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Clean Energy A

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Clean Energy AustraliaREpoRT 2012

This report is designed to provide a snapshot of Australia’s renewable energy and energy efficiency sector at the end of the 2012 calendar year.The figures used in this report were accurate as of March 2013.

02 Introduction

04 Executive summary

06 About the CEC

08 Snapshot: Australian clean energy

10 2012 in review

16 Demand for electricity

18 Investment

20 Employment

22 Electricity prices

24 Snapshot: state by state

26 Snapshot: installed and future capacity – state by state

28 Federal initiatives

32 Cogeneration and trigeneration

34 Energy efficiency

36 Energy storage

38 Summary of renewable energy generation

40 Bioenergy 44 Geothermal 46 Household solar 54 Hydro power 58 Large-scale solar 62 Solar water heating 66 Marine energy 70 Wind power

76 Appendix

Table of contents

Although it might not be obvious the next time you charge your smartphone or switch on your television, there is a very real change happening in the way we consume and produce energy.

02

Image: Infigen’s Walkaway Wind Farm, Western AustraliaCover image: CSR’s 8 star energy efficient house, New South WalesContents page image: First Solar/Greenough River Solar Farm

Introduction

According to the Australian Bureau of Statistics, almost 90 per cent of people took some kind of action last year to reduce their power bills. Steadily rising power prices mean that Australian homes and businesses have invested in energy smart appliances and technology such as solar power and solar hot water to reduce their ballooning electricity bills. The result is that overall demand for electricity has fallen for the last four years. As many people have come to realise, the cheapest – and the cleanest – energy is the energy you don’t use.

Over the next decade, smart meters, real-time energy monitoring, air-conditioners that are dramatically more efficient and other innovations will completely change the way we think about our power use. While the multi-billion dollar investments in the electricity network over the last few years have eased, people are now more conscious about their energy use than they have been for decades.

The way we produce our electricity is changing as well. The vast majority of Australians want more renewable energy and there is also strong support from all major political parties.

Renewable energy such as solar, wind, hydro and bioenergy provided 13 per cent of our electricity in 2012 – a record for this century. There are now more than a million Australian homes that have installed a solar power system, along with more than 800,000 that have a solar hot water system.

Hydro electricity still produces the lion’s share of our renewable energy, but wind power is making solid progress under the statutory 20 per cent Renewable Energy Target (RET). The RET has already driven $18.5 billion of investment with an estimated $18.7 billion to come. Wind power provided enough electricity for the equivalent of more than a million homes for the first time in 2012.

Reform of Australia’s energy market will be critical to giving consumers more control of their electricity use and to provide for a greater diversity of clean energy generation of all shapes and sizes.

At the Clean Energy Council I am privileged to work with more than 600 renewable energy and energy efficiency businesses that are helping to drive the transformation to cleaner energy. This report is only possible due to the hard work of all those involved in these companies and their dedication to building a thriving and consumer-focused industry in Australia.

Together we are powering ahead and driving Australia towards a cleaner energy future.

David Green Chief Executive, Clean Energy Council

4.2billions of dollars of new investment in renewable energy and energy smart technologies in 2012

The cost of renewable energy continues to fall relative to the cost of fossil fuel technology.

Over the last four years, a larger share of Australia’s electricity has been produced by cleaner sources of power generation such as hydro, wind farms, solar power and bioenergy. And with power prices on the rise, cleaner and smarter technologies that help to reduce power bills for homes and businesses have also proven extremely popular. Solar hot water systems and solar panels are now mainstream.

At the same time, the cost of renewable energy continues to fall relative to the cost of fossil fuel technology, as shown by agencies such as the Bureau of Resources and Energy Economics.

Australia has a suite of national policies designed to encourage investment in clean energy.

National action on energy savings initiatives is coordinated by the National Strategy on Energy Efficiency. Policies introduced by some states have provided an additional incentive to buy energy smart appliances and enable communities to take action on energy saving.

Executive summary

13.14percentage of electricity delivered from renewable sources by 2012

24,300approximate number of people employed by the renewable energy industry at the beginning of 2013

04

» A record 13.14 per cent of Australia’s electricity generation was produced by renewable sources of energy in the 2012 calendar year

» There was enough electricity generated by renewable sources during this period to power the equivalent of more than 4 million Australian homes1

» More than $4.2 billion was invested in renewable energy and energy smart technologies in 2012

» The renewable energy industry employed approximately 24,300 people at the beginning of 2013

» The price of electricity continues to be a concern and approximately 90 per cent of people took some kind of action to reduce their power bills in 2012

» Hydro continues to contribute the largest share of the country’s renewable energy generation (58 per cent) but wind power (26 per cent) and solar power (8 per cent) are making significant inroads

Findings from the 2012 Clean Energy Australia report

1. Based on average household electricity consumption of 7.1 MWh per yearImages: Top: First Solar/Greenough River Solar Farm. Right: BioPower Systems test facility, New South Wales

These policies include the Victorian Energy Efficiency Target Scheme, the New South Wales Energy Savings Scheme and the South Australian Residential Energy Efficiency Scheme.

The Renewable Energy Target is working towards providing at least 20 per cent of the country’s electricity from renewable sources by 2020 at the lowest possible cost to consumers. It remains central to much of the industry’s work and is projected to generate more than $18.7 billion in investment if abrupt policy changes do not weaken investment incentives.

The Federal Government’s decision to put a price on carbon makes carbon-intensive power generation such as coal and gas less attractive for investors and developers. Other agencies have also been designed to support new clean energy technologies, such as the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.

These policies together play a role in developing Australia’s clean energy industries.

The analysis in this report makes use of data from a range of independent sources and agencies, including the Bureau of Resources and Energy Economics (BREE), Bloomberg New Energy Finance, Australia’s Clean Energy Regulator, the Australian Energy Market Operator (AEMO), the Bureau of Meteorology, the Australian Bureau of Statistics, the International Energy Agency, Intelligent Energy Systems (IES), the independent Market Operator (IMO), the Australian Energy Market Commission (AEMC), Marchment Hill Consulting, SunWiz Consulting, SolarBusinessServices, SKM MMA, ROAM Consulting, the Climate Institute and the Clean Energy Council’s own databases and analysis.

» Approximately 322,000 solar power systems were installed nationwide in 2012, taking the total to almost 937,000 by the end of the year. Approximately 11 per cent of all available residential dwellings had installed a solar power system at the end of the year

» The one millionth Australian solar power system was registered in March 2013. More than 2.5 million people now live in a solar-powered home – more than the entire population of Western Australia

» A total of more than 800,000 solar hot water systems were installed by the end of 2012

» At 1 January 2013 there were 15 major renewable energy projects under construction, representing a total of 1679 megawatts of generating capacity. There were 14 large-scale renewable energy projects that came online in 2012, totalling 380 megawatts

» According to analysis by ROAM Consulting and others, the Renewable Energy Target made up approximately 6 per cent of the average power bill in 2012. Due to the falling cost of solar power systems and the removal of the Federal Government’s Solar Credits multiplier, this contribution is expected to fall to 4 per cent in 2013

The Clean Energy Council is committed to accelerating the transformation to a smarter, cleaner energy system in Australia at the lowest cost to consumers.

We are working towards this with industry and government, building a competitive and sustainable market for clean energy that drives more efficient generation and use of energy in Australian homes and businesses.

In addition, the Clean Energy Council works to continuously improve the integrity and effectiveness of the clean energy industry through guidelines and technical standards that enhance the safety and quality of clean energy technology – for example, through an accreditation scheme for solar installers.

About the CEC

The Clean Energy Council is the peak business association for Australia’s clean energy industry, working with more than 600 solar, wind, energy efficiency, energy storage, bioenergy, hydro, cogeneration, geothermal and marine energy businesses.

06

During the 2012 calendar year the contribution of renewable energy to Australia’s electricity supply broke 10 per cent for the first time this century, producing more than 13 per cent of the total1 – powering the equivalent of almost 4.2 million homes.

1. Australia’s power sector generated almost 226 terawatt-hours of electricity in the 2012 calendar year.2. Bureau of Meteorology

SnapshotAuSTrAlIAn ClEAn EnErgy

26percentage of renewable power contributed by Australia’s wind farms

The increasing share of renewable energy was due to two factors – the rising total production of electricity from renewable sources and a drop in electricity demand over the year in question. The fall in power demand over the past four years can be attributed to a number of factors, including mild weather, the increased use of household renewable energy and energy efficiency technologies, as well as underlying changes in the economy. It is almost impossible to predict what the long-term trend for electricity demand will be with any certainty.

As the national 20 per cent Renewable Energy Target (RET) gathers momentum, the percentage contributed by renewable energy will increase towards 2020 as more projects are completed.

The RET is designed to deliver clean energy at the lowest possible cost to consumers.

Hydro power from nation-building projects such as the Snowy Hydro Scheme and Tasmania’s network of power plants made the most substantial contribution to the supply of domestic renewable energy (58 per cent) in 2012. There was excellent rainfall in key hydro catchments for the second year in a row, much of it due to the La Nina weather pattern that contributed to wetter and cooler conditions in the first half of the year2.

Percentage of electricity generation from renewables

08

Annual contribution to renewable energy generation4

Estimated annual renewable electricity generation3

3, 4. Clean Energy Council Renewable Energy Database, BREE 2012, REC Registry, AEMO, IMO, IES5. As solar water heating does not produce electricity it has not been included in the total

generation or equivalent in household figures. Figures do not include auxiliary load or transmission line losses.

solar water heating5

2422 GWh of equivalent generation

estimated total electricity generated29,678 GWh4,179,900 equivalent households

fossil fuels

86.86%

With limited scope to build new hydro generation facilities, the renewable energy mix is gradually changing. The amount of renewable power contributed by the country’s wind farms continues to increase (26 per cent). AGL and Meridian Energy launched the 420 megawatt Macarthur Wind Farm in April 2013, which is now the largest in the country.

Household solar power (8 per cent) continues to grow rapidly, helping hundreds of thousands of Australians reduce their power bills in the process.

renewables

13.14%

wind26% contribution7725 GWh

geothermal0.002% contribution0.5 GWh

hydro57.8% contribution17,140 GWh

large-scale solar0.147% contribution44 GWh

bioenergy8.1% contribution2400 GWh

marine0.001% contribution0.2 GWh

solar PV8% contribution2368 GWh

The 2298 megawatts (MW) of solar power installed across the country by the end of 2012 is more than 20 times the amount of solar power installed at the end of 2009 and more than 75 times what had been installed just four years earlier at the end of 2008.

1. Source: Clean Energy Council Review of the Australian solar PV industry, 2012, SolarBusinessServices and SunWiz Consulting

2012 in reviewHOuSEHOlD ClEAn EnErgy

801,872number of homes that had installed a solar water heating system at the start of 2013

936,810number of households that had invested in solar power by the end of 2012

10approximate percentage of all dwellings fitted with a solar system

The price of solar power systems continued to fall rapidly in 2012, in line with the enthusiastic adoption of the technology by consumers. Nationally it is estimated that approximately 11 per cent of all dwellings (19 per cent of suitable homes) were fitted with a solar power system at the end of the calendar year1.

There were just under 60,000 solar hot water systems installed in 2012, which was down on the year before. More than 800,000 households have now installed solar hot water technology.

A total of 933 MW of solar power was installed in 2012, representing more than 322,000 solar power systems across the country. At the end of the year, a cumulative total of almost 937,000 consumers had invested their own money in solar power technology to take the heat out of rising power bills. The millionth solar power system was registered in March 2013, meaning that over 2.5 million Australians live in a house with solar panels on the roof – more than the entire population of Western Australia. Installation data from the Clean Energy Regulator shows that these people were from all walks of life, and the strongest demand came from mortgage belt, regional and retirement areas.

As well as helping individuals, solar power is helping to relieve the strain on the electricity system on hot days when power use goes into overdrive. According to Queensland Government-owned utility Energex, solar households in the state have helped to relieve the pressure on the network. This was demonstrated by a record-breaking hot day in December 2012 in which solar power played an important part in reducing peak energy demand.

Household clean energy technologies

10

2, 3, 4. SunWiz Consulting, 2013Image: United Energy

Household clean energy systems3

Even for a sector that has become used to rapid and unexpected policy changes, 2012 was something of a wild year on the ‘solar coaster’. The Commonwealth Government reduced its Solar Bonus Scheme early, and all mainland states have now wound back the level of their solar feed-in tariffs. As a result the solar industry found itself preparing for a quieter start to 2013. The Small-scale Renewable Energy Scheme remains an important support mechanism for solar power that helps to reduce the up-front cost of systems for consumers.

Solar PVInstalled capacity: 2298 MW

Number of systems installed: 936,810

Solar hot water / heat PumPSNumber of systems installed: 801,8724

Cumulative installed capacity of solar PV2

0

500

2001 20072002 20082003 20092004 20102005 20112006 2012

1000

1500

2000

Cum

ulat

ive

inst

alle

d ca

paci

ty (M

W)

Year

2500

The Federal government’s statutory review of the national 20 per cent renewable Energy Target in 2012 reconfirmed that the scheme is working effectively and bipartisan support for the policy remains strong.

1. Clean Energy Council Renewable Energy Database2. Clean Energy Council Renewable Energy Database (only includes projects larger than 100kW)Image: Carnegie Wave Energy Research Facility, Fremantle

140number of turbines at Macarthur Wind Farm

364total number of large-scale renewable energy power plants

The end of the Renewable Energy Target review has given financiers and the industry greater confidence in the stability of the policy and the industry is looking forward to financing and delivering some major projects in 2013.

There were 14 large-scale renewable energy power plant projects that became operational in 2012, contributing to a total of 364 large-scale renewable energy power plants. Of the 380 MW of new generating capacity that came on board in 2012, 359 MW came from wind.

Wind remains the lowest cost form of renewable energy that can be rolled out on a large scale. The remaining capacity came from solar with one small bioenergy plant also coming on line in 2012.

The policy uncertainty during the year was driven by the review of the Renewable Energy Target and continued to dampen the roll out of major renewable energy projects. The 381 MW increase in capacity was a drop from 2011 when 556 MW became operational and from the record capacity of over 1000 MW of renewable energy projects completed in 2009.

The market for Large-scale Generation Certificates (LGCs) under the Renewable Energy Target is expected to become increasingly more attractive for investors this year and next. As the primary incentive for established renewable energy technologies, this should encourage investors and developers to ramp up the level over the next few years and bring more projects forward to construction.

AGL’s 140-turbine Macarthur Wind Farm was completed early in 2013. This billion-dollar, 420 MW project is the largest wind farm in Australia and will make a significant difference to the total output of renewable energy for the year.

Large-scale renewable energy projects

12

2012 in reviewlArgE-SCAlE ClEAn EnErgy

Major projects delivered in 20121Total capacity of new renewable energy projects in 2012 – by technology2

Fuel source Location Owner State Installed capacity

wind Collgar uBS International Infrastructure Fund/retail employees Superannuation trust

wa 206 mw

oaklands hill aGl VIC 67.2 mw

hallett 5 (Bluff wind Farm)

aGl Sa 52.5 mw

mortons lane Goldwind australia VIC 19.5 mw

albany 2 (Grasmere)

Verve energy wa 13.8 mw

Solar PV Greenough river Solar

Verve energy/ Ge Financial Services

wa 10 mw

tKlN Solar epuron Nt 0.99 mw

Port melbourne NextDC VIC 0.4 mw

hervey Bay Fraser Coast Community Solar Farm

QlD 0.4 mw

townsville townsville rSl Stadium QlD 0.34 mw

Perth Perth Zoo wa 0.24 mw

araluen arts Centre araluen arts Centre Nt 0.16 mw

Solar thermal liddell III macquarie Generation NSw 9.3 mw

Bioenergy Young Blantyre Farms NSw 0.16 mw

Fuel source Installed capacity

Number of projects

wind 358 mw 5

large-scale solar PV

12.5 mw 7

Solar thermal 9.3 mw 1

Bioenergy 0.16 mw 1

total 380 mw 14

1. Now fully operational2. Clean Energy Council Renewable Energy DatabaseImage: Infigen’s Walkaway Wind Farm, Western Australia

Major renewable energy projects under construction2

Fuel source Owner Location State Expected commission year

Installed capacity

wind aGl/meridian energy macarthur VIC 2013 420 mw

trustPower ltd Snowtown 2 Sa 2014 270 mw

acciona energy mt Gellibrand VIC 2015 189 mw

hydro tasmania musselroe taS 2013 168 mw

Goldwind australia Gullen range NSw 2014 165.5 mw

union Fenosa ryan Corner VIC 2014 134 mw

union Fenosa Crookwell 2 NSw 2014 92mw

union Fenosa hawkesdale VIC 2014 62 mw

Verve energy/macquarie Capital mumbida wa 2013 55 mw

wind Farm Developments woolsthorpe VIC 2013 40 mw

Newen Salt Creek VIC 2015 31.5 mw

Solar thermal CS energy Kogan Creek QlD 2013 44 mw

hydro hydro tasmania tungatinah upgrade taS 2013 6 mw

Landfill gas Veolia environmental Services woodlawn Bioreactor (unit 5)

NSw 2013 1.1 mw

marine oceanlinx Port macDonnell Sa 2013 1 mw

total capacity under construction 1679 mw

As at 1 January 2013 there were 15 major clean energy plants under construction, including the 420 MW Macarthur Wind Farm1 in western Victoria and the 168 MW Musselroe Wind Farm in Tasmania. Wind farms make up almost all of the projects currently being built. Together these power plants will add 1679 MW of new clean energy capacity to the national electricity market.

1679total capacity, in MW, these projects will add to the national electricity market

14

2012 in reviewlArgE-SCAlE ClEAn EnErgy

The growth in peak demand – those few times a year when demand for electricity is the highest (usually the hottest days in summer) – is a major factor that has driven up energy costs. The Australian Energy Market Commission estimated in 2012 that 25 per cent of retail electricity prices were derived from peak demand events that made up less than 40 hours per year.1

Demand for electricity

There are more air conditioners and other appliances in people’s houses than ever before, and on particularly hot days these can put enormous strain on the entire electricity system.

To avoid blackouts during these periods we have traditionally built extra power plants that are flexible enough to respond quickly to sudden changes in electricity use.

There is now an increased focus on smarter grid technology, energy efficiency and demand management, as well as self-generation from solar power, to reduce electricity use during these peak periods.

1. Australian Electricity Market Commission, 2012, ‘Power of choice review - giving consumers options in the way they use electricity’, Final Report, 30 November 2012, Sydney

2. AEMO data. Graph courtesy of greenmarkets.com.au – taken from reneweconomy.com.au/2013/four-years-of-falling-electricity-demand-can-this-continue-57271

3. Marchment Hill Consulting, 2012, Energy Storage in Australia

Managing peak electricity demand

According to the Australian Bureau of Statistics, 89 per cent of households took action to reduce their power bills in 2011-12, although only 42 per cent were successful in actually reducing their power bills.

Calendar year

NE

M-w

ide

elec

tric

ity

cons

umpt

ion

(TW

h)

2005 2006 2007 2008 2009 2010 20122011

Total NEM electricity consumption 2005-20122

Peak demand and its effect on required network capacity3

Time periods

Leve

l of e

lect

rici

ty u

se (K

W)

T1 T3 T5 T7T2 T4 T6

Peak demand

190

200

210

16

Required network capacityElectricity used

A variety of trial projects are underway across the country to investigate the benefits and costs of smart grids and different smart energy technologies in Australia. The results now need to be used to better manage peak electricity demand and in time help to reduce power bills for consumers.

Ausgrid is leading a consortium of partners in the Smart Grid, Smart City program, which is working with customers in Newcastle on everything from solar panels, gas fuel cells and battery storage technology to electric vehicles and different electricity network structures in New South Wales. The program is scheduled to finish in 2013.

This was a four-year Australian Government program which helped 16,000 people to collectively save more than one million dollars on their power bills between 2009 and 2012. The program investigated a variety of different approaches to energy efficiency including the use of smart meters and in-home displays, different ways of managing air-conditioner use and the increased use of solar hot water systems.

Participants in the Air Conditioning Trial for example were able to save between 25-33 per cent of their energy use by allowing their air-conditioners to be cycled on and off remotely during peak periods using smart grid technology. The trial was designed to reduce energy use without noticeably affecting the comfort levels of householders.

PowerShift was a voluntary trial of time-of-use electricity tariffs. A time-of-use electricity tariff charges customers different prices for power at different times of the day. These systems are designed to encourage people to use electricity in off-peak or ‘shoulder’ periods rather than during peak periods. When combined with an in-home display, this program helped users reduce power during Super-Peak periods by an average of 13%.

Behaviour change can also help customers to reduce their power use. A 90-minute Home Eco-Consultation was provided to 3500 participants in the Perth Solar City program. The phone session enabled them to better understand what was contributing to their power use and take action to reduce it. Households who took up this option cut their power use by an average of 12.3%.

Smart Grid, Smart City Perth Solar City Program

The rapidly falling cost of clean energy technologies such as solar power means that less money was invested in 2012 than in previous years, even though the volume of solar installed remained very high.

Investment

Wind power saw a rise of some 50 per cent on the year before, primarily due to large projects under construction at Macarthur in western Victoria and Musselroe in north-eastern Tasmania.

The interest in Australian marine energy such as Carnegie’s CETO technology translated into a rise in investment, while the investment in energy smart technologies rose as households and businesses looked for ways to reduce their power bills.

Bloomberg New Energy Finance expects around $4 billion in new clean energy investment in 2013, with approximately $2 billion flowing to household solar power and $1.6 billion to wind power.

SKM MMA estimates that there has been approximately $18.5 billion invested in renewable energy since 2001, with $7.5 billion going to large-scale systems and $11 billion to small-scale systems.

The challenging financial conditions in 2012 meant new investment in clean energy across the globe dropped about 10 per cent to US$268.7 billion, according to Bloomberg New Energy Finance. While it was the first decline since the firm began collating figures in the first half of the last decade, it also reflects the falling cost of renewable energy. More can now be built for less. And the 2012 figure is about five times the figure from 2004 – just eight years ago.

1. Bloomberg New Energy Finance. Note: Includes estimates for small-scale PV investment (under 100kW). Corporate and government R&D estimates are not included. There is no adjustment for re-invested equity. Estimates are included for undisclosed deal values.18

1.6investment, in billions of dollars, in wind power in 2013

Sector 2011 (au$m) 2012 (au$m)

Wind 633.3 931.2

Solar 4809.5 3211.5

Biomass and waste 26.3 0

Geothermal 18.4 11.8

Small hydro 0 0

Marine 4 60.3

Energy smart technologies

12.8 16.6

total 5504.3 4231.5

New financial investment in large- and small-scale clean energy in Australia, 2011/2012 calendar years (AU$m)1

2. SKM MMA, 2012, Benefits of the Renewable Energy Target to Australia’s Energy Markets and Economy

Investment in new renewable generation since 20012

Wind $5296 m

Bagasse $540 m

Hydro $584 m

Small-scale solar/PV $9193 m

Solar water heaters $1771 m

Large-scale solar/PV $399 m

Other renewables $284 mMarine $129 m

The number of employees in the renewable energy industry has grown significantly in the past decade. More than 24,300 people are now employed by the sector.

Full-time equivalent jobs in the renewable energy industry1

EmploymentrEnEWAblE EnErgy JObS

24,300+total number employed in the renewable energy industry

Much of the recent growth has come from the solar power sector, which has expanded rapidly over the last four years. More than half of the broader renewable energy industry’s employment is generated by the solar sector.

The decades-old hydro-electric schemes in New South Wales and Tasmania continue to be some of the country’s major renewable energy producers, as well as major employers.

Bagasse generation from sugar cane waste kept many Queenslanders in gainful employment, while the wind sector was a strong performer for Victoria and South Australia in particular.

Current employment

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Number of full-time equivalent employees

Tech

nolo

gy

Marine

Bioenergy

Hydro

Geothermal

Solar PV

Solar thermal

SWH

1. SKM, Clean Energy Council Renewable Energy Database, Clean Energy Council Review of the Australian solar PV industry, 2012, SolarBusinessServices and SunWiz Consulting

Wind

20

The rising cost of living has been a hot topic around the country since the beginning of the global financial crisis. Sharply rising domestic power bills have come close to replacing petrol prices as a major financial concern for communities.

Electricity prices

The major reason for the recent increases in power prices is the rising cost of replacing the ageing poles and wires of Australia’s electricity network. Australia’s electricity use is marked by a series of dramatic peaks in power use during hot summer days due to the widespread use of air-conditioners. The challenge of meeting this peak demand has also had a significant impact on prices in recent years.

Some states have experienced major price rises during this period. Residential electricity prices have risen 84 per cent in Melbourne and 79 per cent in Sydney over the last five years. Darwin and Canberra had the smallest increases in retail electricity prices, with 42 per cent and 45 per cent respectively.

But the Australian Energy Market Commission has said that the price rises are expected to ease over the next couple of years, primarily due to a moderation in spending on the poles and wires network. After an estimated 14 per cent price rise for households in the financial year ending 30 June 2013, the AEMC projects an average

annual price rise of 3 per cent for the two years out to June 2015. During this period the AEMC expects a more modest contribution from poles and wires, with wholesale electricity prices and those from retail environmental schemes both expected to stabilise.

Many large energy users are becoming increasingly concerned about the rising cost of domestic gas. As Australian gas attracts increasingly higher returns on the international market, the price for local users will be forced up as well. Organisations such as the Australian Industry Group have flagged this as an area of growing concern.

Image: United Energy

According to the Australian Bureau of Statistics1, residential electricity prices rose nationally by 72 per cent in the past five years to June 2012. A report prepared by ROAM Consulting for the Clean Energy Council in May 2012 predicted that prices will be approximately 29 per cent higher by 2020.

22

The Renewable Energy Target (RET) continues to have a modest effect on electricity bills. Analysis to date suggests this will continue to be the case until the end of the decade. Modelling conducted by SKM MMA for the Climate Change Authority as part of its review of the policy shows that the RET contributes approximately $68 per year to the average domestic power bill.

1. ABS, Australian Social Trends (cat no. 4102.0), September 20122. ROAM Consulting, 2012, Impact of renewable energy and carbon pricing policies on retail electricity prices 3. The price retailers pay to generators for the electricity4. For example: hydro, wind, bioenergy5. Not related to renewables, including retailer business costs. These costs include operational costs and promotions, as well as retail margins

Percentage rise in domestic electricity prices June 2007 –June 20121

NATIONAL PRICES JUNE 2007

MELBOURNE JUNE 2012

+84%

SYDNEY JUNE 2012

+79%

ADELAIDE JUNE 2012

+62%

CANBERRA JUNE 2012

+45%

DARWIN JUNE 2012

+42%

BRISBANE JUNE 2012

+67%

Electricity network charges

2012 40% 2020 43%

Wholesale price3

2012 18% 2020 27%

Government support for large scale renewable energy4

2012 2% 2020 2%

Government support for solar

2012 6% 2020 2%

Other costs5

2012 34% 2020 27%

Price breakdown of an average Australian electricity bill in 2012 and 20202

2020

2012

Approximately 14,000 MW of clean energy projects are in development across Australia. This means these projects have either had a permit granted or are currently going through the approval process. Although some of these proposals may not make it to construction, there is a clear pipeline of projects to deliver the national 20 per cent renewable Energy Target by 2020.

SnapshotSTATE by STATE

AUSTRALIAN CAPITAL TERRITORY

Technologies Solar PV, bioenergy, hydro,

solar hot water

Policy support for clean energy» Target of zero net greenhouse

gas emissions by 2060» Developing Sustainable Energy

Policy to deliver this» ACT Smart – Home and Business

energy assessment and rebate programs

» Large-scale solar feed-in tariff

NEW SOUTH WALES

Technologies Hydro, solar PV, wind, bioenergy,

solar thermal, wave, solar hot water

Policy support for clean energy» Greenhouse Gas Reduction

Scheme (GGAS)» Energy Savings Scheme» Home power savings program –

home assessments» Save Power Retailer Program

1. Figures accurate to end December 2012.

nt11 MW Total installed

capacity

0.08% Nationwide renewable installed capacity

10 Operating projects (>100 kW)

wa

773 MW Total installed capacity

5% Nationwide renewable installed capacity


sa

1571 MW Total installed capacity



State summary and major clean energy policies1

24

qld1837 MW Total installed

capacity



nsw5485 MW Total installed

capacity



act34 MW Total installed

capacity

0.2% Nationwide renewable installed capacity


tas2485 MW Total installed

capacity



Vic2001 MW Total installed

capacity



NORTHERN TERRITORY

Technologies Solar PV, bioenergy,

solar hot water

Policy support for clean energy» Energy Smart Rebate Program» Solar hot water retrofit rebate

TASMANIA

Technologies Hydro, wind, solar PV,

bioenergy, solar hot water

Policy support for clean energy» The Tasmanian Government

released its Energy Policy Statement in December 2009 and has set up a Tasmanian Renewable Energy Industry Development Board

» Feed-in tariff for small-scale solar PV

SOUTH AUSTRALIA

Technologies Wind, solar PV, bioenergy,

hydro, solar hot water

Policy support for clean energy» Renewable energy target

(RET) aims for 33 per cent of electricity to be produced by renewable energy by 2020

» Payroll tax rebate for construction of renewable energy plant

» Residential Energy Efficiency Scheme – energy efficiency target scheme

» Feed-in tariff for small-scale solar PV

VICTORIA

Technologies Hydro, wind, solar PV, bioenergy,

marine, solar hot water

Policy support for clean energy» Energy Technology Innovation

Strategy to support the development of large-scale, pre-commercial demonstrations of sustainable energy technologies

» Energy Saver Incentive – energy efficiency target scheme

» Resource Smart AuSSI Vic – energy efficiency grants

» Sustainability Fund – Competitive grants program to support projects to tackle climate change and help Victoria reduce its environmental impact

» Feed-in tariff for small-scale wind, hydro, biomass, solar PV

» Solar hot water rebate

WESTERN AUSTRALIA

Technologies Wind, solar PV, bioenergy,

hydro, marine, solar hot water

Policy support for clean energy» Renewable Energy Buyback

Scheme 7 cents kWh (Synergy) – 18.94 cents kWh (Horizon)

» Strategic Energy Initiative, Energy 2031

» WA Solar Schools Program » Solar hot water rebate » Solar PV buyback offer

QUEENSLAND

Technologies Hydro, solar PV, bioenergy,

wind, geothermal, solar hot water

Policy support for clean energy» Renewable Energy Plan 2012 » Solar Bonus Scheme

SnapshotInSTAllED AnD FuTurE CApACITy: STATE by STATE

1000 2000 3000 60004000 5000

Sta

te

ACT

QLD

SA

TAS

WA

VIC

NSW

NT

Installed capacity of renewable energy projects by state1

0

Installed capacity (MW)

Fuel source NSw taS VIC QlD Sa wa aCt Nt total

Hydro 4522 2310 958 674 4.4 30 1.3 0 8500

Wind 282 142 519 12 1205 423 0 0 2584

Bioenergy 167 5.1 116 430 20.5 33 4.4 1.1 778

Solar PV3 501 28 408 721 341 283 28 9.7 2320

Solar thermal 12.3 0 0 0 0 0 0 0 12.3

Geothermal 0 0 0 0.1 0 0 0 0 0.1

Marine 0 0 0.2 0 0 0 0 0 0.2

total mw 5485 2485 2001 1837 1571 769 34 11 14,195

1, 2. Clean Energy Council Renewable Energy Database, SunWiz Consulting, 20133. Includes small-scale solar PV

Marine

Geothermal

Solar thermal

Solar PV

Bioenergy

Wind

Hydro

26

Contribution of each renewable energy source to installed capacity2

4. Clean Energy Council Renewable Energy Database

Sta

te

2000 4000 6000 8000 10,000

ACT

QLD

SA

TAS

WA

VIC

NSW

NT

Capacity of existing and proposed large-scale renewable energy projects – by state4

0

Total installed and proposed capacity (MW)

Total installed capacity of renewable energy (MW)

Capacity of renewable energy projects in development (MW)

Castle Hill RSL Club’s C2K Fitness and Aquatic Centre helps reduce energy costs with a cogeneration system installed by Simons Green Energy

The Renewable Energy Target (RET) legislation has been in place since it was introduced by the Howard Government in 2001. It was expanded in 2009 and enhanced in June 2010 to establish two separate markets – the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES). These new markets began operating on 1 January 2011.

The RET is designed to deliver at least 20 per cent of Australia’s electricity supply from renewable sources by 2020. It aims to bridge the gap between the cost of generating renewable energy and the cost of generating electricity from traditional fossil fuel sources.

The RET is the primary support for investment in the renewable energy industry. An independent study by consultancy SKM MMA released in 2012, Benefits of the Renewable Energy Target to Australia’s Energy Markets and Economy, found that the RET had delivered $18.5 billion of investment in renewable energy since 20011.

This investment has driven an increase in total renewable energy capacity from 7540 MW in 2000 to approximately 13,340 MW in 2012 and reduced carbon emissions by 22.5 megatonnes (Mt). The study also found that between 2012 and 2020 the RET is expected to deliver an additional $18.7 billion of investment in renewables.

The RET was the subject of a comprehensive review in 2012 by the independent Climate Change Authority, which recommended that the scheme should be left largely untouched to preserve investor confidence.

The carbon price mechanism was designed to reduce carbon pollution from Australia’s highest-emitting companies, such as those operating power stations, mines and heavy industry and commenced operating on 1 July 2012. The mechanism involves a fixed carbon price of $23 per tonne of carbon dioxide equivalent emissions for three years until July 2015, after which there will be a transition to an emissions trading scheme. Much of the income raised is going to households and businesses to help them adjust to the impacts of the carbon price, while some of the revenue will be used to accelerate the roll-out of renewable energy and energy efficiency technology.

The Federal Government has linked the scheme to the European emissions trading scheme from 2015 as a step towards making Australia part of an international carbon market.

1. SKM MMA, 2012, Benefits of the Renewable Energy Target to Australia’s Energy Markets and Economy cleanenergycouncil.org.au/policyadvocacy/Renewable-Energy-Target

Image: Gordon Hydroelectric Power Station, Tasmania

The Renewable Energy Target Carbon price

18.5amount of investment, in billions of dollars, the Renewable Energy Target has delivered since being introduced in 2001

Federal initiatives

28

The Clean Energy Finance Corporation (CEFC) was established by the Federal Government in 2012 to provide loans for promising clean energy proponents using funding raised by the carbon price. The $10 billion CEFC is designed to help bridge the gap between early-stage research and commercial maturity. By helping to share the risk of investing in these pre-commercial technologies, it is anticipated that the CEFC will help unlock sources of private sector capital. The organisation will begin issuing loans in July 2013.

Low Carbon Australia Limited, a government-appointed organisation that provides financial assistance to Australian businesses to promote energy efficiency and other carbon reductions, will merge with the CEFC in 2013.

The Australian Renewable Energy Agency (ARENA) is an independent statutory authority established on 1 July 2012. ARENA will provide more than $3 billion of grants and financing assistance to promote research and development, demonstration, commercialisation and deployment of emerging renewable energy projects. A variety of programs previously managed by the Australian Centre for Renewable Energy and the Australian Solar Institute have been moved across to ARENA.

The $1.2 billion Clean Technology Program provides incentives for manufacturing businesses to reduce emissions and invest in clean energy, as well as for innovative businesses in all sectors to develop new clean technologies and services.

It has three components – the $200 million Clean Technology Innovation Program, the $800 million Clean Technology Investment Program, and the Clean Technology Food and Foundries Investment Program. These programs provide grants to support research and development, proof-of-concept and early-stage commercialisation in renewable energy, low-pollution technology and energy efficiency.

The $250 million Carbon Farming Initiative commenced in December 2011. The Initiative is a carbon offsets scheme that allows farmers, forest growers and landholders to create credits for reducing carbon pollution for which they can generate income.

Clean Energy Finance Corporation

Australian Renewable Energy Agency Clean Technology Program Carbon Farming Initiative

The National Strategy on Energy Efficiency is the main mechanism by which all state and the federal governments in Australia coordinate national action on energy efficiency. It was established in 2009 through the Council of Australian Governments.

Its focus is on providing support to consumers through information, skills and training as well as material assistance and the acceleration and co-ordination of national standards for appliances and buildings.

The Energy Efficiency Opportunities program requires large energy users to identify, evaluate and report publicly on cost-effective energy savings opportunities.

Energy Efficiency Opportunities ProgramNational Strategy on Energy Efficiency

100amount provided in grants, in millions of dollars, by the Low Income Energy Efficiency Program

30

Federal initiatives

Image: First Solar/Greenough River Solar Farm

The Low Income Energy Efficiency Program provides grants to consortiums of government, business and community organisations for trial programs to help low-income households use energy more efficiently.

The Energy Efficiency Information Grants Program provides $40 million in grants to industry associations and non-profit organisations to provide small and medium businesses and community organisations with information on smarter ways to use energy.

The Community Energy Efficiency Program is a grant program that provides matched funding to local councils and non-profit community organisations to undertake energy efficiency upgrades and retrofits to council and community-use buildings, facilities and lighting.

Community Energy Efficiency Program

Low Income Energy Efficiency Program

Energy Efficiency Information Grants Program

Cogeneration produces both heat and power and can use various fuels, including coal, petroleum products, natural gas, biomass and biogas. Trigeneration also produces cooling as part of the process.

Cogeneration and trigeneration

Both cogeneration and trigeneration are proven technologies that are building market momentum. With enough demand for the heat and electricity generated by these technologies, as well as a supportive economic and regulatory environment, they can be expected to help reduce pressure on the national electricity grid.

The majority of cogeneration facilities installed in Australia use natural gas because it is readily available, has lower greenhouse intensity and is currently cost-competitive.

There are many examples of cogeneration and trigeneration plants placed on properties such as:

» Hospitals and health facilities

» Hotels, cinemas and hospitality venues

» Industrial, manufacturing, commercial and retail facilities

» Offices of local, state and federal agencies

» High-density housing» Schools, universities

and TAFEs» Public utilities such as

RailCorp and Sydney Water.

Cogeneration and trigeneration offer energy savings ranging between 15 and 40 per cent compared with the supply of electricity and heat from conventional power stations and boilers. It is a technology that can deliver significant emissions reductions, protect consumers from rising energy bills and reduce peak demand.

15–40percentage energy savings offered by cogeneration and trigeneration technologies

32


owner technology type location of plant State Status of plant

Sucrogen Cogeneration Pioneer Mill (Brandon) QLD 68 MW bagasse generator commissioned in 2005

Maribyrnong City Council

Cogeneration Maribyrnong Aquatic Centre

VIC 260 kW gas plant commissioned in 2010

Sydney Water Cogeneration Bondi Wastewater Treatment Plant

NSW 1.4 MW biogas fired plant commissioned in 2009

GPT Group Cogeneration Charlestown Square (Lake Macquarie)

NSW 2.8 MW gas plant commissioned in 2010

AGL Cogeneration Qenos Altona manufacturing plant

VIC 21 MW gas plant commissioned in 2013

Cogent Energy Trigeneration Origin Energy office at 321 Exhibition St, Melbourne

VIC 1.2 MW gas plant commissioned in 2011

Mirvac & Cogent Energy

Trigeneration Miller St, North Sydney NSW 2.2 MW gas plant commissioned in 2008

University of NSW Trigeneration Kensington campus NSW 750 kW gas plant commissioned in 2012

Example cogeneration and trigeneration plants1

“Cogeneration and trigeneration are efficient ways to generate electricity, heating and cooling from the one power source. It is a very efficient source of power and installing cogeneration technology at our aquatic centre has helped reduce our energy bills significantly.”Allan Depaoli, Group Facilities Manager, Castle Hill RSL Group

Australian energy prices are predicted to continue rising for the foreseeable future, taking electricity bills with them. The response from consumers has already started, with the Australian Energy Market Operator (AEMO) identifying falling demand for power across the country for the last four years.

Energy efficiency

Other factors that appear to have contributed to the decreased use of power include the high uptake of solar power systems, challenging economic conditions and the investment in more energy-smart technologies, as well as several years of mild weather up until the second half of 2012.

There has also been a reduction in Australian manufacturing, which some commentators have blamed on the high Australian dollar.

The Australian Bureau of Statistics (ABS) found that in 2011-121:

» 89 per cent of Australians took steps to limit their personal electricity use

» Younger Australians between 18-24 years of age were less likely to act, with 79 per cent taking some kind of action compared with 92 per cent of those aged 35-74 years

» Approximately 7.2 million people (42 per cent) were successful in reducing their bills in 2011-12 compared with the year before.

These figures are backed up by a survey conducted by Auspoll and Choice in 2011 that found 95 per cent of consumers polled were concerned or very concerned about rising power prices, and that 89 per cent were willing to take action to use less energy.

There are many different steps Australians are taking to reduce their electricity and, in turn, their power bills. These range from simple actions such as turning lights off when not needed or switching off appliances at the power point, to purchasing more efficient appliances and installing energy saving products such as solar hot water heaters or insulation.

The factors influencing Australians when purchasing appliances include price, water efficiency and energy efficiency. Energy efficiency was an important factor in buying air-conditioners (75 per cent) in particular, suggesting that the high running costs of these appliances is understood by consumers.

“Some simple changes in the way we use energy at home have really helped me save money on my electricity bills. The My AGL IQ online tool produces daily usage graphs and energy efficient tips that give you a bird’s eye view of your energy usage and what you need to do to lower your bill.”

Hugo Karahan, AGL customer

34

1. ABS, 2012, 4604.0 Energy Account Australia and ABS, 2012, 4626.0.55.001 Environmental views and behaviour

2. ABS, 2012, 4604.0 Energy Account Australia and ABS, 2012, 4626.0.55.001 Environmental views and behaviour 3. Auspoll survey conducted for the Clean Energy Council in June 20114. AiG, 2012, Energy shock: pressure mounts for efficiency action5. ABS, 2012, 4626.0.55.001 Environmental views and behaviour

Energy star ratings were considered by around half of all households when purchasing or replacing refrigerators (51 per cent), separate freezers (42 per cent), dishwashers (52 per cent), washing machines (49 per cent) and clothes dryers (53 per cent).

The ABS found that 69 per cent of households had some form of insulation in 2011. The proportion of Australian households with insulation increased from 61 per cent in 2008 to 69 per cent in 2011. The states showing the largest increase were Queensland and New South Wales (15 and 10 percentage points respectively).

An increasing number of businesses are taking action as a result of rising electricity prices. A study by the Australian Industry Group (AiG) in 2012 found that three quarters of Australian businesses have now taken action or are planning actions to improve their energy efficiency. Three years earlier the number was around a third. The most popular energy efficiency activities included changing staff practices and identifying major areas of high energy use in the business. The biggest driver for action on energy efficiency was concern about energy prices4.

People wanting more information on how they can save energy in their households5

Personal electricity use in the last 12 months by state2 Dwellings with insulation by state in 2005, 2008 and 20113

10 20 30 40 50 60 70 80 90 1000

20

30

10

50

70

90

40

60

80

100

Per

cent

age

0

Stat

e

NSW

VIC

QLD

SA

WA

NT

TAS

ACT

DecreasedStayed the sameIncreased

2005

2008

2011

NSW VIC QLD SA WA NTTAS ACT Aust.

yes 91%

no 9%

yes 89%

no 11%

Question 7: Would you be prepared to make additional changes or actions to use less energy in your home or be more energy efficient?

Question 13: Would you be prepared to make changes or take actions to use less energy in your home if you were given more information on how you could do this without compromising your lifestyle?

Energy storage technologies are becoming more viable in Australia. Currently used mostly in remote areas where traditional sources of energy like diesel are expensive, increasingly these systems will move to the electricity grid and to our homes and businesses.

Energy storage

1, 2. Marchment Hill Consulting, 2012, Energy Storage in Australia

It is this emergence of low cost, on-grid energy storage technologies that will genuinely transform our electricity market – and it is vital that governments and the community start planning for it now. The social, economic and environmental implications of these changes are immense and it is only recently they have begun to feature in policy debates about the future of energy.

We don’t yet know what the most cost-effective type of energy storage will look like. Pumped hydro storage is at a mature stage of development, but there are limited locations where we can build these facilities. Many people automatically think of batteries as a default form of electricity storage, but at an industrial scale there are still many improvements that will be made in the coming decades.

Storage already makes economic sense in off-grid markets and those on the fringes of the grid, where energy is often unreliable. The remote towns of Marble Bar and Nullagine in Western Australia previously required the delivery of more than one million litres of diesel by truck each year to meet their energy needs. Through the combined use of solar power and storage technology by Horizon Power, this has been reduced by more than 400,000 litres.

There are numerous companies working on storage technologies including Alco Battery Sales, GE, MPower Group, Redflow and Zen Energy Systems.

400,000litres of diesel fuel saved through combined use of solar power and electricity storage in two remote towns in Western Australia

36

owner technology type

location of plant

State Status of plant

Horizon Power Flywheel storage system

Marble Bar, Nullagine

WA 2 x 500 kW storage system installed to support solar power stations

Ergon Energy Battery Magnetic Island QLD Modular 5 kW batteries storage trial to support solar

Hydro Tasmania Battery King Island TAS Vanadium-Redox flow battery installed in 2003 to support wind power

Ausgrid/ EnergyAustralia

Battery Newcastle, Scone, Newington

NSW 5 kW battery storage devices at volunteer properties across five sites

Companies investigating storage2

Managing peak demand using energy storage1

Leve

l of e

lect

rici

ty u

se (k

W)

Time 1 Time 2 Time 3 Time 4 Time 5 Time 6 Time 7 Time 8

Electricity used Net electricity used with storage

Required network capacity Required network capacity with storage

Energy stored while demand is low

Energy discharged while demand is high

Energy stored while demand is low

Summary of renewable energy generation

technology

number of oPerational Plants

contribution of each technology to total renewable energy generation

38

0.0028.1

1136

geothermalbioenergy

–

8

household solar

0.0010.147 2657.8

hydro

123 39 2 62

large-scale solar marine wind

bioenergy

More than 60 per cent of Australia’s bioenergy capacity comes from the combustion of sugar cane waste, known as bagasse. Landfill gas was the second-largest contributor, making up just over 20 per cent.


14plants under development

136plants operating

wood waste1% contribution

landfill gas21% contribution

black liquor10% contribution

food and agricultural wet waste1% contribution

sewage gas6% contribution

bagasse cogeneration61% contribution

Installed capacity for bioenergy sub sectors by percentage1

Bioenergy currently generates approximately 2400 GWh per annum – just over 1 per cent of total electricity generation.

8.1percentage of total clean energy generation

40

Landfill gas generation has the potential to grow further under the current clean energy legislation.

The current installed capacity of the sector in Australia amounts to 778 MW, or 5.5 per cent of Australia’s total renewable capacity.

The difficult financial environment, policy uncertainty and grid connectivity issues meant that bioenergy grew only marginally in 2012. Only one small project came online during the year, as shown in the table on page 41.

Large sustainable biomass resources across the country remain under-utilised. Bioenergy has the potential for strong growth given more favourable financial conditions and stronger policy support.

western australia15 plants operating1 under development

northern territory1 plant operating

south australia8 plants operating

queensland43 plants operating3 under development

new south wales37 plants operating6 under development

act3 plants operating

tasmania4 plants operating1 under development

Bioenergy plants commissioned and under construction in 2011 and 20122

Victoria25 plants operating3 under development

Fuel source location owner State Commission year

Installed capacity

Food and agricultural wet waste

Young Blantyre Farms NSW 2012 0.16 MW

Bagasse cogeneration Victoria 2 Sucrogen QLD 2011 19 MW

Bagasse cogeneration Racecourse II Mackay Sugar Limited

QLD 2013 37.3 MW

Process waste Campbellfield Visy Paper VIC 2011 3 MW

Landfill gas Woodlawn Bioreactor (Unit 4)

Veolia Environmental Services

NSW 2011 1.1 MW

Landfill gas Woodlawn Bioreactor (Unit 5)

Veolia Environmental Services

NSW Under construction

1.1 MW


“Bioenergy, such as landfill gas to energy, is one of the lowest cost renewable energy technologies and can reliably supply power around the clock directly into the local grid. Thousands of Australian homes benefit from this clean and reliable energy source.”Tim Sprey, Manager Corporate and Commercial Affairs, Energy Developments

42 Image: Energy Development’s Lucas Heights 2 landfill gas power station, New South Wales

geothermal

“Our geothermal resources vary from conventional resources currently being exploited and those that require new technologies and processes to access them. The industry therefore needs a significant level of R&D support to turn the potential into a commercially successful reality.”1

— CSIRO



1plant operating

owner location of plant

State Proposed capacity

Status

Geodynamics Innamincka (Cooper Basin)

SA 1 MW Proof of concept testing. Has drilled five wells. Currently conducting stimulation of Habanero 4 well. Awarded $90 million from the Federal Government’s Renewable Energy Demonstration Program

Panax Penola SA 5.9 MW Has drilled one well. Awarded $7 million from the Federal Government’s Geothermal Drilling Program

Petratherm Paralana SA 3.75 MW Has drilled two wells. Awarded $62.8 million from the Federal Government’s Renewable Energy Demonstration Program and $7 million from Geothermal Drilling Program plus $5 million from the Renewable Energy Development Initiative in 2007

Geothermal companies that have commenced drilling2

1. Geothermal energy: clean and sustainable energy for the future, CSIRO, 20122. Clean Energy Council Renewable Energy Database44

With its promise of emission-free power generation 24 hours a day, it is not surprising that geothermal energy has attracted a lot of interest. Although progress in developing the technology to harness Australia’s hot rock resources has not progressed at the pace early investors were hoping for, progress continues to be made.

Australia’s two largest energy companies, AGL Energy and Origin Energy, decided to write down investments with geothermal developers during 2012.

The year ended on a brighter note, with Geodynamics confirming it had conducted successful testing on its Habanero 4 well at Innamincka in South Australia during the last quarter of 2012. The company commissioned its 1 MW pilot plant in May 2013, making it the most advanced hot rock geothermal project in the country.

Only one commercial geothermal plant was operating in Australia at the end of 2012, at Birdsville in Queensland.

south australia3 plants under development

queensland1 plant operating

“Clean energy can create jobs in regional areas just like mining. It is inspiring to work on a genuinely cutting-edge project that is helping to shape Australia’s future.”Wes Green, Field Area Manager, Geodynamics

Household solar

There were 936,810 solar photovoltaic (PV) systems installed across the country at the end of 2012. This is more than one in every 10 houses. Approximately 322,000 of these systems were installed during 20121.

8percentage of total clean energy generation

In 2012 more than one in 10 Australian homes have been equipped with a solar power system.

46

The number of accredited solar installers across the country increased by six times in the last four years to almost 5000.

Data from the Office of the Clean Energy Regulator continues to show that Australians from all walks of life have been embracing this technology, including those in mortgage belt and retirement suburbs. More people on lower incomes who are feeling the pain of rising electricity prices have installed solar than residents of affluent, inner-city suburbs.

The rapid growth of solar was initially sparked by incentives offered by state and federal governments, but as the technology has fallen in price, this support has been scaled back across the country.

The Federal Government also accelerated the phase-out of its Solar Credits program to the end of 2012 as the cost of systems fell.

In its 2012 Australian Energy Technology Assessment, the Bureau of Resources and Energy Economics estimated that solar power would be among the cheapest of all energy sources by the end of the decade.

1. SunWiz Consulting, 2013

Percentage of solar PV capacity installed by state (cumulative to end 2012)2

QLD

31%VIC

18%WA

12%SA

15%

TAS

1%NT

0.3%ACT

1.2%

NSW

22%

2. SunWiz Consulting, 2013. Due to rounding, totals may not add up to 100 per cent

3, 4. SunWiz Consulting, 2013

Cumulative installed capacity of solar PV3

Annual capacity of solar PV installed in Australia (2001 – 2012)4

0

0

500

200

2001 20072002 20082003 20092004 20102005 20112006 2012

1000

400

1500

600

2000

800

Cum

ulat

ive

inst

alle

d ca

paci

ty (M

W)

MW

Year

Year

2500

1000

48

2001 20072002 20082003 20092004 20102005 20112006 2012

aCt NSw Nt QlD Sa taS VIC wa total (mw)

2001 0.01 0.06 0 0.06 0.13 0 0.11 0.03 0.41

2002 0 0.17 0 0.05 0.20 0.01 0.14 0.02 0.60

2003 0 0.14 0 0.07 0.55 0.01 0.18 0.03 0.98

2004 0.01 0.12 0 0.10 0.39 0.01 0.18 0.01 0.81

2005 0 0.18 0 0.11 0.60 0.01 0.21 0.02 1.13

2006 0.03 0.24 0 0.10 0.68 0 0.31 0.03 1.38

2007 0.20 1.10 0 0.57 1.16 0.04 0.97 0.27 4.30

2008 0.48 4.10 0.40 4.04 4.81 0.23 2.79 2.87 19.71

2009 1.22 18.36 0.51 24.01 12.13 1.69 11.01 13.63 82.56

2010 4.98 149.19 1.44 90.06 32.36 2.86 58.77 41.19 380.85

2011 17.20 195.04 1.81 225.06 163.25 5.91 140.27 122.97 871.52

2012 4.01 130.68 1.91 373.71 123.35 17.67 190.87 91.21 933.41

aCt NSw Nt QlD Sa taS VIC wa total (mw)

2001 0.007 0.062 0.004 0.061 0.126 0.002 0.113 0.034 0.409

2002 0.010 0.236 0.006 0.110 0.330 0.011 0.255 0.055 1.013

2003 0.015 0.378 0.006 0.178 0.876 0.017 0.439 0.081 1.989

2004 0.021 0.495 0.006 0.280 1.269 0.022 0.616 0.095 2.804

2005 0.026 0.671 0.007 0.387 1.865 0.032 0.827 0.116 3.931

2006 0.053 0.907 0.009 0.488 2.542 0.034 1.133 0.143 5.307

2007 0.249 2.007 0.012 1.057 3.705 0.072 2.099 0.410 9.609

2008 0.724 6.104 0.410 5.096 8.517 0.298 4.888 3.282 29.319

2009 1.942 24.459 0.919 29.109 20.651 1.984 15.898 16.916 111.877

2010 6.923 173.647 2.362 119.173 53.008 4.841 74.667 58.103 492.723

2011 24.126 368.690 4.167 344.235 216.262 10.754 214.942 181.070 1364.246

2012 28.133 499.373 6.077 717.944 339.613 28.425 405.811 272.282 2297.658

0

200

2003 2004 2005 2006 2007 2008 2009 2010 20122011

400

600

800

700

500

300

100

Per

cent

age

grow

th

Year

Cumulative number of solar PV system installations in Australia5

5, 6. SunWiz Consulting, 2013

Growth rates of solar PV capacity by state since 20036

0

200,000

2001 20072002 20082003 20092004 20102005 20112006 2012

400,000

600,000

800,000

Num

ber

of P

V sy

stem

s in

stal

led

Year

1,000,000

ACT

NSW

QLD

SA

TAS

VIC

WA

National

50

aCt NSw Nt QlD Sa taS VIC wa National

2001 5 40 2 35 84 1 73 23 263

2002 2 136 1 29 122 6 100 12 408

2003 3 111 0 44 357 4 134 14 667

2004 3 74 0 58 245 4 130 10 524

2005 3 105 1 65 355 8 139 16 692

2006 13 145 1 57 403 1 198 18 836

2007 102 670 2 348 719 26 606 156 2629

2008 277 2822 82 2867 3437 149 1945 2012 13,591

2009 803 14,026 225 18,377 8592 1454 8735 11,166 63,378

2010 2305 69,073 612 48,301 16,552 1866 35,376 22,223 196,308

2011 6596 68,806 391 90,477 60,901 2365 56,922 48,609 335,067

2012 1436 51,858 448 119,395 39,409 5950 63,412 40,539 322,447

total 11,548 207,866 1765 280,053 131,176 11,834 167,770 124,798 936,810


Average solar PV system size by state since 20017

2

1

3

0

4

5

6

Ave

rage

sys

tem

siz

e (k

W)

Year

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ACT

NSW

QLD

SA

TAS

VIC

WA

NT


Pre 2000 0 2 0 2 0 0 0 0 4

2000 0 23 2 16 3 1 17 4 66

2001 0 29 3 25 8 2 30 11 108

2002 0 43 3 39 14 3 38 17 157

2003 1 65 5 51 20 6 47 22 217

2004 1 62 5 46 22 6 47 25 214

2005 2 70 6 51 24 7 46 29 235

2006 2 70 12 51 24 8 46 29 243

2007 6 95 13 73 25 14 66 46 338

2008 11 192 11 143 57 24 245 95 778

2009 28 360 16 349 130 43 473 220 1619

2010 46 879 16 675 252 45 754 414 3081

2011 53 1034 22 1187 593 71 1004 531 4495

2012 48 948 28 1391 650 120 1122 514 4821

Accredited solar panel installers and designers in Australia – by stateN

umbe

r of

acc

redi

ted

inst

alle

rs a

nd d

esig

ners

200

400

600

800

1000

12000

14000

16000

0NSW VICQLD SAWA NT TASACT

Pre 2000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

52

Number of accredited solar panel installers and designers

0

1000

2000 2001 20072002 20082003 20092004 20102005 20112006 2012

2000

3000

4000

Num

ber

of a

ccre

dite

d de

sign

ers

and

inst

alle

rs

Year

5000

6000

“The financial benefit for my family from our solar power system has been great. Electricity prices have been going up but during summer we now get a good-sized rebate on our power bill.”Adam Davies, solar customer in Diamond Creek, Victoria

Hydro power

Hydro power supplied around 58 per cent of the renewable electricity produced in Australia in 2012. The majority of this energy was generated by Tasmania’s 35 hydro plants and the Snowy River Hydro Scheme in New South Wales.



123plants operating

Plant owner State Generation

Poatina Hydro Tasmania TAS 2223 GWh

Upper Tumut Snowy Hydro NSW 1879 GWh

Murray 1 & 2 Snowy Hydro NSW 1710 GWh

Reece 1 & 2 Hydro Tasmania TAS 953 GWh

Tarraleah Hydro Tasmania TAS 580 GWh

Top five hydro plants in Australia – by generation1

1. IES54

The majority of suitable sites for hydro electricity have already been developed and the sector’s opportunity for growth is limited. Most of the activity in the sector is in the development of mini hydro power plants or in upgrading and refurbishing existing power stations.

While hydro plants can have very large capacities, the electricity generated from these hydro plants can vary markedly year to year depending on rainfall and electricity demand. The top five hydro plants by generation over the last four years is listed below.

Plant owner State Capacity

Tumut 3 Snowy Hydro NSW 1500 MW

Murray 1 Snowy Hydro NSW 950 MW

Murray 2 Snowy Hydro NSW 550 MW

Wivenhoe CS Energy QLD 500 MW

Gordon Hydro Tasmania TAS 432 MW

location owner State Commission year

additional installed capacity

Tumut 3 Runner upgrade

Snowy Hydro

NSW 2011 100 MW

Lostock Delta Electricity

NSW 2011 0.22 MW

Top five hydro plants in Australia – by capacity2 Hydro power plants commissioned in 2011/20123

western australia2 plants operating




act2 plants operating1 under development

tasmania35 plants operating1 under development

Victoria33 plants operating

2, 3. Clean Energy Council Renewable Energy Database

56 Image: Gordon Hydroelectric Power Station, Tasmania

“Hydro is an established, efficient and highly flexible form of clean energy that still contributes the lion’s share of Australia’s renewable electricity generation. Following several years of good rainfall, hydro power is making a strong contribution to our power supply – as it has for decades. Australia’s hydro power assets and expertise need to be sustained for future generations.”Alex Beckitt, Manager Policy and Strategy Development, Hydro Tasmania

large-scale solar

As one of the sunniest countries on the planet, Australia is well placed to embrace solar energy as a mainstream part of its energy mix. Large-scale solar photovoltaic (PV) power and solar thermal are currently the most viable options for industrial solar power generation.


39plants operating “Australia has the perfect climate for large-scale

solar PV projects and it is a technology that will play a big role in our future energy mix. It is still early days for large-scale projects in Australia, but the future is incredibly bright. The Greenough River Solar Farm has been a great opportunity to work at the cutting edge of clean energy technology.”Frank Teofilo, Regional Director, Operations and Maintenance, First Solar (Australia) Pty Ltd

58

A 10 MW solar PV power plant opened in 2012 at Greenough River in Western Australia. The project was developed by Verve Energy, GE Energy Financial Services and First Solar, and represents the first industrial scale PV power plant in the country. A 9.3 MW solar power plant using concentrated solar thermal power was added to the existing Liddell facility in New South Wales.

The Australian Solar Institute predicted in 2012 that solar thermal could make between 30 and 50 per cent of Australia’s power consumption by 2050. Large-scale solar projects of up to 500 MW are in the planning and construction phases in countries such as Spain, Germany and the United States. An estimated 2.5 GW of solar thermal has been installed around the world. 0.147

percentage of total clean energy generation

western australia5 plants operating

northern territory9 plants operating




Victoria7 plants operating

Fuel source location owner State Commission year

Installed capacity

Solar PV Greenough River Solar Verve Energy/GE Energy WA 2012 10 MW

Solar thermal concentrator Liddell III Areva/ Macquarie Generation NSW 2012 9.3 MW

Solar PV TKLN Solar Epuron NT 2012 0.99 MW

Solar PV Hervey Bay Fraser Coast Community Solar Farm

QLD 2012 0.40 MW

Solar PV Port Melbourne NextDC VIC 2012 0.4 MW

Solar PV Townsville Townsville RSL Stadium QLD 2012 0.34 MW

Solar PV St Lucia Campus University of QLD/Ingenero QLD 2011 1.2 MW

Solar PV Uterne Epuron NT 2011 0.97 MW

Solar PV Dandiiri Dandirri Contact Centre QLD 2011 0.40 MW

Commercial solar plants commissioned in 2011 and 20121


2. Realising the potential of Concentrating Solar Power in Australia, Australian Solar institute, 2012.Image: King Island Renewable Energy Integration Project, Tasmania

“Concentrating solar power need not compete for valuable land or water and is low-impact. Every 100 MW system would create around 500 job years during construction and 20 jobs during operation, mostly in regional areas.”2

Australian Solar Institute

60


owner technology type Name/location State Funding amount (au$)

Proposed capacity

CS Energy Solar thermal compact linear fresnel

Kogan Creek solar boost project

QLD $35 million 44 MW

SolarOasis Single axis tracking solar PV

Whyalla SA $60 million 40 MW

AGL Solar PV Broken Hill and Nyngan

NSW $170 million 159 MW

Solar Systems

Solar concentrator Mildura VIC $75 million 100 MW

Projects receiving funding from ARENA3

Australia’s large-scale solar industry is still in the early stages of development, due to the relatively high cost of the technology compared to more established forms of renewable energy. The Australian Renewable Energy Agency (ARENA) is the independent authority coordinating support for promising new clean energy technologies. The over $3 billion in public funding overseen by ARENA is helping to provide support for large-scale solar projects ranging in size from 40 MW to 160 MW.

It is expected that large-scale solar power will start to become a more mainstream part of Australia’s energy supply in the second half of the decade as declining costs create a more attractive rate of return and make it more competitive with other forms of energy.

State governments have awarded a number of grants to project developers. The NSW Government awarded $65 million to AGL for its project at Broken Hill and Nygan in addition to $129.7 million of funding from ARENA. Construction is expected to commence in 2014 with completion due in 2015.

The ACT Government will provide funding to the 20 MW Royalla project by Fotowatio Renewable Ventures (FRV) through its large-scale feed-in tariff program. Royalla is expected to start construction in 2013 with completion expected in 2014.

900

800

700

500

600

400

300

200

100

0

2001 20072002 20082003 20092004 20102005 20112006 2012

Num

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of s

yste

ms

inst

alle

d (‘0

00s)

Year

Solar water heating

Solar hot water systems have proven effective in saving money and energy for consumers, while reducing carbon emissions. The purchase of solar hot water technology also supports domestic manufacturing businesses and Australian jobs.

1. SunWiz Consulting, 2013 2. Clean Energy Council Solar Hot Water and Heat Pump Study, Mito Energy, 2011

The energy saved from solar water heating is equivalent to 8.2 per cent of the clean energy generated in Australia.

The electricity used to heat water is the largest single source of greenhouse gas emissions from the average Australian home, producing almost a quarter of household emissions.2

Cumulative solar water heater installations in Australia1

2001 2002 2003 2004 2005 2006

10,685 32,879 61,936 93,355 129,096 166,184

2007 2008 2009 2010 2011 2012

218,557 306,772 508,555 639,190 742,893 801,872

62

Solar water heating can refer to either a stand-alone solar hot water system or a heat pump, which heats water using energy from the ambient air. The installation of a solar water heating system can save the average household hundreds of dollars on their electricity bill each year compared to an electric hot water system. It will also save 2.4 to 3 tonnes of annual carbon emissions.

A spike in sales of solar water heaters during 2009 can be attributed to Federal Government rebates introduced early in that year. Sales have been flatter since the rebate was reduced in February 2010, although rebates in some states have also encouraged people to invest in the technology.

Percentage of solar water heater installations – by state

WA

18%VIC

30%QLD

27%TAS

1%ACT

1%NT

2%SA

5%NSW

17%

Image: Rheem Australia

“Water heating is one of the major costs for most households. Solar hot water can make a significant difference to a household’s energy bill. It’s a very efficient technology and a great investment in your family’s future.”Gareth Jennings, General Manager Marketing and Public Affairs, Rheem Australia

Current number of solar water heating systems installed by state3

3. SunWiz Consulting, 2013Image: Solahart

50 100 150 200 2500

Stat

e

Number of systems installed (‘000)

NSW

VIC

WA

TAS

ACT

NT

QLD

SA

64

0

2001 20072002 20082003 20092004 20102005 20112006 2012

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of s

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250

200

150

100

50


2001 76 2099 606 4272 681 26 578 2347 10,685

2002 261 4792 1032 7745 1896 97 1480 4891 22,194

2003 443 7297 951 8957 3548 168 1561 6132 29,057

2004 542 7984 1195 8980 3084 169 1840 7625 31,419

2005 479 8657 1231 9313 3266 230 2902 9663 35,741

2006 214 7842 1281 10,147 2532 144 5020 9908 37,088

2007 463 8929 1465 17,381 2955 354 9565 11,261 52,373

2008 1058 20,798 1274 24,169 5309 929 22,007 12,671 88,215

2009 2026 88,124 1817 38,132 9123 2338 44,157 16,066 201,783

2010 979 39,412 1399 35,546 6984 1463 28,352 16,500 130,635

2011 1030 25,049 1261 30,548 5355 1686 26,081 12,693 103,703

2012 639 9711 905 15,622 2956 820 17,849 10,477 58,979


Annual installations of solar water heaters 4

Marine energy



2plants operating

66

The abundance of marine energy, along with its predictability and proximity to many major cities and towns, makes it a very attractive form of renewable energy.

As surfers across the country will testify, Australia’s long coastline lays claim to some of the world’s best marine energy resources. The challenge lies proving the technology is feasible on a commercial scale.

In 2012, 18 companies were actively investigating wave and tidal energy projects across the country. Wave energy prospectors are focusing on the southern and western coastlines, while tidal energy is mostly being explored in areas along the northern coastline.

Marine energy projects currently in the pipeline range from 250 kW pilot trials to 5 MW commercial-scale tests. These projects employ an array of both floating and submerged technologies.

Carnegie Wave Energy signed a deal to supply power from its CETO wave energy technology to a Department of Defence submarine facility on Garden Island in Western Australia.

The 5 MW commercial project will be the largest marine energy power plant in the country and is expected to be completed by the end of 2013.

“Australian surfers will testify that our country has some of the best waves in the world, and the potential to harness marine energy is virtually limitless. Carnegie Wave Energy is proud to partner with Australia’s Defence Department to build a wave energy facility that will power Australia’s largest naval base at Garden Island in Western Australia.”Lyle Mitchell, Mechanical Fitter, Carnegie Wave Energy Limited


western australia1 plant operating3 under development

northern territory1 plant under development

Victoria1 plant operating4 under development

tasmania3 under development

Wave and tidal power facilities currently operating1

owner technology type location State Installed capacity

Atlantis Resources Tidal San Remo VIC 0.15 MW

Carnegie Wave Energy Wave Fremantle WA 0.1 MW

“By 2050 ocean energy will have created 1.2 million direct jobs and saved nearly a billion tonnes of CO

2 emissions.”

An International Vision for Ocean Energy, Ocean Energy Systems International Agreement (IEA), 2012.

south australia1 plant under development

68

“The areas that could benefit from wave energy technology include Perth, the southern coastline and to a lesser extent the east coast of Australia. Tidal technology could supply niche areas such as north east Tasmania and the Kimberley region in Western Australia.”

Key finding from Ocean Renewable Energy, CSIRO, 2012.

Image: Carnegie Wave Energy Research Facility, Fremantle


owner technology type

location of plant State Status of plant

Advanced Wave Power

Wave Moreton Bay QLD Has deployed and tested one array

AquaGen Technologies

Wave Lorne, Portland VIC 1.5 kW unit installed at Lorne Pier

Atlantis Resources

Tidal San Remo VIC Completed testing of turbine

Atlantis Resources

Wave Koolan Island WA Proposed project to be 1.2 MW

BioPower Systems

Wave King Island Port Fairy Flinders Island

TAS VIC TAS

Construction on 250 kW pilot in Port Fairy expected in 2013. Awarded $5.6m from Victorian Government

Carnegie Wave Energy

Wave Limestone Coast Portland Warrnambool Phillip Island Garden Island Eden Exmouth

SA VIC VIC VIC WA NSW WA

Trialling its CETO units. Construction expected to commence on 5 MW demonstration project at Garden Island in 2013. Awarded $12.5m grant from WA Government and $9.9m from the Federal Government

Oceanlinx Wave Portland Port MacDonnell

VIC SA

Developing 1 MW and 2.5 MW prototypes. Awarded $4m for 1 MW Port MacDonnell project under construction

Tenax Energy Tidal Clarence Strait Port Phillip Heads Banks Strait

NTVIC TAS

Signed an MOU with Power & Water Corporation to build a 2 MW plant near Darwin

Tidal Energy Australia

Tidal Derby WA Has plans to develop a 100 MW project

Ocean Power Technologies (OPT)

Wave Portland VIC Joint venture between OPT and Lockheed Martin to develop a 19 MW plant. Awarded $66m government grant under the Renewable Energy Demonstration Program [REDP]

Wave Rider Energy

Wave Elliston SA Up to 250 kW pilot project planned

Wave and tidal power companies investigating marine energy2

0

500

2000 2001 20072002 20082003 20092004 20102005 20112006 2012

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1500

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Wind power

In 2012, Australia’s wind farms produced more than 7700 GWh of electricity – enough to power the equivalent of over 1 million Australian homes for the first time. Wind power now supplies 3.4 per cent of Australia’s overall electricity needs.




62wind farms operating

Cumulative installed wind capacity in Australia (2000-2012)1

70

At the end of 2012 there were 1397 wind turbines spread across 62 operating wind farms, as well as one small wind farm located in the Australian Antarctic Territory. The amount of wind power in Australia has doubled in the past five years.

The Macarthur Wind Farm, completed in 2013, and developed by AGL and Meridian Energy, is Australia’s largest wind farm. The 420 MW facility has 140 turbines and produces approximately double the output of its nearest competitor, the 206 MW Collgar Wind Farm in Western Australia.

Acciona’s Waubra Wind Farm north-west of Ballarat in Victoria is the third largest facility in the country, its 192 MW capacity supplied by 128 turbines spread out over 173 square kilometres.

Five new wind projects came online in 2012, adding 359 MW of new wind capacity to the Australian electricity grid. This is an increase of almost 50 per cent on the 234 MW of new wind projects commissioned in 2011.

An additional 11 projects with a total of 1627 MW are under construction and expected to be fully operational within the next three years.

western australia17 wind farms operating1 under development

south australia16 wind farms operating1 under development

queensland2 wind farms operating

new south wales9 wind farms operating2 under development

tasmania6 wind farms operating1 under development

Victoria12 wind farms operating6 under development

2. Clean Energy Council Renewable Energy Database (only includes projects larger than 100 kW)3. Clean Energy Council Renewable Energy Database

Total installed wind capacity by state2

State Installed capacity (mw)

Number of turbines

Number of projects

SA 1205 561 16

VIC 519 314 12

WA 424 262 17

NSW 282 170 9

TAS 142 68 6

QLD 12 22 2

NT 0 0 0

ACT 0 0 0

australia 2584 1397 62

Wind farms commissioned in 20123

owner location State Installed capacity

UBS International Infrastructure Fund/Retail Employees Superannuation Trust

Collgar WA 206 MW

AGL Oaklands Hill VIC 67.2 MW

AGL Hallett 5 (Bluff Wind Farm)

SA 52.5 MW

Goldwind Australia Mortons Lane VIC 19.5 MW

Verve Energy Albany 2 (Grasmere)

WA 13.8 MW

South Australia now sources approximately a quarter of its power from wind generation, a significant increase that has mostly occurred over the last seven years. With this sharp increase, gas and coal-fired generation have fallen. This can be seen in the graph below from the Australian Energy Market Operator.

South Australia’s emissions from electricity have fallen by 27.4 per cent over the last five years, due to reduced use of fossil fuel generation in the presence of greater

renewables output from across the National Electricity Market. It has not been necessary to build any additional power generation to back up this wind generation.

The August 2012 Carbon Emissions Index from Pitt&Sherry4 shows Australia’s total electricity emissions to be at their lowest level since 2003. It states: “This is directly attributable to the changing mix of electricity generation: less black and brown coal, more gas, hydro and wind.”

CASE STUDY WIND POWER IN SOUTH AUSTRALIA

South Australian energy generation by fuel type5

72

4. www.pittsh.com.au/index.php?pageid=news&article=1415. AEMO, 2012, South Australia Historical Market Information 2012Image source: REpower Australia

Coal

Gas

Wind

Interconnector

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50

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10

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gy s

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05–06 06–07 07–08 08–09 09–10 11–1210–11

In 2012, wind farms produced enough electricity to power over 1 million homes

1,000,000+

location owner State expected commission year

additional installed capacity

AGL/Meridian Energy Macarthur VIC 2013 420 MW

TrustPower Snowtown 2 SA 2014 270 MW

Acciona Energy Mt Gellibrand VIC 2015 189 MW

Hydro Tasmania Musselroe TAS 2013 168 MW

Goldwind Australia Gullen Range NSW 2014 165.5 MW

Union Fenosa Ryan Corner VIC 2014 134 MW

Union Fenosa Crookwell 2 NSW 2014 92 MW

Union Fenosa Hawkesdale VIC 2014 62 MW

Verve Energy/ Macquarie Capital Mumbida WA 2013 55 MW

Wind Farm Developments Woolsthorpe VIC 2013 40 MW

NewEn Salt Creek VIC 2015 31.5 MW

Wind farms under construction as of end 2012

“Wind energy employs lots of people in Australia especially in regional areas where most wind farms are. My office is the wind turbines high above the landscape and there is nowhere else that I’d rather be working.”Stuart Nicholson, Lead Service Technician, Clements Gap Wind Farm, REpower

South Australia has the most wind farms of any state, accounting for just under half of the nation’s installed capacity. According to the Australian Energy Market Operator (AEMO), South Australia produced almost a quarter of its electricity from wind power in the 2011/12 financial year.

As wind power is the lowest cost renewable energy technology that can be rolled out on a large scale, it has been the dominant form of renewable generation to receive early support under the Renewable Energy Target. Wind energy has accounted for approximately 38 per cent of all renewable capacity installed since 2000, and has attracted over $5 billion in investment directly in Australia since 2001.7

A 2012 study by SKM MMA on the economic benefits of wind farms in Australia found that, for every 50 MW in capacity, a wind farm delivered the following benefits:

» Direct employment of up to 48 construction workers, with each worker spending approximately $25,000 in the local area in shops, restaurants, hotels and other services – a total of up to $1.2 million

» Direct employment of around five staff – a total annual input of $125,000 spent in the local economy

» Indirect employment during the construction phase of approximately 160 people locally, 504 state jobs and 795 nationwide jobs

» Up to $250,000 per year for farmers in land rental income and $80,000 on community projects each year.

5+billions of dollars of investment in wind energy in Australia since 2001

38percentage wind power represents of all renewable capacity installed since 2000

48 25,0005

6, 7. SKM MMA, 2012

For every 50 MW in capacity, a wind farm delivers the following benefits:6

people employed directly in construction annually

staff employed directly ongoing for operation of the wind farm

approximate amount, in dollars, spent by each worker in the local area annually

74

160local workers employed during the construction phase

VIC 20.1%

WA 16.4%

SA 46.6%

QlD 0.5%

nSW 10.9%

TAS 5.5%

Percentage of installed wind capacity by state8

8. Clean Energy Council Renewable Energy DatabaseImage: Infigen’s Walkaway Wind Farm, Western Australia

8

2001 20072002 20082003 20092004 20102005 20112006 2012

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13

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Appendix

Cumulative installed renewable energy capacity in Australia (by commissioning year)1

Installed capacity figures

Percentage contribution of each renewable energy source to installed capacity2

1, 2. Clean Energy Council Renewable Energy Database

Fuel source Installed capacity (mw)

Number of projects

Percentage

Hydro 8501 123 61

Wind 2584 62 18

Bagasse cogeneration 475 28 3.4

Black liquor 77 3 0.5

Food and agricultural wet waste 8 6 0.06

Landfill gas 166 73 1.2

Sewage gas 43 25 0.31

Wood waste 9 2 0.06

Bioenergy sub-total 778 136 5.5

Household solar PV 2300 – 16.4

Large-scale solar 35 39 0.25

Marine 0.25 2 0.001

Geothermal 0.1 1 0.001

total 14,035 364 100

76

Image: King Island Renewable Energy Integration project, Tasmania

Design by streamer design and communication

Clean Energy A

ustraliaR

epo

Rt 2012

Telephone: +61 3 9929 4100email: [email protected]: cleanenergycouncil.org.auTwitter: @cleannrgcouncilFacebook: facebook.com/cleanenergycouncil

Clean Energy Australia - cenrec.com.au · 18 Investment 20 Employment 22 Electricity prices 24...

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