Telstra Energy – Solar farm built with RES Australia

Telstra Energy are backing a solar farm which will be built near Emerald in North Queensland at the cost of $100m. The telco have entered into a long term PPA (purchase power agreement) with RES Australia, who will operate the facility when it is built.

Telstra Energy & The Emerald Solar Farm

Telstra Energy
Telstra Energy

The single axis tracking farm will be built on 160 hectares and generate a huge 70MW of power – enough for 35,000 homes. The deal was announced yesterday – Telstra will buy the output (and the resulting renewable energy certificates (which act as a form of currency when validated)) from the farm, which will be completed in 2018. The Rnewable Energy Certificates (LGCs) are currently trading around $80/MWh and will help mitigate the cost of buying the solar power, given that wholesale electricity prices in QLD are around $100/HWh at the moment and, according to RenewEconomy, the cost of solar farms in QLD is around $70/MWh.

James Gerraty heads up strategy for the newly formed Telstra Energy division and told RenewEconomy that (the Emerald Solar Farm PPA) “…is about risk management. It makes a lot of sense for us.”. Meanwhile, Head of Telstra Energy Ben Burge (previously of Powershop Australia) gave the AFR some idea as to how they plan to use the power, saying “It’s a highly distributed, highly responsive source of energy which over the coming years we will look to make better use of in order to improve our resilience but also to address extreme wholesale prices in the market,”. No doubt they will use the backup power to sell when prices surge on the wholesale market and simultaneously protect themselves from larger fluctuations in energy pricing – a very astute risk management strategy. This will no doubt prove to be a sound investment and it will be interesting to see how far Telstra Energy take this new direction – they account for nearly 2TWh (2,000 gigwatt hours) of electricity per year so protecting themselves against rising energy costs whilst harnessing the falling cost of renewables is a no-brainer.

“We certainly will be looking at harnessing our own standby energy capacity in the wholesale market,” Mr Burge said, who said that, for example, he could see opportunities in the energy market for $300/MWh cap power contracts.

Watch this space for more news on Telstra Energy!

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Kogan Creek Solar Boost failure blamed on coal policy

The failure of the Kogan Creek Solar Boost, the Chinchilla solar project scrapped last year at a cost of at least $45m to taxpayers, has been blamed on former QLD Premier Campbell Newman and current Premier Annastacia Palaszczuk’s ‘pro-coal’ policies, according to the project’s scientist inventor David Mills.

Kogan Creek Solar Boost Station
Kogan Creek Power Station (source: wikipedia.com)

Kogan Creek Solar Boost failed due to lack of PPAs

Australian Scientist Mills has invented a pioneering type of solar thermal technology which was slated to be used at Kogan Creek. The project was supposed to reduce carbon emissions and result in increased efficiency at the coal-fired Kogan Creek power station. Mills had a plan to use thousands of heliostat mirrors to focus solar energy and pre-heat steam, which would then drive turbines to generate power. This is a novel concept as it uses the sun’s heat to generate renewable energy, rather than its light. Run by French nuclear group Areva for Queensland state-owned power utility CS Energy, the project was scrapped by them in 2016 citing “technical and contractual problems”. CS Energy recorded a $70m ‘impairment’ in its accounts due to the failed scheme – and 50% of this amount was funded by the Queensland Government’s Carbon Reduction Program. Another $35m was supposed to come from the Australian Renewable Energy Agency (ARENA) but it ended up only paying $6.4m before the project was shelved for a multitude of reasons.

Mills said that when the project was in its inception then-Premier Anna Bligh was supporting the project, but Newman and Palaszczuk weren’t able to get state-owned power companies to buy the electricity produced under a power purchase agreement, effectively killing off the scheme. Queensland Solar has suffered a major setback as a result.

“It’s clear that there’s protection of existing companies going on here for the local industry,” Dr Mills said. He was also adamant about the efficacy of the tech, stating that “This is not a technology failure.” However, there were additional problems at Kogan Creek which helped scupper its chances of reaching completion.

“Fast Moving Clouds” – the failure of Kogan Creek

The Kogan Creek Solar Boost was supposed to supply energy for up to 5,000 Queensland homes – but today over 3,000 solar panels are sitting unused at the site and the $105m project appears doomed. CS Energy officially abandoned the project last year, citing “rapidly moving clouds” and the fact that their steam pipes were rusting in the Queensland climate.

The site’s manager from 2011-2013, Ian Canham from Areva Solar,  has publicly rubbished claims about the “rapidly moving clouds” and noted that the pipes rusted because they were left uncollected at the Port of Brisbane during the 2011 floods because of a pay dispute between Areva and DHL, subsequently rendering 80% of them unusable. Canham also said that “ARENA never came to the site” and neither did the state government, despite providing significant funding. Throughout this litany of errors Areva imported steel from China of such poor quality it was buried as scrap, and 40 Areva workers arrived from the US without adequate safety gear or training. Canham estimated that Areva lost nearly $50m on the project.

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Solar Power in Australia reaches 3.2% in 2016

The Clean Energy Council released figures on Tuesday that show Australians’ energy needs were powered by renewables to the tune of 17.3% in 2016 – the highest since Snowy Hydro was completed 50 years ago. 3.16% of this 17.3% renewable energy was from solar power in Australia – a massive jump of 29% from 2015. According to RenewEconomy, it’s expected to grow considerably in both small and large scale solar PV production – putting us well on track to reach our Renewable Energy Targets (RET) for 2020.

Solar Power in Australia

Clean Energy Council Chief Executive Kane Thornton advised that 10 major wind and solar farm projects were completed in 2016 and there are 20 more in the pipeline; he’s confident that we’ll reach our RETs with time to spare.

“Every month brings new project announcements. While total investment in large-scale renewable energy was $2.56 billion last year, $5.20 billion worth of projects have secured finance in just the first five months of 2017 and have either started construction or will begin this year,” Thornton said.

“Innovation continues right across the renewable energy supply chain and new technologies such as energy storage are beginning to get their time in the sun,” he was also quoted as saying. We assume the pun was intended.

Solar Power in Australia 2017
Solar Power in Australia 2017

The Australian Renewable Energy Target 2020

Some more takeaway statistics from the report:

  • Renewable energy provided 17.3% of all Australia’s energy in 2016 – up from 14.6% in 2015.
  • 6,750 battery systems were installed in 2016, 13 times the number installed in 2015.
  • Hydro is still far and away the biggest contributor to Australia’s renewable energy, comprising 42.3% of the total amount.
  • In 2017, building a renewable energy plant is now cheaper than coal and gas-fired power plants.
  • About half of the projects already underway or set to commence in 2017 are for large-scale solar, due to price per kWh nearly halving in the last two years.
  • Approximately 17,500 GWh of renewable energy was created in 2016 – as the Renewable Energy Target is 33,000GWh we still have a way to go but progress is looking positive.
  • Large scale solar is almost 50% of its cost two years ago and is slated to play a huge part in reaching our RET in 2020.

Click here to read the Clean Energy Australia Report 2016 in full at the CEC website.

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Australian Solar Power could provide 30% of energy requirements by 2030.

The Australian Renewable Energy Agency (ARENA) released a report on Monday which postulates that we could reach 30% of our electricity requirements through PV solar by 2030.  The 2030 Emissions Reduction Climate Change target is to reduce emissions by 26-28% (on 2005 levels) by 2030. If 30% of our energy is met through solar, we should also have a significant amount generated by wind (of the projected ~12GW of renewable energy we will have by end of 2018, 5.4GW of this will be wind power). This should put Australia in the driver’s seat in terms of meeting and even surpassing our emissions targets. Australian solar power is on an exciting and world-leading path.

Australian Solar Power ARENA
ARENA (Australian Renewable Energy Agency)

Australian Solar Power Subsidies from ARENA

According to RenewEconomy, ARENA still has $800m in its budget to help fund renewable energy in Australia. At a function in Melbourne on Monday, ARENA CEO Ivor Frischknecht discussed how they will help over the next three years and advised that they are currently focusing on four main areas:

  1. Battery Storage / Grid Stability and Reliability
  2. Solar PV Innovation
  3. Raising Energy Productivity
  4. Exporting Renewable Energy

The main focus of ARENA’s budget will be on storage/grid stability and this is expected to account for around 50% of the remaining $800m over the next three years. Frischknecht was quoted as saying Australia is well on the way to a robust renewable energy economy – citing that our journey towards an “affordable and reliable” renewable energy grid is successful so far.

Ivor Frischknecht ARENA
ARENA CEO Ivor Frischknecht addresses stakeholders (source: twitter.com/ARENA_aus)

Frischknecht also discussed the future of solar technology (both panels and storage): “This is the best time ever to be in this industry. It’s the most exciting time. If you look at the changes from 1980-2005 and compare to what has happened since, it is just breathtaking. And it is getting faster.” Noting that 75% of our current energy output is exported (via coal and LNG), he said that ARENA are exploring ‘vectors’ such as hydrogen, ammonia, and commodity refining/export as potential ways for Australia to make a profit from a robust renewable energy platform.

 

 

 

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