QUEENSLAND MINING & ENERGY BULLETIN / Spring 2016 / www.qmeb.com.au52

Energy

SOLAR

SOLAR FEVER SWEEPS THE SUNSHINE STATELarge-scale solar projects are popping up across Queensland’s sun-baked interior, spurring speculation of a new ‘Photovoltaic Rush’ to renewable energy, Richard Szabo reports.

Government incentives and knowledge-sharing between energy producers and researchers are making solar energy

production more affordable, sparking a flurry of new photovoltaic (PV) projects to harness the potential of PV energy.

The federally funded Australian Renewable Energy Agency’s (ARENA) research and Development Programme provides funding that supplements new solar projects with the necessary capital to progress to more advanced stages of planning and development. ARENA reveals more competitive tendering for grants is pushing down the amount of funding energy producers require to set up new solar plants.

“[In the past some proposed solar] plants needed around $1.60 in ARENA funding per watt. The funding requirement for new projects [since] fell to 43 cents per watt in the expression-of-interest phase of our funding round in November 2015,” ARENA CEO Ivor Frischknecht says.

“The need fell again by more than a third to an average of 28 cents per watt in the full applications. This clearly demonstrates how quickly large-scale solar PV costs are falling supported by ARENA funding, which has resulted in rising confidence, lower finance costs and a more supportive market for power purchase agreements.”

KNOWLEDGE IS THE KEY TO COST SAVINGS

Frischknecht reveals knowledge is not only power but also the key to cost savings.

“Doing something the first few times is always harder and more expensive, and building large-scale solar PV plants is no exception,” he says.

“We arranged a knowledge sharing forum for existing ARENA-supported developers to pass on their experience to the new shortlisted developers, fostering collaboration, sharing solutions to common problems and advancing the industry as a whole.”

Genex Power executive director Simon Kidston recognises the work of ARENA to make establishing utility-scale PV projects more affordable for proponents.

“ARENA [has invested] over $300 million in this sector to date. ARENA’s solar programs are helping to drive down the cost at the same time as supporting the deployment of large scale solar,” Kidston says.

Ivor Frischknecht

FUNDING SOUGHT FOR DOZENS OF SOLAR PROJECTS

Twenty proponents have applied to ARENA for the latest round of large-scale PV funding. Successful applicants are expected to be announced in September 2016.

Queensland projects currently being considered for funding include:

• Origin Energy’s $1 billion Darling Downs Solar Farm in Dalby

• KCSF Consortium’s Kelsey Creek Solar Farm in Proserpine

• RATCH-Australia Corporation’s $100m Collinsville Solar Power Station

• Canadian Solar Australia’s $170m Oakey Solar Farm and Longreach Solar Farm

• Overland Sun Farming Company’s $140m Hughenden Sun Farm

• Edify Energy’s and Solar Choice’s Whitsunday Solar Farm

Simon Kidston

For more information visit arena.gov.au

53 www.qmeb.com.au / Spring 2016 / QUEENSLAND MINING & ENERGY BULLETIN

A MODERN-DAY GOLD RUSH

Genex has observed strong growth in PV projects across the Sunshine State.

“We are certainly seeing a modern emulation of the historic Gold Rush. This ‘PV Rush’ is a response to increasing peak prices in Queensland’s electricity market, strong government support for renewable energy development, and a world-class solar resource,” Kidston says.

“The Kidston Solar Project is the only solar project located within the favoured ‘red-zone’ of Australia that has an existing transmission line connected to the National Electricity Market. These characteristics make both the timing and location of the project ideal.

“[The Kidston project] is at an advanced stage of development, with key milestones including the execution of a firm grid connection with Ergon Energy, and appointment of UGL as preferred EPC contractor. UGL provides considerable expertise and experience in design and construction of solar PV projects. Construction is expected to commence in the fourth quarter (4Q) of 2016 with anticipated first cash flow by 4Q 2017.”

RATCH is setting an eco-friendly trend by transforming the decommissioned Collinsville coal-fired power station into a new 42 megawatt (MW) solar power station.

“[The project is] giving the historical site a new lease of life as a clean energy power station,” RATCH development manager Anthony Yeates says.

“The Collinsville Solar Farm is at an advanced

stage of the development. We don’t

have a firm date for commencement of

construction yet, but RATCH’s development

team continues to invest significant efforts

internally and externally to progress this

project to construction. RATCH Australia is

seeking a slice of the funding, which certainly

will be helpful to considerably enhance the

project’s financial viability.”

Kidston Solar Farm (courtesy of Genex Power)

Collinsville Solar Farm (courtesy of RATCH-Australia)

OUT WITH THE COAL, IN WITH THE RENEWABLES

QUEENSLAND MINING & ENERGY BULLETIN / Spring 2016 / www.qmeb.com.au54

SOLAR

AUTHORITIES MAKE A BIG COMMITMENT TO RENEWABLE ENERGY

The Queensland Government says it is making a major commitment to increasing the uptake of renewable energy to reduce emissions, drive jobs and firmly establish the state as a renewable energy leader.

“The government has set a target of one million Queensland solar rooftops or 3000MW of capacity by the year 2020 and, in early 2016, it reached the halfway mark with 1500 megawatts of small-scale solar [panels] installed. Queensland has one of the highest penetration rates of rooftop solar in the world,” a spokesperson for the Queensland Department of Energy and Water Supply says.

“The [State] Government’s Solar120 Project is one initiative supporting large scale solar generation, and is about supplying Queensland’s electricity network with a large scale supply of renewable energy. The project involves Queensland-based solar projects shortlisted by the ARENA that go on to secure federal support, becoming eligible for additional State Government funding.”

Clare Solar Project (courtesy of FRV Services Australia)

The department has a range of information to assist proponents with their projects, including mapping information and the renewable energy guide that is available online at dews.qld.gov.au/electricity/renewables

ARENA estimates its funding programmes have the potential to create at least 1000 new jobs in construction, manufacturing and civil engineering.

Cameron Garnsworthy

Townsville RSL Stadium (courtesy of Ergon Energy)

Doomadgee Solar Farm (courtesy of Ergon Energy)

Solar radiance distribution (courtesy of Genex Power)

PROPONENT EYES MULTIPLE SITES IN QUEENSLAND

After successfully delivering the 20MW Royalla Solar Farm in Canberra and the 56MW $149m Moree Solar Farm in northern New South Wales, FRV Services Australia is now focusing on multiple locations across Queensland for the next wave of projects.

“FRV has been also been developing multiple projects in Queensland - the most advanced of which is the 100MW [$400m] Clare Solar Farm located 35km from the township of Ayr in North Queensland. The Clare Solar Farm is expected to be one of the largest projects delivered in Australia to date,” FRV country manager Cameron Garnsworthy says.

“At this stage, FRV expects to commence construction of this project later this year and looks forward to working with the community and other stakeholders to make this project a success. Beyond the Clare Solar Farm Project, FRV has three further development approved projects in Queensland: [$400m] Lilyvale, Baralaba and [$1bn] Dalby – which combined represent a further 250MW of capacity that we look forward to progressing further in the short-term.”

“The Clare Solar Farm is expected to be one of the largest projects delivered in Australia to date.”

PROFILE

RICHARD SZABOFREELANCE MEDIA SPECIALIST

Richard Szabo is a freelance media specialist with nine years’ experience in digital and print media. He was named winner in the best business or finance story category of the 2012 MACCAS Gold Coast Media Award and contributes stories to APRS Media, Projectory and The Middle Land Magazine.

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