Renewable energy and storage using WaterNSW assets · 2018-06-06 · NSW energy market context and...
Transcript of Renewable energy and storage using WaterNSW assets · 2018-06-06 · NSW energy market context and...
Renewable energy and storage using
WaterNSW assets
Industry briefing session summary
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Introduction and Important Information
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As part of WaterNSW’s EOI process for Renewable Energy and Storage
Opportunities, an Industry Briefing was held on the 2nd May 2018 to outline:
• the context and objectives of NSW Government and WaterNSW;
• a parallel exercise conducted by Australian National University (ANU) and Arup
to develop detailed maps outlining areas of high pumped hydro potential; and
• an overview of WaterNSW assets.
This document outlines the content of the Industry Brief for participants’ informational
purposes.
WaterNSW and the Department of Planning and Environment (DPE) make no representation or warranty, express or implied, with respect to the information included in this document, or any information
which may be provided in association with it.
To the maximum extent permitted by law, neither WaterNSW and DPE nor their advisors (nor their employees, contractors, agents, related companies, agencies or bodies, directors or officers) accepts, and
each expressly disclaims, any liability in connection with the information presented in this document, including, without limitation, any liability arising from fault or negligence for any errors or misstatements
in, or omissions from, any information provided to a Participant, or in the form of any direct, indirect, consequential or other type of loss.
NSW energy market context and NSW Government objectives
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1 NSW Department of Planning and Environment2 ibid3NSW Department of Planning and Environment, calendar year 2016
Energy generation is changing in NSW1
• Over the past two years, wind generation in NSW has
more than doubled and total generation from small and
large scale solar PV systems has increased by around
87 percent.
• There is a need continue the diversification of supply,
and increase energy security and reliability.
• Renewables will continue to grow, as supply changes
from a baseload and peaking system, to a system
dominated by variable generation, complemented by
dispatchable renewables such as pumped hydro,
bioenergy, and demand response.
Power stations are expected to retire in NSW2
• NSW is expected to lose 10,000 MW of traditional
capacity over coming 2 decades.
• Liddell Power Station is likely to be the next significant
withdrawal from the market in 2022.
• New generation supply will be needed to avoid supply
shortfalls.
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NSW energy market context and NSW Government objectives (cont.)
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Power stations retirements are expected to leave a shortfall by the early 2030s4
• Average demand is not forecast to increase over the years primarily due to the expected increase in the installation of
rooftop solar in NSW.
• The result is that average demand is estimated to remain flat. However, peak demand will likely increase due to solar
not fully meeting peak requirements, especially after sunset (roughly 6-7pm).
Su
pp
ly &
Dem
an
d (
MW
)
4AEMO, public announcements
Note: Australian Energy Market Operator data for firm generation capacity, interconnector import capacity, distributed storage forecasts and demand forecasts; publicly stated AGL
firm generation (gas and demand response) and Snowy 2.0 projects; anticipated power station closures; and the resulting ‘new supply needed’ based on the supply-demand
imbalance plus TransGrid’s stated 700 MW reserve margin requirement for system operation.
NSW energy market context and NSW Government objectives (cont.)
55 NSW Government submission to Integrated System Plan, 2018
NSW has a significant pipeline of new generation
projects, spread through regional areas5
• As at March 2018, almost 12,000 megawatts of large-
scale renewable energy projects are either approved or
progressing through the NSW planning system, which
represents over $15 billion in investment.
In addition, NSW Government is carrying out a number of initiatives to support pumped hydro energy storage
EOI Process: Opening potential opportunities for private
sector investment in dispatchable, renewable energy
generation using WaterNSW assets.
ANU / Arup mapping exercise: Identifying high
potential regions for pumped hydro based on technical,
commercial and environmental criteria, accounting for
NSW Government policies, planning and priorities.
Regulatory factsheet: Developing a regulatory fact-
sheet, highlighting key considerations in relation to
developing pumped hydro projects in NSW.
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2
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15 billion in investment
March 2018,
almost 12,000 megawatts
of large-scale
renewable energy projects
WaterNSW background and objectives
• WaterNSW is not a NSW Government department,
rather, a State Owned Corporation (SOC) with a
legislated mandate to act commercially, and ultimately
make a return for their shareholders.
• WaterNSW is not an energy market participant, nor does
it aspire to be an active one. Existing hydro systems on
WaterNSW dams are owned and operated by third
parties.
• However, the private sector has been approaching
WaterNSW for some time asking how to get access to
assets, but retain the valuable intellectual property ‘in
confidence’.
• As a SOC, WaterNSW is still bound to public
procurement policies, and the alternative unsolicited
proposal avenue has not been overly successful for
those who have tried.
• There is also pressure emerging to be ‘multi-purposing’
WaterNSW assets and land. This is recognized, and
WaterNSW wants to be proactive in engaging with other
sectors (such as road and rail) and Governments to
realise that potential.
• To provide the private sector with a transparent public
process to gain access to WaterNSW infrastructure and
land, in a way that enables parties to explore
opportunities whilst maintaining the integrity and
confidentiality of their Intellectual Property.
• A coordinated approach in dealing with the private
sector, and to ensure WaterNSW is accessing the best
commercial opportunities, from a competitive
environment.
• To enable the private sector to invest with confidence.
• To find opportunities that are complimentary to
WaterNSW’s longer term asset strategies and which
may unlock ‘double wins’ for achieving both energy and
water security, leveraging the significant investment in
renewable energy generation.
WaterNSW’s reason for initiating this
EOI stems from a number of
converging issues
The broad renewable energy
objectives of WaterNSW are simple
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WaterNSW background and objectives (cont.)
• Provide clarity to the market on WaterNSW’s objectives
for private sector energy generation and storage,
through the use of our assets.
• Engage with the market and undertake analysis to
inform the market’s understanding of energy generation
and storage opportunities within the WaterNSW portfolio
of assets.
• Develop an approach to integrating water and energy
capabilities; to open opportunities to develop renewable
energy generation and/or storage options on WaterNSW
assets.
• Provide a better understanding of the regulatory
environment applicable to the development of these
opportunities and potential barriers faced by the private
sector in relation to these.
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Specific Objectives for this EOI and the steps to realise the opportunities, are focused on
ensuring a sustainable approach to supporting investment in dispatchable, renewable energy
• Execute an effective development strategy, assessing
viable options for further commercial negotiation and
possible exploration and development.
• Identify the WaterNSW assets that best support energy
security outcomes for the state, leading to an increase in
on-demand, dispatchable energy generation and storage
in NSW.
• Proposals must respect WaterNSW’s primary water
security, operational and dam safety obligations; whilst
ensuring existing water users and end use customers
are not adversely affected.
Market engagement process
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Opportunities
identified for further
development
Q4 CY18
Press release
April 2018
Industry Briefing
May 2018
Market sounding
May 2018
EOI development and release
Mid-CY18
ANU & Arup Mapping Exercise
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ANU and Arup are conducting a study, the output of which will be detailed resource mapping for potential pumped-hydro
sites in NSW.
Scope of ANU study
• Undertake Geographic Information
System (GIS) analysis of regions
surrounding existing NSW water assets
for locations suitable for upper or lower
reservoirs matched to these locations.
• Use technical screening criteria to filter
down to sites with high pumped hydro
potential.
Scope of Arup engagement
• Utilise ANU’s analysis of potential sites.
• Use further technical, environmental
and commercial screening criteria to
identify regions with high pumped hydro
potential.
• Refine outputs into GIS map to help
inform the industry and public.
The MCA process analyses the following characteristics:
• height to penstock ratio;
• head;
• capacity; and
• reservoir size.Technical
Commercial
Environmental
• distance to transmission;
• distance to road;
• distance to water source;
• water-rock ratio; and
• penstock length.
• heritage sites;
• distance to recreational areas;
• distance to residential receptors;
• critically endangered species;
• environmentally significant sites; and
• disused brownfield land.
Potential WaterNSW sites identified as having met criteria and
data on key asset characteristics available to public and can
be used as a initial screen for potential site by developers.
Arup Multi-criteria Analysis (MCA) Process
Outcomes
WaterNSW operates a number of assets that present opportunities for dispatchable, renewable energy generation
WaterNSW asset overview
WaterNSW asset overview
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Closed storages within Declared Catchment Areas:
• Generally all dams in Sydney metro, Blue Mountains
and Shoalhaven.
• Water quality within these dams is controlled and
monitored and exclude all recreational use.
• Dams generally bounded within their catchment
area.
• Generally utilised for potable water storage, hence
required to meet specific water quality parameters.
Available at:
www.waternsw.com.au/supply/dam-levels/greater-sydneys-dam-levels
http://realtimedata.water.nsw.gov.au/water.stm?ppbm=DAILY_REPOR
TS&dr&3&drkd_url
WaterNSW operate two categories of dam
storages, each with their own development
implications
Storages within Operational Areas:
• Typically all dams in rural areas.
• Are not Declared Catchment Areas.
• Dams whose major function is for the capturing,
storing and releasing water.
• The operational area defined as being a 40 metre
wide buffer zone above the full supply level of the
dam.
• Storages utilised for recreational, environmental,
leisure, agricultural and industrial use.
A number of considerations will impact the viability of
development opportunities
Declared Catchments:
• Water quality being the prime concern may dictate options such as
floating solar.
• Operational water supply conditions may have priority.
Operational Area Catchments:
• Competing interests from recreational, leisure irrigation and
agricultural users.
• Need to maintain run of river flows to meet environmental conditions.
• Need to avoid National Parks dedicated areas.
Comprehensive data on WaterNSW assets are available to assist
in the initial scoping of opportunities
Dam / Reservoir data available on WaterNSW website:
• Operating capacity
• Size of lake (km2)
• Annual environmental flow release
• Average capacity percentage