Ian ChapmanDirector, Energy Security Taskforce

Department of Energy and Water Supply 18 August 2017

Powering Queensland Plan

Why did we need an integrated energy strategy?

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1999

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2017

QLD wholesale electricity price ($/MWh)

Resulting in unprecedented pricing outcomes across NEM,

including QLDIncreasing electricity and

gas prices

Issues around system security and gas availability

Lack of integrated national energy and climate policy

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The $1.16 billion Powering Queensland Plan

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Delivering against five objectives:

Long-term security of supply

Stable electricity and gas prices for

consumers

Transition to a low carbon electricity

sector

Value for Government

Investment to the state

KEYOBJECTIVES

Priorities out of the Powering Queensland Plan

Planned and measured transition to a low carbon electricity sector

Reaffirm commitment to 50% renewable energy target

Powering North Queensland

Queensland Energy Security Taskforce

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50 Percent Renewable Target

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► Commitment to 50% renewable energy target

► 400 MW reverse auction (including 100 MW energy storage)

► Improve network connection, planning and project facilitation processes

► Advocate for policy certainty through efficient, nationally-integrated energy and climate policies

► Set long-term policy mechanism in 2019

Government response to the Renewable Energy Expert Panel Final Report

50% Renewable Energy Target

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Powering North Queensland Plan

$386 million to strengthen and diversify North Queensland’s energy supply, drive economic growth and support 5000 jobs

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► Strategic transmission infrastructure in north and north-west Queensland

► Hydro-electric and pumped storage generation capacity assessment

► Business case for Burdekin Falls Dam 50 MW hydro-electric power station

► North Queensland strategic gas pipeline infrastructure options

Hughenden Sun Farm

Kidston Solar Project

High Road Wind Farm

Forsayth Wind Farm

Kennedy Energy Park -Solar

Kidston Hydro Project

Mount Emerald Wind Farm

Tableland Sugar Mill CAIRNS

TOWNSVILLE

Kennedy Energy Park -Wind

Clare Solar Farm

Sun Metals Solar Farm

Ross River Solar Farm

INDICATIVE TRANSMISSION PATH IN NORTH QLD

Queensland Energy Security Taskforce

Short and long term energy security plans

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Short-term• Queensland Summer Preparedness Plan for 2017-18 and 2018-19• Demand Management and Energy Efficiency Strategy

Long-term• Finkel Review implementation• Feasibility of strategic transmission in north-west Qld• Study into potential new hydro-electric sites• Feasibility of expanded interconnection• Preparation for 2019 and beyond – Power system modelling

2.0%

11.5%

3.3%

9.6%

19.9%

ACT 19.0%

10.9%

0.5%

Wholesale price outcomes – QLD, at 8 Aug 2017

Retail price outcomes 2017-18

2018

QLD

Bas

e fu

ture

s pr

ice

($/M

Wh)

Actions to place downward pressure on wholesale prices have had an immediate effect

Retail electricity price increases lower in Qld than mainland NEM states

Key outcomes:

Jul 2

016

Aug

2016

Sep

2016

Oct

201

6

Nov

201

6

Dec

2016

Jan

2017

Feb

2017

Mar

201

7

Apr 2

017

May

201

7

Jun

2017

67.7

71.8

75.8

79.9

83.9

88.0

92.0

96.1

100

63.7

“15.4% reduction since PQP

announced”

Jul 2

01759.6

$91.15/MWh, 5 June 2017

$77.14/MWh, 8 Aug 2017

Aug

2017

8

RECENTLY OPERATIONAL 40 MW

SOLAR 17 PROJECTS 1,117 MW

WIND 2 PROJECT 633 MW

BIOMASS 1 PROJECT 24 MW

EXISTING RENEWABLES

COMMITTED RENEWABLES

1,814 MW

Collinsville Solar Power Station (42 MW)

Lakeland Solar Farm (11 MW)

Mount Emerald Wind Farm (180 MW)

Tableland Sugar Mill (24 MW)Normanton Solar Farm (5 MW)

Sun Metals Solar Farm (125 MW)Ross River Solar Farm (135 MW)

Clare Solar Farm (100 MW)Kidston Solar Project (50 MW)

Hughenden Solar Farm (14 MW)

Barcaldine Solar Farm (25 MW), operational Dec 16

Lilyvale Solar Farm (100 MW)

Emerald Solar Park (70 MW)

Darling Downs Solar Farm (110 MW)

Oakey Solar Farm (25 MW)

Sunshine Coast Solar Farm (15 MW), operational Jul 17

Queensland’s renewable energy generation is set to double over the next 12 months, as over 1,800 megawatts of projects come online

Key outcomes:

Hamilton Solar Farm (57.5 MW)Whitsunday Solar Farm (57.5 MW)

Longreach Solar Farm (15 MW)

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Daydream Solar Farm (150 MW)

Hayman Solar Farm (50 MW)

Coopers Gap Windfarm (453 MW)

Dec

Ener

gy S

ecur

ity

Task

forc

e

Nov

10

Aug Sept Oct

Release of 400 MW Reverse

Auction EOI

Summer Preparedness

Plan – provided to Govt

Release of battery

manufacturing EOI

Pow

erin

g Q

ueen

sland

Pla

n

First PQP steering

committee mtg

Jan Feb

Release of 400 MW Reverse auction RFQ

Release of Solar Planning Guideline

Launch Renewable

energy portal

Complete 1st round energy

regulation review

GOC review to Government

Return Swanbank E to

service

Strategic transmission EOI

Taskforce advice to Govt on Finkel

recommendations

Strategic transmission

feasibility study to Govt

Mar

Upcoming milestones