The state of play of renewables in Australia Simon Corbell Renewable Energy Advocate

Role of the Renewable Energy Advocate Present and explain Victoria’s renewable energy policies Meet with project developers to attract investment and remove barriers Advise government, industry and community

Victoria’s Renewable Energy Roadmap Transforming Victoria’s generation stock towards renewable energy Addressing barriers to distributed generation and storage Victoria’s Renewable Energy Roadmap Supporting households and communities to invest in renewable energy Driving jobs and investment, particularly in regional Victoria Image source: flaticon.com www.delwp.vic.gov.au/energy Victoria’s Renewable Energy Action Plan

Renewable Energy Target (VRET) 25% renewable by 2020 > up to 1,500MW 40% renewable by 2025 > up to 5,400MW Reverse Auction with contract for difference Up to 11,000 jobs in construction Up to $9 billion in new capital investment Up to $2.5 billion in additional economic activity

First steps on renewable energy development - Renewable Certificate Purchasing Initiative Mt Gellibrand Wind Farm - 66MW contracted to Victorian Government - Additional 66 MW to be constructed leveraging long term contract 30 MW Kiata Wind Farm - Innovative community ownership model 100MW wind tender

First steps on renewable energy development - Renewable Certificate Purchasing Initiative 75 MW Large Scale Solar Tender including 35MW solar tram initiative Under evaluation

VRET Reverse Auction approach Up to 1500 MW to be contracted by 2020 Combination of technology neutral and dedicated solar auction Long term Contract for Difference Evaluation criteria to include economic development and community engagement / shared benefit outcomes. Reverse Auction offers opportunity for further targeted outcomes if approved by government – eg: storage / off shore wind

Critical role of state renewable energy auctions State government contracts underpin investment in renewable energy projects in 2016-17 814MW contracted to State Governments 1293MW contracted via long term retailer / corporate 500MW no long term contract (19%) Long term contracts will remain central to renewable energy development in Australia

Source: AEMO Victorian Annual Planning Report June 2017

100MWh grid scale storage tender Targeted to support weak distribution and transmission lines in Western Victoria ( Bendigo and Horsham lines) 2 x 20 MW storage projects Deployment by January 2018 Funding $25 million Important trial of grid scale storage in Australia Inform future decision making on proposed Generator Reliability Obligations

Pumped Hydro Feasibility Study Investigating utilisation of mineshaft network in Bendigo for pumped hydro supported by solar generation. Potential for 784kWh of generation $150,000 from State and local government

Source: AEMO Energy Supply Outlook June 2017 AEMO Projected electricity supply adequacy after the closure of Hazelwood (base case) Government Batteries includes the South Australian and Victorian battery storage initiatives. Emergency generation includes South Australia’s plan to operate 200 MW of diesel generation for summer 2017–18, replaced by 250 MW of GPG for summer 2018–19. Source: AEMO Energy Supply Outlook June 2017

What needs to be done to secure a strong, reliable and sustainable supply of energy? Stronger transmission planning Generator reliability obligation Demand side response Long term price signal for new generation investment CET? VRET

Reflect on this to discuss later today Will there be a power outage in Victoria this summer, and if so, are renewables to blame?

Thank you Office of the Renewable Energy Advocate PO Box 500 East Melbourne 8002 renewable.energyadvocate@delwp.vic.gov.au @SimonCorbell