Commercial Solar in South Australia growing rapidly.

Commercial Solar in South Australia has been growing rapidly over the past 12 months, with installations at their highest peak since 2012 (when extremely generous feed-in tariff prices were available for early adopters in a (successful) attempt to kickstart the burgeoning solar market).

Commercial Solar in South Australia

According to SunWiz, there’s been a huge 84% growth in businesses investing in solar energy (commercial solar) in the last year. That’s nearly 9,000 units – more than double the rate of two years earlier. The ABC website quoted Warwick Johnston, the managing director of SunWiz, as saying that the uptake rate is higher due to better quality (and higher efficiency) panels at more competitive prices.

“System prices have fallen significantly … since the feed-in tariff-driven boom,” he said. “So people are really taking this up just for the underlying business case rather than trying to rush in to secure some government subsidy, which isn’t needed any more.”

Johnston said that commercial grade PV solar systems were the fastest growing segment, noting that places such as shopping centres and supermarkets have invested in solar energy to help offset the rapidly rising cost of electricity. We could also point to other great examples of this, such as Complete Office Supplies’ private solar investment – an office supply company who, in June this year, invested $1m in rooftop PV solar at their Sydney, Brisbane, and Melbourne warehouse locations (the 611MWh solar systems were installed by Sun Connect).

The Advertiser gives us the example of the Mitani Group, a frozen food, chicken salt (our favourite) and mayonnaise manufacturer based in Salisbury, SA. The Mitani Group installed a 100kW system in December 2017 and, according to the managing director Tas Mitani, the company saved between $1,700 and $1,800 on electricity in July alone. Mitani bought the panels from TINDO Solar, Australia’s only solar panel manufacturer who have also seen commercial solar increase rapidly over the last year. Managing Director Glenn Morelli said that “sporting organisations and clubs, to white-collar businesses, to manufacturers, food industry, aged care,” were all benefiting from installing solar power, and that he was seeing interest from all sectors – basically “anyone with an electricity bill”.

Tindo Solar - Commercial Solar in South Australia Suppliers
Tindo Solar – Commercial Solar in South Australia Suppliers

With companies that use a lot of energy wanting to mitigate the risk of skyrocketing energy prices and the cost/benefit ratio of solar becoming more and more apparent as solar tech advances, we expect to see this trend of commercial solar increasingly rapidly.

Are you a company looking to install solar power at your premises? We partner with a select and trusted group of installers Australia wide, and can help you crunch the numbers to come up with the highest ROI solution for your solar investment. Fill in the form to the right or email us for more info.

 

 

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Solar thermal power plant for South Australia

Big news out of South Australia today as Port Augusta is going to get a $650m solar thermal power plant to supply all the power needs for the State Government. It is slated to commence construction in 2018 and will generate 150MW of power. This is a major boon for South Australian solar and the industry as a whole.

Port Augusta Solar thermal power plant.

The plant, which is going to be named ‘Aurora’, will be built by SolarReserve over a three year period. According to AdelaideNow, the standard output under regular conditions will be around 135MW – it will be viable to raise this in peak periods if there are favourable conditions.

SolarReserve have agreed to pay to construct the plant and the State Government have agreed to buy its power over a 20-year contract. RenewEconomy have reported that the government will pay a levelised price of ~$75/MWh, and ‘no more’ than $78/MWh. The project will be created thanks to a $110 million ‘concessional equity loan’ from the Federal Government to SolarReserve, and will be able to store between eight and 10 hours of energy to facilitate power supply even when the sun’s not shining.

According to the CEO of SolarReserve, Kevin Smith, the solar thermal power plant will comprise of approximately 12,000 mirrors, each the size of a billboard (around 100sqm), arranged in a circle over 600 hectares. Each of the 12,000 mirrors will focus light and heat to the top of a 227m tall tower to generate up to 150MW. “Aurora will provide much needed capacity and firm energy delivery into the South Australian market to reduce price volatility,” he said.

The ‘concentrated solar power technology’ will use the 12,000 mirrors (also known as heliostats) to send heat/light to a receiver at the top of the tower where moten salt stored there is heated to 565 degrees Celsius, generating steam to drive a single turbine. Since the project will include storage as well, it should result in a substantial reduction in wholesale price volatility, according to Smith.

The design is based on the Ivanpah Solar Power Facility at the Mojave Desert in Nevada, which has a gross capacity of 392MW and has a gigantic 170,000 mirrors (enough to power 140,000 Californian homes).

SolarReserve, based in Santa Monica, have already constructed a solar thermal power plant, with the 110MW Crescent Dunes Solar Energy Project a success (although it was taken offline for ~8 months over 2016/17 due to a molten salt tank).

“We are supporting this nation-leading renewable energy project because it will deliver more competition into our energy market and put downward pressure on power prices for households and businesses,” Jay Weatherill, the premier of South Australia said.

Watch this space to learn more about the project!

Crescent Dunes Solar Thermal Power Plant
Crescent Dunes Solar Thermal Power Plant (source: wikipedia.org)

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Musk slams SA energy security target.

Despite the Tesla South Australia battery partnership currently being undertaken, Elon Musk’s Tesla has rubbished the South Australian government’s planned SA energy security target, saying it will “hold back technology innovation whilst incentivising incumbent technology … imposing barriers on innovation by excluding rapidly evolving fast response technologies”.

Tesla’s Mark Twidell wrote a submission to the government where Tesla expressed their dissatisfaction with the target, saying “We do not feel that the draft regulations and supporting consultation paper are representative of the current South Australian position as leaders and innovators in the renewable energy space”.

SA Energy Security Target Musk Weatherill
Happier times: Jay Weatherill and Elon Musk before the SA Energy Security Target was announced.(source:theadvertiser.com.au)

SA Energy Security Target

Multiple major organisations have harshly lambasted the SA energy security target, which is planned to commence on January 1 and will require retailers to buy 36% of their power from South Australian sources. This number will rise to 50% by 2025 and, according to Nyrstar, who made a submission to the government about the target, “given the generation market structure and in particular the high concentration of generation in South Australia and the high underlying cost of the predominant fuel (gas), it is debatable whether the scheme will be effective at reducing pricing due to these factors”.

As per an article from the ABC, other submissions range from urging caution because it may not lower wholesale prices, to killing off plans for a new interconnector which was slated to feed power into the state. Momentum Energy said implementation of this energy security target is “unlikely to have any downward pressure on prices, and will instead become a pure pass-through to customers”. Origin Energy called the legislation “unclear”, and Alinta Energy posited that such a scheme could add $100 to an average bill.

For their part, the government stood by the legislation, with the Energy Minister Tom Koutsantonis advising in parliament on Tuesday that it will lead to “lower wholesale electricity prices”, and will in turn “incentivise more generation”. No word on how exactly that will happen but we’ll undoubtedly hear more from all sides in the coming months. Opposition energy spokesman Dan van Holst Pellekaan noted that “even” the Greens were critical of the plan, labelled the government’s energy policy as “chaotic” and called for independent economic modelling before “inflicting further pain on long suffering South Australian businesses”.

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Renewable energy in South Australia

Industry analysts have advised that renewable energy in South Australia will replace gas as SA’s primary source of electricity within eight years. A report by Wood Mackenzie says that by 2025 battery storage will be cheaper than OCGT (open-cycle gas turbine) plants.

The future of renewable energy in South Australia

Renewable energy has been a huge topic of conversation in South Australia lately, especially after the Tesla South Australia battery partnership was announced earlier this month. Despite having a torrid time of it last year with widespread blackouts, premier Jay Weatherill has been forging ahead with his vision of a state primarily powered by renewables, and has been doing a great job. The Lyon Group recently announced a $1 billion battery and solar farm for SA and there are myriad others on the books.

Renewable Energy in South Australia Jay Weatherill
Jay Weatherill – championing renewable energy in South Australia (source: AFR.com)

The report, created by Wood Mackenzie and Greentech Media Research, forecast that battery costs will decrease by 50% by 2025. Bikal Pokharel, an analyst for Wood Mackenzie, noted that SA’s peak loads are currently managed by the OCGT plants, but this will change in the future. By 2025, Pokarel says, “battery storage would be cheaper than OCGTs in managing peak loads … OCGTs would then be relegated as emergency back-ups.”

“If current cost trends continue, 2025 could very well see renewables and batteries overtake rival generating alternatives in dominating South Australia’s power system, and the region could become a leading case study on managing a power system in transition for other mature markets to follow,” Pokharel said.

If the renewables projects currently on the books proceed, by 2025 a whopping 67% of South Australia’s energy requirements will be met by renewables. Since solar and wind power isn’t as reliable as traditional methods, ‘dispatchable power’ will be required to cover base loads – and according to Pokharel, “Current gas supply and transportation terms cannot meet this type of demand profile”.

Funnily enough, expensive diesel generators may become a viable option since they (and their fuel) are simple to store and can be set up quickly. In order to use gas as dispatchable power, changes must be made to the operation of the market – involving offering subsidies for “must-run” gas units or standing capacity.

It’s great to see South Australia leading the way with their charge towards a renewable heavy energy economy and we’re excited to see where this leads in the future.

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Solar Microgrid in South Australia

Earlier this year we reported about LO3 energy setting up Park Slope in Brooklyn with a Solar microgrid, using blockchain technology – and now they are bringing this project to South Australia under the name of TransActive Grid.

Solar Microgrid – how does it work?

TransActive - Solar Microgrid
TransActive – Solar Microgrid (source: Yates Facebook)

LO3 Energy (who set up business in Australia last year after success in the US), will be partnering with Yates Electrical Services to offer up to 6MW of ‘distributed soar generation’ via blockchain technology – effectively taking a big step towards a full-scale transactive energy market independent of the current grid – one where consumers are able to set the price they’re willing to pay for renewable energy, rather than being ‘stuck’ to the current grid system. This is all underpinned by the blockchain – which allows a decentralised, secure, p2p marketplace to function. If you want more technical details there’s a great paper on the MIT website entitled ‘Blockchain Applications to Solar Panel Energy: Landscape Analysis’.

According to RenewEconomy, the 6MW of solar energy will be built by Redmud Green Energy with the investment money being put up by Chinese backers. Yates gave an example to One Step Off The Grid in an interview earlier this week – where a local irrigator installed solar and was able to create some massive savings: “He was paying between 25-30c/kWh for his electricity, and now we can give him a fixed rate of around 7.5c/kWh. And not only can he save on his electricity consumption, but he can can sell his excess solar if he wants to.”

Belinda Kinkead, director of LO3’s Australian operations, was quoted on the Yates Facebook page as saying: “This is a significant agreement and shows there is great interest in the concept of putting energy choice in the hands of consumers.” Yates say that the project has the potential to open up over 1,000 residences and businesses in South Australia (in the Riverlands) to operate on the LO3 microgrid. With the rapidly rising cost of electricity and huge increases in both blockchain and renewable technology over the past few years, it’ll be exciting to see how this test goes and how much LO3 are able to grow it over the coming years.

 

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