PROJECT TALLY (September) Number of projects = 390 - 158 Generating - 232 In Development Total Capacity = 53,285.56 MW - 17,828.63 MW Generating Project Updates - 35,456.93 MW In Development Week ending 8 September 2017 Solar eclipses coal at council "It's also important for our community that we build sustainability into the way we do waste centre things, which is why we have moved quickly 1 September to increase renewable energy capability and A 5MW solar farm at the Summerhill Waste find smarter, more energy-efficient solutions Management Centre will increase Newcastle for our city's needs. With the recent adoption City Council's renewable energy generation of Council's Smart City strategy, this latest capacity tenfold. project continues to chart the course for Newcastle as a smart, liveable and sustainable The proposed solar farm will cover an area of city." around five football fields on a capped landfill site that was once part of the Wallsend A tender will be issued to eight shortlisted Borehole Colliery. respondents for the design, construction and operation of the solar farm after a feasibility Made up of around 16,000 photovoltaic solar study and expression of interest process last arrays, it will help reduce the city's $4m year. annual electricity costs after the yearly bill doubled in the past two years. Following the tender, the project will be reported to council for approval and funding. The project will also help council achieve its 30 per cent renewable energy target -- under The solar farm continues development of one its 2020 Carbon and Water Management of the most advanced renewable energy Action Plan -- and follows recent climate setups at a waste facility -- with a 2.2MW action pledges made as part of the Cities landfill gas generator and a small wind turbine Power Partnership. already located at Summerhill -- and paves the way for battery storage and electric "With energy costs soaring and the cost of garbage trucks. solar photovoltaic technology falling, the business case is now clear for councils to Electricity generated will flow into the nearby increase renewable energy use and take Ausgrid substation and help offset usage at control of their energy costs," said Newcastle other Council facilities, providing predictable City Council Interim CEO Jeremy Bath. electricity costs and millions of dollars in savings, even with construction and operating "We are seeing a boom in construction of costs factored in. solar farms across Australia and local councils will be one of the key beneficiaries from the Newcastle recently joined the Cities Power experience the solar sector has developed. Partnership, a Climate Council program in which cities and towns pledge key actions to reduce their climate impact. Summerhill's solar farm and eight existing Genex’s focus on delivering KSP1 brings the solar installations - on the rooftops of public Project another step closer to Practical buildings including the art gallery, museum, Completion in Q1 2018. Importantly, success works depot and libraries - form part of the to date on the delivery of Phase One provides actions endorsed by Council. an important project track record as the Company progresses financing and partnering Others include promoting more sustainable discussions for Phase Two (270MW Solar and ways to travel, by providing cycling 250MW Pumped Hydro).” infrastructure and electric-vehicle chargers, and installing energy-efficient LED lighting. The Federal Government, through the Australian Renewable Energy Agency has Source: City of Newcastle provided $8.9 million of funding to support the construction of Genex’s $126 million Phase One 50MW Kidston Solar Project. Kidston solar project (phase Source: Genex Power one 50MW) update Click here to go to online project datasheet: 5 September Kidston Solar Farm Genex Power Limited (ASX: GNX) (Genex or Company) is pleased to provide shareholders with this latest update regarding the construction program for the Company’s Submissions invited on a Phase One 50MW Kidston Solar Project (KSP1 or Project). market mechanism for inertia 5 September Genex is pleased to report that the The Australian Energy Market Commission construction of KSP1 continues to remain on- today published a consultation paper seeking budget, for anticipated first generation in Q4 stakeholder feedback on a proposed approach 2017 and Practical Completion in Q1 2018. for introducing a market mechanism for Key activities since the last update (refer ASX inertia. This mechanism is being considered announcement 03 August 2017) include: through a rule change request from AGL for • Continued installation of solar modules an inertia ancillary services market. across the KSP1 site; • Continued installation of solar pilings; The changing generation mix, with a higher • Continued installation of trackers; and share of wind and solar, means the power • Successful hand-over of transferrable assets system has less inertia. Less system inertia to Ergon allowing cutover works for the 132kV means frequency may become volatile. If line into the newly constructed Ergon-Kidston frequency changes too fast then the system is substation. at high risk of going black. Commenting on this month’s progress of the Today’s paper builds on our recent draft rule Company’s 50MW Solar Project, Managing to place an obligation on Transmission Director of Genex, Michael Addison said: Network Service Providers to procure the “Genex’s project team continues to deliver minimum levels of inertia, or alternative construction milestones, enabling the Project frequency control services, needed to to remain on budget for first cash flow in Q4 maintain system security in all regions of the 2017. Key milestones during the reporting national electricity market. period include completion of the Ergon- Kidston substation connection work and an While this draft rule provides for a minimum acceleration of panel installation and cabling. level of inertia, the AEMC considers that the introduction of a market to obtain and pay for demand and supply of electricity every five inertia above this minimum level would minutes – with the price signal provided by provide additional benefits. For example, the market for that five minute period. additional inertia could allow for higher interconnector flows between regions, which “Price signals that align with physical could improve reliability and reduce overall operations lead to more efficient bidding, costs. operational decisions and investment,” said Mr Pierce. The introduction of a market based mechanism to realise the benefits of inertia “Over time, this flows through to lower was one of the key recommendations in our wholesale costs, which should lead to lower final report on the System security market electricity prices than in a market with 30 frameworks review, published in July 2017. A minute settlement. Wholesale costs make up market-based mechanism would offer an around one third of a typical electricity bill.” open and transparent approach that would best facilitate competition in the provision of More accurate price signals also encourage inertia. It would also be flexible in that it more efficient investment in flexible would allow the level of the service to vary technologies such as aggregating distributed over time to adapt to changing market storage, new generation gas peaker plants conditions. and rapid demand response. These technologies, which can back up the system in The mechanism outlined in our consultation real time when the wind stops blowing and paper features an inertia price paid to inertia the sun stops shining, are becoming providers based on the value they provide in increasingly important as more wind and solar relieving rate of change of frequency (RoCoF) generation enters the market and thermal constraints between regions. generators retire. Stakeholders are encouraged to provide input The draft determination proposes a transition on the proposed mechanism, including the period of three-and-a-half years. various funding options for paying providers of inertia. Submissions are due by Tuesday 3 “Moving to five minute settlement would be a October 2017. fundamental change to the way the wholesale electricity market operates in Australia, Source: AEMC including the hedge market that operates alongside the spot market,” said Mr Pierce. “Three-and-a-half years is the shortest Aligning dispatch and possible timeframe to capture the benefits of five minute settlement without posing settlement – draft rule to unacceptable risks to system security or the move to five minute operation of the spot market.” settlement The transition period allows time for most 5 September existing hedging contracts to roll off, while The Australian Energy Market Commission enabling new contracts to accommodate a today made a draft rule to change the future with five minute settlement. settlement period for the electricity spot price from 30 minutes to five minutes. The market also needs time to make major upgrades to IT systems and metering. The AEMC Chairman John Pierce said moving to Australian Energy Market Operator has five minute settlement would align the developed a high-level implementation plan, physical electricity system – which matches also published today, setting out the technical industry that barely existed two and a half changes which AEMO and the industry would years ago," Ms Palaszczuk said. need to make. "They also represent an extraordinary vote of The need for a staged transition to new confidence in my government’s policies,