Post on 01-Apr-2015
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The Australian Renewable Energy Agency and the New Energy Course
Argus Australia Power Generation Fuels
27 February 2013
www.arena.gov.au
Summary
• The Australian renewable energy landscape• ARENA driving a new course• Opportunities through ARENA
Driving renewable energy deployment in regional and remote locations
• Investment highlights
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1. The Australian Renewable Energy Landscape
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Renewables in Australia’s energy mixAustralian electricity generation 2010-11
Source: BREE, Australian Energy Statistics (2012)
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LCOEs for renewable energy technologies - 2012Levelised Energy Costs in 2012 and 2020
$0
$50
$100
$150
$200
$250
CCG Wind Solar Bagasse Coal
2012
2020
2020
2020
Sources: BREE, Australian Energy Technologies Assessment 2012 and Bloomberg Australia and
Global Renewable Energy Market Overview Feb 2013
$/MWhr
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2012
2012
2012
2020
2020
2012
Bloomberg figures
---------------------------BREE AETA figures---------------------
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2. Policy drivers
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Australian Government support for renewable energy technology development
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General Funding Strategy
GENERAL PRINCIPLES
ALONG THE WHOLEINNOVATION CHAIN
INVESTMENT PLAN
RESEARCH (basic and applied)DEVELOPMENTDEMONSTRATIONCOMMERCIALISATION
COMPLEMENTARITYCONFIDENCE BUILDINGDIVERSITY
STRATEGIC INITIATIVESSUPPORTING INITIATIVESCOMPLEMENTARY INITIATIVES
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3. Opportunities through ARENA
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Current Opportunities
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Current funding opportunities through ARENA:
• $126 million Emerging Renewables program
• $200 million Southern Cross Renewable Energy Fund
Coming up:
• Regional Australia’s Renewables program
• SHARE (Supporting high value Australian renewable energy)
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Regional Australia’s Renewables
Industry
Size
Type of Support
Location of projects
Community
100kW – 1MW
Grants - capital subsidy
Off-grid
Roadblocks
No size
Grants – project costs
Focus on - system issues, demand management,
control systems, storage optimisation etc
1MW or more
Grants - capital / or revenue subsidy
Off-grid or fringe-of-grid
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PROPOSED OUTCOMES
2 xAt least 50 MW of renewable energy capacity installed
by 2020
10 MW or more renewable energy systems by 2018
Roadblocks removed. Trained
operators of renewables
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Example: WA Forecast Increased Minerals And Energy Electricity Demand By Source
(GWh per annum, incremental above 2012 levels)
Source: “WA State Growth Outlook 2013”, PwC 2012
95% of new energy demand
expected to be provided
off-grid
Off-Grid demand is growing: Example WA mining
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Potential Benefits of Off-Grid REThe economics of off grid renewables and diesel in Pilbara
Source: Evans and Peck, Assessment of the Potential for Renewable Energy Projects and Systems in the Pilbara (2011)
Summary of LCOE costs ($/MWh) for relevant technologies
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Barriers to renewables in off-grid applications
Sources: Responses from Clean Energy Working Group, ARENA consultations, ARENA case study research
Capital Cost
Output / Reliability
High capital costs. May be misalignment between renewable payback period and business case period (e.g. mine life)
Concerns about intermittency, monitoring and forecasting systems, integration with other systems (e.g. diesel hybrid),
power quality
Skills & Maintenance
Access to people with expertise to maintain renewable generation plant
Areas noted as “Barriers” to renewable energy by off-grid system owners
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Investment opportunities
• Nimble in identifying and capitalising on opportunities to accelerate deployment• Capacity to initiate projects, commission research and
undertake one-offs• Flexible and open to ideas
• Regional Australia’s Renewables• Looking for energy intensive industry leaders ready to
partner with ARENA to set a benchmark for renewable energy
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4. Investment highlights
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Managing $650 million in projects and measures
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ARENA support for biofuels
• Emerging Renewables Program Measure – Qantas Feasibility Study on Producing Alternative Aviation Fuels
• $5 million to the JCU High Energy Algal Fuels Project in Townsville
• $15 million Advanced Biofuels Investment Readiness (ABIR) Program
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CS Energy: Kogan Creek Solar Boost Project
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• $34.9m funding for $104.9m project
• Project will be the world's largest solar integration with coal fired power station
• 44 MW solar thermal addition to the existing 750MW Kogan Creek Power Station
• AREVA Solar's CLFR technology
• 30 hectare solar field
• Operational in 2013
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CSIRO: Solar Energy Management (SEM) system for utilities
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CSIRO, Ergon Energy, GWA Group
• $0.2m funding for $0.6m project
• Combines CSIRO’s thermally-driven residential desiccant solar cooling technology with novel SEM system
• Natural gas-powered back-up
• SEM technology will be tested in 3 residential buildings
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RATCH: Pathway to Solar Thermal for Coal-Fired Collinsville
• Feasibility study to asses the viability of converting Queensland’s 180 MW coal-fired Collinsville Power Station to a 30 MW hybrid solar thermal/gas power station
• $2.5m for RATCH Australia
• Results will be publically available
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• Renewables are increasingly cost competitive• ARENA understands barriers remain to the commercial
readiness of renewable technologies• ARENA looks forward to working with technology
developers, industry, communities and network operators to grow renewables in the off-grid sector and Australia more broadly.
Summary
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