Renewable Energy

in NSW SERREE 31 May 2016

May 2016

Facilitate the creation of at least

150,000 new jobs by 2019,

including 30,000 in regional

NSW

NSW Dept. of Industry - Our Work

Support government decision-

making and regulation with

information

Reach out to industry, community

and other parts of government, to

deepen understanding &

collaboration

Be a responsible and

engaged department

driven by a culture of

innovation and

collaboration 1

Our Sectors: Energy

Silver, lead & zinc mine, Broken Hill

• NSW is Australia’s largest energy consumer

• Electricity demand is ~ 66 GWh

• 2.2 million poles & 272,000km of wires

• 99.98% reliability, >3m customers

• More than $320K households and businesses have gone solar (>10%)

2

NSW Renewable Energy Action Plan

Key REAP goals:

1. Attract investment in NSW projects

2. Build community support for RE

3. Attract and grow expertise in RE

technology

3 http://www.resourcesandenergy.nsw.gov.au/energy-consumers/sustainable-energy/renewable-energy-action-plan

Renewable energy and regional development

4

Electricity NEM scheduled capacity (2015)

5

16

11 11

4

2

0

2

4

6

8

10

12

14

16

18

NSW Qld Vic SA Tas

GW

NSW Generation 2016 year to date

6

87%

5% 8%

0

5,000

10,000

15,000

20,000

25,000

Coal Gas Renewable

GWh

NEM generation by type 2014-15

7

0

10,000

20,000

30,000

40,000

50,000

60,000

Qld NSW Vic SA Tas

GWh

Coal Gas Diesel Wind Hydro Interconnector Other

NEM change in generation, 2011-15

8

4,771

6,055 6,624 8,558

9,386

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2010-11 2011-12 2012-13 2013-14 2014-15

GWh

Wind Coal Gas Diesel Hydro Interconnector Other

NSW Generation by type, 2011-15

9

NSW generation ytd - % of total renewable energy

10

66%

29%

5%

0

200

400

600

800

1000

1200

1400

Hydro (incl Snowy Scheme) Wind Solar

GWh

New CCGT

New coal

0

20

40

60

80

100

120

140

160

2015 2017 2019 2021 2023 2025 2027 2029

Note: Coal and CCGT prices exclude carbon costs.

Source: Bloomberg New Energy Finance, Australia 2015 LCOE update, 18 June 2015 11

$/M

Wh

Cost of solar and wind decreasing and competitive

New CCGT

New coal

0

20

40

60

80

100

120

140

160

2015 2017 2019 2021 2023 2025 2027 2029

Large-scale PV LCOE Range 14-21% capacity factor

Growth of renewable energy in NSW

Snowy Hydro Scheme

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

All other renewables

GWh

1

2 At July 2015

Renewable energy project pipeline

650 MW

under

construction

$9b of investment

2,800 MW

approved

4,600 MW

seeking

approval

13 At October 2015

Rapid growth in wind capacity in NSW

*Projects over 30 MW as at August 2015.

2010 2011 2012 2013 2014 2015

187

MW

281

MW

373

MW

373

MW

545

MW

660

MW Major projects online*

Boco Rock 1 14 MW

Capital 141 MW

Cullerin Range 30 MW

Gullen Range 166 MW

Gunning 47 MW

Taralga 107 MW

1

4

Woodlawn 48 MW

Renewable energy jobs in NSW

Wind, 670

Solar PV, 2804

Solar hot water, 169

Snowy, 746

Bioenergy, 510

Solar thermal, 20

14,800

Total Jobs 9,856

Supply Chain

4,928

Direct Jobs

+ =

15 At July 2015

NSW leads the Southern Hemisphere in

large-scale solar

1.36 m solar photovoltaic panels

102 MW capacity

250 construction

jobs

$300m investment

33K homes

powered

NYNGAN

And:

Broken Hill Solar Plant (53 MW)

Moree Solar Farm(56 MW)

16 At October 2015

.

NSW ARENA-Shortlisted Solar PV

Project Developer Location MW Capex

($ million)

Construction

jobs

Operational

jobs

Capital Infigen Bungendore 39.0 150 50 5

Manildra Infigen Manildra 42.4 106 110 5

Parkes Neoen Parkes 46.0 50 120 3

Griffith Neoen Griffith 26.4 50 90 2

Riverina SF Suntech Griffith 33.9 60 3 3

Dubbo Neoen Dubbo 22.4 n/a 120 3

White Rock Goldwind Glen Innes 20.0 45 n/a n/a

Gidginbung Epho Temora 12.2 30 n/a n/a

17

Small-scale solar in NSW

320K

820 MW

$3B

NSW households and small businesses have adopted small-scale solar

Small-scale solar capacity now installed across NSW

Representing substantial

investment by NSW customers

18 As at July 2015

Growth of small-medium scale solar in NSW

Commercial-scale solar (10-100 kW)

Projected commercial-scale solar

Small-scale solar (0-10 kW)

Projected small-scale solar

200 MW

960 MW

2010 2011 2012 2013 2014 2015 2020 2025 2030 2035

3,800 MW

19 At July 2015

NSW Storage Opportunities

Commercial scale

20 http://www.vastsolar.com/community/project-updates/82-jemalong-thermal-solar-station-project-update-may-2014

Vast Solar’s

Jemalong

CSP

Benefits of Storage

▪ Lower electricity prices

▪ Cost savings

▪ Greater flexibility

▪ Opportunity to modernise & enhance our grid

▪ In front of the meter

21

NSW Storage Opportunities

High uptake of solar PV (10% of NSW homes)

End of the NSW Solar Bonus Scheme in December 2016

Up to 1.5 million systems Australia-wide will require a new inverter by

2020

Favourable time of use retail tariffs

22 Source: Bloomberg New Energy Finance, Australia – Energy Smart Technologies – Research Note, 19 November 2014

Network Opportunities Mapping

23 http://nationalmap.gov.au/renewables/

TransGrid’s network

24

25 Source: TransGrid, ‘The grid’s role in a low carbon economy’, July 2014

TransGrid Renewable Energy Hub

TransGrid Renewable Energy Hub

Without hub

26

TransGrid Renewable Energy Hub

With Hub

27

Potential Future Renewable Energy Hubs

28 Source: TransGrid

Regions of

interest

Local Electricity Trading

29 http://www.uts.edu.au/research-and-teaching/our-research/institute-sustainable-futures/our-research/energy-and-climate-2

SMNW renewable energy procurement

30

Cost-effective model to offset the

operational emissions of

infrastructure project

137 GWh of renewable energy

from a new project in NSW

Support around 60 MW of solar or

40 MW of wind

Drives new investment and jobs in

regional NSW

NSW Commercial Solar Guide

http://www.environment.nsw.

gov.au/business/solar-

finance-guide.htm

31

Community Attitudes - Report

32 http://www.environment.nsw.gov.au/communities/community-attitudes.htm

Benefit sharing – EY report

33 http://www.environment.nsw.gov.au/resources/communities/EY-wind-farm-shared-benefits.pdf

Thank you

Paul Bourke

Key Account Manager Energy

NSW Department of Industry, Skills &

Regional Development

Paul.bourke@industry.nsw.gov.au