Tasmanian Renewable Energy Industry Development Board RENEWABLE ENERGY Tasmania‟s Woolnorth – wind power above ocean power resource 1
Tasmanian Renewable Energy Industry Development Board
RENEWABLE ENERGY
Tasmania‟s Woolnorth – wind power above ocean power resource
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Tasmanian Renewable Energy Industry Development Board
Presentation by Hon Peter Rae AO Chairman
Renewable Energy Development Board – Tasmania
Chairman – International Renewable Energy Alliance
Vice Chairman – REN21
Is Renewable Energy Up To The Task?
Presentation to
The
AIRC Research
Seminar
17th September
2010
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Tasmanian Renewable Energy Industry Development Board
Today & Tomorrow we face a challenge.
SUSTAINABILITY
The World she is A-Changing
Can we change the way we live
to make the necessary adjustments to
achieve Sustainability?
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Tasmanian Renewable Energy Industry Development Board
Factors:-
• Population Growth Trebled
• Water Demand Growth
• Energy Demand Growth
• Growth in demand for food and other supplies
• Climate Change – WMO expressed concern 30 years ago
• Club of Rome – 50 years ago
• Limited Resources – eg Hubberts Peak etc
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Tasmanian Renewable Energy Industry Development Board
Thus:-
Huge Increases in
• Population
• Demand on Resources
• A Changing Environment
Provide needs and opportunities
Renewable Energy is at the forefront of the answers
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Tasmanian Renewable Energy Industry Development Board
Fossil fuel based energy resources are
rapidly depleting
Oil, Gas, Coal and even Uranium are all
finite resources.
It is not a matter of will they run out.
It is simply a matter of when.
Hubberts Peak would have us believe that
the world oil supply peaked several years
ago
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Tasmanian Renewable Energy Industry Development Board
World Oil Production (Hubbert‟s Peak)
U.S. EIA (2006) estimates the ultimately recoverable world oil reserves (including resources not yet discovered) 2.2 to 3.9 bbl
Note: lines should be curved!
Green =
peak at 2030
Red = peak
at 2019
Blue = peak
at 2030
Slide 7
Tasmanian Renewable Energy Industry Development Board
Proven World Oil Reserves – 41 years left
• Total proven world oil reserves:
•1,200.7 billion barrels (BP, 2005)
•1,266 billion barrels (IEA, 2004)
• Production rate: 80M barrels per day
• These reserves will last for 41 years at
the present production rate
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Tasmanian Renewable Energy Industry Development Board
Hence the Need for Sustainable Development
• The world met in 2002 = WSSD
• From that WEHAB:-• Water
• Energy
• Health
• Agriculture
• Bio Diversity
Let me concentrate today on Energy
But Water & Energy combined is essential in planning
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Tasmanian Renewable Energy Industry Development Board
World Electricity Production by Fuel
(2008)
Coal 40.10%
Oil
Gas
Renewables
Coal
Nuclear
Nuclear 13.50%
Renewables17.60%
Oil 6.90%
Hydro 15.90%
Other Renewables
Gas 21.3%
Source: IEA
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Tasmanian Renewable Energy Industry Development Board
So, let us now look at the
Role of Renewable Energy
• Needed for Sustainability
• Also provides security of supply
• Reduces Greenhouse Gas emissions
For example Wind power avoids 3,000 tonnes of CO2
per MW of generation
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Tasmanian Renewable Energy Industry Development Board
Renewable Energy Development
• Business and Finance is moving fast – renewable
energy growth is 2nd only to IT
• The Global Financial Crisis hardly dented the flow
• Australia - lacks leadership compared with Europe
and much of the world
*Investment growth in renewable energy:-
2004 $US 20 Billion
2009 $US 150 Billion
*source REN21 2010 Global Status Report
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Tasmanian Renewable Energy Industry Development Board
Annual Investment in
New Renewable Energy Capacity, 2004-2009
Source - REN21
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Tasmanian Renewable Energy Industry Development Board
As the figures show the World is serious
about Renewable Energy
• In the past 10 years some milestones are :-
2004 – Bonn International Renewable Energy
Conference Declaration
– International Renewable Energy Alliance
formed, comprising the world hydropower,
solar and wind associations and later
joined by geothermal and bioenergy
associations.
Together they provide the
Symphony of the Renewables
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Tasmanian Renewable Energy Industry Development Board
2005 – REN21 established – produces the Global Status
Report on renewables
2006/7 – UN Commission on Sustainable
Development endorses Renewable Energy,
similarly the World Bank
2008/9 – Agreement to establish the International
Renewable Energy Agency (IRENA) - 75% of the
worlds nations signed (149 nations have signed &
34 have ratified so far)
2010 - DIREC, with the objective of real commitment with
action plans – which we, the REN Alliance, insist will
include our Global Renewable Energy Fund
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Tasmanian Renewable Energy Industry Development Board
REN21
And the Global Status Report on Renewable Energy
Originated from the Bonn Declaration – 154 countries signed.
History: Established 2005
Purpose: provision of reliable statistics and access to a library of information on
renewable energy
Global Status Report: Most recent report published July 2010
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Tasmanian Renewable Energy Industry Development Board
Some interesting indicators from
the 2010 REN 21 Global Status
Report
More than half of all new electricity capacity added in the United States
and Europe last year was from renewable power such as wind &
solar.
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Tasmanian Renewable Energy Industry Development Board
Of an extra 80 gigawatts of
new renewable power
capacity added worldwide,
China added 37 GW, more
than any other country.
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Tasmanian Renewable Energy Industry Development Board
Grid –connected solar
photovoltaic power has
grown by an average of
60% every year for the
last decade, increasing
100-fold since 2000Source: REN21 Global Status Report 2010
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Tasmanian Renewable Energy Industry Development Board
In 2009 investment in new
renewable energy capacity,
including large hydro, was
$US 160 billion –
compared with $100 billion
in new fossil fuel generation
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Tasmanian Renewable Energy Industry Development Board
Various “interests” raise concerns as
to what is really happening in
renewable energy development in
comparable countries and generally
– so let us look at the OECD and
some of its members
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Tasmanian Renewable Energy Industry Development Board
OECD Member Countries Australia
• Austria
• Belgium
• Canada
• Chile
• Czech Republic
• Denmark
• Finland
• France
Germany
• Greece
• Hungary
• Iceland
• Ireland
• Italy
• Japan
• Korea
• Luxemburg
• Mexico
• Netherlands
• New Zealand
Norway
• Poland
• Portugal
• Slovenia
• Slovak Republic
• Spain
• Sweden
• Switzerland
Turkey
United Kingdom
United States
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Tasmanian Renewable Energy Industry Development Board
Looking at some individual nations comparable with
Australia in development and industry:-
Renewable Energy Capacity in Germany in 2009:-
Wind: 25,800 MW
Solar: 9,800 MW
Hydro: 11,000 MW
By comparison this is almost the same as Australia‟s
total capacity of all forms of generation.
Source:- REN21
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Tasmanian Renewable Energy Industry Development Board
Renewable Energy Capacity in the UK in
2009:-
Wind:- 4,100 MW
Solar: 2,800 MWsource:- REN21
Hydro: 4,244 MW
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Tasmanian Renewable Energy Industry Development Board
USA – now the world‟s no.1 in installed wind
generation capacity
in 2000 – wind generation 2,500 MW
In 2009 – wind generation 35,000 MW
And it has 7% of its huge total from Hydro
together with a large solar capacity.
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Tasmanian Renewable Energy Industry Development Board
As well we have rapid renewable energy
development in many developing nations
particularly
CHINA
INDIA
and
BRAZIL
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Tasmanian Renewable Energy Industry Development Board
Renewable Energy Capacity in the Brazil
2009:-
Solar: 2,400 MW
Hydro: 76,000 MW
Wind: 600MW – 3 times 2006 capacity and
a 77% increase on 2008 figures(source: WWEA)
Ethanol: 2.6 Billion Litres
Biodiesel: 1.6 Billion Litres Source: REN 21
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Tasmanian Renewable Energy Industry Development Board
So lets look a little deeper at
what is happening in
Renewable Energy Development
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Tasmanian Renewable Energy Industry Development Board
Abu Dhabi - MIST
- MASDAR – Shams 1
100 MW concentrated solar
Greece - Phasing out old coal fired
replacing with solar, wind &
hydro
- The islands
Germany – 46,000 MW of RE
same as Australia‟s total
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Tasmanian Renewable Energy Industry Development Board
Finally let us look in more depth
at what China is doing to attempt
to achieve sustainability
For the use of the data on these slides I
am indebted to my IHA colleague Lin
Chuxue Vice President of the Three
Gorges Corporation.
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Tasmanian Renewable Energy Industry Development Board
China - Installed Power Capacity
Total Capacity 860,000 MW 2009 NDRC Data
Hydro power: 21.5%
Thermal: 73.9%
Wind power: 2.3%
Nuclear & others: 2.3%
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Tasmanian Renewable Energy Industry Development Board
Commitment of Chinese Government
By 2020:
Non-fossil energy shares 15% in primary
energy consumption
CO2 emission per GDP reduced by 40%-
45%, on base of 2005
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Tasmanian Renewable Energy Industry Development Board
China’s target for 2020
Hydropower capacity
From 190,000 MW
To 300,000 – 350,000 MW
Wind power to 150,000 MW
Nuclear,Solar
Bio & others 120,000 MW more
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Tasmanian Renewable Energy Industry Development Board
China‟s Hydro Power Potential
Installed Capacity 190,000 MW
Theoretic Capacity 694,000 MW
Technically Viable 542,000 MW
Economically Viable 402,000 MW
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Tasmanian Renewable Energy Industry Development Board
Progress in Ongoing Projects
Pu Bu Gou 3300 MW
Long Tan 6300 MW
La Xi Wa 4200 MW
Xiao Wan 4200 MW
Jing Hong 1750 MW
Gou Pi Tan 3000 MW
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Tasmanian Renewable Energy Industry Development Board
Resettlement Issue
Environment Issue
Policy Issue
Absence in stimulation program
Reluctancy in categorising large hydro as
clean & renewable
Regarding hydro development as
“commercial”
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Challenges Remain:
Tasmanian Renewable Energy Industry Development Board
Xio Wan Project
4200 MW
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Tasmanian Renewable Energy Industry Development Board
Long Tan Project
6300 MW
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Tasmanian Renewable Energy Industry Development Board
Progress in New Projects
Xi Luo Du 13860 MW
Xiang Jia Ba 6400 MW
Nup Zha Du 5850 MW
Jin Ping 1&2 8400 MW
Guan Yin Yan 3000 MW
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Tasmanian Renewable Energy Industry Development Board
Xi Luo Du Project
13,860 MW
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Tasmanian Renewable Energy Industry Development Board
Locations of CODPS
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Stars show dam projects conducted
by the subsidiaries of China Three
Gorges Corporation
Tasmanian Renewable Energy Industry Development Board
Nam Mang 3 Dam, Laos
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Tasmanian Renewable Energy Industry Development Board
Merowe Dam, Sudan
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1,250MW
Tasmanian Renewable Energy Industry Development Board
But what is AMAZING is the TARGETS
for Renewable Energy Development
For Example in China – much maligned by some
apologists for Australian inaction -
by 2020:-
Hydro power 190,000 MW to 350,000 MW
Wind power 26,000 MW to 150,000 MW
Solar, Bio &
others including growing to 120,000 MW
Nuclear
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Tasmanian Renewable Energy Industry Development Board
Can these targets be achieved?
Recent History suggests Yes
2005 to 2008 Asia (China, India, South Korea in
particular)
Increased Renewable Energy Capacity by
250% in wind generation alone.
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Tasmanian Renewable Energy Industry Development Board
As well as examples of comparable
countries and renewable energy
development lets also look further at how
many countries have REAL policies to
develop renewables how they have
created rapid development and whether it
is fair to say we must not get ahead of
other comparable countries
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Tasmanian Renewable Energy Industry Development Board
Renewable Energy Development PoliciesIn R E policy terms around the world:-
• 78 Countries & States have Feed-in Tariffs
• 50 Countries & States have Renewable Energy
Portfolio Standards
• Emission trading schemes apply in Europe (pop.
500 million), NZ, 16 US States & 4 Canadian
Provinces – more than 1/3 of US & Canada.
• Carbon Taxes are used in some other countries
These policies have driven renewable energy development
It is simply untrue to say that Australia would be jumping ahead of the
rest of the world if we put a price on carbon and really developed
renewables.
The world is serious about the role for renewable energy – it would
be hard to argue that Australia is equally serious. Renewable Energy
has dropped from under 11% to 6.8% in the last decade
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Tasmanian Renewable Energy Industry Development Board
Some interests suggest that Renewable Energy cannot
provide Base Load Power
Tasmania‟s renewable energy has developed its economy
with heavy industry requiring 24 hour base load. Some other
examples include:
Sweden has over 40% renewable energy
Iceland has huge heavy industry wholly supplied
by renewables
Norway electricity supply is almost wholly hydro
and wind – it provides base load
There are many others.
It depends upon how you manage it – what mixes and storage are
available or can be checked
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Tasmanian Renewable Energy Industry Development Board
Another suggestion is that renewable
energy resource is inadequate to provide
for the world‟s electricity needs
Lets have a look at that
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Tasmanian Renewable Energy Industry Development Board
World‟s Renewable Energy Resources
Wind Power
Onshore – Theoretical – 55 TW
but Practical - at least 2TW
or two thirds of the total present world capacity
Hydro
16% of present world supply and is less than
35% developed
Slide 50
Tasmanian Renewable Energy Industry Development Board
Solar
A very modest calculation of the resource is
105 TW capable of being obtained. Four
times the estimated world demand in 2050.
Capacities shown by
354 MW solar plant in California since
1988
100 MW solar plant in Abu Dhabi
Biomass
8-13 TW ie four or five times the worlds present
capacity
Slide 51
Tasmanian Renewable Energy Industry Development Board
Geothermal Considerable natural sources (eg in NZ, USA, Iceland) but Hot
Rock technology is still in the developing stage. If it is proved
then the answer for on demand generation is very large indeed.
Tidal Wave & Ocean TechnologyLike Geothermal it is there and practical ways to harness it are
being developed.
Slide 52
Tasmanian Renewable Energy Industry Development Board
Summary
The total resource is huge the problem is not
whether it can provide but rather at what cost
– and that is dramatically reducing.
For these figures I am indebted to my colleague
Professor Yogi Goswami of USA, recent
world President of the International Solar
Energy Society
Slide 53
Tasmanian Renewable Energy Industry Development Board
Looking locally, we, the TREIDB, believe that Tasmania can assist in achieving the Australian target and the Tasmanian State target by increasing the export of Clean and Renewable Energy into the South East Australian electricity grid.
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Tasmanian Renewable Energy Industry Development Board
Late last year the Government established the Tasmanian Renewable Energy Industry Development Board with Terms of Reference to include:-
Maximise the economic benefits from developing Tasmania’s renewable energy resourcesDesign and manage a Renewable Energy Industry Development FundConduct a study of future transmission structure including a second interconnectionDevelop and promote Tasmania as a destination of choice for new renewable energy projects
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Tasmanian Renewable Energy Industry Development Board
To achieve all of this it will be necessary to develop the use of interconnection capacity to the S.E. Australian Grid.
The new connector will need to be orientated to the export of electricity from Tasmania.
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Tasmanian Renewable Energy Industry Development Board
• Bass Strait High Voltage Interconnector
• Renewable Energy Loan Fund
• Bass Strait Islands – “Living Laboratory”
project
• Energy generation projects on Grown
land
• Distributed generation
• Resource and capability mapping
Slide 57
The recent Innovation Statement made by the
Premier highlighted aspects of Tasmanian policy
for RE development
Tasmanian Renewable Energy Industry Development Board
Bass Strait Electricity Connector/s
• BassLink can export 600 MW
• Large hydro storage „battery‟
• Wind power best generation
prospect short-term
• Growing interstate and peak (ie
high value) demand
• Retirement of coal-fired power– Victoria in particular (90% coal-fired)
• Need more interconnection for a
„step‟ change expansion
• Non-wind renewables are a
medium term prospect
Slide 58
Tasmanian Renewable Energy Industry Development Board
To achieve major new export solely through BassLink would require renegotiating agreements and will also require a relative abandonment of the purpose for which BassLink was built which was to a)drought proof Tasmania and b) provide a trading link for trading each way with the Victorian market
It is necessary therefore to look at a further interconnection capacity.
Only through this will Tasmania’s potential be achieved and Australia’s target be met
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Tasmanian Renewable Energy Industry Development Board
Looking at progress to date we have decided on the following approach:-
Tasmania:-
A leading renewable energy driven & sustainable society & economy
Slide 60
Maximise the value from developing Tasmania’s
renewable energy resources
Create options to export
surplus renewable energy
Renewable energy resource and capability mapping
Establish, support, promote and lead renewable energy research and development
and technology trials
Promote investment in the technologies that contribute
to renewable energy objectives
Establish Tasmania’s brand as a leading centre
for renewable energy
Engage with and educate the Tasmanian community on the case for renewable
energy
Promoting the use of smart network
infrastructure to support the efficient use of
renewable generation
Investigate embedded generation opportunities
and financial mechanisms
to promote its uptake
Stimulate business and consumer demand for
renewable energy
Capture the full value from the state’s commitment to
a sustainable renewable energy driven society and
economy
Promote greater certainty and
transparency on a price for carbon and
renewable energy
credits
Identify & advocate necessary changes to the electricity market rules & objectives to better accommodate
renewable energy
development
Improve the planning and approval process for large renewable
developments
Develop regulatory and market arrangements that support the development
of renewable energy
Blue = initial Board priorities
Tasmanian Renewable Energy Industry Development Board
Distributed (Embedded) generation
• Energy generated
at/close to the load/user
– Nichols poultry an example
• Many suitable sites,
initially for wind
– farms, mines...
• Financial case based on
replacing grid energy
– Costs (capex, op exp)
– Benefit (avoided tariff)
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Tasmanian Renewable Energy Industry Development Board
Impediments
• Wind mapping
• Planning and
development approval
• Connection to the
electricity network
• Pricing and „net‟ metering
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Tasmanian Renewable Energy Industry Development Board
Next steps
• Resource and capability
identification:
– What can we have
– What can be developed
– Report on findings
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Tasmanian Renewable Energy Industry Development Board
For More
Watch This Space!
But to summarise the future
The answer is ........
Slide 64
Tasmanian Renewable Energy Industry Development Board
The answer to the worlds challenge is • Flowing in the streams • Shining from the sky• Growing on the land
• Bubbling from the earth• Hidden in the waves
AND •Blowing in the wind
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Tasmanian Renewable Energy Industry Development Board66