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NSW RENEWABLE ENERGY
ACTION PLAN
Annual Report 2015
Title:	 NSW Renewable Energy Action Plan Annual Report 2015
Author:	 Department of Industry, Skills and Regional Development
Level 48, MLC Centre, 19 Martin Place, Sydney NSW 2000
PO Box 344, Hunter Region Mail Centre NSW 2310
Telephone 1300 736 122 (toll free)
Fax 02 9338 6950
Email renewableenergy.advocate@industry.nsw.gov.au
Website www.resourcesandenergy.nsw.gov.au
	 © State of New South Wales through the Department of Industry, Skills and
Regional Development 2015
	 This publication is copyright. You may download, display, print and reproduce
this material in an unaltered form only (retaining this notice) for your personal
use or for non-commercial use within your organisation. To copy, adapt, publish,
distribute or commercialise any of this publication you will need to seek
permission from the Department of Industry, Skills and Regional Development.
	 First published December 2015
Disclaimer:	 The information contained in this publication is based on knowledge and
understanding at the time of writing. However, because of advances in knowledge,
users are reminded of the need to ensure that information on which they rely is up
to date and to check the currency of the information with the appropriate officer
of the Department of Industry, Skills and Regional Development or the user’s
independent advisor.
	 Design reference no. D15-039
	 Cover image: Nyngan Solar Plant (Photo courtesy AGL)
ii
Foreword
The Hon Anthony Roberts MP
Minister for Industry, Resources and Energy
Released in 2013, the NSW Renewable
Energy Action Plan positions NSW as open
for business in renewable energy. It is the
cornerstone of the NSW Government’s
leadership in, and active support for the
sector.
We are two years into the Plan, and I am
delighted to report that we have continued
to deliver on our renewable energy
commitments.
Through a whole-of-government effort
we have now completed half of the 24
actions. Of the 12 completed, several require
continued support to maintain the progress
already made. On top of this, we are making
significant headway on a further eight
actions.
The energy market has continued to change
at an unprecedented rate. The share of
generation from solar, wind and bioenergy
sources in NSW has more than doubled
over the past four years. With exceptional
renewable energy resources and world-class
research and development institutions, NSW
is well-placed to harness the potential of this
growth sector.
We expect that new energy sources will
transition NSW towards an advanced and
smart energy system, driving investment and
supporting jobs.
The NSW Government is also a long-standing
supporter of the national Renewable Energy
Target. And we will actively take advantage of
this investment opportunity in our State.
NSW has the potential to be a regional
business hub for renewable energy in
the Asia-Pacific. Around 35 per cent of
renewable energy businesses nationally
are headquartered in NSW and the sector
supports an estimated 14,800 jobs statewide.
Energy security is a priority for the NSW
Government because access to reliable,
affordable and clean energy is essential to a
strong economy and modern society.
Renewable energy is expected to play a
crucial role in diversifying our generation mix.
We’re excited about large-scale pioneering
contributions, such as Australia’s largest solar
plant at Nyngan in Western NSW, which came
online this year.
At a community level, over 320,000 NSW
households and small businesses are now
generating power from the sun. These
customers understand that the financial
benefit from rooftop solar comes from
reducing their bills by lowering the amount of
power they buy. We are supporting greater
choice and innovation in the way that energy
customers manage their consumption, bills
and how they participate in the market.
We believe that there is an opportunity
for new technologies and services, such as
energy storage, to play a role in NSW. We
will continue to work with the Council of
Australian Governments to ensure market rules
support a dynamic and contemporary market
that facilitates entry and uptake of these new
technologies.
Our commitment to the people of NSW
remains the same - to ensure a secure,
reliable, affordable and clean energy future.
iii
Message from
the Advocate
Ms Amy Kean
NSW Renewable Energy Advocate
It’s no secret that NSW lays claim to some
of the best renewable energy resources
in the world. As the Renewable Energy
Advocate, I have the exciting role of realising
the significant opportunities that exist
in harnessing these resources, through
delivering our NSW Renewable Energy Action
Plan and working with key stakeholders to
facilitate renewable energy projects in NSW.
My ultimate goal is to increase renewable
energy generation, jobs and investment in
our State. I focus on making investing here
more attractive, working across government
agencies, and developing initiatives that
address market barriers.
Over the past year, the industry has proven to
be resilient. I am proud of the work the NSW
Government has done to support industry
and communities during this period of
transition for the energy market.
Commercial-scale solar has surged and
communities are increasingly investing in
energy projects and generating their own
energy.
I have continued to work to facilitate greater
levels of renewable energy generation. We
have seen significant growth in wind and
solar developments and I have provided
support to 17 large-scale renewable
energy projects, totalling a potential 4,500
megawatts of capacity and $6 billion of
investment. Almost all of these projects are
located in regional NSW.
We have worked with stakeholders to address
network connection barriers and helped
facilitate information exchange and rule
changes. I have had the privilege to discuss
NSW renewable energy opportunities at over
25 events across the State in the past year.
We have the potential to lead the country
in the energy storage market - the ‘Holy
Grail’ for harnessing our renewable energy
resources - with the end of the Solar Bonus
Scheme in December 2016 and favourable
tariff structures.
In the third year of the Plan we are prioritising
several areas, including:
•	 Planning for a smooth transition for solar
customers and the electricity network, as the
Solar Bonus Scheme ends.
•	 Facilitating the TransGrid Renewable Energy
Hub in the New England region.
•	 Promoting benefit-sharing of the wind
industry in NSW with communities.
•	 Developing the Institute for Sustainable
Futures and ARENA’s Network Opportunity
Mapping project.
•	 Seeking to build a level playing field for local
electricity trading.
•	 Promoting innovative finance models such
as Environmental Upgrade Agreements and
Power Purchase Agreements.
•	 Developing renewable energy resource
maps for the State and further enhancing
the Australian Renewable Energy Mapping
Infrastructure.
I would like to thank the NSW Minister for
Industry, Resources and Energy, the Hon
Anthony Roberts MP, for his support in driving
the Plan, the NSW Government agencies which
contributed to accomplishing actions under
the Plan, the team at the NSW Department of
Industry, Resources & Energy Division, and our
colleagues at ARENA and CEFC who have been
instrumental in supporting innovative renewable
energy projects in NSW. I look forward to
supporting the NSW Government in the third
year of the Plan.
Contents
NSW renewable energy snapshot........................................................................................6
Solar and wind energy in NSW............................................................................................7
Progress summary..................................................................................................................8
Goal 1: Attract renewable energy investment.......................................................................... 11
Goal 2: Build community support.................................................................................................19
Goal 3: Attract and grow renewable energy expertise........................................................23
References.............................................................................................................................29
Contribution by NSW
businesses towards national
commercial GreenPower sales1
Renewable energy
businesses based in NSW3
Gigawatthours
(GWh)
NEW ENERGY SOURCES ARE EXPANDING IN NSW
PROJECTS COMPLETED 2014–15 PROJECTS IN THE PIPELINE5
RENEWABLES CONTRIBUTION TO NSW ECONOMY
The Snowy Hydro Scheme fluctuates from year to year,
but other renewable energy sources have grown at a steady rate.
Coal 82.3%
Snowy
Gas (Inc. waste gas
and CSG) 6.9%
Renewables 10.8%
*Includes landfill gas (0.7%), bagasse (0.4%) and other biomass (0.5%)
^Includes heat pump (0.1%)
Diversity in the energy mix promotes energy security
2010
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2011 2012 2013 2014
Other renewables
650 MW
under
construction
2,400 MW
approved
4,800 MW
seeking
approval
$9b of investment
$900m
investment in the economy
380 MW
new capacity
140k
NSW households powered each year
Energy storage GreenPower
32%
Business hub
35%
Supporting jobs
14,800
Nyngan Solar Plant
Gullen Range Wind Farm
Boco Rock Wind Farm
3.3%
Snowy
Hydro
2.2%
Solar PV
1.6%
Bioenergy*
1.5%
Wind
1.4%
Solar water
heater^
0.8%
Small
hydro
Generation mix in NSW by fuel type, 20141
Historical trends in renewable energy generation1
Jobs supported by
the renewable energy
sector in NSW for 20142
NSW is predicted to have the
highest integration of solar and
storage in the long term4
NSW renewable energy snapshot
6
7
NSW CUSTOMERS
ARE CHOOSING
ROOFTOP SOLAR
NSW IS HOME TO AUSTRALIA’S LARGEST SOLAR PLANT AT NYNGAN
320K
820 MW
$3B
1.36 msolar photovoltaic panels
102 MW
capacity
250
construction
jobs
$300m
investment
33K
homes
powered
GROWTH OF SMALL TO MEDIUM SCALE
SOLAR PV IN NSW
200
MW
960
MW
Commercial-scale solar (10–100 kW)
Projected commercial-scale solar6
Residential-scale solar (up to 0–10 kW)
Projected residential-scale solar6
2010 2011 2012 2013 2014 2015 2020 2025 2030 2035
3,800
MW
NYNGAN
NSW households and small businesses
have adopted small-scale solar*
Small-scale solar capacity
now installed across NSW
Representing substantial
investment by NSW customers1
*As at July 2015
Solar and wind energy in NSW
7
2010 2011 2012 2013 2014 2015 ^
Projects over 30 MW
6 major projects online^
HISTORICAL GROWTH OF WIND CAPACITY IN NSW
187MW
281MW
373MW
373MW
545MW
660MW
Boco Rock 114 MW
Capital 141 MW
Cullerin Range 30 MW
Gullen Range 166 MW
Gunning 47 MW
Woodlawn 48 MW
8
Progress summary
GOAL 1: Attract renewable energy investment
Highlights
•	 The Renewable Energy Advocate and the NSW Department of Industry provided support
for 17 large-scale renewable energy projects, totalling a potential 4,500 megawatts of new
capacity and $6 billion of investment.
•	 The $440 million Solar Flagships projects progressed with the Nyngan Solar Plant achieving
its maximum designed generation capacity and over half of the photovoltaic modules at the
Broken Hill Solar Plant are generating electricity.
•	 Over the past year, three large-scale renewable energy projects, including Nyngan Solar Plant,
came online, representing over $900 million of investment, 380 megawatts of capacity and
enough output to power 140,000 homes each year.
•	 The NSW Government sponsored the Network Opportunity Mapping project led by the
Institute of Sustainable Futures, which will highlight opportunities for renewable energy to
meet network constraints.
Status update
NSW Renewable Energy Action Plan Action Progress
1.	 Improve the process of network connection Progressed
2.	 Consider a more strategic and integrated approach to assessment of
renewable energy projects
Ongoing
3.	 Remove technology-specific barriers to investment Completed
4.	 Create an online information portal that provides information to investors Progressed
5.	 Promote and facilitate investment opportunities with the appointment of a
Renewable Energy Advocate
Completed &
Continuing
6.	 Request IPART to estimate a benchmark range for a fair price for small-scale
generated solar energy
Completed
7.	 Develop an information package for small-scale solar PV, solar hot water and
wind generation
Progressed
8.	 Support mid-scale solar PV to enable uptake of solar technologies where they
are most cost effective
Progressed
9.	 Engage with the Commonwealth Government to facilitate construction of the
Solar Flagships Project
Completed &
Continuing
GOAL 2: Build community support
Highlights
•	 The NSW Government provided early stage funding of $846,000 under the Growing
Community Energy grants to 19 groups across the State who are working to develop
community energy projects.
•	 The Regional Clean Energy Coordinators have supported communities to participate in
renewable energy initiatives, providing an opportunity to ask questions, as well as access
information, resources and government programs.
•	 The GreenPower Program raised the public profile of renewable energy by powering Sydney
Opera House and Sydney Live as part of the Vivid Sydney Festival.
9
Status update
NSW Renewable Energy Action Plan Action Progress
10.	 Implement NSW wind energy planning guidelines Ongoing
11.	 Engage communities early and effectively in renewable energy projects Progressed
12.	 Facilitate community ownership of five renewable energy projects Completed &
Continuing
13.	 Promote the benefits to consumers of switching to GreenPower accredited
renewable energy
Completed &
Continuing
14.	 Develop a draft NSW Smart Meter Policy Completed
GOAL 3: Attract and grow renewable energy expertise
Highlights
•	 The NSW Interactive Research Map was launched by the Office of
NSW Chief Scientist & Engineer and StudyNSW to showcase the
State’s higher education, science, and research and development
facilities.
•	 The Energy Innovation Knowledge Hub is fostering a new
collaborative energy sector in the Hunter region and has embarked
on a series of programs to facilitate information exchange between
business and the research community.
•	 The prize for NSW Renewable Energy Innovation was awarded to
Professor Behdad Moghtaderi from the University of Newcastle for
his GRANEX™ heat engine invention, which generates electricity
from geothermal sources and industrial waste heat streams.
•	 The NSW Government announced it will provide $18 million over
the next year to support innovation and investment in the State’s
research and development capacity under the Research Attraction
and Acceleration Program. This presents potential opportunities for
applications from the renewable energy research sector.
Status update
NSW Renewable Energy Action Plan Action Progress
15.	 Investigate opportunities to support renewable energy experience centres
and demonstration projects
Progressed
16.	 Conduct renewable energy research roundtables Ongoing
17.	 Promote NSW as a leader of research and innovation in renewable energy Progressed
18.	 Continue the recently created NSW Renewable Energy Innovation Prize Completed &
Continuing
19.	 Establish a working group to develop an advanced bioenergy initiative Completed
20.	 Support R&D in advanced bioenergy applications at the University of
New England
Completed
21.	 Support research into applications of geothermal assisted power generation Completed
22.	 Identify opportunities to support the integration of geothermal projects and
coal-fired power stations
Completed
23.	 Support R&D in wave and tidal technologies Progressed
24.	 Continue to support research and deployment of smart grid technologies Progressed
BOCO ROCK WIND FARM
SOUTH WEST OF NIMMITABEL,
NSW (PHOTO COURTESY CWP
RENEWABLES)
10
Renewable Energy
Action Plan update
11
Goal 1: Attract renewable energy
investment
The NSW Government is focused on practical steps to remove barriers
to investment in renewable energy.
ACTION 1: Improve the process of network connection
Responsibility: NSW Department of Industry – Resources & Energy Division working with the
Renewable Energy Advocate
Council of Australian Governments
The NSW Department of Industry (the Department) has continued to assist in improving
network connections through the Council of Australian Governments (COAG) Energy Council,
with a focus on improving incentives and information. The NSW Government supported a
Council submission to encourage networks to look for low cost alternatives to address network
system constraints. These will encourage electricity network operators to consider demand-
side actions, including distributed generation, as an alternative to further capital investment
in network infrastructure. A further Council rule change was submitted to improve demand
management forecast information.
Working group for amending Service and Installation Rules
The Department convened a working group of utility and industry stakeholders to amend
the Service and Installation Rules, which is the code used by electricity network operators
when connecting a customer to the distribution network in NSW. Released in June 2015, the
Amended Rules are expected to reduce uncertainty and increase consistency for installers and
electricity network operators in treating a range of new technologies and configurations. The
working group will continue to meet regularly.
Network Opportunity Mapping project
The Department has become a key sponsor of the Network Opportunity Mapping project
(http://nationalmap.gov.au/renewables/) led by the Institute for Sustainable Futures (ISF) at
the University of Technology Sydney, along with the Australian Renewable Energy Agency
(ARENA). The project will highlight opportunities for distributed generation and other
demand-side measures to address network constraints, as an alternative to further capital
investment in network infrastructure. This project will be integrated with the Australian
Renewable Energy Mapping Infrastructure (see case study) and freely available online maps
will be released annually. The sample maps were released on October 2015.
National local electricity trading trial
The NSW Government has committed support to the national local electricity trading trial (also
known as (Facilitating Local Network Charges and Virtual Net Metering project) led by ISF with
funding from ARENA, which has NSW ‘virtual trial’ sites at Byron Shire Council and Willoughby
City Council. This project has brought together stakeholders to level the playing field for local
energy and prepare for the future of the grid. The project is seeking to facilitate partial use of
the network and introduce electricity trading between associated customers and generators in
the same local distribution network area.
Renewable energy resource maps
The Geological Survey of NSW will develop renewable energy resource maps of the state
over the next year of the Plan. The project will involve working in partnership with National
ICT Australia (NICTA) and Geoscience Australia to publish ‘best available’ snapshots of NSW’s
world-class renewable energy resources, such as solar, wind and geothermal sources, to attract
investment and unlock the potential of further development in this sector.
12
ACTION 2: Consider a more strategic and integrated approach to
assessment of renewable energy projects
Responsibility: NSW Department of Planning & Environment
In November 2014, the NSW Government introduced a framework that ensures large-scale
renewable energy projects with the potential to make a substantial contribution to energy
security and economic growth are assessed and determined in an efficient way. These projects
will be deemed Strategic Energy Projects and will be appointed a case manager from the NSW
Department of Premier & Cabinet to monitor their progress through government agencies.
Importantly, Strategic Energy Projects will receive no reduction in required environmental
standards or community consultation.
ACTION 3: Remove technology specific barriers to create a
supportive policy and regulatory environment for investment
Responsibility: NSW Environment Protection Authority
In the first year of the Plan, the NSW Government released the Energy from Waste Policy
Statement and provided funding for the development of energy from waste projects through
the Waste Less Recycle More initiative. We have now announced funding for a number of
projects that involve producing alternative fuel from waste, as well as an Energy From Waste
Infrastructure Project at Boral Cement’s Berrima facility.
ACTION 4: Create an online information portal that provides
information to investors
Responsibility: NSW Department of Industry – Renewable Energy Advocate working with
Industry Investment & Export Support
We have continued to update and improve our delivery of the most relevant and current
information to potential renewable energy investors, with value-add inclusions, such as:
•	 Information about the newly established Industry Investment & Export Support branch which
has a dedicated Energy Team.
•	 Information about the Australian Renewable Energy Agency’s (ARENA) Advancing
Renewables Program.
•	 New case studies on inverter company SMA Australia and solar energy experts Mark Group.
•	 Presentations from the NSW Resources & Energy Investment Conference 2015.
The NSW Government has also funded the Australian Photovoltaic Institute to expand its
online solar map (http://pv-map.apvi.org.au/historical) to include the ability to search installed
capacity by Local Government Area and see the split between residential and commercial
systems.
13
CASE STUDY: AUSTRALIAN RENEWABLE ENERGY
MAPPING INFRASTRUCTURE
The Australian Renewable Energy Mapping Infrastructure (AREMI) project supports early-stage
renewable energy projects by providing free online access to spatial data relevant to the energy
sector from government, industry and research institutions. The project is led by National ICT
Australia (NICTA), with Australian Renewable Energy Agency (ARENA) funding support.
AREMI can be used to compare mapping data, such as:
•	 electricity, geothermal and land use data from Geoscience Australia
•	 water and climate data from the Bureau of Meteorology
•	 solar data from other ARENA projects
•	 research from the Australia Bureau of Statistics.
Government agencies can use this open data to assist with environmental and regulatory
planning approvals and tracking and promoting projects. Energy project developers can
freely access spatial information such as existing electricity infrastructure to assist with site
identification. Financiers and investors can explore the potential success of proposed ventures.
The project will continue development until July 2016 and Geoscience Australia is hosting the
AREMI platform until at least July 2019.
ACTION 5: Promote and facilitate investment opportunities with
the appointment of a Renewable Energy Advocate within the NSW
Department of Industry
Responsibility: NSW Department of Industry – Renewable Energy Advocate working with
Industry Investment & Export Support
The Renewable Energy Advocate
The Renewable Energy Advocate has continued to work with industry, research institutions and
communities to facilitate greater levels of electricity generation from renewable energy sources
in NSW. Over the past year, support was provided to 17 large-scale renewable energy projects,
totalling a potential 4,500 megawatts of capacity and $6 billion of investment. Almost all of
these projects are located in regional NSW.
The Advocate provides information on industry developments, opportunities and positions the
NSW Government as open for business in renewable energy. The Advocate has presented at
a range of major conferences and events, such as: the Australian Clean Energy Summit 2015,
Australian Energy Storage Conference 2015, Smart Energy Forum, Corporate Renewable Energy
Buyers Forum and Renewable Energy in Agriculture seminars.
EXAMPLE OF A GEOTHERMAL
MAP AVAILABLE FROM AREMI’S
ONLINE PROJECT
(http://nationalmap.gov.au/)
14
Company support
The NSW Department of Industry has delivered services to companies, such as facilitating
connections across government and supporting their information needs by supplying market
data, reports, key contacts and introductions. Over the past year, the Department has held
launch events for companies accomplishing breakthroughs in NSW, including Photon Energy
Australia, ePho and SunEdison (see case study). The Department also hosted the Economics
and Energy Committee of the German Parliament, which strengthened relationships and
encouraged knowledge sharing between Germany and NSW.
Dedicated team
The newly established Industry Investment & Export Support branch in the NSW Department
of Industry, Resources & Energy Division, has a dedicated Energy Team which will work to
promote opportunities for renewable energy investment in NSW and support the work of the
Advocate. The team works as a point of contact for renewable energy developers, investors
and industry stakeholders.
CASE STUDY: NSW RESOURCES & ENERGY INVESTMENT
CONFERENCE 2015
The Industry Investment & Export Support branch hosted the biennial Resources & Energy
Investment Conference in July 2015 to explore and discuss policy, finance and industry
developments in NSW. Attendees of the renewable energy session heard from leading
experts about future opportunities for the sector in NSW, including funding opportunities
for commercial solar, financing renewables, opportunities for wind energy in NSW and the
Australian Renewable Energy Mapping Infrastructure project.
(L–R): KANE THORNTON – CHIEF EXECUTIVE – CLEAN ENERGY COUNCIL. IAN KAY – CHIEF FINANCIAL OFFICER – AUSTRALIAN
RENEWABLE ENERGY AGENCY. THEODORE DOW – CHIEF INVESTMENT OFFICER – CLEAN ENERGY FINANCE CORPORATION. MILES
GEORGE – MANAGING DIRECTOR – INFIGEN ENERGY. PETER LEIHN – DIRECTOR ENVIRONMENT BUSINESS TEAM – NICTA.
15
$
$2.1m
to support AREMI’s
mapping project
$750k
towards advanced batteries for
renewable energy storage
$452k
towards a sophisticated cloud
tracking solution
$250k
towards local network charges &
local electricity trading
ARENA has committed
$533m to 122 projects
across NSW
$2.97m
to improving commercial
silicon solar cells
$296k
towards a financial toolkit
for community energy projects
Strategic projects
Aside from providing focused support for renewable
energy proponents, the Energy Team has also been
working to support a number of strategic projects
that will facilitate renewable energy investment in
NSW. One of these projects is TransGrid’s Renewable
Energy Hub, which would facilitate the connection
of several renewable energy generators to the
NSW electricity grid in the northern NSW region.
If realised, the Hub would be a cost-effective and
efficient way to increase renewable energy in
northern NSW, supporting regional job growth and
driving investment in renewable energy.
Commonwealth funding
The NSW Government has continued to work with
the Clean Energy Finance Corporation (CEFC) and
Australian Renewable Energy Agency (ARENA)
to leverage Commonwealth funding for renewable
energy projects in NSW.
The CEFC currently has $135 million of investment
commitments in NSW towards projects valued at
nearly $650 million. Businesses and households in
NSW could also benefit from some of the nearly
$200 million in CEFC financing available through
national financing programs for small-scale solar,
storage and other clean energy technologies.
NSW businesses have shown strong interest in CEFC
financing for clean energy projects. The CEFC is
in discussion with project proponents regarding
investment opportunities worth over $200 million
relating to renewable projects in NSW valued at
almost $1 billion, predominantly spread across solar
photovoltaic and bioenergy technologies.
16
CASE STUDY: SUNEDISON LAUNCH IN NSW
SunEdison, the world’s largest renewable energy developer, chose Sydney for its Australian
financial headquarters. SunEdison’s growth plans include opening warehouse facilities in
Greater Sydney and increasing the number of staff employed in their NSW operations,
including work for their 20 major delivery and installation partners across the State. The
relationship between SunEdison and the NSW Department of Industry goes back to 2010 and
was maintained until 2015 when the company looked to launch pioneering solar solutions in
the Australian market.
ACTION 6: Request IPART to estimate a benchmark range for a fair
price for small-scale generated solar energy
Responsibility: NSW Department of Industry – Resources & Energy Division
The NSW Government is committed to a sustainable and predictable future for the solar
industry. The Independent Pricing and Regulatory Tribunal (IPART) continues to annually
estimate a benchmark range for solar feed-in tariffs to maintain a fair and equitable price for
solar. The range is not mandatory, but helps customers to compare and negotiate energy deals
with retailers.
More households and small businesses are seeing the benefit of installing solar on their
rooftops and over 320,000 NSW customers have now adopted solar energy as of July 2015.
These customers understand that the financial benefit from solar is in reducing the amount of
electricity they draw from the grid and thereby lowering their bills.
In the second year of the Plan, the NSW Government provided IPART with terms of reference
to conduct a review for the Final Determination for 2015–16. IPART made their Final
Determination that the benchmark range is 4.7 to 6.1 c/kWh and the retailer contribution is
5.2 c/kWh on 15 October 2015. The Final Determination took effect on 15 November 2015.
“With the commercial solar sector on
the cusp of huge growth and NSW set to
be a hub of this industry’s development,
SunEdison is excited to be a part of the
state’s commercial solar revolution. We
look forward to installing more of our clean
power solutions across the state; enabling
businesses to save on energy costs and
contributing towards their sustainability
efforts.” Jeremy Rich, Managing Director –
Australia, SunEdison
NSW MINISTER FOR INDUSTRY, RESOURCES & ENERGY THE
HON ANTHONY ROBERTS MP WITH NICK BRASS, HEAD
OF COMMERCIAL AND INDUSTRY SALES, SUNEDISON
AUSTRALIA, AT THE COMPANY’S LAUNCH IN SYDNEY
17
ACTION 7: Develop a regularly updated information package for
small-scale solar PV, solar hot water and wind generation through
the newly created online information portal
Responsibility: NSW Department of Industry – Resources & Energy Division
The Office of Environment & Heritage NSW released two guides providing businesses with
the information they need to pursue renewable energy projects and adopt energy efficiency
measures in the second year of the Plan, including; the ‘Guide to Installing Solar PV for
Businesses in NSW’, in partnership with the Clean Energy Council, and the ‘Energy Efficiency
and Renewables finance Guide’. The NSW Department of Industry is working to develop an
information package for small-scale solar photovoltaics and emerging technologies such as
battery storage in the third year of the Plan.
ACTION 8: Support mid-scale solar PV by identifying opportunities
and working with electricity distributors to enable uptake of solar
technologies where they are most cost effective
Responsibility: NSW Department of Industry – Resources & Energy Division working with the
Renewable Energy Advocate
Commercial-scale solar has surged in NSW with over 8,800 NSW businesses installing systems
as of July 2015. The NSW Government has worked with industry to facilitate grid connection
and enable cost-effective uptake, and will participate in this growth market through the NSW
Government Resource Efficiency Policy.
NSW Government Resource Efficiency Policy
Under the Policy, NSW Government agencies are required to identify and enable solar leasing
opportunities on appropriate government properties. To date, agencies have completed
assessments at 80 per cent of government properties and over 200 sites have been identified
as suitable locations for solar panel installations under Power Purchase Agreements. The
Office of Environment & Heritage NSW (OEH) and the NSW Department of Education will now
develop a panel of preferred suppliers, with a contract to support government agencies to
install solar panels, where appropriate.
Environmental Upgrade Agreements
During the past year, OEH has worked extensively with industry to assess the suitability of
Environmental Upgrade Agreements (EUAs) to support the deployment of commercial-scale
renewable energy. Feedback from the Clean Energy Finance Corporation and a number of
commercial solar companies has indicated that EUAs offer a number of key advantages over
existing financing options. In response, OEH will hold a number of seminars highlighting how
EUAs can be applied to the deployment of commercial solar, with the aim to enable further
uptake in this sector.
COMMERCIAL SOLAR INSTALLATION FROM EPHO (PHOTO COURTESY EPHO)
18
NSW MINISTER FOR INDUSTRY, RESOURCES AND ENERGY, THE HON ANTHONY ROBERTS MP, AND NSW MINISTER FOR ENVIRONMENT,
THE HON MARK SPEAKMAN MP, ALONG WITH PROJECT PARTNERS FROM ARENA, AGL, FIRST SOLAR AND BOGAN SHIRE COUNCIL AT
NYNGAN TO COMMEMORATE THE INSTALLATION OF THE FINAL PANEL
ACTION 9: Work with the Commonwealth Government to facilitate
construction of the Solar Flagships project in Broken Hill and
Nyngan
Responsibility: Office of Environment & Heritage NSW working with NSW Department of
Industry – Renewable Energy Advocate
The $440 million Solar Flagships projects owned and operated by AGL in Western NSW at
Nyngan (102 megawatts) and Broken Hill (53 megawatts) have progressed over the past year.
As a key project sponsor, the NSW Government (through the Office of Environment & Heritage
NSW) has worked actively with the Commonwealth Government (through ARENA) to oversee
the management of the AGL investment.
Nyngan Solar Plant
The final solar photovoltaic (PV) module was installed on the Nyngan Solar Plant on 17 April
2015. On 9 June 2015, the Nyngan Solar Plant achieved its maximum design generation
capacity. The plant is currently operating and generating enough clean electricity to power
33,000 NSW households.
Broken Hill Solar Plant
Construction at the Broken Hill Solar Plant is progressing on schedule. By the end of June 2015
more than 50 per cent of the PV modules were generating electricity at the plant, and it is
expected to be fully operational by end of 2015.
19
Goal 2: Build community support
The NSW Government will give the community a say on decisions that
affect it and build community support for renewable energy
ACTION 10: Implement NSW wind energy planning guidelines
Responsibility: NSW Department of Planning & Environment
This action is ongoing.
ACTION 11: Expand the role of the regional coordinators so they
support the community in their early and effective engagement with
renewable energy projects across a greater area of NSW
Responsibility: Office of Environment & Heritage NSW
Regional Clean Energy Program
Under the Program, the Regional Clean Energy Coordinators have continued to facilitate
community engagement with a range of renewable energy technologies, across six regions
in NSW. The Regional Coordinators support communities to participate in renewable energy
initiatives. They provide communities with an opportunity to ask questions as well as access
information, resources and government programs. An evaluation framework has been
established in order to measure the impact of the program.
Over the past year the NSW Office of Environment & Heritage NSW has:
•	 Facilitated open days at renewable energy projects so that local communities have an
opportunity to learn more about them, ask questions and have their views heard.
•	 Supported the Centre for Sustainability Leadership to pilot a custom-designed community
renewable energy leadership program in Northern NSW.
•	 Developed a key partnership with the NSW Farmers Association. Through this partnership
the ‘Renewable Energy in Agriculture’ and ‘Solar-powered Pumping in Agriculture’ guides
were created and shared with regional communities through five seminars. There was strong
interest in the seminars, which attracted around 200 attendees. The seminars and guides will
assist agricultural businesses in NSW to seize the opportunities offered in renewable energy
and energy efficiency.
•	 Supported a consortium to research and develop a blueprint and business case for a Zero
Net Energy Town. The case study town is Uralla in Northern NSW.
•	 Held 18 community clean energy workshops, attracting over 450 people across NSW, and
helping to raise awareness about clean energy technologies and opportunities, as well as
facilitate community connections.
20
CASE STUDY: SOUTH EAST REGION OF RENEWABLE
ENERGY EXCELLENCE
The South East Region of Renewable Energy Excellence (SERREE) initiative is led by Regional
Development Australia ACT and funded by ARENA, the NSW and ACT Governments, and
corporate members. The SERREE Cluster now includes more than 550 members from industry,
government, research and education institutions, plus communities.
SERREE facilitates collaboration and information sharing between renewable energy
stakeholders in order to further develop the industry and benefit regional communities.
Working closely with the NSW Office of Environment & Heritage’s Regional Clean Energy
Program Coordinators, SERREE has a focus on supply chain development, facilitating exports
and the commercialisation of research, with respect to renewable energy in the south east
NSW-ACT region.
In the past year, SERREE has continued to broker linkages across
the membership base through its Network Communications
Portal, and at events such as a series of Regional Renewable
Energy Business Forums. In March 2015, the working group was
formed for a new initiative called the Regional Renewable Energy
Trail. During 2015–16, the Trail will be established to showcase the
diversity of renewable energy technologies and infrastructure
located within the region. Phase 1 of the Trail was launched at
Renewable Energy Day on 30 October.
ACTION 12: Facilitate community ownership of renewable energy
projects by providing tools, standard contracts and project
facilitation support
Responsibility: Office of Environment & Heritage NSW working with NSW Department of
Industry – Renewable Energy Advocate
Community energy projects can provide significant benefits to regional NSW by returning
profits to the local community, increasing local economic activity, developing stronger and
more resilient community networks, increasing local expertise/ capacity and providing
environmental benefits from clean energy.
Growing Community Energy Grants
The NSW Government established the Growing Community Energy grants to reduce the
barriers faced by community energy projects in securing funding for their early stage
development. The grants fund pre-feasibility studies, community engagement, planning and
other activities to help community energy projects develop viable business models and attract
further investment.
The development of the Growing Community Energy grants held in 2014–15 was informed by
a strategic review of a similar grant round in the first year of the Plan and an analysis of the
priority needs of the community energy sector in NSW.
•	 Under the Growing Community Energy grants in 2014–15, the Office of Environment &
Heritage NSW provided $846,000 in early stage funding to 19 groups across the state who
are working to develop community energy projects.
•	 Over 50 applications were received with a total of $2.4 million in funding requested. This
represented a 73 per cent increase in the number of applications for a similar community
energy grant program run in 2013–14.
•	 The 19 successful projects in securing a grant have a total estimated potential energy
production of more than 60,000 megawatt hours per year, which would serve the annual
electricity needs of more than 9,000 NSW households.
21
The Regional Clean Energy Program has also supported 12 community energy groups who
received a Growing Community Energy grant to produce a series of short videos documenting
their projects. The videos will assist grant recipients to engage their local communities and
promoting their projects to potential partners, service providers and investors.
CASE STUDY: REPOWER SHOALHAVEN
After a highly successful initiative to attract investment from local community members,
Repower One Community Solar has installed a 99 kilowatt solar photovoltaic system at the
Shoalhaven Heads Bowling Club. The project received a $10,000 sponsorship from the Office
of Environment & Heritage NSW in 2013–14 which was put to good use in 2014–15 for final
planning and community engagement. The 19 community investors who contributed almost
$120,000 in just 10 days have a projected rate of return on 7.86 per cent per year over the life
of the contract.
In October 2014, the then NSW Minister for the Environment, the Hon Rob Stokes MP, officially
launched the project at the Club. It is expected that the Club will save between $300,000 and
$400,000 in power bills over the next 10 years by using locally produced clean electricity that
benefits the environment and the investors.
Repower Shoalhaven has gone on to raise funds for two more community owned projects,
including a 9 kilowatt solar system for the Kangaroo Valley Community Centre and Ambulance
Station, and a 30 kilowatt solar system on two of the region’s largest churches.
PATRON AT SHOALHAVEN HEAD BOWLS CLUB, NSW
ACTION 13: Promote the benefits to consumers of switching to
GreenPower accredited renewable energy
Responsibility: NSW Department of Industry – Resources & Energy Division working with
Office of Environment & Heritage NSW
The GreenPower Program is a national scheme operated out of the NSW Department of
Industry. GreenPower is the only voluntary government accredited program that enables
an electricity provider to purchase renewable energy on behalf of a household or business.
The NSW Government Resources Efficiency Policy has continued to require all government
agencies except NSW Local Health Districts to purchase a minimum of six per cent of
GreenPower accredited renewable energy.
22
Broadening reach with social media
The Department took a new approach to promoting the benefits to consumers of switching
to GreenPower through a social media strategy in 2014-15. This included the launch of the
GreenPower Facebook page which has been successful in accumulating more than 15,000
followers, 65,000 separate interactions and building an audience reach of more than 1.8 million
people. As a result, the Facebook page is now the largest Australian-based renewable energy
specific page and is in the top five energy related utility pages.
GreenPowered events
The Department raised the profile of renewable energy by assisting Destination NSW and
Sydney Opera House to ‘GreenPower’ the grid-connected illuminations and Sydney LIVE
components of Vivid Sydney. The Office of Environment & Heritage NSW has also proactively
promoted the national scheme, and over the past year more than 15 of their community events,
speaking engagements and seminars have been run with GreenPower.
ACTION 14: Develop a draft NSW Smart Meter Policy
Responsibility: NSW Department of Industry – Resources & Energy Division
Smart meter roll-out
The NSW Minister for Industry, Resources and Energy, the Hon Anthony Roberts MP announced
in October 2014 that smart meters will be made available to electricity customers across NSW,
through a voluntary market-led rollout. This is to ensure competition in metering services
is coupled with customer choice. Minister Roberts gave a detailed briefing at the NSW
Smart Energy Forum in November 2014 at the Newcastle Institute for Energy and Resources
which brought together a range of key representatives from the electricity supply industry,
technology providers and energy customers.
Metering rule change
This policy has complemented work on the Council of Australian Governments (COAG)
Energy Council rule change to support competition in metering. The Council, including the
NSW Government, submitted the rule change to support new electricity market products and
services. Our aim is to encourage competition between electricity retailers and meter service
providers by giving customers the choice of having a smart meter installed.
SYDNEY OPERA HOUSE’S LIGHT SHOW AT VIVID SYDNEY WAS POWERED BY GREENPOWER ACCREDITED RENEWABLE ENERGY
(PHOTO COURTESY DESTINATION NSW)
23
Goal 3: Attract and grow renewable
energy expertise
The NSW Government will attract and grow expertise in NSW and
focus on moving renewable energy technologies from R&D to
demonstration and deployment.
ACTION 15: Investigate opportunities to support renewable energy
experience centres and demonstration projects
Responsibility: NSW Department of Industry – Resources & Energy Division
NSW Energy Innovation Knowledge Hub
The NSW Government has supported the establishment of the NSW Energy Innovation
Knowledge Hub at the Newcastle Institute for Energy and Resources (NIER), University of
Newcastle. The Hub has continued to foster research and development and aims to support a
strong energy equipment technology and services sector for NSW.
While the Hub is industry-led, the Government has provided support through the Knowledge
Hubs Initiative. The Initiative includes co-funding key projects, facilitation support, assisting
in strategic development by linking the Hub to applicable Government programs and
opportunities and has helped to create cross-sectoral connections across different Knowledge
Hubs.
A key objective of the Hub is to support a new collaborative energy sector in the Hunter
region, with the potential for NSW to help meet global needs through the exportation of
innovative, newly developed technologies. In 2014–15, the Hub embarked on a series of
programs to facilitate information exchange between business and the research community
including:
•	 An Energy Industry Strategy Workshop held on 10 October 2014 at NIER with speakers
including government, industry representatives and researchers.
•	 A website designed to link larger technology businesses with SMEs, provide access to
resources/events and facilitate collaboration between researchers and industry.
•	 An industry discussion at the Australian Energy Storage Conference 2015 chaired by Interim
Hub Director Dr Alan Broadfoot on ‘Optimising and Expanding Energy Networks using
Energy Storage’.
•	 An Australian Energy Storage Investment seminar following the Conference on the
investment landscape and opportunities for energy storage companies.
24
CASE STUDY: LORD HOWE ISLAND HYBRID RENEWABLE
ENERGY SYSTEM
Lord Howe Island is located 700 km north east across the Tasman Sea from Sydney and is
UNESCO world heritage listed. The NSW Government and ARENA funded the $11.6 million
hybrid renewable energy project which includes 450 kilowatts (kW) of ground mounted solar
photovoltaics, two 275 kW tilting wind turbines and 400 kW of battery storage. The project
is seeking to demonstrate an advanced renewable energy system in a remote location by
replacing 70 per cent of diesel powered electricity generation.
In the past year, work has commenced with a wind and avifauna monitoring mast erected.
Utilising the mast and advice from suppliers, the Technical Feasibility Study has now been
completed. Strong community support has continued to be fostered and consultation has
been undertaken to understand the attitudes of residents and visitors to the project. A Noise
assessment which forecast noise levels at each property on the island was also finalised and a
Development Application has been lodged.
LORD HOWE ISLAND, NSW (PHOTO COURTESY LORD HOWE ISLAND BOARD)
Action 16: Conduct renewable energy research roundtables to
promote and showcase research, development and investment in
renewable energy technologies
Responsibility: Office of NSW Chief Scientist & Engineer
NSW State of Solar Breakfast
The NSW Department of Industry, Resources & Energy Division, hosted the NSW State of
Solar Breakfast in July 2015, which promoted the world-class solar research and development
expertise in NSW.
The event drew a diverse group of stakeholders with over 130 attendees interested in the rise
of solar, including executives from major financial institutions, renewable energy development
companies, State and Commonwealth Government agencies, utilities and electricity network
operators.
Distinguished speakers at the event included Kylie Hargreaves, Deputy Secretary of the
Resources & Energy Division, Professor Scientia Martin Green from University of New South
Wales, Greg Bourne, Chairman of the Australian Renewable Energy Agency, Professor Mary
O’Kane, NSW Chief Scientist & Engineer, Wes Stein, Solar Program Leader at CSIRO, and Dr
Anna Bruce, Secretary of the Australian Photovoltaic Institute. The proceedings were chaired
by the Renewable Energy Advocate.
25
Professor Green provided the keynote address on the ground-breaking solar research being
carried out at the University of New South Wales. Professor Green is world-renowned for his
research success over the past 30 years in the field of photovoltaics. He is often referred to as
‘the father of photovoltaics’ because of the immense contribution he has made in paving the
way for the solar technology that is now on rooftops across the world.
ACTION 17: Promote NSW as a leader of research and innovation in
renewable energy
Responsibility: NSW Department of Industry – Renewable Energy Advocate working with
Office of NSW Chief Scientist & Engineer
NSW Research Map
In July 2015, the Office of NSW Chief Scientist & Engineer launched the interactive NSW
Research Map (http://www.chiefscientist.nsw.gov.au/nsw-science-and-research-map/centre-
map) to promote the State’s higher education, science and research and development facilities
in an easy-to-use geospatial format. The map has been designed to raise the profile of NSW
universities/ research centres, to be a useful tool for the development of research, industry and
international collaborations. The tool was jointly funded by the Office of NSW Chief Scientist &
Engineer, the NSW Office of Science and Research and StudyNSW.
Research Attraction and Acceleration Program
We are supporting innovation and investment in the State’s research and development
capacity through providing $18 million in 2015–16 under the Research Attraction and
Acceleration Program, presenting potential opportunities for the renewable energy research
sector.
International collaboration
Seeking to foster international collaboration, the NSW Government signed a historic
Memorandum of Understanding with Japan’s National Institute of Materials Science (NIMS)
in September 2014. The agreement will allow NSW researchers to visit NIMS, provide greater
opportunity to organise symposia, conferences or workshops and encourage joint research
activities between NIMS and NSW researchers. New materials are vital to technology programs
in many renewable energy technologies.
Commonwealth funding
In addition, NSW universities have been particularly strong in utilising Commonwealth
Government research grants over the past year. Research institutions in NSW secured the
largest share from the Australian Research Council (ARC) at $25.2 million, including four
renewable energy projects and $87.9 million from the ARC Discovery Fund, including 16
renewable energy and sector-related projects.
ACTION 18: Continue the recently created NSW Renewable Energy
Innovation Prize as part of the NSW Science and Engineering
Awards
Responsibility: Office of NSW Chief Scientist & Engineer
The NSW Chief Scientist & Engineer hosted the NSW Science and Engineering Awards in
October 2014. The prize for NSW Renewable Energy Innovation was awarded this year to
Professor Behdad Moghtaderi from the University of Newcastle for his GRANEX™ heat engine
invention.
26
Professor Moghtaderi is the Head of Chemical Engineering at the University of Newcastle. The
focus of his research is the development of technologies suitable for reducing greenhouse
emissions, particularly with regard to renewable energy systems, advanced clean coal
technologies, hydrogen powered micro-energy systems and energy efficiency.
ACTION 19: Establish a working group to develop an advanced
bioenergy initiative supporting supply and demand for renewable
transport fuels and power generation
Responsibility: NSW Department of Industry – Resources & Energy Division
We have undertaken planning for pathways to an advanced bioenergy initiative in NSW.
This work will be presented to the Advanced Bioenergy Working Group, with an aim to have
Working Group endorsement for a program of work in early 2016.
ACTION 20: Support R&D in advanced bioenergy applications in
collaboration with Rural Climate Solutions at the University of New
England
Responsibility: NSW Department of Primary Industries
The agreement between Rural Climate Solutions at the University of New England and the
NSW Department of Primary Industries (DPI) has concluded, with the two parties continuing to
collaborate on related but separate project work.
DPI will continue to explore renewable energy systems projects in areas such as:
•	 Understanding opportunities and limitations for renewable energy generated from forest
residues.
•	 Greenhouse gas emissions from forest products.
•	 Ethanol production from agricultural wastes.
•	 Understanding impacts of feedstock utilisation for renewable energy.
We released the Bioenergy Work Plan in late 2014 as the implementation component of
the National Research, Development and Extension Strategy for Primary Industries in the
bioenergy sector. The DPI will continue to develop projects aligned with the feedstock and
sustainability tasks identified within the Work Plan.
ACTION 21: Actively support
research into innovative and
commercially viable applications
of geothermal assisted power
generation
Responsibility: NSW Office of the Chief Scientist &
Engineer
Geothermal energy is an emerging industry in NSW
and opportunities are likely to arise in the future
as more research and development is conducted.
Professor Behdad Moghtaderi and his team at the
University of Newcastle has carried out important
research work on heat exchange. PROFESSOR BEHDAD MOGHTADERI IN THE
LABORATORY AT THE UNIVERSITY OF NEWCASTLE.
27
Professor Moghtaderi holds various patents in this area and is a co-inventor of the GRANEX™
heat engine which is being marketed internationally by Granite Power Ltd. The heat engine
generates electricity from geothermal sources and industrial waste heat streams, such as
waste heat from petrochemical plants, cement and brick manufacturers, gas and coal-fired
power plants. The NSW Chief Scientist & Engineer has continued to support and encourage
geothermal energy generation research.
ACTION 22: Identify opportunities to support the integration of
geothermal projects and coal-fired power stations
Responsibility: NSW Department of Industry – Resources & Energy Division
The NSW Department of Industry through Coal Innovation NSW has conducted a research
program in the Darling Basin in partnership with CSIRO to examine the prospect of geothermal
energy. Still ongoing, the program has the potential to form the basis for future research into
understanding geothermal potential within NSW basins and possible future integration with
electricity generation.
ACTION 23: Support R&D in wave and tidal technologies
Responsibility: Office of NSW Chief Scientist & Engineer
Australian Wave Energy Atlas
The NSW Government has continued to support the Australian Wave Energy Atlas project,
led by the CSIRO. The Renewable Energy Advocate is a member of the project’s Steering
Committee and attended the First Stakeholder Workshop in December 2014.
The Wave Atlas will be provided through the Australian Renewable Energy Mapping
Infrastructure (AREMI) project, managed by National ICT Australia (NICTA). The first release
of wave energy resource information including annual mean cycle of wave height, period,
direction and power has been provided to the AREMI team. By the end of 2015, a large
collection of infrastructure and environmental layers such as subsea pipelines, cables and
marine parks will be included.
Advice and support
The Office of NSW Chief Scientist & Engineer has continued to provide advice and support to
wave and tidal technology companies seeking government funding, as well as to support and
encourage NSW universities in this space.
ACTION 24: Continue to support research and deployment of smart
grid technologies
Responsibility: NSW Department of Industry – Resources & Energy Division working with
Office of NSW Chief Scientist & Engineer
Reforms and initiatives
The implementation of smart grid technologies is a focus of reforms and initiatives at both
national and state levels. The ongoing reforms to the National Electricity Market are being
driven by the Council of Australian Government (COAG) Energy Council and supported by
the NSW Minister for Industry, Resources and Energy, the Hon Anthony Roberts MP. Many of
these reforms arise from the Australian Energy Market Commission’s Power of Choice report,
which encourages a demand-side approach to electricity network operation and planning.
These initiatives, including rule changes such as the Demand Management Incentive Scheme,
will encourage smart grid development as an alternative to capital investment in conventional
network infrastructure.
28
Informed discussions and events
In May 2015, Minister Roberts addressed the NSW Intelligent Grids Symposium that promoted
discussion on electricity generation and distribution, emerging technologies and energy
generally. The event was hosted by the NSW Chief Scientist & Engineer and held by the
Australian Academy of Technology Science and Engineering.
The NSW Chief Scientist & Engineer has continued to give a substantial number of speeches
on innovation, promoting the need for business sophistication and technological innovation at
a corporate level, including those stakeholders involved in engineering and renewable energy
projects.
29
References
1.	 NSW Department of Industry, Skills & Regional Development.
2.	According to the Clean Energy Council’s analysis in the Clean Energy Australia Report 2014, there were
more than 4,900 direct renewable energy jobs in NSW in 2014. Due to the production and consumption
induced flow on effects of renewable energy development, it is estimated that for every one direct
renewable energy job in NSW that there are a further two jobs supported by the sector (SKM, Wind
Farm Investment, Employment and Carbon Abatement in Australia, 2012). Combined, this means there
are around 14,800 renewable energy related jobs in NSW in 2014.
3.	Bloomberg New Energy Finance database and the NSW Department of Industry, Skills & Regional
Development.
4.	Australian Energy Market Operator, National Electricity Forecasting Report, June 2015.
5.	Capacity and investment figures are from the NSW Department of Planning & Environment and the NSW
Department of Industry, Skills & Regional Development as at October 2015. Due to the process of energy
projects progressing through development phases and planning assessments, the respective totals are
subject to change on a regular basis.
6.	Australian Energy Market Operator, Emerging Technologies Information Paper, June 2015.
NSW Renewable Energy Action Plan Report 2015

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NSW Renewable Energy Action Plan Report 2015

  • 1. NSW RENEWABLE ENERGY ACTION PLAN Annual Report 2015
  • 2. Title: NSW Renewable Energy Action Plan Annual Report 2015 Author: Department of Industry, Skills and Regional Development Level 48, MLC Centre, 19 Martin Place, Sydney NSW 2000 PO Box 344, Hunter Region Mail Centre NSW 2310 Telephone 1300 736 122 (toll free) Fax 02 9338 6950 Email renewableenergy.advocate@industry.nsw.gov.au Website www.resourcesandenergy.nsw.gov.au © State of New South Wales through the Department of Industry, Skills and Regional Development 2015 This publication is copyright. You may download, display, print and reproduce this material in an unaltered form only (retaining this notice) for your personal use or for non-commercial use within your organisation. To copy, adapt, publish, distribute or commercialise any of this publication you will need to seek permission from the Department of Industry, Skills and Regional Development. First published December 2015 Disclaimer: The information contained in this publication is based on knowledge and understanding at the time of writing. However, because of advances in knowledge, users are reminded of the need to ensure that information on which they rely is up to date and to check the currency of the information with the appropriate officer of the Department of Industry, Skills and Regional Development or the user’s independent advisor. Design reference no. D15-039 Cover image: Nyngan Solar Plant (Photo courtesy AGL)
  • 3. ii Foreword The Hon Anthony Roberts MP Minister for Industry, Resources and Energy Released in 2013, the NSW Renewable Energy Action Plan positions NSW as open for business in renewable energy. It is the cornerstone of the NSW Government’s leadership in, and active support for the sector. We are two years into the Plan, and I am delighted to report that we have continued to deliver on our renewable energy commitments. Through a whole-of-government effort we have now completed half of the 24 actions. Of the 12 completed, several require continued support to maintain the progress already made. On top of this, we are making significant headway on a further eight actions. The energy market has continued to change at an unprecedented rate. The share of generation from solar, wind and bioenergy sources in NSW has more than doubled over the past four years. With exceptional renewable energy resources and world-class research and development institutions, NSW is well-placed to harness the potential of this growth sector. We expect that new energy sources will transition NSW towards an advanced and smart energy system, driving investment and supporting jobs. The NSW Government is also a long-standing supporter of the national Renewable Energy Target. And we will actively take advantage of this investment opportunity in our State. NSW has the potential to be a regional business hub for renewable energy in the Asia-Pacific. Around 35 per cent of renewable energy businesses nationally are headquartered in NSW and the sector supports an estimated 14,800 jobs statewide. Energy security is a priority for the NSW Government because access to reliable, affordable and clean energy is essential to a strong economy and modern society. Renewable energy is expected to play a crucial role in diversifying our generation mix. We’re excited about large-scale pioneering contributions, such as Australia’s largest solar plant at Nyngan in Western NSW, which came online this year. At a community level, over 320,000 NSW households and small businesses are now generating power from the sun. These customers understand that the financial benefit from rooftop solar comes from reducing their bills by lowering the amount of power they buy. We are supporting greater choice and innovation in the way that energy customers manage their consumption, bills and how they participate in the market. We believe that there is an opportunity for new technologies and services, such as energy storage, to play a role in NSW. We will continue to work with the Council of Australian Governments to ensure market rules support a dynamic and contemporary market that facilitates entry and uptake of these new technologies. Our commitment to the people of NSW remains the same - to ensure a secure, reliable, affordable and clean energy future.
  • 4. iii Message from the Advocate Ms Amy Kean NSW Renewable Energy Advocate It’s no secret that NSW lays claim to some of the best renewable energy resources in the world. As the Renewable Energy Advocate, I have the exciting role of realising the significant opportunities that exist in harnessing these resources, through delivering our NSW Renewable Energy Action Plan and working with key stakeholders to facilitate renewable energy projects in NSW. My ultimate goal is to increase renewable energy generation, jobs and investment in our State. I focus on making investing here more attractive, working across government agencies, and developing initiatives that address market barriers. Over the past year, the industry has proven to be resilient. I am proud of the work the NSW Government has done to support industry and communities during this period of transition for the energy market. Commercial-scale solar has surged and communities are increasingly investing in energy projects and generating their own energy. I have continued to work to facilitate greater levels of renewable energy generation. We have seen significant growth in wind and solar developments and I have provided support to 17 large-scale renewable energy projects, totalling a potential 4,500 megawatts of capacity and $6 billion of investment. Almost all of these projects are located in regional NSW. We have worked with stakeholders to address network connection barriers and helped facilitate information exchange and rule changes. I have had the privilege to discuss NSW renewable energy opportunities at over 25 events across the State in the past year. We have the potential to lead the country in the energy storage market - the ‘Holy Grail’ for harnessing our renewable energy resources - with the end of the Solar Bonus Scheme in December 2016 and favourable tariff structures. In the third year of the Plan we are prioritising several areas, including: • Planning for a smooth transition for solar customers and the electricity network, as the Solar Bonus Scheme ends. • Facilitating the TransGrid Renewable Energy Hub in the New England region. • Promoting benefit-sharing of the wind industry in NSW with communities. • Developing the Institute for Sustainable Futures and ARENA’s Network Opportunity Mapping project. • Seeking to build a level playing field for local electricity trading. • Promoting innovative finance models such as Environmental Upgrade Agreements and Power Purchase Agreements. • Developing renewable energy resource maps for the State and further enhancing the Australian Renewable Energy Mapping Infrastructure. I would like to thank the NSW Minister for Industry, Resources and Energy, the Hon Anthony Roberts MP, for his support in driving the Plan, the NSW Government agencies which contributed to accomplishing actions under the Plan, the team at the NSW Department of Industry, Resources & Energy Division, and our colleagues at ARENA and CEFC who have been instrumental in supporting innovative renewable energy projects in NSW. I look forward to supporting the NSW Government in the third year of the Plan.
  • 5. Contents NSW renewable energy snapshot........................................................................................6 Solar and wind energy in NSW............................................................................................7 Progress summary..................................................................................................................8 Goal 1: Attract renewable energy investment.......................................................................... 11 Goal 2: Build community support.................................................................................................19 Goal 3: Attract and grow renewable energy expertise........................................................23 References.............................................................................................................................29
  • 6. Contribution by NSW businesses towards national commercial GreenPower sales1 Renewable energy businesses based in NSW3 Gigawatthours (GWh) NEW ENERGY SOURCES ARE EXPANDING IN NSW PROJECTS COMPLETED 2014–15 PROJECTS IN THE PIPELINE5 RENEWABLES CONTRIBUTION TO NSW ECONOMY The Snowy Hydro Scheme fluctuates from year to year, but other renewable energy sources have grown at a steady rate. Coal 82.3% Snowy Gas (Inc. waste gas and CSG) 6.9% Renewables 10.8% *Includes landfill gas (0.7%), bagasse (0.4%) and other biomass (0.5%) ^Includes heat pump (0.1%) Diversity in the energy mix promotes energy security 2010 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2011 2012 2013 2014 Other renewables 650 MW under construction 2,400 MW approved 4,800 MW seeking approval $9b of investment $900m investment in the economy 380 MW new capacity 140k NSW households powered each year Energy storage GreenPower 32% Business hub 35% Supporting jobs 14,800 Nyngan Solar Plant Gullen Range Wind Farm Boco Rock Wind Farm 3.3% Snowy Hydro 2.2% Solar PV 1.6% Bioenergy* 1.5% Wind 1.4% Solar water heater^ 0.8% Small hydro Generation mix in NSW by fuel type, 20141 Historical trends in renewable energy generation1 Jobs supported by the renewable energy sector in NSW for 20142 NSW is predicted to have the highest integration of solar and storage in the long term4 NSW renewable energy snapshot 6
  • 7. 7 NSW CUSTOMERS ARE CHOOSING ROOFTOP SOLAR NSW IS HOME TO AUSTRALIA’S LARGEST SOLAR PLANT AT NYNGAN 320K 820 MW $3B 1.36 msolar photovoltaic panels 102 MW capacity 250 construction jobs $300m investment 33K homes powered GROWTH OF SMALL TO MEDIUM SCALE SOLAR PV IN NSW 200 MW 960 MW Commercial-scale solar (10–100 kW) Projected commercial-scale solar6 Residential-scale solar (up to 0–10 kW) Projected residential-scale solar6 2010 2011 2012 2013 2014 2015 2020 2025 2030 2035 3,800 MW NYNGAN NSW households and small businesses have adopted small-scale solar* Small-scale solar capacity now installed across NSW Representing substantial investment by NSW customers1 *As at July 2015 Solar and wind energy in NSW 7 2010 2011 2012 2013 2014 2015 ^ Projects over 30 MW 6 major projects online^ HISTORICAL GROWTH OF WIND CAPACITY IN NSW 187MW 281MW 373MW 373MW 545MW 660MW Boco Rock 114 MW Capital 141 MW Cullerin Range 30 MW Gullen Range 166 MW Gunning 47 MW Woodlawn 48 MW
  • 8. 8 Progress summary GOAL 1: Attract renewable energy investment Highlights • The Renewable Energy Advocate and the NSW Department of Industry provided support for 17 large-scale renewable energy projects, totalling a potential 4,500 megawatts of new capacity and $6 billion of investment. • The $440 million Solar Flagships projects progressed with the Nyngan Solar Plant achieving its maximum designed generation capacity and over half of the photovoltaic modules at the Broken Hill Solar Plant are generating electricity. • Over the past year, three large-scale renewable energy projects, including Nyngan Solar Plant, came online, representing over $900 million of investment, 380 megawatts of capacity and enough output to power 140,000 homes each year. • The NSW Government sponsored the Network Opportunity Mapping project led by the Institute of Sustainable Futures, which will highlight opportunities for renewable energy to meet network constraints. Status update NSW Renewable Energy Action Plan Action Progress 1. Improve the process of network connection Progressed 2. Consider a more strategic and integrated approach to assessment of renewable energy projects Ongoing 3. Remove technology-specific barriers to investment Completed 4. Create an online information portal that provides information to investors Progressed 5. Promote and facilitate investment opportunities with the appointment of a Renewable Energy Advocate Completed & Continuing 6. Request IPART to estimate a benchmark range for a fair price for small-scale generated solar energy Completed 7. Develop an information package for small-scale solar PV, solar hot water and wind generation Progressed 8. Support mid-scale solar PV to enable uptake of solar technologies where they are most cost effective Progressed 9. Engage with the Commonwealth Government to facilitate construction of the Solar Flagships Project Completed & Continuing GOAL 2: Build community support Highlights • The NSW Government provided early stage funding of $846,000 under the Growing Community Energy grants to 19 groups across the State who are working to develop community energy projects. • The Regional Clean Energy Coordinators have supported communities to participate in renewable energy initiatives, providing an opportunity to ask questions, as well as access information, resources and government programs. • The GreenPower Program raised the public profile of renewable energy by powering Sydney Opera House and Sydney Live as part of the Vivid Sydney Festival.
  • 9. 9 Status update NSW Renewable Energy Action Plan Action Progress 10. Implement NSW wind energy planning guidelines Ongoing 11. Engage communities early and effectively in renewable energy projects Progressed 12. Facilitate community ownership of five renewable energy projects Completed & Continuing 13. Promote the benefits to consumers of switching to GreenPower accredited renewable energy Completed & Continuing 14. Develop a draft NSW Smart Meter Policy Completed GOAL 3: Attract and grow renewable energy expertise Highlights • The NSW Interactive Research Map was launched by the Office of NSW Chief Scientist & Engineer and StudyNSW to showcase the State’s higher education, science, and research and development facilities. • The Energy Innovation Knowledge Hub is fostering a new collaborative energy sector in the Hunter region and has embarked on a series of programs to facilitate information exchange between business and the research community. • The prize for NSW Renewable Energy Innovation was awarded to Professor Behdad Moghtaderi from the University of Newcastle for his GRANEX™ heat engine invention, which generates electricity from geothermal sources and industrial waste heat streams. • The NSW Government announced it will provide $18 million over the next year to support innovation and investment in the State’s research and development capacity under the Research Attraction and Acceleration Program. This presents potential opportunities for applications from the renewable energy research sector. Status update NSW Renewable Energy Action Plan Action Progress 15. Investigate opportunities to support renewable energy experience centres and demonstration projects Progressed 16. Conduct renewable energy research roundtables Ongoing 17. Promote NSW as a leader of research and innovation in renewable energy Progressed 18. Continue the recently created NSW Renewable Energy Innovation Prize Completed & Continuing 19. Establish a working group to develop an advanced bioenergy initiative Completed 20. Support R&D in advanced bioenergy applications at the University of New England Completed 21. Support research into applications of geothermal assisted power generation Completed 22. Identify opportunities to support the integration of geothermal projects and coal-fired power stations Completed 23. Support R&D in wave and tidal technologies Progressed 24. Continue to support research and deployment of smart grid technologies Progressed BOCO ROCK WIND FARM SOUTH WEST OF NIMMITABEL, NSW (PHOTO COURTESY CWP RENEWABLES)
  • 11. 11 Goal 1: Attract renewable energy investment The NSW Government is focused on practical steps to remove barriers to investment in renewable energy. ACTION 1: Improve the process of network connection Responsibility: NSW Department of Industry – Resources & Energy Division working with the Renewable Energy Advocate Council of Australian Governments The NSW Department of Industry (the Department) has continued to assist in improving network connections through the Council of Australian Governments (COAG) Energy Council, with a focus on improving incentives and information. The NSW Government supported a Council submission to encourage networks to look for low cost alternatives to address network system constraints. These will encourage electricity network operators to consider demand- side actions, including distributed generation, as an alternative to further capital investment in network infrastructure. A further Council rule change was submitted to improve demand management forecast information. Working group for amending Service and Installation Rules The Department convened a working group of utility and industry stakeholders to amend the Service and Installation Rules, which is the code used by electricity network operators when connecting a customer to the distribution network in NSW. Released in June 2015, the Amended Rules are expected to reduce uncertainty and increase consistency for installers and electricity network operators in treating a range of new technologies and configurations. The working group will continue to meet regularly. Network Opportunity Mapping project The Department has become a key sponsor of the Network Opportunity Mapping project (http://nationalmap.gov.au/renewables/) led by the Institute for Sustainable Futures (ISF) at the University of Technology Sydney, along with the Australian Renewable Energy Agency (ARENA). The project will highlight opportunities for distributed generation and other demand-side measures to address network constraints, as an alternative to further capital investment in network infrastructure. This project will be integrated with the Australian Renewable Energy Mapping Infrastructure (see case study) and freely available online maps will be released annually. The sample maps were released on October 2015. National local electricity trading trial The NSW Government has committed support to the national local electricity trading trial (also known as (Facilitating Local Network Charges and Virtual Net Metering project) led by ISF with funding from ARENA, which has NSW ‘virtual trial’ sites at Byron Shire Council and Willoughby City Council. This project has brought together stakeholders to level the playing field for local energy and prepare for the future of the grid. The project is seeking to facilitate partial use of the network and introduce electricity trading between associated customers and generators in the same local distribution network area. Renewable energy resource maps The Geological Survey of NSW will develop renewable energy resource maps of the state over the next year of the Plan. The project will involve working in partnership with National ICT Australia (NICTA) and Geoscience Australia to publish ‘best available’ snapshots of NSW’s world-class renewable energy resources, such as solar, wind and geothermal sources, to attract investment and unlock the potential of further development in this sector.
  • 12. 12 ACTION 2: Consider a more strategic and integrated approach to assessment of renewable energy projects Responsibility: NSW Department of Planning & Environment In November 2014, the NSW Government introduced a framework that ensures large-scale renewable energy projects with the potential to make a substantial contribution to energy security and economic growth are assessed and determined in an efficient way. These projects will be deemed Strategic Energy Projects and will be appointed a case manager from the NSW Department of Premier & Cabinet to monitor their progress through government agencies. Importantly, Strategic Energy Projects will receive no reduction in required environmental standards or community consultation. ACTION 3: Remove technology specific barriers to create a supportive policy and regulatory environment for investment Responsibility: NSW Environment Protection Authority In the first year of the Plan, the NSW Government released the Energy from Waste Policy Statement and provided funding for the development of energy from waste projects through the Waste Less Recycle More initiative. We have now announced funding for a number of projects that involve producing alternative fuel from waste, as well as an Energy From Waste Infrastructure Project at Boral Cement’s Berrima facility. ACTION 4: Create an online information portal that provides information to investors Responsibility: NSW Department of Industry – Renewable Energy Advocate working with Industry Investment & Export Support We have continued to update and improve our delivery of the most relevant and current information to potential renewable energy investors, with value-add inclusions, such as: • Information about the newly established Industry Investment & Export Support branch which has a dedicated Energy Team. • Information about the Australian Renewable Energy Agency’s (ARENA) Advancing Renewables Program. • New case studies on inverter company SMA Australia and solar energy experts Mark Group. • Presentations from the NSW Resources & Energy Investment Conference 2015. The NSW Government has also funded the Australian Photovoltaic Institute to expand its online solar map (http://pv-map.apvi.org.au/historical) to include the ability to search installed capacity by Local Government Area and see the split between residential and commercial systems.
  • 13. 13 CASE STUDY: AUSTRALIAN RENEWABLE ENERGY MAPPING INFRASTRUCTURE The Australian Renewable Energy Mapping Infrastructure (AREMI) project supports early-stage renewable energy projects by providing free online access to spatial data relevant to the energy sector from government, industry and research institutions. The project is led by National ICT Australia (NICTA), with Australian Renewable Energy Agency (ARENA) funding support. AREMI can be used to compare mapping data, such as: • electricity, geothermal and land use data from Geoscience Australia • water and climate data from the Bureau of Meteorology • solar data from other ARENA projects • research from the Australia Bureau of Statistics. Government agencies can use this open data to assist with environmental and regulatory planning approvals and tracking and promoting projects. Energy project developers can freely access spatial information such as existing electricity infrastructure to assist with site identification. Financiers and investors can explore the potential success of proposed ventures. The project will continue development until July 2016 and Geoscience Australia is hosting the AREMI platform until at least July 2019. ACTION 5: Promote and facilitate investment opportunities with the appointment of a Renewable Energy Advocate within the NSW Department of Industry Responsibility: NSW Department of Industry – Renewable Energy Advocate working with Industry Investment & Export Support The Renewable Energy Advocate The Renewable Energy Advocate has continued to work with industry, research institutions and communities to facilitate greater levels of electricity generation from renewable energy sources in NSW. Over the past year, support was provided to 17 large-scale renewable energy projects, totalling a potential 4,500 megawatts of capacity and $6 billion of investment. Almost all of these projects are located in regional NSW. The Advocate provides information on industry developments, opportunities and positions the NSW Government as open for business in renewable energy. The Advocate has presented at a range of major conferences and events, such as: the Australian Clean Energy Summit 2015, Australian Energy Storage Conference 2015, Smart Energy Forum, Corporate Renewable Energy Buyers Forum and Renewable Energy in Agriculture seminars. EXAMPLE OF A GEOTHERMAL MAP AVAILABLE FROM AREMI’S ONLINE PROJECT (http://nationalmap.gov.au/)
  • 14. 14 Company support The NSW Department of Industry has delivered services to companies, such as facilitating connections across government and supporting their information needs by supplying market data, reports, key contacts and introductions. Over the past year, the Department has held launch events for companies accomplishing breakthroughs in NSW, including Photon Energy Australia, ePho and SunEdison (see case study). The Department also hosted the Economics and Energy Committee of the German Parliament, which strengthened relationships and encouraged knowledge sharing between Germany and NSW. Dedicated team The newly established Industry Investment & Export Support branch in the NSW Department of Industry, Resources & Energy Division, has a dedicated Energy Team which will work to promote opportunities for renewable energy investment in NSW and support the work of the Advocate. The team works as a point of contact for renewable energy developers, investors and industry stakeholders. CASE STUDY: NSW RESOURCES & ENERGY INVESTMENT CONFERENCE 2015 The Industry Investment & Export Support branch hosted the biennial Resources & Energy Investment Conference in July 2015 to explore and discuss policy, finance and industry developments in NSW. Attendees of the renewable energy session heard from leading experts about future opportunities for the sector in NSW, including funding opportunities for commercial solar, financing renewables, opportunities for wind energy in NSW and the Australian Renewable Energy Mapping Infrastructure project. (L–R): KANE THORNTON – CHIEF EXECUTIVE – CLEAN ENERGY COUNCIL. IAN KAY – CHIEF FINANCIAL OFFICER – AUSTRALIAN RENEWABLE ENERGY AGENCY. THEODORE DOW – CHIEF INVESTMENT OFFICER – CLEAN ENERGY FINANCE CORPORATION. MILES GEORGE – MANAGING DIRECTOR – INFIGEN ENERGY. PETER LEIHN – DIRECTOR ENVIRONMENT BUSINESS TEAM – NICTA.
  • 15. 15 $ $2.1m to support AREMI’s mapping project $750k towards advanced batteries for renewable energy storage $452k towards a sophisticated cloud tracking solution $250k towards local network charges & local electricity trading ARENA has committed $533m to 122 projects across NSW $2.97m to improving commercial silicon solar cells $296k towards a financial toolkit for community energy projects Strategic projects Aside from providing focused support for renewable energy proponents, the Energy Team has also been working to support a number of strategic projects that will facilitate renewable energy investment in NSW. One of these projects is TransGrid’s Renewable Energy Hub, which would facilitate the connection of several renewable energy generators to the NSW electricity grid in the northern NSW region. If realised, the Hub would be a cost-effective and efficient way to increase renewable energy in northern NSW, supporting regional job growth and driving investment in renewable energy. Commonwealth funding The NSW Government has continued to work with the Clean Energy Finance Corporation (CEFC) and Australian Renewable Energy Agency (ARENA) to leverage Commonwealth funding for renewable energy projects in NSW. The CEFC currently has $135 million of investment commitments in NSW towards projects valued at nearly $650 million. Businesses and households in NSW could also benefit from some of the nearly $200 million in CEFC financing available through national financing programs for small-scale solar, storage and other clean energy technologies. NSW businesses have shown strong interest in CEFC financing for clean energy projects. The CEFC is in discussion with project proponents regarding investment opportunities worth over $200 million relating to renewable projects in NSW valued at almost $1 billion, predominantly spread across solar photovoltaic and bioenergy technologies.
  • 16. 16 CASE STUDY: SUNEDISON LAUNCH IN NSW SunEdison, the world’s largest renewable energy developer, chose Sydney for its Australian financial headquarters. SunEdison’s growth plans include opening warehouse facilities in Greater Sydney and increasing the number of staff employed in their NSW operations, including work for their 20 major delivery and installation partners across the State. The relationship between SunEdison and the NSW Department of Industry goes back to 2010 and was maintained until 2015 when the company looked to launch pioneering solar solutions in the Australian market. ACTION 6: Request IPART to estimate a benchmark range for a fair price for small-scale generated solar energy Responsibility: NSW Department of Industry – Resources & Energy Division The NSW Government is committed to a sustainable and predictable future for the solar industry. The Independent Pricing and Regulatory Tribunal (IPART) continues to annually estimate a benchmark range for solar feed-in tariffs to maintain a fair and equitable price for solar. The range is not mandatory, but helps customers to compare and negotiate energy deals with retailers. More households and small businesses are seeing the benefit of installing solar on their rooftops and over 320,000 NSW customers have now adopted solar energy as of July 2015. These customers understand that the financial benefit from solar is in reducing the amount of electricity they draw from the grid and thereby lowering their bills. In the second year of the Plan, the NSW Government provided IPART with terms of reference to conduct a review for the Final Determination for 2015–16. IPART made their Final Determination that the benchmark range is 4.7 to 6.1 c/kWh and the retailer contribution is 5.2 c/kWh on 15 October 2015. The Final Determination took effect on 15 November 2015. “With the commercial solar sector on the cusp of huge growth and NSW set to be a hub of this industry’s development, SunEdison is excited to be a part of the state’s commercial solar revolution. We look forward to installing more of our clean power solutions across the state; enabling businesses to save on energy costs and contributing towards their sustainability efforts.” Jeremy Rich, Managing Director – Australia, SunEdison NSW MINISTER FOR INDUSTRY, RESOURCES & ENERGY THE HON ANTHONY ROBERTS MP WITH NICK BRASS, HEAD OF COMMERCIAL AND INDUSTRY SALES, SUNEDISON AUSTRALIA, AT THE COMPANY’S LAUNCH IN SYDNEY
  • 17. 17 ACTION 7: Develop a regularly updated information package for small-scale solar PV, solar hot water and wind generation through the newly created online information portal Responsibility: NSW Department of Industry – Resources & Energy Division The Office of Environment & Heritage NSW released two guides providing businesses with the information they need to pursue renewable energy projects and adopt energy efficiency measures in the second year of the Plan, including; the ‘Guide to Installing Solar PV for Businesses in NSW’, in partnership with the Clean Energy Council, and the ‘Energy Efficiency and Renewables finance Guide’. The NSW Department of Industry is working to develop an information package for small-scale solar photovoltaics and emerging technologies such as battery storage in the third year of the Plan. ACTION 8: Support mid-scale solar PV by identifying opportunities and working with electricity distributors to enable uptake of solar technologies where they are most cost effective Responsibility: NSW Department of Industry – Resources & Energy Division working with the Renewable Energy Advocate Commercial-scale solar has surged in NSW with over 8,800 NSW businesses installing systems as of July 2015. The NSW Government has worked with industry to facilitate grid connection and enable cost-effective uptake, and will participate in this growth market through the NSW Government Resource Efficiency Policy. NSW Government Resource Efficiency Policy Under the Policy, NSW Government agencies are required to identify and enable solar leasing opportunities on appropriate government properties. To date, agencies have completed assessments at 80 per cent of government properties and over 200 sites have been identified as suitable locations for solar panel installations under Power Purchase Agreements. The Office of Environment & Heritage NSW (OEH) and the NSW Department of Education will now develop a panel of preferred suppliers, with a contract to support government agencies to install solar panels, where appropriate. Environmental Upgrade Agreements During the past year, OEH has worked extensively with industry to assess the suitability of Environmental Upgrade Agreements (EUAs) to support the deployment of commercial-scale renewable energy. Feedback from the Clean Energy Finance Corporation and a number of commercial solar companies has indicated that EUAs offer a number of key advantages over existing financing options. In response, OEH will hold a number of seminars highlighting how EUAs can be applied to the deployment of commercial solar, with the aim to enable further uptake in this sector. COMMERCIAL SOLAR INSTALLATION FROM EPHO (PHOTO COURTESY EPHO)
  • 18. 18 NSW MINISTER FOR INDUSTRY, RESOURCES AND ENERGY, THE HON ANTHONY ROBERTS MP, AND NSW MINISTER FOR ENVIRONMENT, THE HON MARK SPEAKMAN MP, ALONG WITH PROJECT PARTNERS FROM ARENA, AGL, FIRST SOLAR AND BOGAN SHIRE COUNCIL AT NYNGAN TO COMMEMORATE THE INSTALLATION OF THE FINAL PANEL ACTION 9: Work with the Commonwealth Government to facilitate construction of the Solar Flagships project in Broken Hill and Nyngan Responsibility: Office of Environment & Heritage NSW working with NSW Department of Industry – Renewable Energy Advocate The $440 million Solar Flagships projects owned and operated by AGL in Western NSW at Nyngan (102 megawatts) and Broken Hill (53 megawatts) have progressed over the past year. As a key project sponsor, the NSW Government (through the Office of Environment & Heritage NSW) has worked actively with the Commonwealth Government (through ARENA) to oversee the management of the AGL investment. Nyngan Solar Plant The final solar photovoltaic (PV) module was installed on the Nyngan Solar Plant on 17 April 2015. On 9 June 2015, the Nyngan Solar Plant achieved its maximum design generation capacity. The plant is currently operating and generating enough clean electricity to power 33,000 NSW households. Broken Hill Solar Plant Construction at the Broken Hill Solar Plant is progressing on schedule. By the end of June 2015 more than 50 per cent of the PV modules were generating electricity at the plant, and it is expected to be fully operational by end of 2015.
  • 19. 19 Goal 2: Build community support The NSW Government will give the community a say on decisions that affect it and build community support for renewable energy ACTION 10: Implement NSW wind energy planning guidelines Responsibility: NSW Department of Planning & Environment This action is ongoing. ACTION 11: Expand the role of the regional coordinators so they support the community in their early and effective engagement with renewable energy projects across a greater area of NSW Responsibility: Office of Environment & Heritage NSW Regional Clean Energy Program Under the Program, the Regional Clean Energy Coordinators have continued to facilitate community engagement with a range of renewable energy technologies, across six regions in NSW. The Regional Coordinators support communities to participate in renewable energy initiatives. They provide communities with an opportunity to ask questions as well as access information, resources and government programs. An evaluation framework has been established in order to measure the impact of the program. Over the past year the NSW Office of Environment & Heritage NSW has: • Facilitated open days at renewable energy projects so that local communities have an opportunity to learn more about them, ask questions and have their views heard. • Supported the Centre for Sustainability Leadership to pilot a custom-designed community renewable energy leadership program in Northern NSW. • Developed a key partnership with the NSW Farmers Association. Through this partnership the ‘Renewable Energy in Agriculture’ and ‘Solar-powered Pumping in Agriculture’ guides were created and shared with regional communities through five seminars. There was strong interest in the seminars, which attracted around 200 attendees. The seminars and guides will assist agricultural businesses in NSW to seize the opportunities offered in renewable energy and energy efficiency. • Supported a consortium to research and develop a blueprint and business case for a Zero Net Energy Town. The case study town is Uralla in Northern NSW. • Held 18 community clean energy workshops, attracting over 450 people across NSW, and helping to raise awareness about clean energy technologies and opportunities, as well as facilitate community connections.
  • 20. 20 CASE STUDY: SOUTH EAST REGION OF RENEWABLE ENERGY EXCELLENCE The South East Region of Renewable Energy Excellence (SERREE) initiative is led by Regional Development Australia ACT and funded by ARENA, the NSW and ACT Governments, and corporate members. The SERREE Cluster now includes more than 550 members from industry, government, research and education institutions, plus communities. SERREE facilitates collaboration and information sharing between renewable energy stakeholders in order to further develop the industry and benefit regional communities. Working closely with the NSW Office of Environment & Heritage’s Regional Clean Energy Program Coordinators, SERREE has a focus on supply chain development, facilitating exports and the commercialisation of research, with respect to renewable energy in the south east NSW-ACT region. In the past year, SERREE has continued to broker linkages across the membership base through its Network Communications Portal, and at events such as a series of Regional Renewable Energy Business Forums. In March 2015, the working group was formed for a new initiative called the Regional Renewable Energy Trail. During 2015–16, the Trail will be established to showcase the diversity of renewable energy technologies and infrastructure located within the region. Phase 1 of the Trail was launched at Renewable Energy Day on 30 October. ACTION 12: Facilitate community ownership of renewable energy projects by providing tools, standard contracts and project facilitation support Responsibility: Office of Environment & Heritage NSW working with NSW Department of Industry – Renewable Energy Advocate Community energy projects can provide significant benefits to regional NSW by returning profits to the local community, increasing local economic activity, developing stronger and more resilient community networks, increasing local expertise/ capacity and providing environmental benefits from clean energy. Growing Community Energy Grants The NSW Government established the Growing Community Energy grants to reduce the barriers faced by community energy projects in securing funding for their early stage development. The grants fund pre-feasibility studies, community engagement, planning and other activities to help community energy projects develop viable business models and attract further investment. The development of the Growing Community Energy grants held in 2014–15 was informed by a strategic review of a similar grant round in the first year of the Plan and an analysis of the priority needs of the community energy sector in NSW. • Under the Growing Community Energy grants in 2014–15, the Office of Environment & Heritage NSW provided $846,000 in early stage funding to 19 groups across the state who are working to develop community energy projects. • Over 50 applications were received with a total of $2.4 million in funding requested. This represented a 73 per cent increase in the number of applications for a similar community energy grant program run in 2013–14. • The 19 successful projects in securing a grant have a total estimated potential energy production of more than 60,000 megawatt hours per year, which would serve the annual electricity needs of more than 9,000 NSW households.
  • 21. 21 The Regional Clean Energy Program has also supported 12 community energy groups who received a Growing Community Energy grant to produce a series of short videos documenting their projects. The videos will assist grant recipients to engage their local communities and promoting their projects to potential partners, service providers and investors. CASE STUDY: REPOWER SHOALHAVEN After a highly successful initiative to attract investment from local community members, Repower One Community Solar has installed a 99 kilowatt solar photovoltaic system at the Shoalhaven Heads Bowling Club. The project received a $10,000 sponsorship from the Office of Environment & Heritage NSW in 2013–14 which was put to good use in 2014–15 for final planning and community engagement. The 19 community investors who contributed almost $120,000 in just 10 days have a projected rate of return on 7.86 per cent per year over the life of the contract. In October 2014, the then NSW Minister for the Environment, the Hon Rob Stokes MP, officially launched the project at the Club. It is expected that the Club will save between $300,000 and $400,000 in power bills over the next 10 years by using locally produced clean electricity that benefits the environment and the investors. Repower Shoalhaven has gone on to raise funds for two more community owned projects, including a 9 kilowatt solar system for the Kangaroo Valley Community Centre and Ambulance Station, and a 30 kilowatt solar system on two of the region’s largest churches. PATRON AT SHOALHAVEN HEAD BOWLS CLUB, NSW ACTION 13: Promote the benefits to consumers of switching to GreenPower accredited renewable energy Responsibility: NSW Department of Industry – Resources & Energy Division working with Office of Environment & Heritage NSW The GreenPower Program is a national scheme operated out of the NSW Department of Industry. GreenPower is the only voluntary government accredited program that enables an electricity provider to purchase renewable energy on behalf of a household or business. The NSW Government Resources Efficiency Policy has continued to require all government agencies except NSW Local Health Districts to purchase a minimum of six per cent of GreenPower accredited renewable energy.
  • 22. 22 Broadening reach with social media The Department took a new approach to promoting the benefits to consumers of switching to GreenPower through a social media strategy in 2014-15. This included the launch of the GreenPower Facebook page which has been successful in accumulating more than 15,000 followers, 65,000 separate interactions and building an audience reach of more than 1.8 million people. As a result, the Facebook page is now the largest Australian-based renewable energy specific page and is in the top five energy related utility pages. GreenPowered events The Department raised the profile of renewable energy by assisting Destination NSW and Sydney Opera House to ‘GreenPower’ the grid-connected illuminations and Sydney LIVE components of Vivid Sydney. The Office of Environment & Heritage NSW has also proactively promoted the national scheme, and over the past year more than 15 of their community events, speaking engagements and seminars have been run with GreenPower. ACTION 14: Develop a draft NSW Smart Meter Policy Responsibility: NSW Department of Industry – Resources & Energy Division Smart meter roll-out The NSW Minister for Industry, Resources and Energy, the Hon Anthony Roberts MP announced in October 2014 that smart meters will be made available to electricity customers across NSW, through a voluntary market-led rollout. This is to ensure competition in metering services is coupled with customer choice. Minister Roberts gave a detailed briefing at the NSW Smart Energy Forum in November 2014 at the Newcastle Institute for Energy and Resources which brought together a range of key representatives from the electricity supply industry, technology providers and energy customers. Metering rule change This policy has complemented work on the Council of Australian Governments (COAG) Energy Council rule change to support competition in metering. The Council, including the NSW Government, submitted the rule change to support new electricity market products and services. Our aim is to encourage competition between electricity retailers and meter service providers by giving customers the choice of having a smart meter installed. SYDNEY OPERA HOUSE’S LIGHT SHOW AT VIVID SYDNEY WAS POWERED BY GREENPOWER ACCREDITED RENEWABLE ENERGY (PHOTO COURTESY DESTINATION NSW)
  • 23. 23 Goal 3: Attract and grow renewable energy expertise The NSW Government will attract and grow expertise in NSW and focus on moving renewable energy technologies from R&D to demonstration and deployment. ACTION 15: Investigate opportunities to support renewable energy experience centres and demonstration projects Responsibility: NSW Department of Industry – Resources & Energy Division NSW Energy Innovation Knowledge Hub The NSW Government has supported the establishment of the NSW Energy Innovation Knowledge Hub at the Newcastle Institute for Energy and Resources (NIER), University of Newcastle. The Hub has continued to foster research and development and aims to support a strong energy equipment technology and services sector for NSW. While the Hub is industry-led, the Government has provided support through the Knowledge Hubs Initiative. The Initiative includes co-funding key projects, facilitation support, assisting in strategic development by linking the Hub to applicable Government programs and opportunities and has helped to create cross-sectoral connections across different Knowledge Hubs. A key objective of the Hub is to support a new collaborative energy sector in the Hunter region, with the potential for NSW to help meet global needs through the exportation of innovative, newly developed technologies. In 2014–15, the Hub embarked on a series of programs to facilitate information exchange between business and the research community including: • An Energy Industry Strategy Workshop held on 10 October 2014 at NIER with speakers including government, industry representatives and researchers. • A website designed to link larger technology businesses with SMEs, provide access to resources/events and facilitate collaboration between researchers and industry. • An industry discussion at the Australian Energy Storage Conference 2015 chaired by Interim Hub Director Dr Alan Broadfoot on ‘Optimising and Expanding Energy Networks using Energy Storage’. • An Australian Energy Storage Investment seminar following the Conference on the investment landscape and opportunities for energy storage companies.
  • 24. 24 CASE STUDY: LORD HOWE ISLAND HYBRID RENEWABLE ENERGY SYSTEM Lord Howe Island is located 700 km north east across the Tasman Sea from Sydney and is UNESCO world heritage listed. The NSW Government and ARENA funded the $11.6 million hybrid renewable energy project which includes 450 kilowatts (kW) of ground mounted solar photovoltaics, two 275 kW tilting wind turbines and 400 kW of battery storage. The project is seeking to demonstrate an advanced renewable energy system in a remote location by replacing 70 per cent of diesel powered electricity generation. In the past year, work has commenced with a wind and avifauna monitoring mast erected. Utilising the mast and advice from suppliers, the Technical Feasibility Study has now been completed. Strong community support has continued to be fostered and consultation has been undertaken to understand the attitudes of residents and visitors to the project. A Noise assessment which forecast noise levels at each property on the island was also finalised and a Development Application has been lodged. LORD HOWE ISLAND, NSW (PHOTO COURTESY LORD HOWE ISLAND BOARD) Action 16: Conduct renewable energy research roundtables to promote and showcase research, development and investment in renewable energy technologies Responsibility: Office of NSW Chief Scientist & Engineer NSW State of Solar Breakfast The NSW Department of Industry, Resources & Energy Division, hosted the NSW State of Solar Breakfast in July 2015, which promoted the world-class solar research and development expertise in NSW. The event drew a diverse group of stakeholders with over 130 attendees interested in the rise of solar, including executives from major financial institutions, renewable energy development companies, State and Commonwealth Government agencies, utilities and electricity network operators. Distinguished speakers at the event included Kylie Hargreaves, Deputy Secretary of the Resources & Energy Division, Professor Scientia Martin Green from University of New South Wales, Greg Bourne, Chairman of the Australian Renewable Energy Agency, Professor Mary O’Kane, NSW Chief Scientist & Engineer, Wes Stein, Solar Program Leader at CSIRO, and Dr Anna Bruce, Secretary of the Australian Photovoltaic Institute. The proceedings were chaired by the Renewable Energy Advocate.
  • 25. 25 Professor Green provided the keynote address on the ground-breaking solar research being carried out at the University of New South Wales. Professor Green is world-renowned for his research success over the past 30 years in the field of photovoltaics. He is often referred to as ‘the father of photovoltaics’ because of the immense contribution he has made in paving the way for the solar technology that is now on rooftops across the world. ACTION 17: Promote NSW as a leader of research and innovation in renewable energy Responsibility: NSW Department of Industry – Renewable Energy Advocate working with Office of NSW Chief Scientist & Engineer NSW Research Map In July 2015, the Office of NSW Chief Scientist & Engineer launched the interactive NSW Research Map (http://www.chiefscientist.nsw.gov.au/nsw-science-and-research-map/centre- map) to promote the State’s higher education, science and research and development facilities in an easy-to-use geospatial format. The map has been designed to raise the profile of NSW universities/ research centres, to be a useful tool for the development of research, industry and international collaborations. The tool was jointly funded by the Office of NSW Chief Scientist & Engineer, the NSW Office of Science and Research and StudyNSW. Research Attraction and Acceleration Program We are supporting innovation and investment in the State’s research and development capacity through providing $18 million in 2015–16 under the Research Attraction and Acceleration Program, presenting potential opportunities for the renewable energy research sector. International collaboration Seeking to foster international collaboration, the NSW Government signed a historic Memorandum of Understanding with Japan’s National Institute of Materials Science (NIMS) in September 2014. The agreement will allow NSW researchers to visit NIMS, provide greater opportunity to organise symposia, conferences or workshops and encourage joint research activities between NIMS and NSW researchers. New materials are vital to technology programs in many renewable energy technologies. Commonwealth funding In addition, NSW universities have been particularly strong in utilising Commonwealth Government research grants over the past year. Research institutions in NSW secured the largest share from the Australian Research Council (ARC) at $25.2 million, including four renewable energy projects and $87.9 million from the ARC Discovery Fund, including 16 renewable energy and sector-related projects. ACTION 18: Continue the recently created NSW Renewable Energy Innovation Prize as part of the NSW Science and Engineering Awards Responsibility: Office of NSW Chief Scientist & Engineer The NSW Chief Scientist & Engineer hosted the NSW Science and Engineering Awards in October 2014. The prize for NSW Renewable Energy Innovation was awarded this year to Professor Behdad Moghtaderi from the University of Newcastle for his GRANEX™ heat engine invention.
  • 26. 26 Professor Moghtaderi is the Head of Chemical Engineering at the University of Newcastle. The focus of his research is the development of technologies suitable for reducing greenhouse emissions, particularly with regard to renewable energy systems, advanced clean coal technologies, hydrogen powered micro-energy systems and energy efficiency. ACTION 19: Establish a working group to develop an advanced bioenergy initiative supporting supply and demand for renewable transport fuels and power generation Responsibility: NSW Department of Industry – Resources & Energy Division We have undertaken planning for pathways to an advanced bioenergy initiative in NSW. This work will be presented to the Advanced Bioenergy Working Group, with an aim to have Working Group endorsement for a program of work in early 2016. ACTION 20: Support R&D in advanced bioenergy applications in collaboration with Rural Climate Solutions at the University of New England Responsibility: NSW Department of Primary Industries The agreement between Rural Climate Solutions at the University of New England and the NSW Department of Primary Industries (DPI) has concluded, with the two parties continuing to collaborate on related but separate project work. DPI will continue to explore renewable energy systems projects in areas such as: • Understanding opportunities and limitations for renewable energy generated from forest residues. • Greenhouse gas emissions from forest products. • Ethanol production from agricultural wastes. • Understanding impacts of feedstock utilisation for renewable energy. We released the Bioenergy Work Plan in late 2014 as the implementation component of the National Research, Development and Extension Strategy for Primary Industries in the bioenergy sector. The DPI will continue to develop projects aligned with the feedstock and sustainability tasks identified within the Work Plan. ACTION 21: Actively support research into innovative and commercially viable applications of geothermal assisted power generation Responsibility: NSW Office of the Chief Scientist & Engineer Geothermal energy is an emerging industry in NSW and opportunities are likely to arise in the future as more research and development is conducted. Professor Behdad Moghtaderi and his team at the University of Newcastle has carried out important research work on heat exchange. PROFESSOR BEHDAD MOGHTADERI IN THE LABORATORY AT THE UNIVERSITY OF NEWCASTLE.
  • 27. 27 Professor Moghtaderi holds various patents in this area and is a co-inventor of the GRANEX™ heat engine which is being marketed internationally by Granite Power Ltd. The heat engine generates electricity from geothermal sources and industrial waste heat streams, such as waste heat from petrochemical plants, cement and brick manufacturers, gas and coal-fired power plants. The NSW Chief Scientist & Engineer has continued to support and encourage geothermal energy generation research. ACTION 22: Identify opportunities to support the integration of geothermal projects and coal-fired power stations Responsibility: NSW Department of Industry – Resources & Energy Division The NSW Department of Industry through Coal Innovation NSW has conducted a research program in the Darling Basin in partnership with CSIRO to examine the prospect of geothermal energy. Still ongoing, the program has the potential to form the basis for future research into understanding geothermal potential within NSW basins and possible future integration with electricity generation. ACTION 23: Support R&D in wave and tidal technologies Responsibility: Office of NSW Chief Scientist & Engineer Australian Wave Energy Atlas The NSW Government has continued to support the Australian Wave Energy Atlas project, led by the CSIRO. The Renewable Energy Advocate is a member of the project’s Steering Committee and attended the First Stakeholder Workshop in December 2014. The Wave Atlas will be provided through the Australian Renewable Energy Mapping Infrastructure (AREMI) project, managed by National ICT Australia (NICTA). The first release of wave energy resource information including annual mean cycle of wave height, period, direction and power has been provided to the AREMI team. By the end of 2015, a large collection of infrastructure and environmental layers such as subsea pipelines, cables and marine parks will be included. Advice and support The Office of NSW Chief Scientist & Engineer has continued to provide advice and support to wave and tidal technology companies seeking government funding, as well as to support and encourage NSW universities in this space. ACTION 24: Continue to support research and deployment of smart grid technologies Responsibility: NSW Department of Industry – Resources & Energy Division working with Office of NSW Chief Scientist & Engineer Reforms and initiatives The implementation of smart grid technologies is a focus of reforms and initiatives at both national and state levels. The ongoing reforms to the National Electricity Market are being driven by the Council of Australian Government (COAG) Energy Council and supported by the NSW Minister for Industry, Resources and Energy, the Hon Anthony Roberts MP. Many of these reforms arise from the Australian Energy Market Commission’s Power of Choice report, which encourages a demand-side approach to electricity network operation and planning. These initiatives, including rule changes such as the Demand Management Incentive Scheme, will encourage smart grid development as an alternative to capital investment in conventional network infrastructure.
  • 28. 28 Informed discussions and events In May 2015, Minister Roberts addressed the NSW Intelligent Grids Symposium that promoted discussion on electricity generation and distribution, emerging technologies and energy generally. The event was hosted by the NSW Chief Scientist & Engineer and held by the Australian Academy of Technology Science and Engineering. The NSW Chief Scientist & Engineer has continued to give a substantial number of speeches on innovation, promoting the need for business sophistication and technological innovation at a corporate level, including those stakeholders involved in engineering and renewable energy projects.
  • 29. 29 References 1. NSW Department of Industry, Skills & Regional Development. 2. According to the Clean Energy Council’s analysis in the Clean Energy Australia Report 2014, there were more than 4,900 direct renewable energy jobs in NSW in 2014. Due to the production and consumption induced flow on effects of renewable energy development, it is estimated that for every one direct renewable energy job in NSW that there are a further two jobs supported by the sector (SKM, Wind Farm Investment, Employment and Carbon Abatement in Australia, 2012). Combined, this means there are around 14,800 renewable energy related jobs in NSW in 2014. 3. Bloomberg New Energy Finance database and the NSW Department of Industry, Skills & Regional Development. 4. Australian Energy Market Operator, National Electricity Forecasting Report, June 2015. 5. Capacity and investment figures are from the NSW Department of Planning & Environment and the NSW Department of Industry, Skills & Regional Development as at October 2015. Due to the process of energy projects progressing through development phases and planning assessments, the respective totals are subject to change on a regular basis. 6. Australian Energy Market Operator, Emerging Technologies Information Paper, June 2015.