Australia’s Investment in Renewable Energy

Australia’s Investment in Renewable Energy

Renewable Energy Policy and Measures

• The National Greenhouse Strategy (NGS) (1998)

– The Mandatory Renewable Energy Target (2001).

• Measures for a Better Environment (2000).

• Energy White Paper, Securing Australia’s Energy Future (2004).

Mandatory Renewable Energy Target (MRET)

• A mandatory increase in the contribution of renewable energy to national electricity supplies.

• The target involves reaching 9,500 GWh by 2010, which will be maintained until 2020.

• Aims to increase the competitiveness of renewable energy against traditional energy sources.

• Information on MRET is available at

www.greenhouse.gov.au/markets/mret and www.orer.gov.au

Australian Government Programs for Renewable Energy

• Almost $1 billion committed to greenhouse gas mitigation since 1997.

• Including over $300 million in industry assistance programs: Renewable energy for remote power generation – over

$200 million Solar power on residential and community buildings –

$51.8 million Equity funding – venture capital for innovation –

$26.5 million R&D and industry development activities - $55.6 million

Energy White Paper Measures• $500 million Low Emission Technology Demonstration Fund

• $75 million Solar Cities trial

• $100 million Renewable Energy Development Initiative

• $20 million Advanced Electricity Storage Technologies initiative

• Up to $14 million to develop an advanced Wind Forecasting Capability

• Identify barriers to renewables in the National Electricity Market

• Information on the Energy White Paper, Securing Australia’s Energy Future, is available at www.dpmc.gov.au/publications/energy_future/

Renewable Energy Action Agenda

• Industry and government worked together to develop a Renewable Energy Action Agenda.

• Significant progress has been made in the first four years by Government and industry to implement initiatives.

• Aim is $4 billion in annual sales by 2010.

Hydroelectricity

• Approximately 7,500MW

hydroelectric generating capacity

and significant design, construction

and operation experience.

• Mini-Hydro experience, domestic

and international.

Solar Energy

Australia has been producing solar energy technology since the1950’s

•Photovoltaics (PV)The University of New South Wales - Single Crystal PV Cell The Australian National University/Origin Energy – Sliver Cell

•Solar Hot WaterSolahart, Beasley and Edwards

•Solar ThermalSolar Heat and Power developed Compact Linear Fresnel Reflectors (CLFR) – using solar energy for low cost heating.Complements fossil fuel power plants by heating feed-water into coal-fired generation process.

Solar concentration systems

• Solar Systems Pty Ltd has constructed an award winning power

station that concentrates solar energy for conversion to electricity for

use in the central Australia.

• The CSIRO National Solar Energy Centre is developing the only

multi-collector facility of its type in Australia, and the largest high-

concentration solar array in the southern hemisphere.

Geothermal Energy

• Australian companies are

experienced in managing

hydrothermal resources.

• Geodynamics Limited was

successfully floated, supported by

Government, to develop hot dry

rock pilot projects in South

Australia and NSW.

Bioenergy Bagasse Cogeneration

• Bagasse is used as a boiler feedstock

for cogeneration in several sugar

mills.

• Stanwell Corporation’s 30 MW Rocky

Point plant generates more than

180 GWh of green energy.

• Developed world leading UR-3R

processing technology for

municipal solid waste.

• Pilot UR-3R project at Eastern

Creek, NSW.

• Preferred bidder to design, build,

own and operate the Lancashire

Waste Partnership private finance

initiative project.

Waste to EnergyGlobal Renewables

Waste to Energy: Energy Developments Limited

• World leader in landfill

gas power generation.

• Over 35 projects in

Australia, Europe, Asia

and the US.

• 97MW coal seam

methane project in NSW.

Wind Turbines

• Australian companies are world leading

manufacturers of small-scale wind turbines.

• These smaller turbines are often used in

conjunction with a small diesel generator and

a battery bank as part of a remote area power

supply system.

• A number of companies are now experienced

in identifying, constructing & operating large

scale wind farms.

Remote Area Power Supply (RAPS)

• Australian suppliers of

integration technologies

are the best in the world.

• We develop systems

capable of operating in

Antarctic, tropical and

desert conditions.

Training and Accreditation

• Australia has expertise (both locally and internationally) in

renewable energy training program design, implementation

and accreditation.

• ResLab (at the Research Institute for Sustainable Energy,

Murdoch University) specialises in testing renewable energy

technologies.

Biofuels in Australia

• Biofuels with commercial prospects in Australia are

ethanol and biodiesel.

• The Australian Government has put in place a number

of initiatives that aim to boost the development of a

commercially viable domestic biofuels industry by

addressing market barriers to the production and use

of biofuels.

Ethanol• Currently 3 producers including: Manildra, CSR and Rocky Point

• In 2004-05, Australian production was 23 ML but capacity is around 75 ML

• 3 projects funded under Biofuels Capital Grants Program

• Potential Future Ethanol Projects :

– Ethanol production capacity will rise to approximately 210 ML once all Biofuels Capital Grants Program projects come online

– A further 780 ML could potentially come online in proposed plants

Biodiesel• Two small producers

• Current production capacity around 16 ML

• 4 projects funded under Biofuels Capital Grants Program (3 greenfield, 1 expansion)

• Potential future biodiesel projects

– Production capacity is likely to be around 105 ML by mid-2006

– Biofuels Capital Grants Program and other potential projects could bring production capacity up to over 500 ML by 2006-07

– Proposed projects are in QLD, NSW, VIC, SA, WA and NT

Australian Government Alternative Fuels Policy• These initiatives include:

– A target that biofuels contribute 350 ML to Australia’s

transport fuel supply by 2010

– A capital grants program to encourage investment in new or

expanded biofuels capacity

– Fifty percent discounted excise rate from 2015

– Two Ethanol Industry Roundtables with ethanol proponents

and fuel retailers

– The Prime Minister’s Biofuels Taskforce

Australian Government Alternative Fuels Policy (cont.)• In response to the report of the Biofuels Taskforce, the Government

announced additional measures to help address market barriers and

restore consumer confidence including:

– Working with oil majors to develop Industry Action Plans;

– Encouraging E10 use in Commonwealth vehicles;

– Promoting biodiesel through a B5 trial in Kakadu National Park; and

– Further work on vehicle testing and fuel standards.

• The Prime Minister met with oil company representatives in September

2005 to discuss the Government’s biofuel target.