By way of an upgrade prior to 2022) and of export to the grid – perhaps 80- contrast, given their further distance the DAPR discusses transferring 90% of its total potential exports. from the Castlemaine substation, a some load to Castlemaine (CMN). This obviously attracts feed-in tariff project near Glenlyon or Trentham CMN is likely unconstrained over revenue and continues to make the would likely need to be installed with the forecast period given it isn’t solar project economically viable for some level of storage. mentioned in Chapter 7. the household/business.

In line with their latest Distribution Zero export is a signifcant economic Annual Planning Report (DAPR, disadvantage – as potentially most December 2017), Powercor has no of the solar electricity generated plan to augment or increase the becomes unusable and therefore capacity of transformers, lines or attracts no feed-in revenue. substations within the project area.

Community Transition Plan 118 119 Community Transition Plan The Transmission Network Map 3: 220kV Ausnet transmission line in Hepburn Shire The ‘Newstead’ model The Newstead tariff seeks to do (i.e. the tariff that they see on their The 220kV Ausnet transmission line The Newstead model essentially three main things: bill). The Renewable Newstead group runs from Ballarat to Bendigo, directly involves the negotiation of a unique are still negotiating with electricity through the centre of Hepburn Shire. distribution network tariff between - To guarantee Powercor’s required retailers to fnalise a retail tariff grid-connected Newstead residents/ revenue from electricity consumers offer to Newstead residents and businesses and Powercor – the each year, irrespective of their businesses. Ausnet has currently determined local distributor of electricity (which energy usage. Hence, part of the this line as having the potential for happens to be the same distributor tariff involves a $1 per day network Renewable Newstead hope that a ‘Some’ to ‘High’ network access, in all of Hepburn Shire). charge. (For a residential customer, retailer can package up a retail tariff with the potential for up to a 50MW this amounts to an annual fee that looks something like: connection, as per the Ausnet Distribution businesses are of $365 – which represents the opportunities and challenges responsible for managing the poles majority of the annual distribution • $1.20 per day fxed charge network map below. and wires that deliver electricity to cost to a residential customer in • $2 per kilowatt our homes and businesses. They Victoria.) • $0.16 - $0.20 per kilowatt hour – Were 30MW to 50MW possible to charge electricity retailers for this with half of this going to the retailer, be connected into the 220kV line, service, and electricity retailers on- - To recognise that some users and the other half reserved for this would constitute the majority charge this to electricity consumers will have higher peak demand investment into a local, mid-scale of the new renewable generation as part of our electricity bills. Our than others and charge them renewable energy project (e.g. a 1 required in Hepburn Shire to support electricity bills are also made up of accordingly. Hence, the other to 10MW solar farm). the Z-NET plan. A small number of transmission charges and wholesale component of the network distribution-connected, mid-scale energy market charges, along with tariff involves a $2 per kilowatt With enough local, mid-scale solar projects could be built frst, the larger Map 4: Ausnet opportunities and challenges network map the retailer’s own margin. (demand) charge (reset each or wind capacity (and potentially project could then supplement the month). A kilowatt tariff charges storage), Newstead will be able to transmission-connected generator Traditionally distribution network on the basis of the maximum provide its own power needs through to meet the remainder of the Z-NET tariffs charge consumers on the instantaneous power draw that a 100% renewable energy. requirement. A 40MW wind farm was basis of energy (i.e. kilowatt hours customer may have (as opposed to The details of a fnal retail tariff abandoned in this area due to low kWh) consumed plus an additional the amount of energy [in kilowatt offered by a preferred electricity wind conditions, therefore it is likely fxed daily component (i.e. cents per hours] they consume over time). retailer to the Newstead community that solar would be most suitable. day). This network tariff sits within A typical Victorian home may have remain to be seen. In addition, the overall retail tariff that we see a maximum power demand in the Powercor have explicitly stated that on our electricity bill. The problem order of four to ten kilowatts. from their perspective, the Newstead with such a tariff structure is that it project is a ‘trial’ – to last for an initial doesn’t refect the way that costs are - To ensure that households and period of two years. Powercor wish incurred by the distribution business businesses with rooftop solar pay to see the level of local renewable to provide the network services we their fair share of network charges investment and/or changed energy require. – as those consumers with their usage behaviour, before committing own solar PV system typically still to scaling up and rolling out this type We have a highly underutilised have high peak demand outside of of distribution tariff arrangement to network for most parts of the year – solar generation hours (e.g. after other communities in their network. with only a few hours on a few days 5.00pm each day). per year where electricity demand peaks. The problem is that electricity A key step with any distribution networks are being built to cope with network tariff is that it must be that small number of hours per year. packaged up by a retailer and passed on to electricity consumers in the form of an overall retail tariff offer

Community Transition Plan 120 121 Community Transition Plan Community Transition Plan 122 123 Community Transition Plan