Project Update Week ending 20 July 2018 Political distractions threaten energy consensus 12 July As the federal government attempts to land the National Energy Guarantee, politics is yet Energy Minister Josh Frydenberg have so far again proving to be the biggest stumbling stared down these distractions. block to long-term energy certainty. While all of this is going on, Minister As the economics of clean energy improve, Frydenberg is trying to negotiate the finer the clean energy industry no longer needs the details of the NEG with the states and same level of subsidies, but it does need long- territories ahead of the COAG Energy Council term certainty. The government is attempting meeting on 10 August. The Minister needs all to provide this with the National Energy of the states and territories in the National Guarantee (NEG), but the chaotic politics Electricity Market to commit to the policy for around energy continue to frustrate its efforts it to be approved, which puts him in the to lock in a long-term national energy policy. extremely difficult position of having to placate the conservatives within his own party The Clean Energy Council is disappointed with while still ensuring that the states and the government’s current emissions reduction territories remain supportive of the policy. target of 26 per cent. Such a low target means The Minister has so far managed to that future investment in clean energy would successfully walk this tightrope, but there is be reliant on state initiatives, corporate still some way to go before he and the NEG power purchase agreements and improving are on safe ground. economics of clean energy solutions relative to wholesale energy prices. Only a well- Beyond the political considerations, there are designed NEG that has a materially higher many other complex issues deep within the target and doesn’t allow the use of carbon NEG architecture being considered and offsets would drive new investment in parallel designed at the moment by the Energy with these other drivers. This would of course Security Board. Some of these include: require a NEG that allows for the emissions •ensuring that solar system owners can reduction target to be easily ramped up. decide what to do with their carbon abatement However, the underwhelming emissions •deciding the right level of transparency in reduction target is still too high for a number relation to the emissions register of conservative MPs, who are now openly •ensuring that GreenPower is treated as arguing against the NEG, agitating for additional to the NEG’s abatement targets Australia to withdraw from the Paris •ensuring that all innovative renewable Agreement and calling on the government to energy and energy storage solutions fund new coal generation. Prime Minister contribute to the reliability obligation. Malcolm Turnbull and Environment and Page 1 (Click on relevant project links to go to online Project Database) While these issues are far more technical than "More generation and competition mean the political machinations around the NEG, lower power prices and Renew Estate looks they are no less important to the delivery of a forward to delivering the cheap solar energy policy that will provide us with the certainty produced by this project to consumers and that we need to continue the transition to a businesses in the greater Gladstone area.” clean energy future. Mark Hogan, Managing Director of Wirsol Source: Clean Energy Council Energy – a major shareholder of Renew Estate – said "Wirsol Energy owns the largest portfolio of solar PV projects in Australia. We Development Application are committed to Queensland and have over 200MW in operation and construction already approved for Rodds Bay Solar in the state. This is an exciting time for the Farm solar industry in Australia and Rodds Bay will help us quickly reach our target of 1GW in 16 July Australia." Australian renewable energy company Renew Estate has been granted planning approval to Source: Renew Estate build Rodds Bay Solar Farm, a 300 megawatt (MW) project located approximately 50 kilometres south of Gladstone, near the town of Bororen. NEW PROJECT Buronga Energy Station Rodds Bay will be one of the largest solar Developer: Renew Estate farms in Australia , providing enough Location: Wentworth, approximately 5km renewable energy to power approximately northeast of the Buronga township in south- 88,000 homes. Construction is expected to western NSW commence in late 2018 and the project will be Capacity: Up to approximately 400 MWac fully operational in Q1 2020. (500 MWp), with battery system of approximately 250 MW / 500 MWh Director Simon Currie stated that the Rodds LGA: Wentworth Shire Council Bay project will play a pivotal role in the Description: Key elements of the proposed development of Gladstone as the energy infrastructure include PV modules mounted capital of Queensland, and will provide on tracking arrays, power conversion units substantial opportunities to local businesses, (PCUs) containing inverters and electrical contractors and workers. switchgear, a battery energy storage system, operation and maintenance (O&M) facilities, Mr Currie said that “Renew Estate is an onsite electrical substation, and a 220 or committed to delivering tangible, meaningful 330 kilovolt (kV) transmission line for and enduring benefits to the people, the connection to the existing Buronga Switching businesses and the communities who are our Station. The proposed site for the neighbours. development is approximately 1,200 hectares in size. "At its peak, a solar farm of this size requires Estimated cost: $625mil about 300 workers on site. We will Construction jobs: 400 collaborate with local training organisations to Operational jobs: 10 ensure local job-seekers have the skills Contact: Byron Serjeantson needed to construct and operate a solar farm, Renew Estate and we will prioritise the employment of Email: [email protected] locals in enduring roles once the project is operational. Page 2 (Click on relevant project links to go to online Project Database) PROJECT NEWS AEMO releases inaugural Biala Wind Farm Integrated System Plan for the The transmission line development application (DA) is progressing. In March National Electricity Market 2017, we submitted a DA for an underground 17 July electrical transmission line linking Biala Wind The Australian Energy Market Operator Farm to our existing substation at Gullen (AEMO) has today released the inaugural Range Wind Farm. It is required to transmit Integrated System Plan (ISP) – a energy generated by the Biala wind turbines comprehensive evaluation of the likely to the electricity grid. changes that will be occurring over the next 20 years across the National Electricity Market Using the existing Gullen Range Wind Farm (NEM). substation would avoid having to build a whole new substation in another location. The As the independent market and system existing substation would receive some operator and national transmission planner, upgrades, which are detailed in the DA. AEMO’s role is to promote efficient investment in, and efficient operation and use We’ve volunteered to put this cable of, electricity services for the longterm underground to minimise its visual impact and interests of consumers. The ISP builds on the to ensure minimal restriction on farming work of AEMO’s annual National Transmission activities. To avoid disrupting traffic and Network Development Plan, and has been damaging the road surface, we’re proposing developed in response to the COAG Energy to use directional drilling to install the cable Council’s decision in 2017 to adopt the under Grabben Gullen Road. recommendations made in the Independent Review into the Future Security of the Upper Lachlan Shire Council referred the DA National Electricity Market, specifically to the Joint Regional Planning Panel (JRPP) pertaining to the need for a strategic national who reviewed the application on the 14th plan. March 2018 and requested more information from us. We submitted the additional “AEMO’s analysis confirms that we are in the information and Upper Lachlan Shire Council midst of transformative and unprecedented placed the updated DA on public exhibition rate of change in this sector. We are from 17th April 2018 to 15th May 2018. witnessing disruption across almost every element of the value chain. Due to the vital Council received several submissions, which importance of affordable, reliable and secure were given to us. We've responded to Council power as the engine of a strong economy, on each submission. The Council will now care must be taken now more than ever to prepare a report for the JRPP. The JRPP will manage this transformation in order to then organise a date to sit again to consider minimise costs and risks and maximise value our application. to consumers,” said AEMO Managing Director and Chief Executive Officer Audrey Zibelman. Approvals, design work and surveys are now expected to continue until end of September The ISP’s analysis is predicated on sound 2018. engineering and sequenced approaches to investments in the transmission system, Source: BJCE providing an identified least cost pathway to managing the transition. The ISP applies probabilistic scenario-based analysis and system optimisation to project the reliability and security needs of the power system while simultaneously identifying the lowest cost Page 3 (Click on relevant project links to go to online Project Database) combination of resources to meet system and transmission development to be the most consumer needs. The ISP also incorporates efficient approach. projected Federal emissions policy and State renewable policies. AEMO looked at various transmission reinforcement options, assessing the costs “The reality of the NEM is that the energy and time to implement these relative to sector is strengthened by an approach that modelled benefits, to determine the optimum allows regions to work together to take immediate investments and staging of future advantage of diversity and size to deliver the development. The ISP delivers economic best outcome for consumers.