VEPLA – Future of Renewables in Victoria Solar Energy Projects, 30th April 2012 Shane Melotte, Element Projects Overview Current policy settings/incentives for solar projects Project development for large scale solar What’s next for solar in Victoria Ref: www.altstore.com Solar Resource Source: www.sustainability.vic.gov.au Vic Solar Resource and Infrastructure National Renewable Energy Target and State Feed in Tariff (FiT) Australian Installed PV Capacity Grid connected <100kW) Source: CEC Review of Australian Solar PV Industry 2011 ACT Reverse Auction FiT Total Capacity of 40MW in Round 1 Project Size 2MW - 20MW Closing date for prequalification bids 10 April 2012 49 proposal were received Significant local and international interest Complicated land tenure, grid constraints and biodiversity Short list released 5th June 2012 Grant Funding Fed + State Solar Systems Bridgewater Test Facility and Mildura Plant – Stage 1 (2MW) to be completed 2012 TRUenergy Mallee Solar Park – 180MW Thin Film Project – Resubmissions being considered – Vic $100m still on the table. Photos: Courtesy of Solar Systems Grant Funding State Only Verve Energy Project - Greenough River, WA 10 MW Solar Thin Film $50M build and 80 hectares cleared land WA Government providing A$20 million including A$10 million from the WA Royalties for Regions program Source:greenoughsolarfarm.com.au Off Grid / Behind the Meter Ref: CEC Review of Australian Solar PV Industry 2011 Demonstration / Leadership Projects Ballarat and Bendigo Community Solar Parks (Solar Cities program) NEXTDC (Data Centres) Other notable projects Sunpower/NT Power and Water Uterne 1MW Solar Park, Alice Springs, NT – Solar PV Tracking (Solar Cities Initiative) University of Queensland 1.22 MW QLD, Solar PV roof mounted (State grant funding assistance) CS Energy’s 44MW Kogan Creek Solar Boost Project, QLD – Compact Linear Fresnel Reflector technology Wizard Power Whyalla Project, (Project Development), SASolar Thermal Dish alicesolarcity.com.au/uterne-solar-power-station kogansolarboost.com.au Project Development No specific planning policy solar in Victoria Clause 54.42 of VPPs – Renewable Energy Facility Relatively land intensive Generally flat cleared land – approx. 2 – 8 Ha per MW Proximity to the grid critical and grid integration a challenge Generally positive community feedback to projects Logistics and labor force Get the numbers to work Project Barriers Technology Cost Insufficient Grid Infrastructure Lack of detailed solar data Availability of Skilled Workforce Uncertainty in the Energy Market – Policy uncertainty Land Acquisition Grid Connection/integration Power Purchase Agreement Ref: CEC large scale solar PV roadmap 2011 The Future Increasing Global investment Source: www.ren21.net 2011 = $251 Billion Levelised Cost of Energy For PV Source: Professor Emanual Sachs: Massachusetts Institute of Technology Source: Solar Power: Darkest before dawn, McKinsey & Company April 2012 What's next for Victoria - General Victoria should consider its preparedness for the impacts of emerging technologies such as solar and energy storage ensuring maximum local benefit. TRUenergy Mallee Solar Park? Leverage the funding and finance opportunities coming out of Federal Government Clean Energy Plan Clean Energy Finance Corporation (CEFC) Australian Renewable Energy Agency (ARENA) Clean Technology Investment Program Funding sources outside of the Clean Energy Future plan. What's next for Victoria - General Residential market will continue to consolidate and benefit from reducing technology costs. Tailored commercial scale projects. These may be off grid, behind the meter or where innovative finance options can be provided. Larger projects to emerge towards 2020. Balance of System opportunities. Opportunities - Planning Consider policy requiring buildings to either integrate solar or be ‘solar ready’ (orientation and structure). Consider policy that requires new development such as subdivisions to investigate and integrate renewables into the design. Consider policy that preserves optimal locations for solar projects over the long term.