Increasing renewable energy off the grid

Ivor Frischknecht

Remote Area Power Supply conference 17 March 2014

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Our  purpose  

1.  Improve    compe,,veness    

of  renewable  energy    technologies  

2.  Increase  supply  

of  renewable  energy  

$2.5B  Funding  to  

2022  

Mission   Help  catalyse  the  development  and  deployment  of  renewable  energy  in  Australia  

Knowledge   Collect,  store  &  disseminate  knowledge  &  learning  

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Off-­‐grid  demand  is  growing    

Example:  WA  Forecast  increased  minerals  and  energy  electricity  demand  by  source    (GWh  per  annum,  incremental  above  2012  levels)    

95% of new energy demand expected to be provided off-grid

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2013 2014 2015 2016 2017 2018

Purchased electricity

Self generated electricity

Source: WA State Growth Outlook 2013, PwC 2012

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Renewables  can  get  the  upper  hand  

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Sun-blessed country

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Lack  of  projects  on  the  ground  in  Australia  causes  barriers  

Financial  •  Costs  unclear  •  Capital  intensive,  favouring  long  projects  •  Energy  purchase  dynamics  

Technical  •  Variable  renewable  output    •  Perceived  reliability  risk  •  Workforce  skills  

Other  •  Decision-­‐making  •  Planning  

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ARENA’s  Regional  Australia’s  Renewables  IniWaWve  

ObjecWves  •  Demonstrate  porXolio  of  renewable  energy  soluWons  in  off-­‐grid  

and  fringe-­‐of-­‐grid  areas  

•  Demonstrate  technical  viability  and  system  reliability    

•  Develop  supporWng  technologies  and  systems  

•  Demonstrate  commercial  viability  of  innovaWve  business  models  

•  Knowledge  sharing  

Eligible  organisaWons  •  CARRE:  Australian  electricity  distributor  or  state  government  

body  

•  I-­‐RAR:  EnWty  incorporated  under  CorporaWons  Act  2001  

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Working  across  two  Programs  

Industry

Size

Type of Support

Location of projects

Community

100kW or more

Grants – capital subsidy via distributors

Off-grid

1MW or more

Grants – capital / or revenue subsidy

Off-grid or fringe-of-grid

OUTCOMES

At least 150 MW 10MW or more of renewable energy renewable energy capacity by 2020 systems by 2018

Provides  up  to  $400m

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Diavik  Diamond  Mine  in  Canada  

Hybrid  wind  installaWon  at  Diavik  Diamond  Mine  

Source:  Rio  Tinto  

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Mining  is  a  key  opportunity  

•  Main  contributor  to  the  increase  in  off-­‐grid  demand  

•  Offse^ng  trucked  in  fuels  with  renewables  reduces  costs  

•  ARENA  has  been  discussing  barriers  with  industry  

•  RAR  expressions  of  interest  closed  at  the  end  of  2013;  received  72  

•  Currently  assessing  applicaWons

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SupporWng  High-­‐value  Australian  Renewable  Energy  (SHARE)  Knowledge  

Funding:  $60m  

More information at www.arena.gov.au

OBJECTIVES:  

•  Increase  awareness  and  acceptance  of  RE  technologies  

•  Assist  project  developers,  investors  and  operators  to  create  viable  RE  projects  and  technologies  

•  Support  ARENA’s  strategic  planning  and  program  design  

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SHARE  iniWaWve  ARENA’s  knowledge  management  program  

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NT  Power  and  Water  solar/diesel  hybrid  

A  hybrid  solar/diesel  installaWon  in  the  Northern  Territory  

Source:  NT  Power  and  Water  CorporaWon  

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NT  Power  and  Water  solar  installaWon  

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Solar/Diesel  mini-­‐grid  handbook    

Available  for  free  at  powerwater.com.au/solardiesel    

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King  Island  Renewable  Energy  IntegraWon  Project  

Renewable  energy  on  King  Island  

Source:  Hydro  Tasmania  

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InnovaWve  and  award  winning  approach  

Energy  dashboard  phone  applicaWon  

Source:  Hydro  Tasmania  

Energy  usage  phone  applicaWon  

Source:  Hydro  Tasmania  

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Biofuels  offer  an  alternaWve  

Barrels  of  Crude  bio-­‐crude  oil  

Source:  Licella  

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Investing for the future

Our  vision:  An  Australian  economy  and  society  increasingly  powered  by  compeWWve  renewable  energy  

arena.gov.au

QuesWons?