Wheatbelt2018

Future-proofing the Wheatbelt – the role of renewable energy and battery storage

Tristy Fairfield Carnegie Clean Energy

5 April 2018

DISCLAIMER

The information contained herein has been prepared solely for informational purposes and

is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or to

participate in any trading strategy or to enter into any transaction. If any offer of securities is

made, it shall be made pursuant to a definitive offering memorandum prepared by or on

behalf of any fund or other issuer which would contain material information not contained

herein and which would supersede this information in its entirety.

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Carnegie Competitive Advantage

• Carnegie is an ASX-listed developer of utility scale renewable energy projects. It

is a global leader in the delivery of solar, battery, wave and hybrid energy

solutions.

• Business model across the full value chain of design, development, finance,

construction, operation and maintenance.

• Established partnerships to deliver national and international delivery capability

and enable larger scale projects with Lendlease Services (Australia) and Infratec

(NZ and South Pacific).

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$95m Market

Capitalisation

$16m Cash

$27m Undrawn

Grants

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TRANSITION IN THE ENERGY MARKET

• The renewable energy sector is experiencing transformational growth as energy systems transform as a result of more cost effective generation options and the need to reduce greenhouse gas emissions.

• What are the benefits and opportunities for rural and regional communities?

• Reduce electricity costs • Improve Energy Security/ resilience • Job creation • Reduce greenhouse gas emissions • Create Community co-investment

opportunities

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Solar installations continue to grow

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Wheatbelt communities solar installations

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Regional Communities are facilitating the clean energy transition

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Battery Energy Storage Systems (“BESS”)

• Battery Energy Storage Systems (“BESS”) are used in commercial and residential applications

hybrid systems (PV, BESS + diesel), augmentation to utility scale PV/ wind farms, also as stand-

alone grid connected systems.

• Services include: arbitrage (store PV for later use or dispatch), and reliability and security

services (e.g. Spinning Reserve, Load Following and Ancillary Services (frequency + voltage

support).

• Increasing opportunities as network requirements increase with > RE penetration and falling

BESS costs.

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Battery Energy Storage Systems (“BESS”)

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Electricity networks are also changing – with implications for regional power supply

Source: Western Power, Reshaping the Network, Off-grid and Stand-alone power Conference, March 2018

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Project Scale and Energy Markets Off-grid (EPC or PPA)

Microgrid – Connected/ Off-grid

Utility PV BESS – Community/ Utility

Fringe of Grid

Example Thevenard Island CSIRO Delamere Weapons Range

Kalbarri Garden Island

Northam Solar Farm

Alkimos

Ravensthorpe/ Esperance

Primary Purpose

Reduce costs (displacement of diesel)

Reliability/ security Reduce costs

Public/ Private sector Investment

Arbitrage/ energy security

Reduce network costs

Other outcomes

Energy security GHG abatement

Jobs (construction)

GHG abatement Jobs (construction/ O&M)

Network Control Services Reliability

Reliability Safety Jobs (O&M)

Energy Market

Communities Camps Remote operations

Utilities C&I

Merchant PPA offtake

LFAS Wholesale Electricity Market

Network Service Provider

OFF-GRID (EPC OR PPA)

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Mackerel Island Microgrid Customer Mackerel Islands Corporation

Location Thevenard Island, 1300 km North of Perth, Western Australia

FEATURES • 324 kW Solar PV (ground mount

screwpile) • Corrosive location and high wind

(CAT-D) region • 614 kWh Sony Lithium Iron

Phosphate (2 x 40ft containers) • 440 kVA Diesel Generation (4 x

110kVA) • EMC fully remote monitored and

controls • Fully Integrated Factory

Acceptance Tested in Perth • >4 Years of operation

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Mackerel Island Microgrid Customer Mackerel Islands Corporation

Remote High Renewable Fraction (>90%) Diesel-Off Operation Autonomous Operation

Location Thevenard Island, 1300 km North of Perth, Western Australia

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CSIRO Australian Square Kilometre Pathfinder Customer CSIRO

FEATURES • 1.2 MW / 2.6 MWh BESS • ABB PCS100 /Samsung SDI • 1.6 MW Solar PV Ground

Mounted • Containerised and RFI

shielded • Fire Suppression / Fire

Rated, Centralised HVAC

Location Off-grid, 645 km North-East of Perth, Western Australia

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CSIRO Australian Square Kilometre Pathfinder Customer CSIRO

Location Off-grid, 645 km North-East of Perth, Western Australia

Remote Diesel-off operation Technology Containerised

MICROGRID GRID/ISLAND OPERATION

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Garden Island Microgrid Customer Power supply agreement with Department of Defence

Location Garden Island, Western Australia

FEATURES • world’s first wave

integrated renewable microgrid project

• Diesel generation and grid infrastructure

• 2 MW Solar PV • 2 MW / 0.55 MWh battery

storage • Bumpless island operation

and grid-parallel

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Garden Island Microgrid Customer Power supply agreement with Department of Defence

Location Garden Island, Western Australia

PPA offtake with government

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Kalbarri Microgrid – Battery Energy Storage System

• Kalbarri will be powered by its own microgrid - a small-scale power grid

which will also be connected to the main electricity network.

• EMC-LL JV to supply 4.5MWh battery, able to supply 5MW of peak capacity

with at least 2MWh of energy storage.

• Additional supply will be provided through renewable energy from

residential rooftop solar, and a 1.6MW local wind farm. The design allows

for future renewable generation sources to be integrated as they become

available.

• Battery capability includes generation management, bumpless transfer,

voltage and frequency control and fault ride-through.

UTILITY PV

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Northam Solar Farm Customer

Carnegie with Co‐equity investors Indigenous Business Australia and Perth Noongar Foundation

Location Northam, 100 km East of Perth, Western Australia

FEATURES • 10 MW Solar PV Array • Single-axis tracking • 22 kV interconnection • Designed for the addition of

utility scale battery storage in future

Community Focused Build Own Operate Merchant Model

BESS COMMUNITY/ UTILITY

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Alkimos Utility Scale Energy Storage Customer Synergy (WA Government Generator and Retailer)

Location Alkimos suburb of Perth, Western Australia

FEATURES • 0.3 MW / 1.1MWh energy

storage system • SMA SC500 /Samsung SDI • Offers residents a virtual

energy storage rebates for solar PV

• Supported by ARENA (Australian Government) $3.3m grant

• Containerised and fully offsite I-FAT tested

Technology Community Focused Containerised

FRINGE OF GRID

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Multiple Standalone Power Systems Customer Horizon Power and Western Power (WA Government)

Location Esperance and Ravensthorpe regions Western Australia

FEATURES • Systems between 10-80 kWh

Lithium Batteries • Systems between 8-20 kW Solar PV

ground mounted

Remote Diesel-off operation High Renewable Fraction (>90%) Availability 99.97%

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Western Power SPS Ravensthorpe trial

SPS Type/ Size SPS 10* SPS 20 SPS30 SPS 40

30 min Maximum Demand (Amps/ Phase)

32 32 32 32

PV Nominal rating (kWp)

4.5 9 13.5 18

Usable battery capacity (kWh @ 20 hour discharge rate)

20 40 60 80

Diesel generator

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• Replacement of end-of-life network assets leading to individual properties

• Fully remote monitored and maintained by EMC

• Have proven to be far more cost-effective and reliable than electricity supplied to the fringe-of-grid

through network connections.

• Additional benefits such as improved reliability for remote customers, reduced bushfire risks,

reduced local disturbance from line maintenance activities and improved aesthetics.

Six Systems operating over an 18 month period - Six outages across the project in the first 12

months - Two outages due to Customer related events - One outage in last 6 months - Two site have not had an outage - All systems have met power quality requirements

throughout the trial.

Source Stand-alone Power System Pilot One Year On (Western Power 2017)

Source Stand-alone Power System Pilot One Year On (Western Power 2017)

Supply reliability of network vs. SPS (July 2016 - July 2017)

Customer satisfaction of SPS vs network supply

System Performance

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Albany Wave Energy Project

• CCE granted $15.75m in Western Australian Government’s

competitive tender to deliver a Wave Energy Project at Albany

• An additional $3.75m has been awarded to the University of

Western Australia to establish an associated national Wave

Energy Research Centre co-located in Albany, WA

• The Australian Renewable Energy Agency (ARENA) Board has

approved the transfer of Carnegie’s $11.7m undrawn CETO 6

Project funding from Garden Island to Albany

• Carnegie will commence work on the Project immediately with

upcoming activities to include project design, wave buoy

deployment, site surveys, community consultation and approvals

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Thank you

Tristy Fairfield

enquiries@carnegiece.com

0411 220 704