Half price solar for Victorians in $1.2b plan.

Half price solar in conjunction with solar loans will be available to Victorians under a $1.2b plan announced by the state government over the weekend.

Half price solar for Victorians

Half Price Solar for Victorians
Half Price Solar for Victorians (source: premier.vic.gov.au)

Victorian Premier Daniel Andrews announced a $1.24 billion solar plan yesterday. According to the press release the Labor Government released on their website, Victorians will save around $890 / year if they are interested in being part of the half price solar scheme – which involves 50% off solar panels and no upfront cost. The second 50% will be in the form of a solar loan from the government – but to get this loan the Andrews Government will need to be re-elected and implement it from July 2019. 

Premier Andrews has an ongoing argument with the federal government over the National Energy Guarantee – so this is a shot across the bow of Malcolm Turnbull who has recently decided to abolish all energy targets inside the NEG. 

“I can’t give you an answer on the NEG because I don’t know what the NEG actually means, this thing is changing every 24 hours,” Mr Andrews told reporters on Sunday.

 
Not wanting to see a repeat of the pink batts insulation fiasco, an independent agency named Solar Victoria will work with the industry, regulators, and training organisations to ensure the quality of installs is high. Around $9m will be spent to support accreditation of up to 4,500 electricians. Looks like there will be plenty of solar jobs in Victoria if they’re able to get this project over the line.
 
The Victorian Government are hoping to bring solar power to 650,000 households over the next ten years with the Solar Homes program, which they are investing $68m in to launch immediately.
 
Click here to view the Media Release, entitled ‘Cutting power bills with solar panels for 650,000 homes’. 
 
 

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National Energy Guarantee approved by Coalition party room

The NEG (National Energy Guarantee) has been passed by the Coalition party room after a strenuous morning of debate – let’s take a look at what happens next. 

Next Steps For National Energy Guarantee

NEG - National Energy Guarantee
NEG – National Energy Guarantee (source: ABC News: Matt Roberts)

We wrote earlier this week about the NEG approval and how Prime Minister Malcolm Turnbull has a very hard road ahead if he’s to push this policy through parliament:

“The Labor Party has to decide whether they want to support cheaper and more reliability electricity,” Mr Turnbull said.

“We have got to bring an end to the years of ideology and idiocy which have been a curse on energy policy for too long and that is why industry – whether you’re talking about big industrial consumers or small business, consumer groups  – are calling on government, governments, and oppositions to get behind this policy.”

The four issues which we discussed earlier this week are still in a state of flux:

  1. The emission reduction targets can only ever increase and must not decrease.
  2. Targets need to be set in regulation (Energy Minister Josh Frydenberg has already rejected it).
  3. Emission reduction targets must be set every three years, three years in advance.
  4. Creation of a registry which is transparent and accessible by regulators and governments.

The opposition (federal Labor) are also in favour of the NEG but they want the 2030 emissions reduction target increased from 26% to 45%:

“We are still very keen on trying to find a bipartisan way through the deep energy crisis that has emerged under this Prime Minister,” shadow energy and climate change minister Mark Butler said.

“We will continue to fight for a much more ambitious investment setting for this sector so you do see new renewable energy jobs and investment and you do see downward pressure on power prices.”

According to former PM Tony Abbot, the NEG still needs a lot of work as most of its support is currently ‘conditional’ and at least a dozen members of the Coalition had expressed concern about the NEG. Abbot said that the provided explanations of how the NEG “might theoretically get prices down” sounded “like merchant bankers’ gobbledegook”:

‘We’ve got to be loyal to our electorates and to party members too and not show the unity of lemmings.’,” Mr Abbott continued.

The Australian Financial Review has the numbers at 26 MPs supporting the policy and around 10 yet to be convinced. 

For the next steps, the state ministers will be asked to support a month long public consultation on laws which will affect their constituents. The state legislation should then be finalised by the end of October and we’ll see what sort of shape (if any) the NEG is at that point. Federal legislation tied to the NEG will be introduced within the next 10 days. 

 

 

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Tesla Battery Power in Victoria – Powerpack

Tesla Battery Power in Victoria will be installed in regional Victoria this year, in time for the 2018/19 summer. The Turnbull government has committed up to $25m to Victoria’s first foray into large-scale, grid-connected batteries.

Tesla Battery Power in Victoria

Tesla Battery Power in Victoria - Tesla Powerpack
Tesla Battery Power in Victoria – Tesla Powerpack (source: tesla.com)

The Age is reporting that ARENA (the Australian Renewable Energy Agency) and the Turnbull government will contribute $25m to the $50m project, which will be located in Western Victoria. The area has been identified as having a ‘vulnerable’ energy transmission network and will benefit immensely from the project. The other $25m of funding will come from a consoria led by Spotless Sustainability Services, according to PV Tech.

The batteries will, similar to the South Australia Tesla battery plant, use Tesla’s lithium ion Powerpacks, but in slightly different configurations and with separate manufacturers. 

There will be two separate batteries – 

  1. A 25MW/50MWh Powerpack solar battery in Kerrang, supplied by Tesla, owned by Edify Energy and Wirsol, and connected to the Gannawarra solar farm in north-west Victoria.
  2. A 30MW/30MWh grid-connected Powerpack in Ballarat, supplied by global energy storage giant Fluence (a conglomeration of Siemens and AES), owned by AusNet and and built at a nearby station in Warrenheip. 

Both batteries will be operated by EnergyAustralia and a PPA (power purchase agreement) has already been signed. 

“ARENA is excited to be demonstrating the capabilities that these new batteries will provide in securing reliable electricity for western Victoria and to facilitate the Victoria’s transition to renewable energy,” ARENA’s Ivor Frischknecht said in a statement.

Victoria has a RET (renewable energy target) of 25% by 2020 and 40% by 2025. 

Minister Josh Frydenberg said: “Storage has been the missing piece of the energy jigsaw for a long time. Whether it’s Snowy 2.0 in New South Wales and Victoria, the Battery of the Nation projects in Tasmania or various initiatives, including a 30MW battery, in South Australia, we are expanding, exploring and funding energy storage right across the country.”

Back in January we wrote about the Bulgana Green Power Hub – a 194MW wind farm and a 20MW / 35MWh battery storage facility which will be built by French renewable energy developer Neoen separately to the Gannawarra solar farm Tesla battery or the Ballarat terminal station Powerpack. So there’s plenty on the horizon for energy storage in Victoria – it’ll be great to see how this affects some of the weaker parts of regional Victoria as it’s already had a fantastic effect in South Australia. 

 

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2017 NSW Tariff-Tracking Report released.

The St Vincent de Paul society has released its fifth NSW Tariff-Tracking report and it shows the huge disparity between deals the retailers are offering – with the best offers saving almost $840 p.a. compared to those on the worst plans. In regional NSW this range is even worse, with the difference reported by the SMH as up to $1230. Australian solar power plans are in need of a shake-up and this week the government have taken the retailers to task by asking them to change the way they deal with discounts and rolling over plans.

2017 NSW Tariff-Tracking Project Report Vinnies
2017 NSW Tariff-Tracking Project Report (source:vinnies.org.au)

NSW Tariff-Tracking

Despite ballooning wholesale energy costs, retailer AGL reported a net profit of $539m for the 2016/17 financial year. The profits of energy retailers have been in the crosshairs of the government over the past few months as their dubious tactics of offering short term discounts and then rolling customers onto more expensive plans without the discounts have been examined.

On Wednesday the government met with eight power companies (Energy Australia, Momentum Energy, Simply Energy, Alinta Energy, Origin Energy, AGL, Australian Energy Council and Snowy Hydro) to discuss the rapidly increasing prices and come up with a solution to the murky short-term ‘discount’ based business model they are employing. After the meeting Prime Minister Malcolm Turnbull discussed the issue and the government’s fix, saying  “They are on … discounted plans that have run out, and they are now on a standard offer and paying too much for their electricity. The retailers have agreed that they will write to their customers who have reached the end of a discounted plan and outline, in plain English, alternative offers that are available,”

Given that the Energy Market Commission found 50% of households haven’t changed retailer or plan in the last 5 years, there’s a lot of money being left on the table. According to Energy Minister Josh Frydenberg the Australian Energy Regulator (AER) have told the government households could save over $1,000 per year by changing retailer/plan.

In terms of the power companies, they were mostly happy to agree to Turnbull’s plan, but there was ongoing discussion about Canberra’s dilly dallying with regards to the Clean Energy Target. Origin Energy’s chief exec, Frank Calabria, was quoted by the SMH as saying that “to deliver a genuine reduction in prices for Australians, we must also find a way through on energy policy, including a Clean Energy Target. This is necessary to unlock investment in much-needed new supply to replace our ageing coal-fired power stations, and transition us to a cleaner, more modern energy system”.

Click here to view the full report directly from the Vinnies website.

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Portable Solar Tech SunSHIFT given $2.1m by ARENA.

The government have announced $2.1m in funding for portable solar tech (‘pop-up solar’), as per an announcement from the Australian Renewable Energy Agency (ARENA) last Thursday. This represents a step in the right direction in terms of replacing ‘dirty’ and expensive diesel generators with (for the most part) clean, portable energy solutions in rural and fringe-of-grid areas. These portable solar generators will be manufactured by a company called SunSHIFT, which has been established by Laing O’Rourke.

SunSHIFT Portable Solar by Laing O’Rourke

The money has been invested in a new technology which combines a PV system with battery storage. The system is also complemented by a diesel/gas generator as a backup energy source. The SunSHIFT portable solar machines will be modular 1MW blocks which could be used, initially, in tandem with conventional energy generation. ARENA CEO Ivor Frischknecht noted in the AFR that this mobile solar tech could be particularly useful for short-medium term projects, where the relatively long payback period of solar energy would not be feasible.

“Projects that only last a handful of years, like construction and mining operations, could benefit from SunSHIFT without having to rely on the typical 20-plus year payback period for solar installations,” Frischknecht said.

The SunSHIFT blocks have also been lauded by Energy Minister Josh Frydenberg who was quoted as saying “This innovation means several locations can benefit from a single plant, without any one site needing to commit to a permanent installation.”

Portable Solar SunSHIFT Blocks
Mobile Solar – SunSHIFT Blocks (source: sunshift.com)

SunSHIFT Technical Specifications and more information.

  • Each 1MW block will contain 2400 (435kw) solar panels.
  • Each panels/inverter/transformer/storage unit will occupy ~1.25ha
  • Designed to fit in shipping containers.
  • Cost less than providing diesel power to regional sites (the transportation of diesel fuel can run up to 30% of cost of energy)
  • Targeted at mining companies.
  • Buy-out option available.
  • Click here to read a fact sheet from SunSHIFT about their product.

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