1. 100% Renewable Electricity in the ACT
Investment and Innovation
Megan Ward
Environment, Planning and Sustainable Development Directorate

2. Overview Background Achieving 100% Renewable Electricity2
Achieving 100% Renewable Electricity 3
Local investment & the future

3. ACT Climate Change Targets
2020
40% reduction in greenhouse gas emissions on 1990 levels
100% Renewable Electricity
2050
Zero net emissions
AP2 considered GHG mitigation opportunities—focusing on energy efficiency improvements, as well as significant investments in renewables.
A 100% RET by 2020 is around 640MW of Large-scale capacity
100% Target is delivering bulk of our 2020 GHG target.
Talk about transport and gas transitions as appropriate

4. Renewable energy policy objectives
Reduce greenhouse gas emissions
Invest in
large-scale renewables
Reduce barriers to solar and battery storage
CBR as a national energy innovation hub
New research collaborations
Support start-ups and business innovation
Trades training development
Demonstrate emerging technology
Being 100% renewable isn’t the end of the story.
It is about establishing Canberra as an export oriented hub for innovation in renewables and supporting technologies.
The proponents of our large scale a
uctions are supporting other exciting projects (local investment is 20% of proponent’s score)

5. How?
Allows Minister to grant Feed-in Tariffs to large-scale renewable energy generators
Total cap of 650MW
Cost recovery through Distributor
Projects can be located anywhere in the NEM
Non-ACR projects must offer exceptional economic benefits and minimise cost to ACT electricity consumers

6. Renewables investment program
40% 60% %
20MW Solar Auction
(Fast Track)
200MW Wind Auction II
200MW Wind Auction
Auctions deliver 75%
of 100% renewables target
20MW Solar Auction
(Regular Stream)
200MW
Next Gen Renewables Auction
1MW Community Solar
Large scale auctions deliver 75% of 100% target.
The other 25% is rooftop solar, greenpower and our share of national renewable energy target.
- i.e. renewables we are financially responsible for.
Next Gen Solar EOI

7. Auctions Proposal evaluation criteria Weighting
Risks to timely project completion
50%
Local community engagement
20%
ACT economic development benefits
Reliance on feed-in tariff compensation mechanism
10%
Best practice approach for wind: key selection criteria in competitive Auction process
Positive outcomes to-date
Co-investment options in two wind farms
19.4MW Coonooer Bridge
100MW Sapphire Wind Farm

8. 7 Wind Projects (5 Wind Farms)
3 Large-scale Solar Farms

9. Record breaking prices achieved
ACTUAL PRICES
$150AUD/MWh (Real)
$73AUD/MWh (Real)
$63AUD/MWh (Real)
Analysis has been undertaken

10. Contract for difference payments Example: FiT payments in Victoria (1/7/2016)
Payments by generators
Spot price
$/MWh
FiT price
Payments to generators
The slide uses an example of an $81.50/MWh FiT (the black line) which is around what many of our wind generators are paid
This uses actual market data for a day in Victoria earlier this year (where our Coonooer Bridge and Ararat Wind Farms are located)
The ‘contract for difference’ approach means that the generator is guaranteed to be paid exactly that FiT amount for the electricity they generate (by ActewAGL Distribution, no matter where the generator is located)
Long run merchant risk (wholesale market risk) is effectively transferred from the developer to ACT electricity consumers
However, this acts as a partial hedge against the risk already carried by consumers as reflected in the latest
AEMC price trends forecast: CFD mitigated about 30% of Hazlewood price impact for ACT consumers in
Overtime, most market models predict net payments to the ACT from renewables generator
Key uncertainty is wind weighted pricing in SA, VIC and NSW

11. Renewable energy policy objectives
Reduce greenhouse gas emissions
Invest in
large-scale renewables
Reduce barriers to solar and battery storage
CBR as a national energy innovation hub
New research collaborations
Support start-ups and business innovation
Trades training development
Demonstrate emerging technology
Being 100% renewable isn’t the end of the story.
It is about establishing Canberra as an export oriented hub for innovation in renewables and supporting technologies.
The proponents of our large scale a
uctions are supporting other exciting projects (local investment is 20% of proponent’s score)

12. Key issues for electricity policy
Generation mix in 6 electricity markets
Key issues for electricity policy
High emissions intensity grid
High electricity prices
Weak interconnection between some regions (security concerns)
Strong consumer interest in solar and battery storage
Rooftop solar penetration

13. ACT’s key capability areas
Renewable energy asset management and project development (Windlab, Neoen, CWP, Union Fenosa, Maoneng) Wind, solar and pump-hydro resource analysis Policy and project integration (Reverse auction, energy markets, metering and tariff reforms, consumer protection) Energy storage testing and integration (ITP, Reposit, Solarhub, Panasonic, ActewAGL, deX, microgrids, hydrogen production and storage)

14. Value proposition of various scales of energy storage
Next generation energy storage program
Subsiding 5000 ‘behind the meter battery systems’ by 2020 in Canberra homes and business
World’s biggest public data set on battery performance
Value proposition of various scales of energy storage
Power
$25 million in funding
5000+ homes
36MW
Competitive grants
Focus on ‘ sustained peak output’
Industry development
Data capture for R&D
We will feed into the process of informing smart markets & new IP development opportunities
Frequency
Voltage

15. New battery storage integration program
Power system and market design
Partnership between ACT Government and the Australian National University
$8M over 5 years to establish global research leadership capability
Integrated program covering power system to diagnostics and materials chemistry
Focus on applied research partnerships with ACT business and corporate community
Research leader currently being recruited
Linking Australian and global storage research capability
Device diagnostics and marketing
Device controls
Materials chemistry

16. Hydrogen Winners of latest 200MW auction investing in:
Production of hydrogen from renewable electricity
Hydrogen mobility
Car, Refuelling & servicing
Research & development
Electricity grid support
Reducing gas network emissions
Hydrogen may also play an important role in energy storage for electric vehicles and grid support into the future.
Industry driven.

17. deX project Global proof of concept experiment
Open standards-based network support trading market (peak demand reduction, voltage support)
Competitive and fair transactions of DER values
Complements wholesale energy trading
More value for customers
Higher penetrations of solar and storage

18. 1,100m2 collaborative working space
Launched in November 2016
1,100m2 collaborative working space
18 member organisations so far (start-ups, SMEs, consultants, researchers, industry groups)
Networking opportunities
Events (e.g. national hydrogen workshop)
Support services for businesses
Easy access to Australian Government and Universities
2 x Funding Schemes Demonstration and scale-up of new technologies and ventures
REIF Direct Grants: >$30,000
Innovation Connect: <$30,000

19. Questions?

20. Community Solar 1MW FiT of $200/MWh (Solar Auction bench mark)
Two open rounds
Now working with SolarShare
Key issues:
Development experience
Financial backing/structure
Risks to household investors

21. FiT auction Summary
FiT is firm, fixed and flat over 20 years on a $/MWh basis
Paid by ACT electricity distributor (ActewAGL Distribution)
Eligible electricity is the lesser of actual generation or LGC creation
FiT is ‘contract for difference’ (paid based on FiT value less the 30 min settlement value of electricity in the relevant NEM spot market)
Local community engagement and local investment requirements
Go through slide

22. Successful Storage Providers
ActewAGL Retail Energy Matters EPC Solar Evergen
ITP Renewables
Origin Energy
Power Saving Centre
SolarHub
ActewAGL Retail
Energy Matters – Simon Chau, James Grant
EPC Solar – Daryn Stocks
Evergen
IT Power – Susan Dedman, Oliver Woldring, Simon, Jonathan
Origin Energy
Power Saving Centre
SolarHub – Ben

23. Next Gen Storage Initiative
Canberra Urban Solar Project (2013) Next Generation Solar EOI (July 2015) Next Gen Pilot (April 2016) Next Gen Program (September )

24. Early outcomes 200+ systems sold 100+ installed & inspected
700kW peak sustained output
Average Peak Sustained Output 3.6kW
Approx 16% are solar retrofits
Limitations on premium FiT customers
Need to create open markets for network support/ancillary services
Frydenberg est yesterday:
500 in 2015
5,000 in 2016
Knowns:
74 new systems
15 retrofits

25. Next Generation Solar Responses

26. Wind rebid FiT prices Prices converted to AU$ REAL at 2.5%
This chart includes only the wind projects that were rebid between the first and final auctions.

27. Wind Auction FiT price range and median FiT prices
Prices converted to REAL AU$ at 2.5%

28. Solar Auction FiT price range and median FiT prices
Prices converted to REAL AU$ at 2.5%

29. Solar Auction – price expectations vs. outcomes
ACT LS-Solar FiT equivalent Yr 1 rate in $2012 indexed to CPI

30. Wind auction – price expectations vs. outcomes
ACT LS-Wind FiT equivalent Yr 1 rate in $2015 indexed to CPI

31. Difference between CC or not

32. Difference between FiT bid and market offers