NEXTGEN ENERGY STORAGE GRANTS ROUND 4INDUSTRY BRIEFING
20 May 2019
Presentation overview
1. Policy background
2. Evaluation process
3. Lessons learned and changes for Round 4
4. Next steps and further information
POLICY BACKGROUND
Background
• $25 million Next Generation Energy Storage program
• Opened 18 December 2015
• Three (3) funding rounds awarding close to $6 million
• Supporting the roll out of up to 5,000 batteries (or 36 MW of
‘smart’ storage)
• Over 1,150 systems supported
• Current subsidy is $825 per kilowatt of sustained peak output
• Next Gen mid-term review
Review
• Independent review of program found:
– accelerated battery adoption and stimulation of the local economy
– customer satisfaction and reported savings on power bill
– even installation distribution across the ACT
– stakeholder support for program’s data requirements - seen as
fundamental to unlocking its full potential
– rebates should continue to be paid on sustained peak output rather
than on capacity
Next Generation Energy Storage Program• Competitive grants
– paid for a ‘Certified Installation’ of an ‘Eligible System’
– paid based on the Grant Price ($) per kW of Sustained Peak Output
– installer provides the customer with the discount and then invoices theTerritory
• Government sets requirements of ‘Certified Installation’
• 12 month Deeds to 31 July 2020
• One Deed (or grant) per installer
36 MW reduction in electricity peak (ACT) from energy storage systems in 2020
Total value of reduced peak demand
Savings up to $220M in present value terms on transmission and distribution investment
Context: Canberra’s climate targets
2020• 40% reduction in
greenhouse gas emissionson 1990 levels
• 100% RenewableElectricity
2045• Zero net emissions
2045
EVALUATION PROCESS
Eligibility and evaluation
Proposal Evaluation Criteria Weighting
EV1 Proposed Grant Price per kW (AUD, ex GST) unweighted
EV2 ACT local benefits 50%
EV3 Execution risks 50%
*Application process has been streamlined for existing installers
Key Eligibility Requirements
Canberra office
– Customer sales & support
Future Proof Installations
– ESS capable of responding to changing markets
Installations comply with:
– Min. warranties
– Safety Management and Installation Guide
– Data Specification
General Proponent Requirements
• Minimum indemnities and insurances
• Communication & Reporting• Contractor Management• Work Health & Safety• Qualifications & Training
Equipment and Installation Standards
• Applicable Standards– Equipment and installation
• Transport of dangerous goods• Mechanical Protection• Fire Protection• Signs, Labels & Manuals• Maintenance & Warranty• Building class requirements• Consumer information
Eligible Energy Storage Systems
and must:– be able to be charged from a (behind the meter) solar PV system– be connected to a electricity network– Provide at least 1 kWh of usable energy storage– comply with the Safety Management and Installation Guide
Lower Limit Upper LimitESS Capacity (kWh) 1 kWh None
Sustained Peak output (Grant basis, kW AC)
No lower limit 30 kW
PV generation system size (New or existing, kW DC)
50% of the Sustained Peak Output of the ESS
No upper limit
Data Specification and data platform
• Applies beyond proponent
– outlines roles for ‘data coordinator’ – to be appointed by Government
• Defines data to be collected
– One-off: System & household information, installation information
– Interval: operational. 5 min minimum
• Transition from quarterly reporting to automated ‘live
stream’
EV1 – Grant Price
• Grant Price is expressed in $/kW of Sustained Peak Output
• Sustained Peak Output is the minimum of:a. the maximum continuous one hour output of the
Energy Storage Device*; orb. the maximum rated sustained one hour output of
the Inverter** Based on manufacturer specification
• Proposals with a low but well justified Grant Price will be favoured
• Government may standardise grant price
EV2 – ACT Local Benefits
The ACT Government is strongly committed to being a beacon for cutting edge global clean tech innovation,
led by a dynamic and connected community of businesses, government, consumers and institutions
EV3 – Execution Risks
• Ability to conform to Safety Management and Installation Guide
– Safety, quality and training track record
– Who will undertake the installs?
– Accreditation: CEC design and install (or an ACT approved equivalent training level)
– Appropriate for building type
• Financial stability, insurances/warrantees and capability
• Delivery on-time
– Access to equipment
– Customer business case
• End-of-life plan
What are we looking for?
• Clear understanding of
– Target audience, price-points and customer acquisition plan
– Local investment benefits
• Experience
– Clearly identified installers & experience
– Safety management and end-of-life plans
LESSONS LEARNED AND CHANGES FOR ROUND 4
Key lessons learned so far…
1. CEC Retailer Code of Conduct needed at Deed commencement2. Local investment commitments need to be achievable and
measurable3. Sales and marketing plans need to be realistic and flexible to
deal with industry shifts4. Grant re-allocation capability provides fairness to installers5. Minimum ‘smart’ requirements for systems has led to
important industry collaborations6. Better communication needed between installers and
inspection team and Next Gen Secretariat
Key changes for Round 4
1. Removing the requirement for a new inverter 2. Simplifying the reapplication process for existing installers 3. Clean Energy Council Retailer Code of Conduct accreditation
prior to funding award4. Visible signage on the battery storage system notifying
residents of data collection 5. Universal device registry6. Minimum capacity rating7. Program extension beyond 2020
NEXT STEPS AND FURTHER INFORMATION
Funding Round Timeframes
Milestone Date
Funding Release Date 7 May 2019
Closing Date 11.59pm (Canberra time)2 June 2019
Announcement of Proposal assessment outcomes (estimated)
July 2019
• Governs process for award of Grant
• Advises Minister on which proposals constitute the best ‘value for money’
• Subject to addenda
– Q&As posted on Next Gen websitewww.act.gov.au/nextgen
• Separate submissions for ‘existing’ and ‘new’ installers through SmartyGrants
Next Generation Energy Storage Program Guidelines
Other key documents
Probity
Statutory sources of Probity and Key Probity Objectives
• Public Sector Management Act 1994 • Financial Management Act 1996 • Government Procurement Act 2001 • Fairness, impartiality and identification and management
of conflicts of interest • Accountability, integrity and confidence in expenditure of
public moneys • Appropriate security and confidentiality
Probity – Conflicts of Interest
General • Actual, potential or circumstances of perception • Declarations and disclosures by those who are involved in
the procurement process
Gifts and hospitality • Proponents or their associates must not offer gifts or
hospitality to any Territory or consultant’s employee • Territory officers and consultants involved in the Project
must not accept gifts or hospitality during the procurement, and report offers from proponents
More information
Communications• Unless otherwise notified, in accordance with the Program
Guidelines:in writing to [email protected]
• Questions and answers during the briefing will be published on Next Gen website www.act.gov.au/nextgen
• Induction session may be run following funding award
QUESTIONS?
After today, all questions must be addressed to:[email protected]
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