Regional Councils as Energy Producers?

Economic OpportunityEconomic Opportunity

yieldingyieldingClimate Change ResultsClimate Change Results

Advertiser April 13, 2011

Threatened power supply paints dim future for state

State Editor Greg Kelton: Advertiser - April 13, 2011 12:00AM

SOUTH Australia faces a power supply crisis in the next decade and blackouts could shut down the state.

At the centre of the crisis is the almost certain closure of the Northern Power Station at Port Augusta, which provides 40 per cent of SA's baseload electricity, coupled with the lack of major new baseload generators.

The station will be forced to close - some experts predict as early as 2015 - either through a carbon tax or because its supplies of low-grade coal from Leigh Creek are running out.

Its operator, Alinta, is due to meet Energy Minister Michael O'Brien today to discuss future options.Alinta chief executive Jeff Dimery said he would be happy to discuss the issue after meeting Mr O'Brien.

Local MP Dan van Holst Pellekaan said the Northern Power Station faced "a very serious predicament" and up to 500 jobs could be at risk.

"It may take a decade to solve this problem," he said…..

See www.solarprogram.com.au

About us

•15,000 people•600 farms•850 businesses•Tourism 33% jobs•3% annual growth•SWER•End of the line

What we did

Initiated a PVP retrofit program – TowongInitiated a PVP retrofit program – TowongLooked at Blakers modelLooked at Blakers modelPublic ConsultationPublic ConsultationBriefed adjacent councilsBriefed adjacent councilsLet tenderLet tenderZEN won it -$1995 for 1.5kWh installedZEN won it -$1995 for 1.5kWh installedZEN Coordinated retrofitting on all housesZEN Coordinated retrofitting on all housesProvide for ongoing program - $75 rego.Provide for ongoing program - $75 rego.

Based on volume purchase/Gov Incentives

What we got720 Fleurieu ratepayers invest $2,500 - $2.25m 720 Fleurieu ratepayers invest $2,500 - $2.25m 1,000 more in adjacent councils1,000 more in adjacent councils$8m in Federal Government solar rebates$8m in Federal Government solar rebatesZEN installs $20,000 local office - 3 - now 6 jobsZEN installs $20,000 local office - 3 - now 6 jobs24 local electricians contracted for installs24 local electricians contracted for installs$80,000 in local newspaper advertising $80,000 in local newspaper advertising Ratepayer p/a power savings estimated at $250,000Ratepayer p/a power savings estimated at $250,000$80,000 raised via rego fees$80,000 raised via rego fees$30,000 ZEN/Adelaide Uni/Vic Harbor partnership $30,000 ZEN/Adelaide Uni/Vic Harbor partnership for renewables research proof of concept (hybrid)for renewables research proof of concept (hybrid) ETSA got $500,000 for new metersETSA got $500,000 for new metersC-PREP saves approx. 1,584 Tonnes of CO2 p/aC-PREP saves approx. 1,584 Tonnes of CO2 p/a

Take up

Should regions/suburbs do it?

Traditional energy = massive expenseTraditional energy = massive expenseQld.- utilities Qld.- utilities $15.6$15.6 billion by 2015 billion by 2015SA - SA - $1.3b - $1.3b - Australia - Australia - ESAA says ESAA says $25b$25b CPRS/ETS to cost more than $5 billion per CPRS/ETS to cost more than $5 billion per year in 2020 (Access Economics)year in 2020 (Access Economics)Councils face extra costs for street lighting - Councils face extra costs for street lighting - community halls – civic centres - librariescommunity halls – civic centres - libraries

See www.solarprogram.com.au

McKinsey – Economics of Solar Power 2008

CSIRO- Intelligent Grid Report 15 Mar 2010

•Wide scale deployment DE - $130b – 2050

•PVPs dominate DE growth from 2015

•Critical role in Australia’s future

Electricity will be shared “peer to peer” across local grids

Change…..

““You never change things by fighting the You never change things by fighting the existing reality. To change something, existing reality. To change something, build a new model that makes the existing build a new model that makes the existing model obsolete.”model obsolete.”

Solar/wind

Local Examples

Opportunities

Develop businesses by retrofitting existing Develop businesses by retrofitting existing houses and buildings -leverage initial success houses and buildings -leverage initial success into:into:Ongoinging program employmentOngoinging program employmentReduce energy billsReduce energy billsInitiate new industriesInitiate new industriesAvoid penaltiesAvoid penaltiesAttract fundingAttract fundingLower our carbon footprintLower our carbon footprint

Possible industries

DesignEngineeringLocal manufacturePartsSmall bizElectronicsSoftware

We see…

Public lightingPublic lightingPolesPolesGeneratorsGeneratorsPartsPartsBatteriesBatteriesPower plantsPower plantsSoftware Dvpt.Software Dvpt.SensorsSensorsElectronicsElectronicsSmart gridsSmart grids

Street lights

Our Main Street?

Smart grids http://igrid.net.au/

3-year research project July 2008 to June 2011 inc.University of Technology, Sydney, University of Queensland, and UniSA, Queensland University of Technology and Curtin University.

$3.4 million in funding from CSIRO and a further $6.1 million from collaborating institutions.

Storage – First smart grid Ausgrid – Newcastle - $100mAusgrid – Newcastle - $100m

Redflow Units are scheduled Redflow Units are scheduled for delivery to Newcastle in for delivery to Newcastle in Q3 2011 Q3 2011

The big opportunity – Jan 2011

Our very own power company!!!

Blaker’s retrofit model suggests retrofitting100,000 homes yields 800 jobs & drives $80,000,000p/a

Daylesford Vic. Hepburn Wind Co op -2,300 homes own two wind turbines

DE Power Companies and smart grids