21 august 2019 - parliament of victoria · victoria is the national leader in community energy and...
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Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
21August2019
DearEnvironmentandPlanningCommittee,
SubmissiontotheParliamentaryInquiryintoTacklingClimateChangeinVictorianCommunities
ThankyoufortheopportunitytomakeasubmissiontotheParliamentaryInquiryintoTacklingClimateChangeinVictorianCommunities.Victoriaisthenationalleaderincommunityenergyandcanbecomethenationalleaderincommunity-ledclimateaction.
Acrossthecountry,thereare105communityenergygroupsand50ofthesearebasedinVictoria.Responsivepoliciesandprogramshaveenabledthesegroupstolearnaboutcommunityenergyandplanprojectsthatwillbenefitthem.Theseprogramshaveunlockedamassivevolunteereffortacrossthestatethatwillstrengthenlocaleconomies,growcleanenergycapacityandimprovethesociallicenseofrenewables.Asthepeakbodyforthecommunityenergysector,wecommendtheStateGovernmentforitseffortsandencouragefurtheractionsooursectorcanreachitsfullpotential.Manyofthesegroupsaretacklingclimatechangebeyondcommunityenergyandlookingatzero-netenergyandzero-netemissions.
AbouttheCoalitionforCommunityEnergyTheCoalitionforCommunityEnergy(C4CE)isanetworkofover100organisationsworkingtogrowavibrantcommunityenergysector.C4CEwasfoundedusingaCollaborativeImpactapproach.C4CEfacilitatescollaborativeStrategicInitiativesthatbuildonthestrengthsofitsmemberorganisations,communityenergyprojects,groups,supportorganisationsandstakeholdersinthewiderrenewableandmainstreamenergysystemtocreatemutuallybeneficialoutcomes.C4CE’sobjectivesareto:- Guideandsupportdevelopmentofthecommunityenergysector- Createacoordinatedvoicetobetteradvocatefortheneedsofthesector- Growthesector’sprofile,influenceandmembership(beyondthe‘usualsuspects’)- FacilitatethealignmentofeffortsbyMemberswithsupport,systems,toolsandtrainingwhich
enablecollaborationforcollectiveimpact- Identifyandcreatestrategicopportunitiesandattractinvestmentforthesector- Coordinatestrategicinitiativeswhichbuildtheknowledge,know-howandcapacityofMembersand
thesector.
ImagebyCommunityPowerAgencycpagency.org.au
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
Whatarethebenefitsofcommunityenergy?IntheNationalCommunityEnergyStrategy,C4CEdefinescommunityenergyasfollows:
CommunityEnergyisthetermusedtodescribethewiderangeofwaysthatcommunitiescandevelop,deliverandbenefitfromsustainableenergy.Itcaninvolvesupply-sideprojectssuchasrenewableenergyinstallationsandstorage,anddemand-sideprojectssuchascommunityeducation,energyefficiencyanddemandmanagement.Communityenergycanevenincludecommunity-basedapproachestosellingordistributingenergy.
Itisparticularlyimportanttonotethatcommunityenergyisnotdefinedtechnically,suchasbasedonthescaleofacleanenergyproject(e.g.acommunity-scalesolarfarm),butratherbasedaroundcommunityparticipationandbenefit.Communityenergyprojectsareunique.They:provideproportionatelylargedirectandindirectlocalbenefitsi.e.communityfundsandemploymentopportunities;createnewpathwaysforenvironmentalvolunteeringandclimateactionwithstrongeconomicandcommunitydevelopmentoutcomes;and,offeranewmodelofengagementaroundrenewableenergy,benefittingthebroaderrenewableenergysector.
Wherearewenow?TheVictorianStateGovernmenthastakencommendableactionoverthelasttwotermstoencouragecommunityenergyprojects.Since2015thestategovernmenthas:
- commissionedtheGuidetoCommunity-OwnedRenewableEnergy(2015)- deliveredtheNewEnergyJobsFund(2015)- instigatedtheParliamentaryInquiryintoCommunityEnergyProjects(2016)- fundedanddeliveredtheCommunityPowerHubsPilot(2017-2019)- createdanewPiLoRmethodologyforcommunitygenerators(2018)- fundedtheZ-NETCommunityTransitionPilot(2018)- fundedtheRenewableCommunitiesProgram(2018)- initiatedtheParliamentaryInquiryintoTacklingClimateChangeinVictorianCommunities(2019)
Manyoftheseinitiativeshaveenabledthesectortobecomemoredevelopedandstrengthenedcommunityefforts.However,wenowhavealargenumberofpilotsandpre-developmentprojectsthat,intheabsenceoffederalenergypolicy,donothavefinancialorlogisticalsupportneededtoreachmaturity.Toensurethesepolicyinvestmentsfacilitatethedevelopmentofcommunityenergyprojects,thestategovernmentneedstorefineitspolicyapproach.
Ourplantomaturethecommunityenergysectorinvolvesthefollowingaims:toensureaccessforallVictorianstoparticipateinandbenefitfromtheenergytransition;unlockmid-scalecommunityenergyprojectswhichbenefitcommunities,thedistributionnetwork,theenvironment;and,tosupportcommunity-ledactiononclimatechange.
AplantomaturethesectorC4CEhasconsultedwithcommunityenergygroupsinVictoriaandvariousaffiliatedorganisationsandrecommendsthefollowingsetofpoliciesandprogramstoensuretheVictoriancommunityenergysectorisonapathwaytomaturity.Thefollowingkeypoliciesandprogramswillgreatlyservethesector.Keyitemsareexpandedbelow.
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
1.CommunityEnergyTarget
a. Determineacarve-outoftheVictorianRenewableEnergyTarget(VRET)forcommunityenergyof100MWby2025
b. EstablishaFeed-in-Tariff(FiT)formid-scalecommunityenergyprojectsof6-7cpremiumabovePPA/wholesaleratefor15yearsTheproposedcriteriafortheCEFiTis:
- community-ledprojectorcommunity/developerpartnershipwithbroadlocalsupport- localshareholdinginclusiveofcommunityinvestment(minimum20%),includingcouncil,
waterauthority,etc(>50%total)- projectscale>1MW-10MW- localcontrolanddecision-makingpowerrelatedtotheproject- localdistributionofthesocialandeconomicbenefitsgeneratedthroughtheproject.- projectisappropriatelyscaledtothelocalenvironmentand/orcommunity- projectharnessestheskillsandcapitalofthelocalcommunity
2.SmartEnergyCommunitiesProgram
a. ScaleuptheregionalCommunityPowerHubPilotDeploy6xCommunityPowerHubsineachDELWPregiontothevalueof$10mover4years.
b.Deploystrategiccommunityenergygrantfunding$13mover4years,splitinto:
- firstprojectsstreamforsmall-scaleandreplicableprojects(~$30kpergroup)- mid-scalecommunityrenewablesstreamfordevelopmentphasemilestone-basedgrantsfor
communityrenewables(~$150kpergrant)c.ScaleuptheCommunityTransitionPilotforlighthousecommunities
Enable5xlighthousecommunitiestodeployzero-netemissionmasterplansandprogramsover4yearstothevalueof$5m(LGAscaleorsmaller).FollowingonfromandincludingthesuccessfulHepburnZ-NETprogram.
d.SupportacollaborativeCommunityEnergyCapacityBuildingNetworkFund$2mover4yearstosharethelearningoftheseactivitiesandbuildcapacityacrossVictoriancommunitieswiththesupportofSustainabilityVictoria.
3.SolarforAllPrograma.DevelopaSolarForAllPilot
Fund$750kforaSolarForAllSolarGardenspilotprojectfor1000households.b.CreateaSolarforAllRebate
ExpandtheRentersSolarRebateprogramdeliveredbySolarVictoriatoensurelocked-outenergyusersacrossVictoriacanaccesssolaratscaleviaaSolarForAllRebate.
CommunityEnergyTargetOurmembersarewantingtobuild,ownandoperatemid-scaleprojectsandlikelargedevelopers,theyneedpricecertaintytodeliver.Therecentannouncementofsubsidisedsolarfor650,000householdsandthecontinuedrolloutoftheVictorianRenewableEnergyTarget(VRET)boostshouseholdscaleandlargescalerenewables.Thereisasignificantgapinregardstomid-scalerenewables.Thereisamarketbarrierinthepricingofelectricityinfrastructurethatfailstounlockthesavingsoflocatingenergysupplyneardemand.
Embark Australia Ltd trading as Coalition for Community Energy ABN 76 140 094 882 CAN: 140 094 882 c/o 1/39 Little Collins St Melbourne VIC 3000
COALITION FOR COMMUNITY ENERGY - AUGUST 2019
Therearenoincentivesforthemarkettounlockpublicbenefitssuchasimprovedcommunityresilienceandlocaljobs.Thenextsteptoensurethegovernmentslegacyasarenewableenergyleaderwouldbetounlockmid-scalecommunityenergy,producingapipelineoflocaljobsanddeliveringsignificantregionaleconomicdevelopmentacrossthestate. TheCommunityEnergyTargetandassociatedFiT(describedabove)willensurepricesecurityandaidmid-scaleprojectstogrowacrossthestateandharnesscommunitycapital.TheFiTshouldfollowaprocesswiththefollowingcriteria:- Encouragecollaboration- AnEOIprocesssoprojectscanbidearly,givingthemtheconfidencetodevelop- Besimpletoadminister,withclearobjectivesuccesscriteria- Minimisepoliticalriskthroughnotrequiringministerialordepartmentalsign-off- Includeprojectsoverabroadrangeoftechnologies- BetailoredtovalueanddeliverthemultiplebenefitsassociatedwithCE
Inlieuofthehugeinfrastructurechangesthatneedtooccurtohostourtransition,thereisalreadycapacityissuesandlikelybuildoutdelaysthatwilloccuraswellassignificantsociallicensechallenges.Communityenergyprojectsactasimportantgatekeeperstosociallicenseforthebroaderrenewablesindustryandareverywellsuitedtothemid-scale(1-10MW).Atthisscale,theycanfilluptheexistingdistributionnetworkandavoidcostlyupgradesonthetransmissionnetwork.Atthisscaletheyareachievableforcommunities-bothfinanciallyandfromanassetmanagementperspective.
Utilisingthedistributionnetworkformid-scalecommunityenergyprojectwillensurewecanmorerapidlytransitionandnotwaitfornewlargescaletransmissioninfrastructuretomeettheVRET.Thiswillneedgovernmentsupporttobringnetworkdistributorstothetableinacollaborativeandfixedcostapproach.
ScaleuptheZ-NETCommunityTransitionPilotforlighthousecommunitiesHepburnShirehasshownthestrategicimpactofsupportinga‘lighthouse’communitytogobeyondbeingthefirstzero-netenergytowninAustraliatotacklingthegoalofzero-netemissions.AnurbanexampleistheZeroCarbonMorelandInitiative.Bysupportingcommunitiessuchasthesewithaproventrackrecordtodeployzero-netemissionmasterplansandprogramsover4years(LGAscaleorsmaller)willprovidethemeanstoincubateandmakerealthepathwaystozero-netemissions.C4CErecommendsfivesuchcommunitiesarefasttrackedinthisway.AbroaderapproachWebelievethefollowinghighlevelpolicyobjectiveswouldframethesectorbasedrecommendationsintheprevioussection:
• Setambitiousscience-basedemissionsreductiontargets:aimtokeepglobalwarmingbelow1.5°C.Inaddition,ensuretheVRETisalignedwiththeERTs-currentlytheVRETdoesnotaccountfortherapidtransitiontoEVsinthe50%renewableby2030target.Weneed‘truetargets’thataccountforthisproperly.
• BipartisansupportfortheClimateActtoensurethegoodworkofcommunitiesisnotundoneinfutureyears.
• EstablishadedicatedVictorianClimateChangeActionFund,toensureprojectslikeHepburnZ-NETcanhavesecurelongtermfundingtodeliverourambitiousmasterplan.
• DeliverVictoria'sfirstClimateBudget
Thankyouforyourconsideration,
TheboardofC4CE