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INTERNATIONAL CENTRE FOR APPLICATION OF SOLAR ENERGY

CASE ANNUAL REPORT2002

VISIONCASE will be an international leader in the

promotion, application and transfer ofsustainable energy technology in developing

nations whilst encouraging the development ofworld class sustainable energy expertise and

technology in Western Australia, and elsewhere.

Hon Eric Ripper, MLA

Minister for Energy

Parliament House

Western Australia

Dear Minister

In accordance with Section 66 of the Financial Administration and Audit Act 1985, we hereby

submit for your information, and presentation to Parliament, the eighth audited Annual Report of

the Perth International Centre for the Application of Solar Energy for the year ending 30 June

2002.

This report has been prepared in accordance with the provision of the Financial Administration and

Audit Act 1985.

Yours Sincerely

Gordon Thompson Peter Booth

Managing Director Acting Chairman

Board of Directors

November 2002 November 2002

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INTRODUCTION

The International Centre for Application of Solar Energy (CASE) based in Perth, Western Australia

was established in 1994 by the United Nations Industrial Development Organisation (UNIDO) and

the Western Australian Government, with support from the Australian Commonwealth Government.

The aim of CASE is to promote the application of sustainable energy technology, in particular, in

developing countries and to support the growth of the sustainable energy industry.

CASE was established with the aim of achieving the following objectives:

• To encourage the development of the sustainable energy industry within Western Australia

and Australia

• To assist developing countries in the application of sustainable energy technology

• To co-operate with organisations in managing and participating in projects involving

sustainable energy technology in developing countries

• To make available to the sustainable energy industry within Western Australia and

Australia information about market opportunities which exist

• To promote the use of sustainable energy technology as a means to assist communities in

developing countries to improve their economic and industrial development.

CASE has continued to work with Industry and overseas counterparts to develop a number of

projects that allow CASE to fulfil its Statutory Obligations.

The Board of CASE has initiated restructuring of CASE activities in accordance with the State

Government intention to absorb appropriate activities into the newly established Sustainable

Energy Development Office (SEDO) of the Western Australian Government.

This Annual Report highlights achievements and activities of CASE over the past financial year.

CASE project activities and consultancies demonstrate the increasing community recognition that

renewable energy is a viable, cost effective and environmentally sustainable solution in many

situations.

Sustainability is emerging as a priority of many Governments and funding agencies and the CASE

activities in sustainable energy and related greenhouse gas abatement applications are consistent

with this focus.

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ANNUAL REPORT 2002 CONTENTS

Introduction 1

Chairman’s Report 3

Managing Director’s Report 4

Key Achievements 6

Case Energy Projects 8

Case Training Programs and Consultancies 13

The Changing Role of Case 16

Governance 17

Case Board 22

FINANCIAL STATEMENTS 2002 CONTENTS

Certification of Financial Statements

Audit Opinion on Financial Statements

Operating Statement

Statement of Financial Position

Statement of Cash Flows

Notes to the Financial Statements

Certification of Performance Indicators

Auditor Opinion on Performance Indicators

Key Performance Indicators

Cover Images (Top to Bottom):• Solar arrays installed at Khum Pai Village – Northern Thailand• Collecting purified water from container sourced from solar powered pump and solar flow water purifier in Surabaya,

Indonesia• A scavenger boy for Landfill gas site in Makassar, Indonesia• Cooking with fire prior to installation of methane gas stoves at Biogas Project at Phu Dong Village, Hanoi, Vietnam

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CHAIRMAN’S REPORT

The global renewable energy market continues to expand rapidly, and in the case of the

photovoltaic cell market which has been growing at 30% p.a. for many years, demand is

outstripping supply, and the supply of appropriate quality silicon at the right price is a key

determinant.

The climate for renewables is changing however. The Kyoto Protocol will continue to be a driving

force but the reluctance at the USA globally and Australia locally to ratify the agreement are

negatives. The cessation of some local and European programs will impact on market growth, and

confidence. The performance of some locally ASX listed renewable energy companies indicates

that the honeymoon period is over for renewable energy and performance must match

expectations.

The fall in CASE self generated revenue is disappointing, however still represents a solid effort for

a small team operating in a challenging and changing environment and demonstrates the strength

of the CASE client base and the ability of the CASE team to deliver outcomes, either as studies and

reports or as renewable energy systems. The Board of CASE has appreciated the dedication and

motivation of the CASE staff, as they have gone about their work. We congratulate them on their

efforts, and hope the future outcomes for CASE adequately rewards them for their efforts.

During the year the Board initiated a process to ascertain how the intellectual capacity, network

and project delivery capacity of CASE could be retained for the benefit of WA industry under a

different framework of delivery. This process will be completed prior to the end of the 2002

calendar year and the Board will recommend the preferred mechanism to the Minister based on

the analysis undertaken by the CASE management and the Board.

I must thank my fellow Board members for their support of CASE in often-difficult times,

particularly Mr Peter Booth, who, with me, was a founding member of the Board, back in 1994,

and Mr Les Poole with his wealth of industry experience provides much value to our discussions. I

also thank Dr Les Farrant for his contribution since joining the CASE Board, and Dr Simon Langton

for his input and wish him well in his new career in the United Kingdom. May I also thank and

congratulate our Managing Director, Mr Gordon Thompson, for his personal effort, dedication, and

his desire to successfully steer CASE to a new destiny during this period of transition.

The future for renewable energy is still considerably more promising than when CASE was

founded. I hope that the great initiative CASE represents will continue and prosper within a new

framework of delivery consistent with the government’s policy. The industry development side of

CASE activities is important to local industry, and the special expertise of the small CASE team

represents an asset which must not be lost, now that opportunities are so much greater and

diverse than when CASE set out on its mission.

Peter Hopwood

4

MANAGING DIRECTOR’S REPORT

The past year has been challenging for CASE. From a limited financial resource base, CASE was

able to successfully undertake a number of projects and consultancies in Thailand, Malaysia,

Indonesia and Vietnam. The Western Australian Government appropriation fell in cash terms by

$117,000 (a reduction of 13.3%). Total operational revenue fell from $931,524 in 1999/2000 to

$573,297. Despite the fall in revenue the year represented a solid performance as the 2001 result

included as project income of approximately $150,000, for work invoiced in advance but actually

undertaken in the 2002 financial year.

Highlights of CASE activities include; commencing the installation of a solar – diesel hybrid energy

system for the world renowned Mulu Caves in Sarawak, Malaysia; completion of a feasibility study

of electrification options for twenty one islands off Thailand; providing consultancy services in the

Philippines; signing a Memorandum of Understanding (MOU) with the Municipality of Bekasi to

assist in the commercialisation of resource recovery from 104Ha Bantargebang landfill which

serves Jakarta, and commencing a showcase project of Australian Renewable Technology in

central Vietnam. CASE was also one of 3 international consultants shortlisted to undertake a World

Bank funded project to study establishing a mandatory market share for renewable energy in

China, and also signed an agreement with the Non Conventional Energy Development Agency of

Uttah Pradesh, India to assist in a significant rural electrification program involving over 200

villages.

CASE continued to work with our Joint Venture partners in South Africa to finalise a Business Plan

for Non-grid Electrification Project to serve 50,000 dwellings in the Eastern Cape Region of South

Africa. This project is dependent on the level of subsidy provided by the South African

Government, as the devaluation of the SA Rand has impacted on the project viability.

The shape of the Local Industry continues to change with some significant new entrants into the

sustainable energy market, and a number of new large-scale wind and biomass projects

announced, or commenced. The WA industry continues to grow, with the more successful

companies increasing their export performance significantly. A number of these companies have

benefited from CASE operations in Asia, and the assistance provided by CASE to enter new

markets.

The success of CASE relies on the efforts of our staff. I would personally like to thank all staff and

consultants for their efforts over the past 12 months during a period of considerable uncertainty.

While CASE staff numbers have contracted, the remaining staff, have worked diligently to develop

and deliver existing projects, and create new opportunities. Their ability to make such a significant

contribution at these difficult times is greatly appreciated and demonstrates their commitment to

the ideals of CASE and their ability to operate under pressure.

The Board continues to provide considerable support during the transition phase of CASE. I would

like to personally thank the Board for all their efforts over the past years, and in particular Dr.

Peter Hopwood and Mr. Peter Booth who both have served admirably on the CASE Board since its

creation, and Mr Les Poole who provides the realism that only a commercial renewable energy

industry participant can offer. Dr Les Farrant who joined the Board as an alternate Director during

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the year, and Dr Simon Langton who recently resigned as alternate Director to take up a position

in the United Kingdom, both provided valuable input during the year.

CASE enters the coming financial year with the opportunity to build on its enviable international

network, and strong relationships existing with counterparts and clients in many countries but

possibly under a new ownership structure. The completion of a number of existing projects,

planning the commercial development of the Bantargebang landfill site with the Municipality of

Bekasi and developing emerging opportunities will provide a challenging time for the CASE team

during this transitional phase for CASE.

Gordon Thompson

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KEY ACHIEVEMENTS

ENERGY SYSTEM PROJECTS

Commenced the supply and installation of a solar hybrid power system for Mulu National Park,

Sarawak, Malaysia. The commissioning of this project has been delayed due to a power station

fire and significant delays to the civil works.

Installation of a second stand-alone solar power system to power a wildlife ranger building on

Lakei Island, Malaysia

Prepared a final business plan for a Non-Grid Electrification program in South Africa and are

awaiting full approval from the South African Government to proceed with the project.

Obtained funding approval for a project to showcase Australian/Western Australian renewable

energy technology and expertise for rural applications in Danang Province, Vietnam. Site

identification and system design is complete, and installation is scheduled for September 2002.

Completed the monitoring phase of the Household Biogas Digesters/Activities Implemented Jointly

project in Vietnam.

In association with the Research and Development Centre for Agricultural and Rural Development

(RESCARD) prepared a draft proposal to obtain international funding for expansion of the

household biogas digester project.

The Landfill Resource Recovery facility at Makassar, South Sulawesi that was developed during

CASE’s earlier Activities Implemented Jointly pilot project, was officially opened by the Australian

Ambassador to Indonesia Mr Ric Smith.

A Memorandum of Understanding (MOU) was signed between CASE and the Municipality of Bekasi,

West Java for the development of commercial opportunities for the Bantangebang landfill facility

should provide opportunities for CASE and the WA renewable energy and Waste Management

Industries.

CASE signed MOUs with two Filipino organisations, the Environmental Education Network and the

Institute of Climate, Energy and Environment (ICEE) for a collaborative partnership on the

“Technical and General Cooperation for the Development and Implementation of the Renewable

Energy Projects in the Philippines”.

PROFESSIONAL SERVICES

Completed and submitted to the Provincial Electricity Authority (PEA) the final report for the

Feasibility Study on Renewable Energy for Island Electrification in Thailand. CASE and the PEA

jointly conducted a stakeholder’s seminar outlining the findings of the study, and the conclusions

of the final report.

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Commenced a study on Thai village electrification as a sub-consultant to the Chiang Mai University.

The project will involve an initial pilot at the sites and may offer the opportunity for Australian

Industry to be involved with Thai counterpart organisations.

Acting as a subcontractor of SMEC, completed the Technical Assistance on Rural Electrification and

Rural Strengthening Project in the Philippines for the Asian Development Bank.

CASE has a signed Memorandum of Cooperation with the Government of Sarawak in Malaysia to

promote the use of renewable energy power systems in off-grid areas. This memorandum has

enabled CASE to quote for a survey of remote government buildings in Sarawak for their State

Planning Unit (SPU) and Government Department Stakeholders. Our proposal has been accepted

in principle by the SPU and representatives of the Government Department and Stakeholders. The

survey will commence in the last quarter of 2002 for completion within six months.

Supported a study tour to Australia as part of a United Nations Development Program (UNDP)

project of technical assistance to the Philippines to improve the awareness of renewable energy

technologies and applications and to study government strategies and programs that support the

uptake of renewable energy technology in Australia. Site visits to a number of Western Australian

businesses were undertaken as part of the study tour.

Supported a study tour to Australia and New Zealand of Indian delegates representing the Non-

Conventional Energy Development Agency (NEDA). CASE and NEDA signed an Agreement for

CASE to provide technical assistance during the development implementation of a rural

electrification project in Uttar Pradesh, subject to final funding being obtained for the project.

INDUSTRY SERVICES

Assisted Midland TAFE in preparing a proposal to supply and install a solar/wind/diesel hybrid

power system on their campus to be funded under an educational grant program. This system will

be used as a training tool for new courses that will be developed in renewable energy

technologies. Funding has been granted with the project due to commence in the near future.

In addition to Board and Panel Membership CASE continued to provide industry support and

responded to various information.

CASE continued to assist industry on a number of Boards and Panels, these include:

- the Electrical Systems Export Council established by Senator Nick Minchin

- the Western Australian Government Alternative Energy Development Board

- the Australian Indonesian Business Council (WA Branch)

- the Sustainable Energy Industry Association (SEIA Australia)

- An advisory committee for the Household Greenhouse Action Consortium of the Australian

Greenhouse Office (AGO)

- Australian Representative on the International Agency (IEA), Photovoltaic Power Systems

Task IX, “PV Deployment in Developing Countries”.

8

CASE ENERGY PROJECTS

AUSTRALIA

BIOMETHANOL ENERGY PROJECT

CASE, in conjunction HBH Consultants, provided assistance to engineer Jorge Da Silva in

investigating the feasibility of using a Bio Methanol – Fuel Cell System for remote power

generation. The aim of the investigation is to evaluate the feasibility of Remote Power Generation

in Western Australia, using Fuel Cell Electrical Generators powered by bio-methanol. The bio-

methanol is produced in a small scale Thermal Conversion Plant, using biomass gasification and

catalytic synthesis. Future stages of the project include the demonstration of the conversion

process, and of generator packs powered by fuel cells. Major benefits would be derived for WA

industry, and for WA farmers via production of energy crops, processing of greenwaste and

recuperation of salinity affected areas.

Funding is now being sought to move to the prefeasibility phase of this project.

INDONESIA

LANDFILL RESOURCE RECOVERY PROJECT – BEKASI (WEST JAVA)

Following on from the pre-feasibility study for the Development of Bantangebang Landfill in Bekasi

developed by CASE in cooperation with the Municipality of Bekasi (MOB), CASE has been active in

developing relations in Bekasi.

On the 20th May 2002 a Memorandum of Understanding was signed with the Municipality of Bekasi.

The basis of this MOU is to develop the commercialisation options for Solid Waste Management in

the municipality (including Jakarta’s landfill) under a joint venture between the Municipality and

CASE. It aims to establish a private-public partnership to exploit the resources of the Bekasi

landfill on a commercial basis, namely organic material, gas capture and utilisation, and plastic

recycling.

The MOU signing was a high profile event with Mr Ross Taylor, Western Australian Trade Director

Indonesia, witnessing the signing of the agreement by Walikota of Bekasi, on behalf of the

Western Australian Government.

The MOU is the first step to enter into a commercial agreement, Memorandum of Agreement

(MOA) between CASE and MOB.

In the development of the MOA, there is an objective to attract a suitable investor to commence a

small organic processing plant to commence production by September, and grow this to a

commercial operation rapidly. A number of potential investors have been contacted and meetings

have been held.

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Financial modelling is being undertaken to ascertain the appropriate management and operating

structure. One zone on the landfill has been identified for the first stage of commercialisation.

This is a significant opportunity for WA/Australian Waste Industry to develop a WA consortium with

CASE leading mainly due to it’s Government credentials, and considerable Indonesian network.

However, there is a limited time period for the completion of the activities under this MOU with

estimated capital investment required for this first stage at $AU500,000, growing to an investment

of $3-4 Million within 3 years.

The World Bank continues to display interest in the LRR concept and this was confirmed in recent

correspondence from Austrade Washington.

LANDFILL RESOURCE RECOVERY PROJECT - MAKASSAR (SOUTH SULAWESI)

The official opening of Landfill Resource Recovery Facility Project, Makasssar, South Sulawesi was

held on the 9th of November 2001. This opening was a high profile event that demonstrated the

commercial Waste Management/Renewable Energy opportunity developed by CASE, in conjunction

with its commercial partners.

The realisation of this facility has been after a 2-year pilot study made possible through

cooperation between Australia and Indonesia under each countries commitment to Greenhouse

Gas Abatement through programs to support the United Nation Framework Convention on Climate

Change (UNFCCC)

The progress of activities has been possible over this period is due to the spirit of cooperation built

between the Municipal Government of Makassar, CASE, Western Australian Industry and the

Government of Western Australia. In addition it demonstrates the underlying strength in the

relationship between Australia and Indonesia.

Western Australia was promoted during the opening of the facility through the WA Trade Director

in Indonesia, Mr R. Taylor. The Australian Ambassador, Mr Ric Smith, attended the opening

ceremony, as did the Governor of the Province of South Sulawesi, the Mayor of Makassar and the

Austrade Senior Trade Commissioner.

MALAYSIA

MULU WORLD HERITAGE PARK

In January 2001, CASE was awarded a contract to supply a new solar energy diesel power system

for the Mulu National Park in Sarawak by the National Parks and Wildlife Branch of the Forestry

Department. The purpose of the project was a services upgrade of the electrical supply system to

the National Parks and Wildlife Department ranger station, employees residences, tourist

accommodation, lighting for display cases and street lights.

This project has involved the design, supply and installation of renewable energy systems in

Malaysia, specifically the supply and installation of a 14kW solar power system, a 240 kWh battery

10

bank and a 100kVA inverter charger with automatic dual diesel controllers and AC power

distribution in a hybrid solar diesel power system.

Due to circumstances out of the control of CASE, including a fire in the existing powerhouse and

delays in the construction of the new powerhouse and delivery of the two new diesel generators,

the CASE project has been substantially delayed. The new wiring and lighting has already been

installed and it is expected that the installation and commissioning will be completed in September

2002.

LAKEI ISLAND - PV UPGRADE

A new VIP building that required an interrupted power supply was erected alongside the existing

structures at Lakei Island. CASE was contracted for the supply of a 2.4 kW solar power system on

this new building.

Equipment was ordered from WA Company Solar Sales Pty Ltd and shipped from Perth in January

2002 with the commissioning and installation completed in June 2002.

VIETNAM

SHOWCASE PROJECT – DANANG, CENTRAL VIETNAM

CASE was successful in securing $369,000 funding collectively from the Australian Government’s

overseas aid agency (AusAID) under the Asia Pacific Economic Cooperation (APEC) Support

Program and the Technology Diffusion Program of the Department of Industry, Science and

Tourism (DIST), to undertake a Showcase of Australia’s Renewable Energy Technologies in a rural

community in Central Vietnam.

11

The project, with support from the Australian and Western Australian renewable energy industry

involves, the installation of a solar and wind based hybrid power system supplementing an existing

overloaded electricity grid to provide a reliable 24 hour/day power source to approximately 50

dwellings in the Cay Da Hamlet in Danang Province. The Danang authorities have requested that

CASE supply 220 Volt/380 Volt three-phase power to the hamlet. The equipment will be

modularised, with the advanced grid support inverter system, batteries and control equipment

housed within a container. The current grid suffers regular brownouts and blackouts, and

experiences considerable voltage drop.

In May 2002, the then Australian Ambassador to Vietnam, the Honourable Michael Mann,

witnessed the signing of an Agreement between the Perth International Centre for Application of

Solar Energy (CASE) and the People’s Committee of Danang for the implementation of the project.

The People’s Committee have made a commitment to support the project by installing the civil

works and the electrical transmission and house wiring.

This project will provide considerable benefit to the rural community involved, providing them with

a quality power supply that will assist in the provision of basic services including health and

education and allowing local industry development. It will also provide substantial commercial

opportunities to the Australian renewable energy industry by showcasing Australian technologies

and establishing important networks in our neighbouring ASEAN region.

The equipment commissioning and installation will take place in September 2002 with CASE under

contract to provide ongoing project monitoring through 2003/04.

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BIOGAS PROJECT

CASE’s Biogas Project in Vietnam was officially recognised in a ceremony at the village Phu Dong

on the outskirts of Hanoi in July 2001 with the Deputy Australian Ambassador to Viet Nam, Mr

Greg Polson, attending this ceremony and delivering a speech. Senior AusAID staff, the projects

stakeholders and key Vietnamese Government officials were also in attendance.

Although this project has officially concluded with the 12-month monitoring phase being completed

in June, CASE has an undertaking to assist our Vietnamese partner organisation, RESCARD, in

obtaining funding from the Global Environment Fund (GEF) to replicate the project and its benefits

on a larger scale throughout Vietnam.

A proposal has been developed in conjunction with RESCARD and will be submitted to the GEF to

the UNDP in New York shortly.

13

CASE TRAINING PROGRAMS AND CONSULTANCIES

INDIA

Non Conventional Energy Development Agency (NEDA) Government of Uttah Pradesh

In April 2002 an Indian Government delegation headed by Mr Chandrapal - Principal Secretary,

Department of Additional Sources of Energy/Chairman & CEO, Non Conventional Energy

Development Agency (NEDA), Government of Uttar Pradesh, India - visited Perth and concluded

the commercial agreement with CASE to assist the Non Conventional Energy Development Agency

(NEDA) in a major village electrification project.

This commercial agreement has been in the pipeline for a number of years since CASE assisted

NEDA to prepare a submission for GEF funding for a rural electrification project involving several

hundred villages. The project has taken a number of years to move through the various Indian

Government Agencies. The project has now been cleared by all relevant Government of India

agencies. CASE will assist NEDA in the presentation of the submission to the Global Environment

Facility in New York and upon approval of the project funding, CASE will act as the NEDA

consultant to facilitate, expedite and overview the technical delivery of the project.

MALAYSIA

Rural Buildings Survey for the State Planning Unit, Government of Sarawak

Early in 2002 CASE, in conjunction with Malaysian engineering consultants Ranhill Bersekutu Sdn

Bhd, developed a proposal for a feasibility study for electrification of remote rural Government in

buildings in Sarawak.

The CASE/RANHILL proposal has been accepted in principle by the State Planning Unit and

representatives of the Government of Sarawak (GOS) Departmental Stakeholders with initial

funding of 300,000 Malaysian Ringgit (MR) approved by the GOS Finance Department. As this

amount was determined to be insufficient to undertake the total project, the project is now to be

broken into two separate phases. Phase one of the project is for approximately $150,000 AUD,

and the second phase will be dependent on the phase one outcomes.

Signing of contract is expected during August 2002 with the project commencing shortly after this.

The project will involve using a field survey to collect data from selected rural areas, in order to

determine the electrical load forecast and a generation development plan. Financial, economic and

socio-economic analysis will be undertaken on the collected data in order to recommend sites for

electrification. This project will also recommend a plant management plan and will train the

stakeholders to undertake future studies.

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PHILIPPINES

Rural Electrification and Rural Strengthening Project

CASE was subcontracted in October 2001 by the Snowy Mountains Engineering Corporation

(SMEC) to undertake an Asian Development Bank-funded technical assistance on a “Rural

Electrification and Rural Strengthening” project in the Philippines. The main objective of the

project was to improve and strengthen the institutional capabilities of the Department of Energy

(DoE) to plan and implement rural electrification projects, particularly for off-grid areas using new

and renewable energy sources (NRE).

As part of this project CASE consultant, Dr Chem Nayar, jointly with other members of the

consortium, designed and delivered replicable training in current best practices in all phases of

rural electrification, and that met the needs of all key stakeholders. The training included lectures,

group discussions, hands on exercises, site visits, etc and components included Feasibility study on

renewable energy systems for rural electrification; design of renewable energy systems and a

photovoltaic field technician training course. A total of about 550 participants from various

agencies participated in the training program.

The Managing Director of CASE attended a stakeholder meeting in Manila in which key outcomes

and recommendations of the study were discussed.

During this consultancy several opportunities were identified for CASE’s participation and contacts

and relationships with established with government agencies, electric utilities and power

companies.

SOUTH AFRICA

NON GRID ELECTRIFICATION PROJECT

CASE is working in partnership with Renewable Energy Africa (REA) to develop a non-grid

electricity business for a nominated concession area in the Eastern Cape of South Africa.

In July 2001 a revised and expanded Business Plan and detailed financial projections were

developed by CASE with input from REA and forwarded to the South African Department of

Minerals and Energy. The Business Plan included:

• A wide range of sensitivity studies

• The tariff and subsidy required to give a 20% pa return on total funds.

• An 80% / 20% (REA/CASE) project split

Since then:

• CASE has provided comments on the proposed contract between the REA consortium and the

Government.

• The Department has announced its intention to fully fund a pilot project in each concession

area.

15

• CASE has provided REA with an additional sensitivity study that was requested by the

Development Bank of South Africa.

Negotiations are still taking place between the concessionaires and ESKOM / Department.

However the Development Bank of South Africa believes that higher subsidies are required, and

the recovery rate used in financial modelling should be lower. This will obviously impact on the

viability of the project.

THAILAND

PEA Island Electrification Project

Following completion of a draft Final Report for the Feasibility Study on Renewable Energy for

Island Electrification in Thailand in July 2001, a two-day interactive seminar was carried out for 12

PEA staff in Bangkok, Thailand. This seminar highlighted the study results and the associated

analysis methodologies used in the derivation of the Feasibility Study results.

The Final Report was completed and submitted in October 2001 in conjunction with a stakeholder’s

seminar. There were approximately 32 participants comprising of PEA staff, representatives of

prospective funding agencies and other Government stakeholders.

This study provides an excellent reference to allow CASE to bid for further work in remote area

electrification.

Village Electrification Project

CASE has been contracted by Chiang Mai University to act as a sub-consultant providing technical

input and undertaking of financial modelling for a Village Electrification Study for the Provincial

Electricity Authority (PEA).

A project inception meeting was held in March 2002 with Gordon Thompson attending this meeting

and delivering a presentation on CASE’s experience in developing business plans for the South

African Non-Grid Electrification Project involving the establishment of an energy service company.

16

THE CHANGING ROLE OF CASE

The energy market domestically and internationally continues to experience considerable change.

The mandatory Renewable Energy Target (MRET) established for the Australian Electricity Market

has been in operation for over twelve months, and trading of renewable energy certificates is a

now a feature of the market.

Renewable Energy companies now feature on the Australian Stock Exchange, and subject to the

scrutiny of the market.

Significant reform of the West Australian energy market, has been announced by the Government

of Western Australia with a proposed split up of Western Power.

The establishment of the Sustainable Energy Development Office (SEDO) by the WA Government

is a step in developing the sustainable energy industry in Western Australia, however, it is critical

SEDO works closely with local industry if the maximum benefits are to be achieved. SEDO has an

important role to play in managing the Renewable Remote Power Generation Program’s (RRPGP)

Remote Area Power System and Renewable Energy Water Pumping rebate schemes on behalf of

the Commonwealth Government. The reduced supply threshold for renewables energy suppliers

and the various Government programs provide an opportunity to continue to grow the industry,

however there is a real concern on sustainability when the stimulus programs abruptly cease.

The cessation of the Renewable Energy Commercialisation Program, the review of the Australian

Greenhouse Office (AGO) with its likely absorption of the AGO back into Government and

Australia’s non-ratification of Kyoto provide uncertainty in the local market.

Even though some CASE activities will be absorbed into SEDO, much of what CASE does will not be

transferred. The CASE Board initiated a process to ascertain how the balance of CASE activities

can continue under a new delivery framework. However key projects to continue over the year

include:

• Complete the supply, installation and commissioning a Solar Hybrid power system for Mulu

National Park, Sarawak, Malaysia.

• Move to the implementation phase for a non-grid rural electrification program in South Africa.

• Complete the project to showcase Australian/Western Australian renewable energy technology

and expertise for rural applications in Danang Province, Vietnam.

• Complete the study for renewable energy electrification options for Government Buildings in

remote areas of Sarawak.

• Work with the Government of Uttah Pradesh to advance rural electrification project.

• Move to commercialisation of the Bantangebang Landfill Resource recovery project in Bekasi,

Indonesia in conjunction with the Municipality of Bekasi.

• Commence pilot operation On Bekasi Landfill, Indonesia

• Undertake a number of professional consultancies currently being considered by respective

clients.

• Analysis of alternative proposals for the future delivery of CASE projects and commercial

services.

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GOVERNANCE

OVERVIEW

The Perth International Centre for Application of Solar Energy Act 1994 governs the administration

of CASE.

The Centre is governed by a Board of Directors from the private and public sectors and the

renewable energy industry. The Board is responsible to the Minister for Energy, and the Managing

Director is responsible to the Board for the day-to-day operations of the Centre.

A Finance and Audit Committee reporting to the Board overview the financial performance and

compliance of the Authority. The Finance and Audit Committee uses an accounting firm to

perform the internal audit function to determine if issues arising from previous internal and

external audits are being appropriately addressed and to highlight other key areas to be

considered. The organisational and operational performance of CASE is monitored using a number

of quantitative and qualitative measures.

The Board continues to operate with two Director positions vacant. The CASE Act requires

nomination of suitable candidates for these positions by the Commonwealth Government. The

Commonwealth Government has declined the opportunity to nominate candidates for the Board

position and they therefore remain vacant.

Mr John Loney indicated he was not available for an undefined time to fulfill his duties as a

Director of CASE and the Minister appointed Dr Les Farrant as an Alternate Director in accordance

with schedule 1 section 3(1) of the CASE Act on the 17th August 2001.

Dr Simon Langton who had been representing Professor Valerie Alder of Murdoch University on the

CASE Board since May 2000 was confirmed as an Alternate Director by the Minister in accordance

with schedule 1 section 3(1) of the CASE Act on 30th November 2001. Dr Langton resigned from

Murdoch University and the CASE Board on 14th April 2002.

The scheduling of Board meetings has been difficult, as five Directors have to be in attendance to

constitute a quorum.

Due to the transitional nature of CASE activities the decision was taken not to appoint an

accountant to replace Nola Lynch on her resignation in July 2001. Expressions of Interest were

invited from several accounting firms and Pannel Kerr Foster (PKF) was appointed to fulfil the role

for an interim period. To reduce costs a part time bookkeeper was subsequently appointed, with

PKF providing specialised inputs and accounting overview.

The Board is required to sign a code of conduct and declare interests. An agenda item has been

introduced at Board meetings, allowing Board Directors to note changes to the Declaration

previously provided.

18

All staff are on employment contracts that reflect the commercial nature of operations of the

centre. Staff are also required to complete a modified code of conduct and declaration of interest

forms.

To adequately measure CASE Key Performance Indicator’s an independent external organisation is

used to survey CASE clients and stakeholders.

The overall Governance structure follows:

A full meeting of the International Advisory Council was not held in the financial year. However as

in previous years and to limit the use of scarce CASE resources a meeting was held with a client

group where the focus of the meeting was to examine CASE ongoing assistance and activities. For

the 2002 financial year a comprehensive meeting was held with officials from the Government of

Uttah Pradesh (U.P.) in India, to discuss the development of a non-grid renewable energy project

in U.P.

Minister for EnergyHon. Eric Ripper

CASE Board of Directors

Finance and AuditCommittee

Internal Audit Function

CASE Managing DirectorMr. Gordon Thompson

International Advisory Council

19

COMPLIANCE INFORMATION

Code of Conduct

A Code of Conduct has been established for members of the CASE Board and for CASE staff,

consultants and contractors. Each is required to sign an agreement to comply with the provision

of the Code.

Declaration of Interests

All CASE Board members, employees and consultants/contractors working in the centre are

required to sign a Declaration of Interests form.

Records Management

A records management policy, practice and procedures manual has been developed and

implemented. All business decisions and transactions are documented and recorded in an efficient

and effective manner and adhere to operational, information and legislative requirements. CASE

has implemented procedures that manage both electronic and paper records.

Corporate Information Resources

CASE strategy aims to achieve the effective dissemination, use and preservation of information

resources. Information resources are contained in different systems throughout the organisation.

These systems include both hardcopy and electronic resources. The overall objective is that all

information management systems will be developed for effective use by staff.

Workers Compensation

No workers compensation claims were lodged and no lost time injuries were reported for the

period 1 July 2001 to 30 June 2002.

Promotions, Publications and Research

CASE meets its legal deposit requirements for its Annual Report through the State and National

Libraries.

CASE is not a research organisation. From time to time we have undertaken studies and reviews

on a commercial basis. Selected papers, presentations and project summaries and various

conference proceedings are also available through the CASE website: www.case.gov.au.

20

Advertising and Sponsorship

CASE has spent $773 during the 2001/02 financial year with respect to advertising and

sponsorship. This expenditure related to direct advertising of CASE and was not made with

respect to advertising agencies, market research organisations, polling organisations, direct mail

organisations and media advertising organisations.

REPORT ON EQUITY, ACCESS AND CUSTOMER FOCUS

Disability Services Plan

Wherever possible the Centre ensures that people with disabilities can obtain access to CASE

information and services.

• the identification of information which can be provided electronically; in particular through

our web page.

• an increase in the range of information concerning office activities and services which

could be available via electronic and other means;

• staff awareness in the provision of quality customer service, especially for those with

special needs.

Information Statement

The Centre is an exempt agency within the meaning of the Freedom of Information Act 1992.

No requests under the Freedom of Information Act were received during the reporting period.

Enquiries for information of a general nature can be directed to the Managing Director and will

normally be processed by the Executive Assistant to the Managing Director.

Customer Focus Outcomes

CASE is strongly committed to the provision of high quality services to our key customer groups.

CASE has not developed a formal customer service charter because of the transitional nature of its

role and the impending absorption of some activities into the Sustainable Energy Development

Office during 2002/03.

21

Equal Employment Opportunity

The Centre since it inception has followed the principles of equal opportunity in the workplace. In

line with this an Equal Employment Opportunity Diversity Management Plan for the period 1999-

2004 was adopted. This plan identifies key strategies to be adopted.

Plan for Women

Over half of the full time equivalent staff working at CASE are female and hold a variety of

positions ranging from administration to Project Management. CASE aims to increase the level of

responsibility and opportunities for all female employees.

Language and Cultural Diversity

With our focus on developing countries, CASE relies on the multi-lingual abilities of its staff. Whilst

there has been dependence upon ongoing verbal translations in the field with our clients, the need

for written translation services has been confined to internal reports, correspondence and

presentations and is normally satisfied internally, or by our in country representatives.

Waste Paper Recycling

The Centre has a policy of recycling waste paper. All suitable paper is collected by an outside

organisation and used to produce recycled paper products.

I.T. Security

The security of the CASE computer network and internet connection was upgraded during the year

with the purchase of new computing hardware, software and a firewall installation. It is proposed

an IT Security Management Plan will be adopted by Management early in the 2003 financial year.

22

CASE BOARD

BOARD MEETING ATTENDANCE 2001/2002

DIRECTOR’S NAME ATTENDANCEDr. Peter Hopwood (Chair) 6/6Mr. Gordon Thompson 6/6Mr. Les Poole 6/6Mr. Peter Booth 6/6Dr. Les Farrant 5/6Dr. Simon Langton 2/6Mr John Loney 0/6Professor Valerie Alder 0/6

BOARD BIOGRAPHIES

Dr. Peter Hopwood (Chair)Dr. Peter Hopwood is a consulting engineer with a commercial background in the energy andresources sectors, with knowledge of the operations of international development organisationsand multilateral development agencies. He is a principal of HBH Consultants, a Fellow of theInstitution of Engineers Australia, and a Fellow of the Australian Institute of Company Directors. DrHopwood is also a member of the Board of the Water Corporation of Western Australia.

Gordon Thompson (Managing Director)Mr Gordon Thompson is the founding Managing Director of CASE. Mr Thompson held a number ofsenior management roles with Melbourne Water Corporation including managing the InternationalBusiness arm, which developed business opportunities in Asia Pacific. He is a Fellow of theInstitution of Engineers, Australia and was a member of the Western Australian GovernmentAlternative Energy Development Board (AEDB). He is the immediate past President of theSustainable Energy Industry Association - SEIA (Australia) and Chairman of the AustralianIndonesian Business Council (WA Branch). He is also the Australian representative on theInternational Energy Agency in Photovoltaic Power Systems (PVPS) Task IX which considers thedeployment of PV systems in developing countries.

Mr. Peter BoothMr. Peter Booth is an International Marketing Consultant and former Executive Director of theWestern Australia Overseas Projects Authority. He has also had several years experience with theUnited Nations Food and Agriculture Organisation where he was involved in identification, aidfunding and implementation of projects in developing countries.

Mr. Les PooleMr. Les Poole is the Commercial Director - Components of the recently merged BP Solar Group,responsible for the Asia, Australia and the Pacific Islands region. Prior to the creation of the newBP Solar entity, he was the Regional Sales and Marketing Director for Solarex Pty Ltd.

Prior to joining Solarex, Mr Poole had more than twenty years experience in the electrical industryprimarily involved in power generation, mining operations, heavy industry & major commercialventures involving project management, design, supply and installation.

Mr. John LoneyMr. John Loney was recently appointed as Project Director for CALM. Previous to this he was theExecutive Director, Industry Development Division of the Western Australian GovernmentDepartment of Commerce and Trade where he was responsible for investment attraction, tradepromotion and enterprise development assistance. Mr Loney has worked in a number ofgovernment departments, both State and Federal including the Australian Trade Commissionwhere he had postings in London, Cairo and Milan following a training period in Canberra. He hasalso been the Western Australian Government trade representative in Sydney and Canberra.

Mr Loney has degrees in science and economics and a post graduate administration qualification.

23

Dr. Les FarrantDr Les Farrant is a senior public servant with the Government of Western Australia. He is currentlyChief Executive Officer of the Office of Energy and has held the statutory position of Coordinator ofEnergy since October 1995. His responsibilities in that position include providing policy advicedirectly to the Minister for Energy on energy matters generally. Dr Farrant has recently overseen the creation of the Sustainable Energy Development Office withinthe Office of Energy.

Professor Valerie AlderProfessor Valerie Alder is the Pro Vice Chancellor - Research Murdoch University. She is amember of the Boards of Technology and Innovation Management (TIM), AJ Parker Centre, AsiaResearch Centre and Centre for Rhizobium Studies and is also a member of the Murdoch UniversityAcademic Council and Senate. She has been unavailable to attend CASE Board Meetings due toillness.

Dr. Simon Langton (alternate to Professor Valerie Alder)Dr. Simon Langton is a biomedical scientist with a long career in teaching hospitals in Perth. Hewas formerly the Manager, Commercial Services (R&D) at Murdoch University. Dr Langton hasbeen involved in the commercial sector both in Australia and overseas. He has been a member of anumber of Boards connected with biomedical sciences. Dr Langton resigned effective 14 April2002, continue his career in the United Kingdom.

Statement Of Compliance With Public Sector Standards

Compliance issues in general are summarised:

1. In the administration of the Perth International Centre for Application of Solar Energy Act(1994), we have complied with public sector standards in human resource management, thecode of ethics and our Office's Code of Conduct.

2. Contracts of employment that stress the commercial nature of operating, and the role andresponsibilities of employees have been introduced. A revised code of conduct has beenimplemented.

3. The applications made for breach of standards review and the corresponding outcomes for thereporting period are* Number lodged Nil* Number of breaches Nil* Number still under review Nil

Gordon A Thompson Peter BoothManaging Director A/Chairman

30 August, 2002 30 August 2002

INTERNATIONAL CENTRE FOR APPLICATION OF SOLAR ENERGY

CASE FINANCIAL STATEMENTS2002

CERTIFICATION OF FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2002

The accompanying financial statements of the Perth International Centre for Application of Solar

Energy have been prepared in compliance with the provisions of the Financial Administration and

Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the

financial year ending 30 June 2002, and the financial position as at 30 June 2002.

At the date of signing we are not aware of any circumstances which would render any particulars

included in the financial statements misleading or inaccurate.

G Thompson G ThompsonPrincipal Accounting Officer Managing Director

20 November 2002 20 November 2002

P BoothA/Chairman

20 November 2002

PERTH INTERNATIONAL CENTRE FORAPPLICATION OF SOLAR ENERGY

STATEMENT OF FINANCIAL PERFORMANCEFor the Year Ended 30 June 2002

Note 2002 2001$ $

COST OF SERVICES

Expenses from Ordinary ActivitiesEmployee expense 2 650,937 619,129Administration expense 3 130,191 137,422Communications 35,792 43,950Depreciation expense 4 55,000 62,210Direct project costs 5 427,457 803,348Doubtful Debts Expense 15,129Bad debts expense 15 35,308Insurance 16,358 19,415Lease costs 67,874 48,642Revaluation decrement 17 51,333Business development 17,838 43,379Promotional expense 6 773 42,122Superannuation expense 52,967 54,655Travel & accommodation expense 7 14,901 24,941Capital User Charges 40,000UNIDO project grants 98,734UNIDO administration expense 3,570

Total Cost of Services 1,545,396 2,067,978

Revenues From Ordinary ActivitiesCommercial Project and consultingincome 8 445,095 507,422Interest revenue 25,890 33,680Commonwealth and other grants 9 43,840 345,758

Foreign exchange gain (loss) 10 (6,334) 17,378Other revenue from ordinary activities 11 55,972 27,286

Total Revenues from OrdinaryActivties 564,463 931,524

NET COST OF SERVICES (980,933) (1,136,454)

REVENUES FROM GOVERNMENT

Consolidated fund - appropriation 12 864,000 882,000Resources received free of charge 13 737 2,001

Total Revenues from Government 864,737 884,001

CHANGE IN NET ASSETS (116,196) (252,453)


STATEMENT OF FINANCIAL POSITIONAs At 30 June 2002

Note 2002 2001$ $

Current Assets

Cash assets 14 308,824 315,968Restricted cash assets -Receivables 15 102,754 358,596Project advances 16 1,612 1,992Prepayments 3,675 10,307

Total Current Assets 416,865 686,864

Non Current Assets

Consolidated Fund Holding Account 99,000Property, plant & equipment 17 34,862 63,994

Total Non Current Assets 133,862 63,994

Total Assets 550,727 750,858

Current Liabilities

Payables 18 155,396 84,128Accrued expenses 19 57,701Accrued salaries 41,912 26,035Income in advance 20 250,048 409,815Provisions 21 21,142 30,478GST and FBT payable 4,000 1,304

Total Current Liabilities 472,498 609,461

Non Current Liabilities

Provisions 21 76,673 23,645

Total Non Current Liabilities 76,673 23,645

Total Liabilities 549,171 633,106

NET ASSETS 1,556 117,752

Equity

Accumulated surplus/(deficiency) 1,556 117,752

TOTAL EQUITY 22 1,556 117,752


STATEMENT OF CASH FLOWSFor The Year Ending 30 June 2002

Note 2002 2001$ $

CASHFLOWS FROM GOVERNMENT

Recurrent appropriations 751,000 882,000

Net cash provided by government 751,000 882,000

Utilised as follows:

CASHFLOWS FROM OPERATING ACTIVITIES

PaymentsEmployee costs (495,567) (645,254)Supplies and services (896,384) (1,208,719)GST payments on purchases (21,325) (36,681)GST payments to taxation authority (47,070) (3,310)

ReceiptsSale of goods & services 614,318 636,603Commonwealth and other grants 76,349 345,758Interest received 25,947 33,680GST receipts on sales 16,632 41,295Other receipts 27,480

Net Cash provided by / (used in) operatingactivities (727,100) (809,148)

CASHFLOWS FROM INVESTING ACTIVITIES

Purchase of non-current physical assets (25,479) (11,475)

Net Cash provided by / (used in) investingactivities (25,479) (11,475)

Net increase/(decrease) in cash held (1,579) 61,377

Cash assets at the beginning of the financial year 315,968 237,259

Cash assets transferred from other sources -

Effects of exchange rate changes on the balanceof cashheld in foreign currency. - 5,565 17,332

CASH ASSET AT THE END OF THEFINANCIAL YEAR 23 308,824 315,968

PERTH INTERNATIONAL CENTRE FOR APPLICATION OF SOLAR ENERGY

Notes to the Financial Statements For the year ended 30 June 2002

1. Statement of Accounting Polices

The following accounting policies have been adopted in the preparation of the financial statements.Unless otherwise stated these policies are consistent with those adopted in the previous year.

General Statement

The financial statements constitute a general purpose financial report which has been prepared inaccordance with Australian Accounting Standards and Urgent Issues Group (UIG) ConsensusViews as applied by the Treasurer's Instructions. Several of these are modified by the Treasurer'sInstructions to vary application, disclosure, format and wording. The Financial Administration andAudit Act and the Treasurer's Instructions are legislative provisions governing the preparation offinancial statements and take precedence over Australian Accounting Standards and UIGConsensus Views. The modifications are intended to fulfil the requirements of general applicationto the public sector together with the need for greater disclosure and also to satisfy accountabilityrequirements.

If any such modification has a material or significant financial effect upon the reported results,details of that modification and where practicable, the resulting financial effect, are disclosed inindividual notes to these financial statements.

The statements have been prepared on the accrual basis of accounting using the historical costconvention, with the exception of certain non-current assets, which are at valuation.

(a) Grant and Other Contributions Revenue

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when theCentre obtains control over the assets comprising the contributions. Control is normally obtainedupon their receipt.

Contributions are recognised at their fair value. Contributions of services are only recognised whena fair value can be reliably determined and the services would be purchased if not donated.

(b) Depreciation of non-current assets

All non-current assets having a limited useful life are systematically depreciated over their usefullives in a manner which reflects the consumption of their future economic benefits.

Depreciation is provided for on a straight line basis, using rates which are reviewed annually.Useful lives for each class of depreciable asset are:

Computer systems 3 yearsFurniture and fittings 3 yearsOffice equipment 2 yearsProject equipment - operations 5 yearsProject equipment - pilot / test 2 years

(c) Employee entitlements

Annual leave



This entitlement is recognised at current remuneration rates and is measured at the amount unpaidat the reporting date in respect to employees' service up to that date.

Long service leave

The Government has announced that CASE will be absorbed into the Sustainable EnergyDevelopment Office during 2002/03. The liability for long service leave has therefore been basedon the expected future payments to be made in 2002/03 to employees eligible for long serviceleave in 2002/03 or before.

Superannuation

Staff may contribute to the Superannuation and Family Benefits Act Scheme, a defined benefitspension scheme now closed to new members, or to the Gold State Superannuation Scheme, adefined benefit lump sum scheme now also closed to new members. All staff who do not contributeto either of these schemes become non-contributing members of the West State SuperannuationScheme, an accumulation fund complying with the Commonwealth Government's SuperannuationGuarantee (Administration) Act 1992.

The liabilities for superannuation charges under the Gold State Superannuation Scheme and WestState Superannuation Scheme are extinguished by fortnightly payment of employer contributions tothe Government Employees Superannuation Board.

The note disclosure required by paragraph 51(e) of AAS 30 (being the employer's share of thedifference between employees' accrued superannuation benefits and the attributable net marketvalue of plan assets) has not been provided. State scheme deficiencies are recognised by theState in its whole of government reporting. The Government Employees Superannuation Board'srecords are not structured to provide the information for the Centre. Accordingly, deriving theinformation for the Centre is impractical under current arrangements, and thus any benefits thereofwould be exceeded by the cost of obtaining the information.

(d) Leases

The Centre has entered into a number of operating lease arrangements for the rent of the officebuilding where the lessor effectively retains all of the risks and benefits incident to ownership of theitems held under the operating leases. Equal instalments of the lease payments are charged to theStatement of Financial Performance over the lease term as this is representative of the pattern ofbenefits to be derived from the leased property.

(e) Receivables

Receivables are recognised at the amounts receivable as they are due for settlement no more than30 days from the date of recognition or as specified by individual contracts entered into.

Collectability of receivables is reviewed on an ongoing basis. Debts which are known to beuncollectable are written off. A provision for doubtful debts is raised where some doubts as tocollection exists.

(f) Accrued Salaries

Accrued salaries represent the amount due to staff but unpaid at the end of the financial year, asthe end of the last pay period for that financial year does not coincide with the end of the financialyear. The Centre considers the carrying amount approximates net fair value.



(g) Payables

Payables, including accruals not yet billed, are recognised when the Centre becomes obliged tomake future payments as a result of a purchase of assets of services. Payables are generallysettled within 30 days.

(h) Resource Received Free of Charge or For Nominal Value

Resources received free of charge or for nominal value which can be reliably measured arerecognised as revenues and as assets or expenses as appropriate at fair value.

(i) Foreign Currency Translation and Hedges

Transactions denominated in a foreign currency are translated at the rates in existence at the datesof the transactions. Foreign currency receivables and payables at reporting date are translated atexchange rates current at reporting date. Exchange gains and losses are brought to account indetermining the result for the year.

(j) Revenue Recognition

Revenue from the sale of goods and disposal of other assets and the rendering of services, isrecognised when the Centre has passed control of the goods or other assets or delivery of theservice to the customer.

(k) Revaluation of Project Equipment

The Centre has a policy of valuing assets such as project equipment at a market value. Therevaluation of the Centre's project equipment was undertaken by the Board.

(l) Comparative Figures

Comparative figures are, where appropriate, reclassified so as to be comparable with the figurespresented in the current financial year.



2,002 2001$ $

2Employee expenseWages & salaries 574,076 557,148Annual Leave 31,945 37,990Other Related expenses 44,916 23,991

650,937 619,129

3Administration expensePrinting and stationery costs (4,101) 12,045Memberships 9,600 15,318Office epenses 28,302 22,109Resources free of charge 737 2,001Governance 83,664 66,841HR expenditure 2,550 8,156Info and records management -Other 9,440 10,952

130,191 137,422

4Depreciation expenseComputer systems 12,969 24,669Furniture & fittings 7,250 6,565Office equipment 466 4,176Project equipment 34,315 26,800

55,000 62,210

5Direct project costsProject equipment 217,407 408,178Consultants and casual labour costs 79,872 164,161Project related travel costs 115,202 176,665Other costs 14,977 54,344

427,457 803,348

6Promotional expensePromotional expenses 508 38,653Advertising 265 3,050Other costs - 420

773 42,122

7Travel and accommodation expenseAirfares & Accommodation 11,173 19,358Taxi's and surface travel 3,728 3,093Other costs - 2,490

14,901 24,941Travel related expenditure for the 2002 year relates only to non project related travel

8Commercial project and consulting incomeCommercial project and consulting income 691,117 917,237

Less: Income in advance project and consulting income (250,048) (409,815) 441,069 507,422



2,002 2001$ $

9Commonwealth and other grantsGrant project and consulting income 43,840 345,758

43,840 345,758

10Foreign exchange gainRealised foreign exchange gain /( loss) 450 45Unrealised foreign exchange gain /( loss) (6,784) 17,333

(6,334) 17,378

11Other revenueCentrelink training subsidy 1,375 1,250AIBC reimbursements 256 226Other reimbursements 49,967 8,048FBT - reimbursements 4,374 17,762

55,972 27,286

12Revenues (to)/from GovernmentAppropriation revenue received during the year:Recurrent 864,000 882,000

864,000 882,000

13Resources received free of chargeCrown solictor's office 737 2,001

737 2,001

14Cash assetsCASE - Cheque Account 243,494 255,654CASE - US$ Account 64,103 57,200Petty cash 23 1,797Petty cash - foreign currency 1,203 1,317

308,824 315,968

15ReceivablesTrade debtors 153,191 373,725Provision for doubtful debts (15,129) (15,129)Bad Debt expense (35,308)

102,754 358,596

16Project advancesSpecific project advances - 830Work related cash advances to employees 1,612 1,162

1,612 1,992

2,002 2001



$ $17Property, plant and equipment

Computer systemsAt cost 115,526 95,288Accumulated depreciation (89,614) (76,644)

25,912 18,644Furniture & fittingsAt cost 19,696 19,696Accumulated depreciation (19,696) (12,445)

- 7,251Office equipmentAt cost 15,092 9,462Accumulated depreciation (9,827) (9,362)

5,265 100Project EquipmentAt cost -At valuation June 2001 38,000 38,000Accumulated depreciation (34,315) -

3,685 38,000

34,862 63,994

On the 30th June 2002 additional depreciation was applied to the Indonesian project equipment .This additional depreciation was determined on the basis of a conservative estimate of the equipment'srecoverable value based on location, age of equipment, time since refurbishment and thecost of the equivalent new equipment. All sundry items were assumed to be used orof no real commercial value.

Reconciliations

Reconciliations of the carrying amounts of property, plant and equipment at the beginningof the current and previous financial year are set out below.

2001

Computersystems Furniture & fittings

Officeequipment

Projectequipment

Property, plant and equipment 31,839 13,816 4,275 116,133Additions 11,474 - - -Revaluation decrements - - - (51,333)Depreciation (24,669) (6,565) (4,175) (26,800)Carrying amount at end of year 18,644 7,251 100 38,000

2002

Computersystems Furniture & fittings

Officeequipment

Projectequipment

Property, plant and equipment 18,644 7,251 100 38,000Additions 20,237 - 5,630 -Depreciation (12,969) (7,251) (465) (34,315)Carrying amount at end of year 25,912 - 5,265 3,685

2002 200118Accounts Payable $ $



Trade payables 155,392 84,128155,392 84,128

2002 200119Accrued expense $ $

Sundry accruals 57,701 - 57,701

2002 200120Income in advance $ $

Current for overseas projects:World bank - China 14,000Mulu Nation Parks Project 40,103 197,085Vietnam Biogas Project 2,500 15,000Vietnam Showcase Project 207,445 183,730

250,048 409,815Income in advance received from either grants or commercial clients require CASE tosatisfy certain contractual milestones. CASE as at 30 June 2002 had adequateresources to meet these commitments.

21Provisions

CurrentAnnual leave 21,142 30,478

21,142 30,478

Non-currentLong service leave 76,673 23,645

76,673 23,645

The aggregate employee entitlement liability recognised and included in the financial statements 97,815 54,123

Long service leave entitlements are now based on 13 weeks paid leave after 7 years continuous service in accordance with Government Officers Salaries, Allowancesand Conditions Award. This was resolved by the Board following receipt of legal advice.

22Total equityAccumulated surplus (deficiency)Opening balance 117,752 370,206Change in net assets (116,196) (252,454)Closing balance 1,556 117,752

2002 2001$ $



23Notes to the Statement of Cash Flows

(a) Reconciliation of cashCash assets 308,824 315,968Restricted cash -

308,824 315,968

(b) Non-cash financing and investing activitiesDuring the financial year, there were no assets/liabilities transferred/assumedfrom other government agencies.

(c) Reconciliation of net cost of services to net cash flows providedby/(used in) operating activities

Net cost of services (980,933) (1,136,454)

Non-cash items:Depreciation expense 55,000 62,210Revaluation of non-current assets 51,333Doubtful debt expense 15,129Carry over of Provision for Doubtful Debt 15,129Foreign exchange (gain)/loss 6,334 (17,333)Resources received free of charge 737 2,001

(Increase)/decrease in assets:CurrentReceivables 255,842 (281,910)Project advances 380 16,930Prepayments 6,632 (7,681)

Increase/(decrease) in liabilities:CurrentPayables 71,268 34,053Employee entitlements 6,541 13,122Accrued expenses (59,987) 24,219Income received in advance (159,767) 409,815Non-CurrentEmployee entitlements 53,028 4,114

Change in GST in receivables/payables 2,696 1,304

Net cash provided by/(used in) operating activities (727,100) (809,148)

24Commitments for expenditure



(a) Project expenditure commitmentsProject expenditure commitments, being contracted project expenditure additional to theamounts reported in the financial statements, are payable as follows:

Within 1 year 250,048 409,815The project commitments include amounts for:Overseas projects 250,048 409,815

(b) Non-cancellable operating lease commitmentsWithin 1 year 13,598(Property lease not yet agreed)

25Explanatory Statement(i) Significant variations between actual revenues and expenditures for the financial year and revenues

and expenditures for the immediately preceding financial year.

2,002 2,001 VarianceTotal Revenue from Ordinary Activities 564,463 931,524 (367,061)Direct project costs 427,457 803,348 (375,891)Doubtful debt expense 15,129 (15,129)Bad Debt expense 35,308 - 35,308Revaluation Decrement 51,333 (51,333)Business development 17,838 43,379 (25,541)Promotional expenses 773 42,122 (41,349)Commonwealth and other grants 43,840 345,758 (301,918)Foreign exchange gain (loss) (6,334) 17,378 (23,712)

Total Revenue from Ordinary ActivitiesThe variance is due to a significant reduction in Commercial income which in turn is due toconstraints on business development and client delays on major projects

Direct project costsThe variance is due to lower project and consulting income

Provision for doubtful debtsNo additional provision was necessary in 2002

Bad Debt ExpenseThe amount in 2002 relates to an invoice for payment in advance issued in June 2001for a project. The client has indefinitely deferred the project. No expenditure has been incurred.

Revaluation DecrementNo revaluation took place in 2002 and assets now reflect their true recoverable value.

Business developmentThe variance is due to constraints placed on CASE in 2002

Commonwealth and Other Grantsthe variance is due to a change in policy where Commonwealth Grants towards thecost of commercial projects are now treated as projectincome

Foreign exchange gainThe variance is due to the depreciation of the Australian dollar in relation to the US dollar.

26Additional Financial Instrument Disclosures



(a) Interest Rate Risk Exposure

The following table details the Authority's exposure to interest rate risk as at the reporting date:

WeightedAverage FixedEffective Variable Interest Rate Non -

Interest Rate Interest Less than Interest2002 % Rate 1 Year Bearing Total

Financial AssetsCash assets 3.99% 307,597 0 1,227 308,824Restricted cash assets 3.99% 0 -Receivables - 0 104,366 104,366

307,597 0 105,593 413,190

LiabilitiesPayables - 0 159,396 159,396Accrued salaries - 0 41,912 41,912Income in advance 250,048 250,048Employee entitlements - 0 97,815 97,815

- 0 549,171 549,171

(b) Credit Risk Exposure

All financial assets are unsecured.

Amounts owing by other government agencies are guaranteed and therefore no credit raterisk exists in respect of those amounts. In respect of other financial assets the carrying amountsrepresent the Authority's maximum exposure to credit risk in relation to those assets.

c) Net Fair Values

The carrying amount of financial assets and financial liabilities recorded in the financial statements are notmaterially different from their net fair values, determined in accordance with the accounting policies discloseddisclosed in Note 1 to the financial statements.

2002 2001

$ $



27Remuneration and Retirement Benefits of Members of the AccountableAuthority and Senior Officers

Remuneration of Members of the Accountable Authority

The number of members of the Accountable Authority, whose total of fees, salaries andother benefits received, or due and receivable, for the financial year, fall within the following bands are:

$0 - 10,000 2 210,001 - 20,000 1 1

The total remuneration of the members of the Accountable Authority is: 30,700 30,700

Retirement Benefits of Members of the Accountable Authority

The following amounts in respect of the retirement benefits were paid or became payable for the financial year:1. Total contributions to Gold State and West State Superannuation Schemes 0 19

No member of the Accountable Authority is a member of the Superannuationand Family Benefits Act Scheme.

Remuneration of Senior OfficersThe number of Senior Officers other than the members of the Accountable Authority, whose totalof fees, salaries and other benefits received, or due and receivable, for the financial yearfall within the following bands are:

$150,001 - 160,000 1

The total remuneration of senior officers is: 155,715 157,568

Retirement Benefits of Senior OfficersThe following amounts in respect of retirement benefits were paid or became payable for the financial year:

Total contribution to Gold State Superannuation Scheme and West StateSuperannuation Scheme. 17,902 17,608

No Senior Officers are members of the Superannuation and Family Benefits Act Scheme.

28Remuneration of AuditorThe total fees paid or due to the auditors or the Authority for the financial year are as follows:

Office of the Auditor General - external auditors. 9,000 8,250

CERTIFICATION OF PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2002

We hereby certify that the performance indicators are based on proper records, are relevant andappropriate for assisting users to assess the Perth International Centre for Application of SolarEnergy’s performance, and fairly represent the performance of the Perth International Centre forApplication of Solar Energy for the financial year ended 30 June 2002.

P Booth G ThompsonA/Chairman Managing Director

20 November 2002 20 November 2002


Performance Indicators for the Year Ended June 30 2002

KEY PERFORMANCE INDICATORS

The Authority's mission is to be the international centre for the promotion, application andtransfer of renewable energy in developing countries.

CASE promotes the application of solar energy technology in developing countries incollaboration with the United Nations Industrial Development Organisation (UNIDO), andencourages the development of the solar energy industry within the state and inAustralia.

CASE has developed both efficiency and effectiveness indicators to measure itsperformance. The effectiveness indicator illustrates the Authority's achievements inrelation to meeting its outcome. The efficiency indicators show the relationshipbetween the resources used and the outputs produced which contributed to thedesired outcomes.

Outcome : The development of the solar energy industry in Australia and in developing countries.

Output : Promotion, development and application of solar energy.

EFFECTIVENESS

CASE aims to achieve this outcome by:1. Assisting developing countries in developing sustainable energy technology;2. Encouraging the development technologies within Australia;3. Co-operating with the private sector in managing and participating in projects involving sustainable energy technology in developingcountries;4. Identifying market opportunities for Australian involvement in international projects;5. Promoting the use of sustainable energy to assist communities in developing countries to improve their economic and industrialdevelopment.

For 2001/02 all stakeholders (domestic and international) were surveyed to determine their satisfaction with CASEachieving its outcome. The response rate was 69.2% as 39 Stakeholders (26 Domestic and 13 International)were surveyed with 27 responses (20 domestic and 7 international).

Survey QuestionsInternational or

DomesticSatisfaction Percentage

2000/01Satisfaction Percentage

2001/02 1. Assisting developing countries in developing sustainable technology

International 100.0 100.0

Domestic 71.4 68.4 2. Encouraging the development of sustainable energy technology within Australia

Domestic and 80.6 79.2 3. Cooperating with the private sector in managing and participating in projects involving sustainable energy technology in developing countries International 4. Identifying market opportunities for Australian involvement in international projects Domestic 78.6 70.0

85.7 5. Promoting the use of sustainable energy to assist communities in developing countries to improve their economic and industrial development

International

100.0

Note: The level of satisfaction amongst stakeholders for 2001/02 was down because of a reduction in the budget appropriation and restrictions on travel for commercial activities.

EFFICIENCYCost 2000/01 2001/02Average cost per hour of professional services rendered $161.0 $234.0Average cost per energy system project installed orinitiated $254,814.0 $286,921.0Average cost per industry services information andcommunication delivered $68.0 $156.0

Note: Costs for service for 2001/02 are higher because the income from commercial activities wassignificantly down on 2000/01 and the proportion of overheads was therefore much higher

international centre for application of solar energy …€¦ · outstripping supply, and the...

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