Renewable energy storage roadmap released

Edge Utilities Brisbane City

The CSIRO’s Renewable Energy Storage Roadmap underlines the importance of energy storage in Australia’s journey to net zero emissions.

Despite leading in solar power generation and reducing emissions, Australia requires a significant increase in storage capacity to maintain affordable and reliable energy.

Storage is vital to integrating renewables into the grid and reducing coal and gas-fired generation dependency. A combination of various storage technologies, such as electrochemical, mechanical, chemical, and thermal storage, is needed to meet the evolving demands of the National Electricity Market (NEM).

Increasingly, dispatchable generation must come online as coal-fired generation retires between 2023 and 2035. The CSIRO report calls for accelerated development timelines for projects by 2030. Faster development or alternative storage technologies are needed, as pumped hydro typically takes ten years to develop.

CSIRO’s chief executive emphasises the need for a “massive increase” in storage capacity, estimating an additional 11 to 14 gigawatts by 2030. As a result, the focus should shift to storage as the deadline approaches, exploring repurposing old mine pits and retiring thermal power stations.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

AEMO’s MLF assessment reveals solar and wind farms as big losers

Solar Panel

The Australian Energy Market Operator (AEMO) recently released its final Marginal Loss Factors (MLFs) assessment, highlighting solar and wind farms as the big losers. The MLFs determine how much energy is lost between the generator and the region reference node in each state, and the changes in the new MLF forecasts were primarily driven by changes in availability due to the closure of Liddell, revised return to service dates for Callide C, revised demand forecasts, and the increased penetration of solar and wind generation into the grid.

The lower MLFs impact the amount of revenue generators can make, and many of the intermittent generators have been impacted by changes to the grid and the closure of thermal generators. The location of renewable generation is becoming increasingly important for the success of a project, with unfavourable MLFs potentially reducing the revenue for generators and impacting the renewable energy available to the market.

While a 3% drop in solar farm generation may not seem significant, some solar farms in the New England region have experienced drops that are greater than this. These changes can affect the success of a project and reduce the renewable energy available to the market, potentially leaving end-users with less renewable energy than they signed up for. The final MLF assessment from AEMO underscores the importance of carefully considering the location of renewable energy projects for successful implementation and revenue generation.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

What shade of green is your business?

  • Do you use a re-usable bag when you shop?
  • Do you recycle at home and work?
  • Do you conserve water where you can?
  • Do you turn off you lights when they aren’t being used?
  • Do you try and avoid single use plastics?

These are choices we all naturally make every day, and all contribute towards a healthier planet. So, why would you not incorporate this concept into your business behaviour?

Of course, it is more complex for a business, especially larger energy users such as hotels, supermarkets, manufacturers, data centres, cold storage warehouses etc.  where large amounts of energy are required, but that doesn’t mean it has to be avoided.

Here we have tried to pull back the curtain and show you how Edge Utilities can easily assist in helping your company achieve their climate goals. This will not only allow you to future-proof your organisation but assist in ensuring your employees to feel like they work for a purpose driven company.

Now, if you investigate net-zero and what it means, a minefield opens

Do you include Scope 1? (direct emissions from company activity) and Scope 2 emissions? (indirect emissions from the power you purchase to use).  Scope 3 is an option. What is a scope 3 emission? It’s indirect emmissions that occur in your value chain, but are not controlled by you.

What are your company’s abilities to be green? Would you like a project linked – Power Purchasing Agreement (PPA) or Carbon Offsetting? Does Green Power suit you more than a solar panel?

Corporate Emission Reduction Transparency (CERT)

With the Government’s Corporate Emission Reduction Transparency (CERT) report asking companies to describe how they will set and meet their targets, the UN are placing more pressure on companies to set and meet ambitious targets. Stakeholders and customers are increasingly demanding a green pledge from companies they use. So,  the time to act is now, but where do you start?

It doesn’t have to be this hard!

Let’s start at the beginning

What is Net Zero? Well don’t panic it isn’t eliminating all emissions. We are not trying to be moved back to cave men with stone tools and no internet (Hear the hooray from all 14 year-olds!).

Net Zero’s aim is to ensure any human-produced Carbon Dioxide (and other gasses such as Methane) are removed from the atmosphere, either by technological advances, reducing emissions or planting trees (they are pretty good at taking the CO2 out of the air and replacing it with oxygen, and I think we can all agree oxygen is a pretty handy gas to have about!)

So, what do you do as a company to get there?

Well first you define your emissions and boundaries. Not to put words in your mouth but with NGERs (National Greenhouse and Energy Reporting Scheme) reporting the answer for most companies we be “Well to Gate”(WtG)*. It also means you have your Scope 1, 2 and 3 emissions all easily accessible.

If you don’t have an NGERs report, you can set your own by using something like the WWF Ecological Footprint calculator. Alternatively, you can ask a Carbon Neutrality advisor such as Edge with an in-house Climate Active© Registered Consultant to define your carbon footprint.

So now you know your emissions to reduce. The big question then is, which is where we can end up in a quagmire: How green is your green?

Carbon credits

Some companies are happy to carbon offset their emissions using certificates bought from the wider market or a specific project. This can be through projects right here in Australia which create Australian Carbon Credit Units (ACCU’s) or abroad through other schemes. If you are offsetting 100 per cent of all your Greenhouse Gasses as a company, you can advertise you are 100% Carbon Neutral and have achieved Net Zero.

These certificates can usually only (currently) be bought on the open market for the current year. Therefore, Edge can assist in pairing you with a project and certificates for the length of your commitment.

What if this doesn’t sound like you though – What if you want your scope 2, or electricity usage, to come from another source, not be classified as carbon neutral . What if you wish for up to 100% of your electricity usage to be renewable green, using renewable electricity. You will still meet your ‘net zero’ target but you are classifying your electricity slightly differently.

Renewable Green

Well, have you ever driven past an Ikea or Bunning’s and seen the Solar on the roof? Some of these solar panel’s feed into the Governments GreenPower scheme where you can buy electricity which has come from a government accredited GreenPower source. If more than 10% of your electricity is from GreenPower you can utilise the GreenPower logo and marketing materials for your business to meet your social licence marketing materials.

Certificates aren’t your only option, however.

We can explore options to help your company offset its emissions by purchasing renewable energy credits or by investing in a wind or solar farm. One approach is to buy enough offtake from a renewable generator to ensure that all your company’s emissions are covered.

By doing this, your company can demonstrate its commitment to reducing its carbon footprint.  This can be a positive message as it shows that your company is taking concrete steps towards a more sustainable future. Imagine your CEO on a press release next to a Solar Panel – ok not that glamorous – but effective!

Wind and Solar are often touted as the main sources of green renewable electricity, but we have a vast number of options here in Australia, including Hydropower from both rivers and dams as well as an increasing number of Battery projects, Victoria is leading the way with 48% of current battery capacity but the rest of the east coast is hot on its heels, and Victoria will not hold this share for long.

Green generation

A final option is to install your own generation and use this for some of your usage. It can also be used for you to show you are physically investing in your company’s net zero pledge.

However, you want to get there, whichever green shade suits your business, we can help.

Edge will review your business’ requirements; all we need from you is a yes and we can help define the rest and paint your business with the right shade of green for you.

It really isn’t that hard. Pull back the curtain and join us. https://edgeutilities.com.au/edge-utilities-power-portfolio/ or contact Laura on 1800 334 336.

* Well-to-Gate (WtG) is a term used in the life cycle assessment (LCA) of a product or service to describe the environmental impacts associated with the production process up to the point where the product or service leaves the factory gate or production site.

Why growth is slow in renewable energy

The Clean Energy Council (CEC) recently released to its members the quarterly renewable projects report, which showed only one renewable project, Stubbo solar farm, reached financial close in Q3 – 2022. Investment in renewables is at an all-time low where quarterly investment has dropped almost 60% to $418M. As well as project growth which has slowed by almost 30%, compared to Q2 -2022 and over 60% lower than Q3- 2021.

While politicians are talking up the prospects of a renewable energy driven industry to reduce the impact of climate change, the reality is, reaching the 44GW target outlined by the federal government may be hard to achieve at the current rate of growth.

A significant number of new wind, solar and storage projects need to come online. If these projects do not come online the retiring coal generators cannot be replaced and may be forced to remain in action.

While only one renewable project in Australia reached financial close last quarter, two projects completed commissioning and three new projects started construction during Q3- 2022. Currently there are 247 financially committed renewable projects in Australia, with 221 under construction and 169 undergoing commissioning.

The CEC notes that the desire to build new solar, wind, pumped hydro and transmission lines is meeting opposition from by local communities. Some examples being, Chalumbin wind farm in North Queensland is now reducing the number of planned wind turbines it is installing by half,due to the concerns from the local community. There are also concerns for the largest pump storage hydro project that the Queensland Government is planning to construct near Mackay, after locals have discovered the mega project has the potential to flood a local town.

With ambitious renewable targets being spruced by politicians and businesses actively seeking renewable energy to aid in the decarbonisation of their operations, the question of where and when these projects will be delivered need to be asked. The majority of people support the transition to renewables but obviously not in their own backyard.

SOLAR SLOWING DOWN

Recent data shows there is a slowdown in the rooftop solar industry, and this is likely to continue as prices rise. Installations in August dropped, most likely due to the current lockdowns in NSW and Queensland. NSW installations have been the heaviest impacted followed by Victoria then the largely COVID free Queensland.

The early growth in the roof top PV market has gradually reduced with 2021 largely being flat across Queensland and Victoria. Early adopter states like South Australia are gradually declining due to early adopters reaching capacity. The growth in the early adopter segment is now replacement of existing systems with larger systems.

It is likely that the continued growth in states like Queensland are a result of COVID related home improvement plans funded by government financial stimulus.

Recent talk of a ‘sun tax’ has prompted people to install roof top PV before the changes occur while residents in SA would be concerned about installing a system that can be switched off when system conditions occur potentially leaving them exposed to high electricity cost. The other driver slowing the uptake of roof top PV is the lower feed in tariffs offered by retailers. The lower feed in tariffs do not make the installation of roof top PV as attractive and large-scale renewable energy should also bring down the retail cost of electricity.

With recent changes to the exchange rate the cost of imported panels will increase and as a result roof top installation will become more expensive. Higher installation costs and lower feed in tariff reduces the incentive for households to install solar.

As the number of installations drops, operational demand is less impacted during solar hours as consumption increases over time. Under the small-scale renewable energy scheme, liable entities are required to surrender the number of small-scale technology certificates (STCs) equal to that produced each year so as the number of certificates created each year increases the number of certificates they need to procure also increase. Any slowdown in the installation market may even reduce the percentage of certificates the liable entities need to surrender. STCs are likely to stay in their narrow trading range even if the number of certificates created each year fluctuates.

MORE WRITE DOWNS

In a sign that not only coal fired generators are impacted by changes in energy industry, last Friday more bad news came out the Australian Stock Exchange with Genex Power announcing a $16.5M write down on the value of its recently completed Jemalong solar farm due to dropping power prices.

In its FY21 results presentation, Genex Power outlined its revenue was underpinned by long term contracts for its operating assets and its projects in construct.

The Jemalong solar farm was completed on time and on budget so any losses could not be directed at this. The project located in western NSW was bought from solar developer Vast Solar.

The Jemalong assets were commissioned in July and are operating ahead of expectations however its recognition of the merchant revenue from the project in a falling market has caused value to be written down.

Despite the forecast for falling electricity prices, Genex is powering ahead with other developments including the Kidston Pumped Storage Hydro plant that will sit alongside the existing 50MW Kidston Solar farm that is planned to expand by a further 270MW in the future.

Genex is banking on the 250MW Kidston pumped hydro storage facility providing an arbitrage opportunity for the company as it can charge its storage by filling the upper reservoir during low day time prices and generate up to 250MW over the higher price parts of the day most likely the morning and evening peaks. If all modelling goes to plan Genex may also add up to 150MW of wind at the Kidston energy hub by 2025.

The company is also looking to diversify its portfolio geographically by installing a 50MW/100MWh battery at  Bouldercombe, in Queensland. The battery is likely to be operational by 2023 with the 250MW Kidston pumped hydro storage facility likely to generate by 2024.