ARENA & Ocean EnergyClean Energy Week 2014Louise VickeryGeneral Manager, Renewable Futures ARENA23 July 2014

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ARENA investment in Ocean Energy to date

ARENA has invested in a variety of projects

($21.3million)

o RESEARCH AND DEVELOPMENT

o Resource characterisation

o Environmental impact studies

o DEMONSTRATION PROJECTS

o Varying technology types

o Grid connection

Research and Development

Deployment (Small Scale)Deployment (Large Scale)

CSIRO Wave Atlas

Resource characterisation

Others

Array modelling and environmental impact studies

Biowave (oscillating wave surge converter)

1 unit, 250kW, grid connected

Carnegie CETO 5 (point absorber)3 units, 2MW, DoD grid

Oceanlinx (oscillating water column)

1 unit, 1MW, grid connected

Carnegie CETO 6 (point absorber)3 units, 3MW, DoD grid

Victorian Wave Partners (point absorber)

Multiple units, up to 19MW, grid connected

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Why do we invest in ocean energy ?

Potential of ocean Energy

o Australia has great ocean energy

resource

o Potential forecasting longer range than

wind or solar

o 24/7 potential

o Diversify Australia’s clean energy

future

ocean energy is a nascent industry

o wide variety of device types, few

demonstrated at scale

o Australian companies/ingenuity

combined with ARENA projects will add

to the pool of global knowledge

Australia’s Wave Resources: CSIRO, Ocean Renewable Energy 2015-2050

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ARENA’s ocean energy investment strategy

Technology/Area% of

committed funds

Big solar projects 33.5 %Bioenergy 5.3 %Geothermal 8.9 %Hybrid/enabling 2.2 %Hydropower 0.1 %ocean Energy (5 -) 10 %REVC 9.5 %Solar R&D 16.5 %Solar skills 1.8 %Other 12.5 %TOTAL 100.0%

Our projects will provide data on

o ECONOMIC CASE

o where the best sites are for ocean

energy investments

o understanding of performance and

project cost

o skills and infrastructure needed to

support wave energy projects

o ENVIRONMENTAL IMPACT

o impact of wave arrays on ocean

environments

o Managing risk issues

o INTEGRATING WAVE POWER INTO THE GRID

o better understanding of how ocean

energy fits with demand

ARENA’s portfolio and % of committed funds

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Lessons Learnt to dateWAVE PROJECTS ARE COMPLEX

o Overcome harsh environment – the power of the ocean

o Permitting/environmental impact

o Logistics

REQUIRE TECHNOLOGY SPECIFIC SOLUTIONS

o Undersea connections and cabling

o Transportation to site

o Decommissioning

FOUNDATIONS LAID FOR COMMERCIALISATION

o Financing

o Industry skills and capability

o Customer base

ARENA CRUCIAL TO REDUCING FUTURE PROJECT RISK

o Multiple possible points of failure

o Exceptional project logistics and ocean engineering

ingenuity and experience

o Risk management capability required

Carnegie Wave Energy Buoy

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The way ahead – ARENA and ocean energy strategy

Government stated intentions

o Maximise existing project benefits and the $1billion

committed to date

o Existing contracts meeting milestones unaffected

o Legislation required to pass Parliament

o ARENA business as usual

Looking forward

o ocean energy sector review

o Consult with our existing portfolio, industry and related ocean

bodies

o Examine our projects in light of global trends and the

commercialisation pathway

o Continue to gather and share lessons learnt with the industry

Tidal resources in King Sound, WA: CSIRO, Ocean Renewable Energy 2015-2050

arena.gov.au

Thank you