CleanCo moving ahead

In a media statement released 30 August, the Queensland Government confirmed their intention to establish CleanCo, Queensland’s third publicly owned electricity generator. CleanCo will have a strategic portfolio of low and no emission power generations assets, and will build, own and operate new renewable generation. It is understood that CleanCo will take control of assets including Wivenhoe, Barron Gorge and Kareeya hydro power stations and the Swanbank E gas power station, courtesy of a restructure of the two current publicly-owned electricity generators – CS Energy and Stanwell Corporation. CleanCo is expected to be trading by mid-2019.

Additional Small Scale Solar Coming to Victoria

The Victorian Government has announced that it will offer half priced solar panels to 650,000 households over the next 10 years.

This scheme, known as The Solar Home scheme, is currently valued at $1.24 billion and is open to owner-occupied homes with:

  • A combined household income of less than $180,000 per year; and
  • A home value of up to $3 million.

Households who are unable to install solar panels can instead choose to get a $1,000 rebate by changing their current hot water system to a solar hot water system. The solar hot water rebate is open to up to 60,000 homes.

How will this impact the market?

2017 had the highest rate of installation of rooftop solar and 2018 is on track to break this record. The additional demand created by the Victorian scheme could increase the number of certificates, and therefore the obligation for retailers to purchase certificates. This cost is likely to be passed through to consumers. In the short term, it could put downwards pressure on the certificate prices, however any reduction will be short lived as the Clean Energy Regulator adjusts the surrender target, matching demand with supply.

If you would like to understand how this may impact your portfolio please contact Edge on (07) 3905 9220 or 1800 334 336.

Price of Utility Scale Solar Being Questioned

The engineering company, RCR Tomlinson, went into trading halt on July 30, 2018 and its CEO, Paul Dalgleish, has stepped down. The trading halt is due to an investigation into cost blowouts for unspecified projects, which will hurt the FY18 annual profit.

The deputy state secretary of the Queensland and NT Electrical Trades Union, Peter Ong, has stated that RCR has been undercutting other bids by as much as $30 million when bidding for utility scale solar project. Peter Ong’s major concern is the use of cheaper labour to try and make up the difference.

For the broader market, if RCR have been under-pricing the engineering cost of installing utility scale solar, there could be an increase in the expected price of new utility scale solar. Citigroup warned that the recent solar farm built for Sun Metals may have had a cost blowout by as much as $7 million.

RCR has not confirmed that it is the utility scale solar which has led to the cost increase.

If you would like to understand how this may impact your portfolio please contact Edge on (07) 3905 9220 or 1800 334 336.

Solar Reserve receives approval for SA concentrated solar thermal plant

The Port Augusta located, concentrated solar thermal plant has reached a significant, yet not surprising, milestone in achieving development approval for the plant. The Aurora plant will have 150 MW of capacity and 8 hours of storage.

The development approval suggests that the $110 million concessional loan from the Federal Government is all but secured. It is understood that the funding was allocated in the May 2017 Federal budget and to be administered through ARENA.

The plant is scheduled to deliver 100% of its output to the SA Government under a long term agreement beginning in 2020.

Further information can be found on our previous article https://edge2020.com.au/edge-news/150-mw-solar-thermal-plant-constructed-south-australia/

If you would like to know more about renewable energy projects and how they could assist with reducing your energy costs, please contact Edge on (07) 3232 1115 or 1800 334 336.

150 MW Solar Thermal Plant to be constructed in South Australia

On Monday 14 August South Australian Premier Jay Weatherill announced that Solar Reserve had won a 20 year electricity supply agreement with the South Australian government. The agreement is reported to account for 75% of the SA Governments electricity requirement.

The 150 MW solar thermal plant has been named Aurora and will be constructed just north of Port Augusta. The plant is a critical piece of infrastructure which will help mitigate volatile electricity prices in SA. The plant provides synchronous renewable energy that can be dispatched when there is no sunlight or wind available. According to Aurora the plant will have 8 hours of full load storage.

It is reported that the South Australian Government will be paying $78/MWh for electricity generated from the plant which is a competitive price for energy in South Australia. The project is being partially funded by a $110 million concessional equity loan from the Australian Federal Government. Construction of the plant is expected to begin in 2018 and be completed in 2020.