1 australian government policy drivers for renewable energy development presented by john rooney...
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Australian Government Policy Drivers for Renewable Energy
Development
Presented by John RooneyManager – Industry, Energy and Environmental Policy Section
Industry and Small Business Policy DivisionDepartment of Innovation, Industry, Science and Research
11 June 2010
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The government’s approach• In June 2009 the government signed the OECD’s declaration on
Green Growth • Mandates the development of a Green Growth Strategy intended
to “achieve economic recovery and environmentally and socially sustainable economic growth”
• Believes a Carbon Pollution Reduction System(CPRS) with a price on carbon is the cheapest and most effective way
• Committed to bipartisan support so will not move to legislate until at least 2013
• Greenhouse gas reduction targets remain unchanged• Boosting investments in clean and renewable energy as well as
energy efficiency
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Renewable Energy Target Department of Climate Change and Energy Efficiency
• Designed to ensure 20% of our electricity supply comes from renewable sources by 2020
• Split into small-scale and large-scale • Small-scale renewable energy scheme – designed to
deliver households, small business and community groups $40 for each Renewable Energy Certificate created by small-scale technologies
• Large-scale renewable energy scheme – ensures the market for large-scale projects so they can grow free from uncertainty
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Renewable energy in Australia
Source: AERA, 2010
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Role of the Department of Innovation, Industry, Science and Research
• The government believes that the best approach is through innovation, research and development
• DIISR participates in areas such as clean technology, enabling technology, green skills, ‘green’ research and development and eco-innovation
• Australia is a leading innovator in renewable energy technology: CSIRO’s Energy Transformed Flagship
• The challenge for Industry Policy is to ensure that more of these innovations are commercialised in Australia – to grow Australian Renewable Energy manufacturing Industries
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Energy Transformed FlagshipCSIRO
• Responding to environmental and efficiency challenges facing the energy sector• Virtual Power Station
– linking dispersed renewable energy generation and storage systems to create a single ‘virtual’ power station to feed into the electricity grid
• Mini Grids– developing advanced control techniques for electricity networks allowing
greater penetration of renewable and low emission energy• Second Generation Biofuels
– developing second generation biofuels obtained from lignocellulose with a particular focus on conversion processes.
• Solar Brayton Cycle demonstration field– world’s largest solar tower Brayton Cycle system
• Ultrabattery– hybrid energy storage device made up of a supercapacitor integrated with a
lead–acid battery cell provides a solution for future energy storage needs
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Renewable Energy Equity FundDepartment of Innovation, Industry, Science and Research
• Provides venture capital and managerial advice to small, innovative renewable energy companies
• Includes companies commercialising direct or enabling renewable energy technologies and services
• Sources of renewable energy include sun, wind, geothermal sources, biomass not derived from fossil fuels, mini- or micro- hydro systems, waves, tides and the ocean
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R&D Tax Concession/CreditDepartment of Innovation, Industry, Science and Research
• Encourages Australian industry to undertake R&D activities
• Aims to increase international competitiveness by encouraging innovative products and services
• From 2010-11 the R&D Tax concession will be simplified to the R&D Tax Credit
• Provides a 45% refundable credit for firms with turnover of <$20million, 40% for firms >$20million
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Clean Business Australia Department of Innovation, Industry, Science and Research
• Climate Ready Program– Competitive grants program– $50,000 to $5million on a matching fund basis– Supports early stage commercialisation activities to develop
solutions to climate change challenges• Re-Tooling for Climate Change
– Grants of $10,000 to $500,000, up to half the project cost– Helping manufacturers reduce their environmental footprint,
improving energy or water efficiency• Green Building Fund
– Grants of $50,000 to $500,000, up to half the project cost– Aims to reduce greenhouse emissions by reducing the energy
consumed in operations of existing commercial office buildings
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Green Car Fund Department of Innovation, Industry, Science and Research
• $1.1 billion fund• For projects that enhance the research and
development and commercialisation of technologies that significantly reduce fuel consumption and/or greenhouse gas emissions
• $1 government funding for $3 of private funding
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Transport Fuel GrantsDepartment of Innovation, Industry, Science and Research
• Ethanol Production Grant
– Eligibility-based to encourage the use of biofuels in transport
– Producers are paid 38.143 cents per litre
– Eligible ethanol must be made entirely in Australia from biomass feedstock
• LPG Vehicle Scheme
– Grants scheme for LPG conversion of a motor vehicle or purchase of a new vehicle fitted with LPG
– Grant amount starts at $1,750 for conversions completed by 30 June 2010
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Clean Energy Innovation CentreDepartment of Innovation, Industry, Science and Research
• Part of the Enterprise Connect Network• Eligible businesses receive a business review at no charge • Tailored Advisory Services Grants with $1 government
funding for every $1 of eligible expenditure by the business• Eligible business may be involved in
– Generation of renewable and low carbon energy sources– Solar hot water, desalination and water efficiency– Equipment and technologies to increase energy efficiency
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Further policies of the Department of Innovation, Industry, Science and Research
• Clean Technology Supplier Advocates – provide leadership to Australian businesses that manufacture and
produce environmentally-friendly technologies – Professor Andrew Parratt
• Innovation Investment Fund– a venture capital program that supports new innovation funds and
fund managers with expertise in early stage venture capital investing
– Clean Tech Australia Fund Management Partnership in Sydney and OneVentures in Melbourne
• Future Manufacturing Industry Innovation Council– leaders in innovation from business, the science and research
communities, unions, professional associations and the Australian Government
– focus is manufacturers using advanced processes, materials and technologies
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Clean Energy Trade and Investment Strategy
Austrade
• Connect Australia’s clean energy and technology sector with commercial opportunities
• Contribute to industry development through trade and investment
• Target markets with advanced technology and capital, especially North America, Western Europe and North East Asia
• Export and outward investment will grow as domestic capability expands
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Renewable Energy Future FundDepartment of Climate Change and Energy Efficiency
• On 11 May 2010 the government announced they will commit a further $652.5 million over four years to establish a Renewable Energy Future Fund
• Brings total investments in renewable and clean energy and energy efficiency to over $10 billion
• Delivered through a number of departments and agencies
• Priorities and progress is coordinated through Department of Climate Change and Energy Efficiency
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CCS Flagships(and associated support)
Australian Centre for Renewable Energy (and associated support)
Solar Flagships (and associated support)
Overall funding $2.4 billion $0.56 billion $1.6 billion
ACRE funding: $567 million Flagships: $1,500 millionSolar Institute: $100 million
Flagships: $2000 millionNLECI: $400 million
Components
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Australian Centre for Renewable Energy (ACRE)
Department of Resources, Energy and Tourism
• Objectives: promote the development, commercialisation and deployment of renewable energy and enabling technologies to improve competitiveness in Australia
• Central contact for the government• Focus on building on the research and development
funded through other bodies
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ACRE’s Renewable Energy Demonstration Program
Department of Resources, Energy and Tourism• MNGI Pty Ltd - $62.762 million
– engineered geothermal system project, based on Petratherm's 'Heat Exchanger Within Insulator' model
– will provide a sound foundation upon which to underpin the large-scale development geothermal energy
• Geodynamics Limited - $90.000 million– demonstrate the potential for hot-rock geothermal energy to be a
major generator of zero-emission, base-load power– world's first multi-well hot fractured rock power project
• Victorian Wave Partners Pty Ltd - $66.465 million – first commercial scale ocean energy project in Australia
• The Hydro-Electric Corporation (Hydro Tasmania) - $15.280 million – demonstrate the potential for enabling technologies to help integrate
renewable technologies into established electricity networks and mini-grid systems in remote areas
– integrate wind, solar and storage with a biodiesel generator to provide baseload and peak power for the King Island mini grid system
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ACRE’s Advanced Electricity Storage Technologies Program
Department of Resources, Energy and Tourism
• Wizard Power (ACT) – $7.4 million to demonstrate a solar energy storage system based on
ammonia dissociation and reassociation into hydrogen and nitrogen • Lloyd Energy Systems (NSW)
– $5 million to demonstrate a solar thermal energy storage system involving concentrated solar energy and graphite blocks
• ZBB Technologies (NSW) – $3.1 million to demonstrate an integrated zinc-bromine flow battery
at CSIRO’s National Solar Energy Centre in Newcastle • RedFlow Pty Ltd (QLD)
– $1.113 million to demonstrate the viability of zinc bromine batteries in maximising on grid and fringe of grid solar photovoltaic systems
• Smart Storage Pty Ltd trading as Ecoult (NSW) – $1.82 million to demonstrate an UltraBattery system located at the
end of an 11 kV rural grid attached to a 660kW wind turbine at Hampton NSW
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ACRE’s Second Generation Biofuels Research and Development
Department of Resources, Energy and Tourism
• The University of Melbourne ($1.24 million)– biofuel from Micro algae involving the efficient separation, processing and utilisation
of algal biomass• Algal Fuels Consortium ($2.724 million)
– pilot-scale second generation biorefinery for sustainable micro algal biofuels and value added products
• Curtin University of Technology ($2.5 million)– sustainable production of high quality second generation transport biofuels from
Mallee biomass by pyrolysis and utilising the biorefinery concept• Bureau of Sugar Experiment Stations ($1.326 million)
– an optimised and sustainable sugarcane biomass input system for the production of second generation biofuels
• Monash University ($1.383 million)– develop a pyrolysis biorefinery
• Microbiogen Pty Ltd ($2.539 million)– produce commercial volumes of ethanol from bagasse using patented yeast strains
• Licella Pty Ltd ($2.288 million)– commercial demonstration of Lignocellulosics to stable bio-crude
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Other programs of the Australian Centre for Renewable Energy
• Geothermal Drilling Program Department of Resources, Energy and Tourism
– $50million program provides assistance to develop geothermal energy projects, drilling geothermal wells
– Seven firms were announced to receive funding in 2009• Wind Energy Forecasting Capability Program
Department of Resources, Energy and Tourism
– $14million to support the development and installation of software and systems for effect forecasting on wind energy generation
– Funding concluded on 30 June 2009, some work continues into 2010
– Developed the Australian Wind Energy Forecasting System
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Solar Flagships Program Department of Resources, Energy and Tourism
• Solar photovoltaic – AGL Energy - a multi-site project using thin film cadmium telluride solar photovoltaic
technology generating up to150MW – TRUenergy - single site using thin film cadmium telluride solar photovoltaic
technology to generate up to 180MW– Infigen/Suntech - crystalline silicon solar photovoltaic technology would be
deployed at up to three sites to generate up to 195MW– BPSolar - a single axis tracking photovoltaic system to generate 150MW from
plants constructed at several locations • Solar thermal
– ACCIONA Energy Oceania - generate 200MW using solar thermal parabolic trough technology at a single site
– Parsons Brinckerhoff - construct a 150MW solar thermal parabolic trough power station
– Wind Prospect CWP - linear fresnel technology to construct a 250MW power plant– Transfield – convert a coal-fired power station into a 150MW solar thermal linear
fresnel power plant
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Carbon Capture and Storage Flagships Program
Department of Resources, Energy and Tourism• Wandoan power project located north-west of Brisbane, Queensland, an Integrated Gasification Combined Cycle (IGCC) coal fired power project.
• ZeroGen project located west of Gladstone in Queensland; also an IGCC project.
• Collie South West Hub located south of Perth in Western Australia in close proximity to the industrial centres of Kwinana and Collie and based around an integrated multi-user capture, transport and storage infrastructure project.
• CarbonNet proposal in Victoria’s La Trobe valley, another integrated multi-user capture, transport and storage infrastructure project, with sources of CO2 from electricity generating plans in that area.
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Department of Innovation, Industry,
Science and Research
Industry House
10 Binara Street
Canberra City, ACT 2607, Australia
Telephone +61 2 6213 6000