Www.arena.gov.au The Australian Renewable Energy Agency and the New Energy Course Argus Australia Power Generation Fuels 27 February 2013.

www.arena.gov.au

The Australian Renewable Energy Agency and the New Energy Course

Argus Australia Power Generation Fuels

27 February 2013

www.arena.gov.au

Summary

• The Australian renewable energy landscape• ARENA driving a new course• Opportunities through ARENA

Driving renewable energy deployment in regional and remote locations

• Investment highlights

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1. The Australian Renewable Energy Landscape

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Renewables in Australia’s energy mixAustralian electricity generation 2010-11

Source: BREE, Australian Energy Statistics (2012)

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LCOEs for renewable energy technologies - 2012Levelised Energy Costs in 2012 and 2020

$0

$50

$100

$150

$200

$250

CCG Wind Solar Bagasse Coal

2012

2020

2020

2020

Sources: BREE, Australian Energy Technologies Assessment 2012 and Bloomberg Australia and

Global Renewable Energy Market Overview Feb 2013

$/MWhr

5.

2012

2012

2012

2020

2020

2012

Bloomberg figures

---------------------------BREE AETA figures---------------------

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2. Policy drivers

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Australian Government support for renewable energy technology development

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General Funding Strategy

GENERAL PRINCIPLES

ALONG THE WHOLEINNOVATION CHAIN

INVESTMENT PLAN

RESEARCH (basic and applied)DEVELOPMENTDEMONSTRATIONCOMMERCIALISATION

COMPLEMENTARITYCONFIDENCE BUILDINGDIVERSITY

STRATEGIC INITIATIVESSUPPORTING INITIATIVESCOMPLEMENTARY INITIATIVES

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3. Opportunities through ARENA

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www.arena.gov.au

Current Opportunities

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Current funding opportunities through ARENA:

• $126 million Emerging Renewables program

• $200 million Southern Cross Renewable Energy Fund

Coming up:

• Regional Australia’s Renewables program

• SHARE (Supporting high value Australian renewable energy)

www.arena.gov.au

Regional Australia’s Renewables

Industry

Size

Type of Support

Location of projects

Community

100kW – 1MW

Grants - capital subsidy

Off-grid

Roadblocks

No size

Grants – project costs

Focus on - system issues, demand management,

control systems, storage optimisation etc

1MW or more

Grants - capital / or revenue subsidy

Off-grid or fringe-of-grid

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PROPOSED OUTCOMES

2 xAt least 50 MW of renewable energy capacity installed

by 2020

10 MW or more renewable energy systems by 2018

Roadblocks removed. Trained

operators of renewables

www.arena.gov.au

Example: WA Forecast Increased Minerals And Energy Electricity Demand By Source

(GWh per annum, incremental above 2012 levels)

Source: “WA State Growth Outlook 2013”, PwC 2012

95% of new energy demand

expected to be provided

off-grid

Off-Grid demand is growing: Example WA mining

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www.arena.gov.au

Potential Benefits of Off-Grid REThe economics of off grid renewables and diesel in Pilbara

Source: Evans and Peck, Assessment of the Potential for Renewable Energy Projects and Systems in the Pilbara (2011)

Summary of LCOE costs ($/MWh) for relevant technologies

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Barriers to renewables in off-grid applications

Sources: Responses from Clean Energy Working Group, ARENA consultations, ARENA case study research

Capital Cost

Output / Reliability

High capital costs. May be misalignment between renewable payback period and business case period (e.g. mine life)

Concerns about intermittency, monitoring and forecasting systems, integration with other systems (e.g. diesel hybrid),

power quality

Skills & Maintenance

Access to people with expertise to maintain renewable generation plant

Areas noted as “Barriers” to renewable energy by off-grid system owners

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Investment opportunities

• Nimble in identifying and capitalising on opportunities to accelerate deployment• Capacity to initiate projects, commission research and

undertake one-offs• Flexible and open to ideas

• Regional Australia’s Renewables• Looking for energy intensive industry leaders ready to

partner with ARENA to set a benchmark for renewable energy

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4. Investment highlights

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Managing $650 million in projects and measures

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www.arena.gov.au

ARENA support for biofuels

• Emerging Renewables Program Measure – Qantas Feasibility Study on Producing Alternative Aviation Fuels

• $5 million to the JCU High Energy Algal Fuels Project in Townsville

• $15 million Advanced Biofuels Investment Readiness (ABIR) Program

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CS Energy: Kogan Creek Solar Boost Project

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• $34.9m funding for $104.9m project

• Project will be the world's largest solar integration with coal fired power station

• 44 MW solar thermal addition to the existing 750MW Kogan Creek Power Station

• AREVA Solar's CLFR technology

• 30 hectare solar field

• Operational in 2013

www.arena.gov.au

CSIRO: Solar Energy Management (SEM) system for utilities

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CSIRO, Ergon Energy, GWA Group

• $0.2m funding for $0.6m project

• Combines CSIRO’s thermally-driven residential desiccant solar cooling technology with novel SEM system

• Natural gas-powered back-up

• SEM technology will be tested in 3 residential buildings

www.arena.gov.au

RATCH: Pathway to Solar Thermal for Coal-Fired Collinsville

• Feasibility study to asses the viability of converting Queensland’s 180 MW coal-fired Collinsville Power Station to a 30 MW hybrid solar thermal/gas power station

• $2.5m for RATCH Australia

• Results will be publically available

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• Renewables are increasingly cost competitive• ARENA understands barriers remain to the commercial

readiness of renewable technologies• ARENA looks forward to working with technology

developers, industry, communities and network operators to grow renewables in the off-grid sector and Australia more broadly.

Summary

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