VEPLA – Future of Renewables in VictoriaSolar Energy Projects, 30th April 2012

Shane Melotte, Element Projects

OverviewCurrent policy settings/incentives for solar projects

Project development for large scale solar

What’s next for solar in Victoria

Solar Resource

Ref: www.altstore.com

Source: www.sustainability.vic.gov.au

Vic Solar Resource and Infrastructure

National Renewable Energy Target and State Feed in Tariff (FiT)

Australian Installed PV Capacity Grid connected <100kW)

Source: CEC Review of Australian Solar PV Industry 2011

ACT Reverse Auction FiT

Total Capacity of 40MW in Round 1 Project Size 2MW - 20MW Closing date for prequalification bids 10 April 2012 49 proposal were received Significant local and international interest Complicated land tenure, grid constraints and biodiversity Short list released 5th June 2012

Grant Funding Fed + State Solar Systems Bridgewater Test Facility and Mildura Plant – Stage 1

(2MW) to be completed 2012

TRUenergy Mallee Solar Park – 180MW Thin Film Project – Re-submissions being considered – Vic $100m still on the table.

Photos: Courtesy of Solar Systems

Grant Funding State Only Verve Energy Project - Greenough River, WA

10 MW Solar Thin Film

$50M build and 80 hectares cleared land

WA Government providing A$20 million including A$10 million from the WA Royalties for Regions program

Source:greenoughsolarfarm.com.au

Off Grid / Behind the Meter

Ref: CEC Review of Australian Solar PV Industry 2011

Demonstration / Leadership Projects

Ballarat and Bendigo Community Solar Parks (Solar Cities program) NEXTDC (Data Centres)

Other notable projects Sunpower/NT Power and Water Uterne 1MW Solar Park,

Alice Springs, NT – Solar PV Tracking (Solar Cities Initiative)

University of Queensland 1.22 MW QLD, Solar PV roof mounted (State grant funding assistance)

CS Energy’s 44MW Kogan Creek Solar Boost Project, QLD – Compact Linear Fresnel Reflector technology

Wizard Power Whyalla Project, (Project Development), SA- Solar Thermal Dish

kogansolarboost.com.aualicesolarcity.com.au/uterne-solar-power-station

Project Development No specific planning policy solar in Victoria

Clause 54.42 of VPPs – Renewable Energy Facility

Relatively land intensive

Generally flat cleared land – approx. 2 – 8 Ha per MW

Proximity to the grid critical and grid integration a challenge

Generally positive community feedback to projects

Logistics and labor force

Get the numbers to work

Project Barriers Technology Cost

Insufficient Grid Infrastructure

Lack of detailed solar data

Availability of Skilled Workforce

Uncertainty in the Energy Market – Policy uncertainty

Land Acquisition

Grid Connection/integration

Power Purchase Agreement

Ref: CEC large scale solar PV roadmap 2011

The Future Increasing Global investment

Source: www.ren21.net

2011 = $251 Billion

Levelised Cost of Energy For PV

Source: Professor Emanual Sachs: Massachusetts Institute of Technology

Source: Solar Power: Darkest before dawn, McKinsey & Company April 2012

What's next for Victoria - General Victoria should consider its preparedness for the impacts of

emerging technologies such as solar and energy storage ensuring maximum local benefit.

TRUenergy Mallee Solar Park?

Leverage the funding and finance opportunities coming out of Federal Government Clean Energy Plan

Clean Energy Finance Corporation (CEFC)

Australian Renewable Energy Agency (ARENA)

Clean Technology Investment Program

Funding sources outside of the Clean Energy Future plan.

What's next for Victoria - General Residential market will continue to consolidate and benefit

from reducing technology costs.

Tailored commercial scale projects. These may be off grid, behind the meter or where innovative finance options can be provided.

Larger projects to emerge towards 2020.

Balance of System opportunities.

Opportunities - Planning Consider policy requiring buildings to either integrate solar or

be ‘solar ready’ (orientation and structure). Consider policy that requires new development such as

subdivisions to investigate and integrate renewables into the design.

Consider policy that preserves optimal locations for solar projects over the long term.