Project Update Week ending 15 February 2019

Major parties in NSW taking charge on solar and storage ahead of election 10 February Substantive clean announcements “It is very important that the announced from both the Government programs contain appropriate safeguards to and the Opposition this weekend show that ensure the systems that are being installed both major parties have recognised the are of a high standard of safety and quality. importance of the issue to voters ahead of the This will be an extremely important element state election next month, the industry’s peak of both programs, and we look forward to body said today. working with whoever wins the next election to ensure that the safety of consumers is of Clean Energy Council Chief Executive Kane the highest priority. Thornton said the major parties should be congratulated for proposals that have “The announcements from the government embraced solar and batteries as one of the and the Labor Party are in line with the policy most effective ways to transform our energy directives released by the Clean Energy system to one that is cheaper, cleaner and Council last year. more reliable. “These policies are a great start, and we look “The zero-interest loans of up to $15,000 for forward to more announcements in the lead- solar and storage systems proposed by the up to the election,” he said. government would provide people with the means to store energy from the sun, for use Source: Clean Energy Council when it is most needed. As with other renewable energy technologies, one of the biggest barriers for consumers in taking up PROJECT NEWS energy storage is the up-front cost,” Mr West Wyalong Solar Farm Thornton said. Lightsource BP’s proposed West Wyalong “NSW Labor’s strong commitment to support Solar Farm has been placed on exhibition by an additional half a million households in the the NSW state government. The proposal is state with solar rebates of up to $2200 per for a 90 MW AC solar farm, with energy household over the next decade will also storage and associated infrastructure. The ensure a vibrant industry and provide project has an estimated capital investment expanded opportunities for solar businesses value of $136.66mil, and should create 350 and installers. construction jobs and 3 operational jobs.

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Contact Energy considers a NSW Government gives green retail Green Bond offer light for work to start on 11 February Snowy 2 Contact Energy Limited (“Contact”) has today 11 February announced that it is considering making an Deputy Premier and Minister for Regional offer of up to $100 million of unsecured, NSW John Barilaro and the Minister for unsubordinated fixed rate Green Bonds Planning Anthony Roberts today announced (“Green Bonds”) to institutional investors and approval for exploratory works for the Snowy New Zealand retail investors. 2.0 project.

The Green Bonds are expected to have a Deputy Premier and Member for Monaro maturity date of 15 August 2024. It is John Barilaro made the announcement at the expected that full details of the offer will be Discovery Centre in Cooma, released in the week beginning 18 February giving the green light from the state 2019, when the offer is anticipated to open. government for exploratory works to begin on

the project. Contact has a corporate credit rating from

S&P Global Ratings of BBB (stable). The Green “Snowy Hydro is an iconic, Australian success Bonds are expected to be assigned a long- story, part of the fabric of our nation and of term credit rating of BBB. the community here in the Snowy

Mountains,” Mr Barilaro said. Proceeds from the proposed offer will be used for the financing of renewable generation and “We’ve taken the success of the existing other eligible assets in accordance with scheme to new heights, with a massive $4 Contact's Green Borrowing Program billion for infrastructure for in the bush Framework. following the transfer the NSW Government’s

share of Snowy Hydro to the Commonwealth. ANZ Bank New Zealand Limited, Bank of New

Zealand and Deutsche Craigs Limited have “Every single cent of that money is going to been appointed as Joint Lead Managers for rural and regional NSW, and these the proposed offer. communities will also reap the benefits

associated with the extension of the existing Investors can register their interest in the scheme with 2000 jobs expected to be proposed offer by contacting one of the Joint created during peak construction. Lead Managers using the contact details listed below, or their usual financial advisor. “Snowy 2.0 involves expanding the existing Indications of interest will not constitute an Snowy Scheme with the construction and obligation or commitment of any kind. operation of a new pumped hydro power

station. No money is currently being sought and no applications for the Green Bonds may be “It could increase the generation capacity of accepted or money received until the offer the existing Snowy Scheme by almost 50 per opens and investors receive a terms sheet. If cent and provide 350,000 megawatt hours of Contact offers the Green Bonds, the offer will large-scale storage capacity for the National be made in accordance with the Financial Energy Market,” he said. Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted Minister for Planning Anthony Roberts said debt securities. The Green Bonds are expected the approval would allow exploratory works to be quoted on the NZX Debt Market. to investigate the underground conditions at

Source: Contact Energy

Page 2 (Click on relevant project links to go to online Project Database) the proposed location for a power station -The provision of new recreational facilities at cavern. the Talbingo Reservoir if current areas are impacted by the project; “Snowy Hydro Limited sought approval to - Notifications to the community about road construct a 3.1km tunnel and supporting users on the local networks and water users infrastructure, as part of the Exploratory on the Talbingo Reservoir; Works for Snowy 2.0,” Mr Roberts said. - Rehabilitation following decommissioning.

“The Department of Planning and Snowy Hydro will be submitting an Environment has undertaken a rigorous Environmental Impact Statement (EIS) later assessment of the proposal, taking account of this year for the Snowy 2.0 main works environmental, social and economic impacts, involving the construction of an underground of community and stakeholder submissions power station with a generating capacity of and advice from other government agencies. around 2,000 megawatts and approximately 27km of power waterways linking the existing “Snowy 2.0 is ‘critical’ significant state Tantangara and Talbingo Reservoirs. infrastructure because of its potential to contribute to the future security and reliability The Snowy 2.0 main works EIS will be publicly of our energy system, and to deliver exhibited to provide the community with an associated economic and broader opportunity to comment. environmental benefits. This approval allows essential geological information to be Source: NSW Government gathered for the detailed design of the underground power station,” he said. NEW PROJECT Mr Roberts said approval of the project was Walla Walla Solar Farm subject to strict conditions to address Location: Approximately 4.3 km north-east of concerns about impacts on Kosciuszko the town of Walla Walla in NSW National Park. Capacity: 300 MW

Developer: Bison Energy “Under the conditions of approval, Snowy LGA: Greater Hume Hydro is required to pay $10.5 million to Estimated cost: $450mil offset the impacts of the exploratory works Employment: 200 construction jobs and 3 project on the national park. operational jobs

Description: The solar farm would occupy “These funds would be used by the National around 614 hectares of rural land currently Parks and Wildlife Service (NPWS) to improve used for primary production (cropping and catchment health and to support the National grazing). The proposal infrastructure includes Park’s unique environmental, heritage and solar arrays, trackers, modules, invertors, a recreational value,” he said. substation, underground cabling, security

fencing and a cable run to connect the solar Other conditions of approval for include: farm to TransGrid’s 330 kV line. The - Detailed management plans to minimise proponent does not intend to install a battery traffic, water, biodiversity and heritage storage facility at this time but may consider impacts and manage rehabilitation of the adding one in the proposal in future years. disturbed areas; Contact: Simon Zhang - Strict measures for the management of Managing Director works involving the placement of material in Bison Energy Talbingo Reservoir; Tel: (03) 9830 6616

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Wind farm submissions closed Ranges, south of Paeroa. Seven of the proposed turbines would be 180 metres high - next steps being finalised (to blade tip standing upright) and 17 of them 11 February would be 207 metres high. Other proposed Submissions are now closed on Kaimai structures include a substation, two lattice Windfarm Ltd’s proposed wind farm project. transmission towers, two overhead power lines, and 18km of on-site roading. An on-site Overall number of submissions quarry to supply material for the roads is also Overall Hauraki District Council received 220 proposed. The applications also cover the submissions on the proposal, of which 57 removal of vegetation and earthworks were in support and 157 were opposed to the associated with the construction phase of the idea. Waikato Regional Council submissions project. totalled 143, with 96 against and 42 in support of the proposal. Around 11 Source: Hauraki District Council submissions were sitting on the fence without leaning one way or the other.

Next steps being finalised H/Cell Energy commended by The next steps in the process are now being Australian Energy Minister finalised but will likely include some pre- 11 February hearing meetings to try to reach some H/Cell Energy Corporation (OTCQB-HCCC) agreement and narrow down the issues to be (“HCCC”), a company that designs and heard at a later hearing. The hearing itself is implements clean energy solutions featuring expected to take place before the middle of hydrogen and fuel cell technology, announced the year and will give submitters the that through its Australian subsidiary, The opportunity to present their views verbally to Pride Group www.thepridegroup.com.au it independent commissioners who will be has been commended on a solar and battery appointed by both councils to make a decision installation by the Queensland on the proposal. Energy Minister, the Honorable Dr. Anthony Lynham. There is also a possibility the applicant may apply for direct referral to the Environment The installation takes advantages of the Court. In this case the hearing would be held government energy incentives that have been there and the decision would be made by the recently created by the Queensland Environment Court without the involvement Government for end users who implement of Council appointed commissioners. solar and battery storage solutions. The program has been widely acclaimed and the Resource consent applications lodged last opportunities to design and install these clean year energy solutions are substantial in the Kaimai Windfarm Ltd lodged resource consent Australian State of Queensland. applications with Hauraki District Council and Waikato Regional Council in July last year to Steve Mullane, Managing Director of The establish and operate a wind farm. The Pride Group, commented, "We are very proposed farm would have the capacity to pleased to be recognized for our renewable provide an estimated 400GWH of power per energy efforts by the Queensland Energy annum to the national grid. Minister. It validates the commitment the Queensland Government has towards clean The applications, which are being processed energy. In Australia both Federal and State jointly by the two councils, cover the Governments are investing heavily into proposed construction of 24 large scale wind renewable energy and storage solutions. The turbines over 1304 hectares near Rotokohu driving force is to reduce reliance on an aging Road on the northwestern area of the Kaimai

Page 4 (Click on relevant project links to go to online Project Database) grid and coal fueled power stations. The Pride comprehensive guide to how this assessment Group is well positioned to benefit from this process is applied here. high growth market especially due to our existing relationships with The Department of The transition period ahead of this rule Natural Resources, Mines and Energy as well change ended on 1st February and there were as Energy Queensland. We hope to provide a nearly 50 projects, including major renewable number of installations as well as introduce energy initiatives, across the NEM (with a hydrogen and fuel cell technology with our volume of approximately 4.2GW in total) that advanced clean energy solutions.” were able to finalise an agreed Generator Performance Standard (GPS) ahead of the Source: H/Cell Energy Corporation transition period ending. If a performance standard had not been agreed on time, the transition to the new rules could have had Collaboration key in major implications for many of these investments. management of generator technical performance AEMO was in continuous contact with providers and developers alike during the standards rule change transition, and all stakeholders worked 12 February tirelessly to avoid unnecessary project delays. Ahead of the rule change for generator The management of the rules change was a technical performance coming into effect on notable success for the vast energy transition 1st February, there was concerted effort and currently being experienced across the NEM, collaboration within the industry to assist and a testament of AEMO’s proactive support many new generation projects already in for Australia’s renewable energy integration. advanced stages of the connection application process. Source: AEMO

One of AEMO’s functions as the system operator is to work with network owners and market participants to establish Bill reductions to flow from the correct level of technical performance proposed electricity proposed for new generating facilities. These interconnector standards ensure system security is 12 February maintained as our power system continues to - Project EnergyConnect new name for change and evolve, driven by new proposed SA-NSW interconnector technologies, consumer engagement, and - Independent modelling estimates savings for ageing infrastructure. residential and business customers

- Improved state and national electricity In response to these changes, one of the network and energy security recent National Electricity Market (NEM) initiatives to help our power system adapt Power customers in and New was to establish new rules for generator South Wales will benefit from electricity bill technical performance, allowing AEMO to reductions if a new interconnector between manage the security of the electricity supply the two states is built. more effectively. The new performance standards are part of the National Electricity Bill reductions are just one of the major Rules that AEMO, network owners and market benefits outlined in a final report into building participants use to manage the connection of a new interconnector, which has been new generators to the NEM - the connection publically released by ElectraNet today. process is available here, and a

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ElectraNet Chief Executive, Steve Masters said ElectraNet and TransGrid have also today since the release of the project’s draft report jointly announced the interconnector in June 2018, further modelling has found that project’s official name – Project the benefits to customers of building an EnergyConnect. A dedicated project website interconnector between South Australia and has gone live today to provide helpful New South Wales is expected to be even information to stakeholders and the wider greater than originally identified. community and encourage engagement with the project. “The latest independent modelling has found that a typical residential power bill in South “Undertaking an energy project of this Australia would reduce by about $66 per year significance is an exciting prospect and we’re while small business customers would receive confident our expertise and experience will an annual saving of $132,” Mr Masters said. ensure Project EnergyConnect can be successfully delivered,” Mr Masters said. “Residential customers in New South Wales would benefit from a $30 annual bill “ElectraNet has been conducting pre-approval reduction and small businesses would receive works which have been made possible savings of $71 each year. through South Australian Government funding and this has put us in a good position to start “It’s not just bill payers who would benefit works as quickly as possible should Project from the project, there are also significant EnergyConnect be approved. benefits to state and federal economies and the national energy grid. “We look forward to receiving the regulator’s final determination, which we anticipate will “The new interconnector would also lower occur around the middle of this year.” wholesale electricity costs in both states, improve network and energy security, and TransGrid Chief Executive Officer Paul Italiano support Australia’s energy transformation said Project EnergyConnect would play a key towards a low carbon emissions future.” role in delivering energy security and better consumer outcomes in both SA and NSW. The project is subject to obtaining all necessary approvals, including those required “Project EnergyConnect will be a key plank in from the Australian Energy Regulator. developing a more connected National Electricity Market, with significant benefits If approved, the interconnector would be built through access to more energy supply and in partnership between South Australian increased competition in the market,” Mr transmission network owner and manager Italiano said. ElectraNet and TransGrid, operator and manager of New South Wales’ main high “As the provider of an essential service voltage transmission network. TransGrid recognises that we have an obligation to meet community expectations The interconnector would follow a 900 around safe, secure and reliable power at the kilometre route between Robertstown in lowest possible cost.” South Australia and via Buronga in New South Wales, with a small To view the Project EnergyConnect’s new connection to Red Cliffs in north west . website and for more information visit www.projectenergyconnect.com.au Independent modelling estimates the project would generate more than 1000 jobs across Source: ElectraNet both states during construction of the interconnector.

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AEMO Quarterly Energy set Victoria’s price it averaged $115/MWh compared to $91/MWh in Q4 2017. Dynamics – Q4 2018 − Other contributors include the structural Highlights for Q4 2018 include: shift of offers from black coal-fired generators Record wholesale electricity and gas prices to higher prices between 2014 and 2018, as despite low demand well the progressive closure of approximately • Quarterly average spot gas prices were the 4,000 MW of coal-fired capacity between highest on record in Victoria’s Declared 2013 and 2017. Wholesale Gas Market (DWGM) and the Short Term Trading Market (STTM) in Adelaide and • Average mainland NEM operational demand the second highest on record in the Brisbane during the quarter reduced to its lowest level and Sydney STTMs, and the Gas Supply Hub since 2002. NEM average operational demand (GSH). has been declining since 2009, influenced by: − The increase in gas prices in AEMO-operated the decline of energy-intensive industries; markets has been influenced by: record high increased uptake of rooftop PV; and higher daily pipeline deliveries to Curtis Island for uptake of energy efficiency improvements. LNG export (3,583 TJ/day); comparatively high − South Australia set a new all-time minimum NEM electricity prices; and reduced supply demand record of 599 MW at 1300hrs on 21 from Longford compared to Q4 2017 (-29%), October 2018. This represents a continuation which was offset by lower gas-powered of the decreasing average daytime demand, generation (GPG) demand. These domestic primarily driven by increasing rooftop PV gas price results occurred despite a 33% drop uptake. in international Brent prices (oil) and a related fall in LNG netback pricing. Gas-powered generation falls and new renewables capacity enters the NEM • Quarterly average NEM spot electricity • Q4 2018 recorded the lowest quarterly prices were $82-96/MWh, which is the average GPG on record for the current GPG highest Q4 on record in all regions except fleet. GPG has declined steadily from Q4 2017, . These high electricity prices were influenced by: increased penetration of notable because they occurred despite: variable renewable energy (VRE); rising average mainland operational demand for the domestic and international gas prices in 2018; quarter falling to its lowest level since 2002; and comparatively high hydro output in 2018. and a lack of high spot prices above • Over 3 GW of large-scale VRE commenced $300/MWh. generation in the NEM during 2018, representing a 66% increase in VRE capacity • A combination of shorter and longer-term from the start of the year. This contributed to factors has contributed to these electricity a 34% decrease in spot Large-scale Generation price outcomes: Certificate prices over the quarter. − In the shorter-term, the downward trend in output from baseload and mid-merit gas The full report is available at powered generation (GPG) in 2018 has http://www.aemo.com.au/- contributed to higher prices. Between Q4 /media/Files/Media_Centre/2019/QED-Q4- 2017 and Q4 2018, there was an 2018.pdf approximately 50% reduction in GPG capacity offered below $100/MWh, influenced by Source: AEMO comparatively higher gas prices as well as several extended outages (see Section 1.4.1). ○ Q4 recorded an increased incidence of gas playing a price setting role. GPG set the price 25% of the time in the NEM compared to the long-term average of 15%. GPG also set the price at higher levels: for example, when GPG

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Vestas partners with local Established in 1969, Marand is one of the largest manufacturing workshops in Australia. manufacturing service Under the agreement, Marand will supply provider for wind turbine facility space, personnel and equipment to meet Vestas’ manufacturing requirements. assembly facility in Geelong Vestas will provide testing equipment, 14 February assembly line layout, production training and Global sustainable energy solutions provider supervision, and transportation of all Vestas today entered a partnership with components to the assembly area. Geelong-based manufacturing company, Marand Precision Engineering (Marand), for “We look forward to this strategic partnership its new wind turbine manufacturing facility in with Vestas,” said Marand CEO Rohan Geelong. The partnership will allow Vestas to Stocker. “Marand has decades of experience bring its world-class wind turbine assembly across a variety of industries, where our and testing capabilities to Victoria, thereby manufacturing expertise and business systems supporting and expanding the Victorian truly set us apart from our competitors. We renewable energy sector. look forward to adding value to the renewable industry, and this partnership will Located at the former Ford Motor greatly help us expand our capability in this manufacturing site on the Princes Highway in growing field. We are particularly proud to be Geelong, the facility is part of the Vestas able to carry out this work in the former Ford Renewable Energy Hub (the Hub), a multi- Geelong facility.” disciplinary industry development initiative designed to support the Victorian Renewable owner Tilt Energy Target and Victoria’s New Energy Renewables and Berrybank Wind Farm project Technologies strategy. developer/owner Global Power Generation (GPG) (the international The facility will be responsible for making subsidiary of Naturgy Energy Group) 4MW Drivetrains and Hubs and component welcomed the announcement. testing for the Dundonnell Wind Farm and Berrybank Wind Farm projects, both of which Chief Executive of Tilt Renewables, Deion were successful in the first Auction under the Campbell, said that the Dundonnell Wind Victorian Renewable Energy Target. The Farm is helping to drive the boom in new jobs facility will also support future wind projects in the renewable sector and accelerate the in Australia. move toward a more sustainable, reliable and affordable energy future. “Vestas is committed to building new skills in the local work force in Geelong, and with our “As the largest customer of the new wind turbine component assembly and testing Renewable Energy Hub, Tilt Renewables is capability, we are helping build on Geelong’s very pleased to be contributing to the background as a heavy manufacturing hub creation of new jobs and training and use that to establish a renewable energy opportunities for people in the City of hub”, said Clive Turton, Vestas Asia Pacific Geelong and south-west Victoria,” said Mr President. “In Marand, we are partnering with Campbell. an experienced manufacturing service provider with outstanding capabilities and GPG also indicated its support for the Vestas skilled personnel. Their experience in Renewable Energy Hub as part of its Local automotive, aerospace, defence and rail Investment Plan, committed under the long- industries meets all of our requirements term power purchase agreement in the VRET around quality and technical expertise.” 2017 Reverse Auction.

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In addition to the wind turbine assembly Wind turbines bring facility, the Hub also includes four other initiatives: manufacturing jobs to Geelong 1. Establishing the Western Victorian Service 14 February Support Centre to service the growing Vestas is creating new manufacturing turbine fleet in Western Victoria; jobs in Geelong with wind turbine 2. Entering into a multi-year partnership with components set to be assembled at the Federation University’s Ballarat Renewable former Ford Motor manufacturing site. Training Centre to deliver training and employment opportunities for wind turbine Premier Daniel Andrews and Minister for technicians; Energy Lily D’Ambrosio visited the site today 3. Establishing the Vestas Australian Main to announce that international company Component Logistics Centre in Geelong, a Vestas has partnered with local Victorian specialist facility for the largest turbine spare contractor Marand to build wind turbines for parts; the Berrybank and Dundonnell wind farms. 4. Forming a partnership with Deakin University’s Carbon Nexus to research the The facility forms part of the Vestas next generation carbon fibre to use in making Renewable Energy Hub (VREH) and will be wind turbine blades longer, stronger and responsible for the assembly of 100 turbine more productive. hubs and 50 drive trains for the 180- megawatt (MW) Berrybank Wind Farm and Source: Vestas the 336MW Dundonnell Wind Farm. Full production of these wind turbine parts is expected to start in August. NEW PROJECT The VREH will involve investment of Taminda Solar Farm approximately $3.5 million and directly Location: Taminda, north-east of Tamworth in employ over 20 employees. The project will northern NSW train hundreds of local staff in wind turbine Capacity: 9 MW maintenance and see wind turbine Developer: Chan Abbey Holdings component assembly in Australia for the first Estimated cost: $8mil time in over 10 years. LGA: Tamworth Regional Council Description: The development footprint for Danish-headquartered Vestas is the world’s the solar farm, to consist of appro0ximately largest supplier of wind turbines and has been 28,000 panels, is approximately 7.7ha and active in Victoria since 1999. It has been located on land of approximately 30 hectares nominated as the preferred supplier of wind that is subject of a separate proposal for an turbines for the two projects. industrial development. It’s proposed to use the ‘PEG’ frame system for mounting. A 5 MW The development of the hub will help AC inverter is proposed for the development Dundonnell Wind Farm and Berrybank Wind which will enable the solar farm to connect Farm deliver on their local content relatively easily to a more proximate 11kV commitment, supporting the Andrews Labor substation feeder. Government’s Victorian Industry Participation Contact: Jenny Rudolph Policy. Elton Consulting Tel: (02) 9367 2600 The two new wind farm developments are Email: [email protected] supported by the Labor Government’s Victorian Renewable Energy Targets reverse auction.

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Quotes attributable to Premier Daniel continue working with the Government and Andrews the Australian Competition and Consumer “Victoria is the renewable energy capital of Commission on the many positive reforms our nation and thanks to this new facility, proposed in its report to drive prices down. we’re putting Geelong at the centre of it – this is great for jobs and great for Geelong.” “As the ACCC report acknowledged, the key to bringing down energy prices for Australian “Whether it’s the VRET or our Solar Homes families and businesses is a stable policy Program, we’re driving down the energy costs framework that provides certainty for for families, supporting local businesses and investors. creating thousands of jobs.” “The energy industry remains focussed on Quote attributable to Minister for Energy, supporting measures that will stimulate Environment and Climate Change Lily investment and deliver cheaper power for D’Ambrosio Australian households and businesses.” “This partnership shows how our transition to renewable energy is good for the A copy of the Australian Energy Council’s environment and good for the economy – submission on the divestment legislation and creating demand for local manufacturing skills Frontier Economics assessment is available and significant investment in the local supply here. chain.” Source: Australian Energy Council Quote attributable to Member for Geelong Christine Couzens “I’m proud to see Geelong helping to lead the BP Energy Outlook way in Victoria’s renewable energy future and 14 February benefiting from the local jobs and economic Executive summary growth that flow from it.” The demand for energy is set to increase

significantly driven by increases in prosperity Quote attributable to Member for Lara John in the developing world Eren

“The Ford factory was the centre of The Energy Outlook considers different manufacturing in Geelong for so long, and it’s aspects of the energy transition and the key great to see it get a new lease on life building issues and uncertainties these raise. In all the the energy technology of the future.” scenarios considered, world GDP more than

doubles by 2040 driven by increasing Source: Victoria Government prosperity in fast-growing developing

economies.

Energy council welcomes In the Evolving transition (ET) scenario this Government decision on improvement in living standards causes energy demand to increase by around a third divestment bill over the Outlook, driven by India, China and 14 February Other Asia which together account for two- The Australian Energy Council welcomes the thirds of the increase. Despite this increase in Government’s decision not to progress its big energy demand, around two-thirds of the stick legislation through the current world’s population in 2040 still live in Parliament. countries where average energy consumption per head is relatively low, highlighting the The Australian Energy Council’s Chief need for ‘more energy’. Executive Sarah McNamara said, “we will

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Energy consumed within industry and Memorandum of buildings accounts for around three-quarters of the increase in energy demand. Understanding between the Australian Renewable Energy Growth in transport demand slows sharply relative to the past, as gains in vehicle Agency and the AEMC efficiency accelerate. The share of passenger 14 February vehicle kilometres powered by electricity The Australian Energy Market Commission increases to around 25% by 2040, supported and the Australian Renewable Energy Agency by the growing importance of fully- have signed a Memorandum of autonomous cars and shared-mobility services. Understanding to formalise cooperation on the broad program of work currently Primary energy increases underway to facilitate innovation in The world continues to electrify, with around Australia’s energy markets. three-quarters of the increase in primary energy absorbed by the power sector. The MOU sets out a framework for coordination and information sharing to - Renewable energy is the fastest growing underpin collaborative projects such as source of energy, contributing half of the the Distributed Energy Integration growth in global energy supplies and Program which aims to maximise the value of becoming the largest source of power by customer investments in distributed resources 2040. such as solar PV and battery storage. - Demand for oil and other liquid fuels grows for the first part of the Outlook before More broadly the AEMC is contributing to gradually plateauing. The increase in liquids ARENA’s work to promote renewable energy production is initially dominated by US tight technologies by providing input into proof of oil, but OPEC production subsequently concept trials to help us understand potential increases as US tight oil declines. changes to rules and regulations that will be - grows robustly, supported by needed to accommodate a future with more broad-based demand and the increasing renewables and demand response. At the availability of gas, aided by the continuing same time, ARENA is sharing its expert expansion of liquefied natural gas (LNG). insights with us as renewable energy - Global coal consumption is broadly flat, with technologies evolve and new business models falls in Chinese and OECD consumption offset develop. Information gained through by increases in India and Other Asia. ARENA’s proof of concept trials helps the AEMC’s consideration of potential changes to In the Evolving transition scenario, carbon the regulatory framework and market emissions continue to rise, signalling the need development advice. for a comprehensive set of policy measures to achieve ‘less carbon’. ARENA’s recent demand response trials with AEMO have shown that short procurement The Outlook considers a range of alternative lead times can make it challenging for scenarios, including the need for ‘more demand response providers to participate in energy’, ‘less carbon’ and the possible impact the market’s strategic reserve mechanism. of an escalation in trade disputes. These findings informed the Commission’s conclusions to reinstate the long-notice The full report is available here: RERT and are also being considered as part of https://www.bp.com/en/global/corporate/en the AEMC’s assessment of a proposal ergy-economics/energy-outlook.html to enhance the Reliability and Emergency Reserve Trader (RERT). Source: BP

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The Chief Executives of the AEMC and ARENA The early works programme will focus on will meet at least every six months. work surrounding the hydraulic design and related activity for the hydro turbines, one of Source: AEMC the longest lead time items in the K2-Hydro construction programme, and will be followed by preliminary electrical design work and Kidston pumped storage hydro other project preparation activities. project – commencement of Commenting on the commencement of the early works programme K2-Hydro early works, CEO of Genex, James Harding, stated: 15 February “Embarking on this early works programme Genex Power Limited (ASX: GNX) (Genex or with the MDJH-JV is a significant milestone for Company) is pleased to announce that it has Genex as work gets underway on our biggest entered into an agreement (Agreement) with project which has been in planning for a the Joint Venture of McConnell Dowell/John number of years. Genex continues to work Holland (MDJHJV), to immediately commence closely with Powerlink, the Queensland State an early works programme on the 250MW Government, NAIF, ARENA, EnergyAustralia Kidston Pumped Storage Hydro Project (K2- and other key stakeholders to finalise the Hydro or Project) at Genex’s Renewable remaining activities ahead of the Financial Energy Hub at Kidston in North Queensland. Close milestone.

Pursuant to the Agreement, the MDJH-JV will The Kidston Pumped Hydro Project will play a commence work on an agreed programme of vital role in facilitating and supporting the works to accelerate the development of the further penetration of renewable energy in Project ahead of Financial Close which the National Electricity Market.” remains on track for H1 2019.

Source: Genex Power

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