townsville festival of ideas - ian mcleod
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A Cleaner, Secure & Affordable Energy
Future
Townsville’s Role?
Subheading
Ian McLeod2nd November 2016
Creating Ideas To Achieve What?
• Where does Australia want to go? • What is the Vision that will unite us?• Where are the opportunities to create value?• What are we good at and how do we leverage that?• How do we fund our ideas or should they be self
funding?
We need to agree a balanced set of objectives. My own industry is a case in point……
Energy Supply - From Chaos
Chaos
Source: AER- State Of The Energy Market 2015
• Cost Of Capital• Increased
redundancy• Carbon Tax• Renewable Energy
Target• Premium Feed In
Tariffs • Increase demand• Mining boom• Smart Meters (Vic)
….Poor Policy & Consequences• Queensland Premium Feed In Tariffs
liability $4.4B to 2028• $831.2M included in Ergon’s
revenue for 2015-20 or $1,123 per ave per customer
Ergon Rooftop Solar
.... & More Chaos
....Tassie constrained & SA went black
On The Positive• Australia expected to surpass its 2020 abatement
target by 78Mt CO2e• Well placed to achieve 64 to 65% decrease in
emissions per $ of GDP; &• 50 to 52% per capita between 2005 & 2030
Source: Australian Government, Department of the Environment: Fact Sheet
Energy Productivity Is Critical But Late to The Party
Ergon Residential Customers reduced their annual consumption by 22% between 2009/10 & 2015/16
“A Cleaner, Secure & Affordable Energy Future”
This should be our shared goal
Significant Opportunities In Energy• Carbon Reduction Target: 26-28% by 2030• Renewable Target: 33,000GWh by 2020• Energy Productivity Target: 40% improvement by 2030• Emissions Reduction Fund & ARENA • Queensland Renewable Target: 3000MW of solar or 1
million rooftops by 2020 & 50% renewable by 2030• The North Australia Plan including funding source• The Asian Century & Energy Poor• Could be the nations leader in Large Scale Renewable • The $542M Community Service Obligation• Disaster Resilience & Recovery Funding
Townsville Well Positioned• Located in the Tropics• Head Office of Australia’s largest utility• Hosted award winning & transformational projects like
Solar Cities & Townsville Energy Sense Community• Ergon leadership in disruptive technologies –
Distributed Energy Resources, Demand Management & Spatial Intelligence
• JCU University• Engaged Council• Overseas companies wanting to use Oz as a sandpit
But ground is now being lost to other states
Opportunity: Energy Innovation Hub
• Demonstration Precinct• District Cooling
• Micro Grid• Renewables & Storage
Opportunity: Innovation Hub forEnergy in the Tropics
Energy Efficiency
Energy Security
Demand Management
Renewables
Energy Storage
Smart Grids
Micro Grids
Electric Transport
Industry
Universities/Schools
Govt/ARENA/CEFC
Developers/
Contractors
Technology Partners
International COE
Consumers/Community
ProducersTechnology
Colla
bora
tion
InnovationHub for
Energy in the Tropics
Opportunities: The Asian Century
There are 120M people in the ASEAN region without power and 276M people using biomass for cooking.
Only 30% of PNG’s population have electricity
Getting More Out Of Existing Resources
• Powerlink has capacity for another Townsville.
• Ergon has around 700MW under control
• Develop Load following supply to optimise grid & Solar
• Tariffs have been restructured
• Co-generationIllustration Source: Ergon Energy 2015/16 Annual Report
Some Other Ideas• Establish Townsville as a Centre Of Excellence for
energy in the tropics• Townsville City Council & Govt set net neutral carbon
goals and an orderly pathway – Look at South Australia• Establish community wide Energy Productivity Targets• Aggregate efficiency programs & bid to the Emission
Reduction Fund.• Develop policies to support micro grids• Smart street lighting• Promote and educate on new smart tariffs• Leader in Disaster Resilience Planning• Develop local capability and scale to Asia
Join the conversation:#ideas_tsv
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