ISSUE 72, SEptEmbEr 2016 pp100007125

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Solar Power in auStralia P21 a Day in the life P30renewable energy P8

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POWER prices are expected to remain high and volatile in the next 12 to 18 months, according to a Moody’s Investors Service report.

The ratings provider said the fluctuating prices were from rising natural gas costs triggered by increasing exports of LNG, as well as structural market changes such as the withdrawal of coal-fired capacity and subsequent growth of the renewable sector.

“These developments, combined with the limited interconnection capacity between Australian states, will underpin energy prices,” Moody's vice president and senior analyst Spencer Ng said.

Higher for longerPower cost fluctuations to continue: report

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(continued on page 3)

Image: Western Power. Photography: Anna Locke

PERTH-based solar company Sun Brilliance has upgraded its plans for a solar farm in WA’s Wheatbelt from 25 mega watts (MW) up to 100MW.

The $160 Million project in Cunderdin will be the state’s largest solar farm, and was set to produce 20 per cent more electricity by capacity than Australia’s largest – the 102MW Nyngan solar farm in NSW.

Sun Brilliance director Professor Ray Wills said the decision to upscale was made after the company acquired sufficient land capable of hosting a larger project and received encouragement from investors.

“Rooftop solar has dominated the Western Australian market in the past five years, while the rest of the world has largely built utility scale solar farms,” Prof Wills said.

“Our competitively-priced 100MW solar farm will change the way electricity generation in Western Australian is viewed.”

The farm had potential to generate more than 200 GWh of renewable energy per year, and establish 200,000 Large Generation Certificates (LGCs).

(continued on page 9)

100MW solar farm set to be WA’s largestElizabEth Fabri

blackouts predicted in 10 year forecast — Page 4

2 September 2016

THE AUST�LIAN ENERGY REVIEWCONTENTS

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Chevron

Jeroen De Corel

A Day in the Life p30

news p8

renewable energy

Special FeaTUReS

chevron 17

Solar power in australia 21

SeaaOc 2016 23

all-energy australia 2016 12

Renewable energy 8

NeWS 1

iNDUSTRY pROFileScompanies Gearing Up 25

pumps & Valves 28

Hire & Rental 27

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3September 2016

THE AUST�LIAN ENERGY REVIEW NEWS

THE net revenue of Organisation of the Petroleum Exporting Countries (OPEC) members in 2015 dropped to its lowest level since 2004, according to the US Energy Information Administration (EIA).

The 26 August report estimated that OPEC members collectively earned $US404 billion from oil sales in 2015, representing a 46 per cent decline from $US753b the previous year.

The EIA stated that the drop in revenue had significant implications for the fiscal condition of OPEC countries that relied heavily on oil sales as a part of their overall gross domestic product.

In inflation-adjusted terms, OPEC net oil export revenue was just $US606 per person in 2015, compared with $US3500 in 1980.

The monthly average Brent spot price dropped from $US112 per barrel (b) in June 2014 to $US38/b in December 2015.

Declining oil prices were the main driver behind lower OPEC revenue since mid-2014, however a relatively high level of unplanned outages stemming from armed conflict and militant action in countries such as Libya and Nigeria had also affected production.

Based on EIA forecasts, OPEC net oil revenue was expected to fall to $US341bn in 2016, before rising to $US427bn in 2017.

OPEC oil revenue lowest since 2004CamEron DrummonD

ElizabEth Fabri

THE Council of Australian Government (COAG) Energy Council meeting in August has been well received by industry officials following the release of the country’s most significant domestic gas market reforms in two decades.

State and Federal energy ministers met in Canberra on 18-19 August to discuss the emerging challenges facing gas and electricity markets as the country transitions towards a low emissions future.

To reduce gas prices and increase supply, the ministers agreed to establish two wholesale gas trading hubs, and arrangements for the trading of pipeline capacity after reviewing Australian Competition and Consumer Commission (ACCC) and Australian Energy Market Commission (AEMC) reports released earlier in the year.

A Gas Market Reform Group headed by Dr Michael Vertigan would be introduced to accelerate these changes. One of Dr Vertigan's first tasks would be working with ACCC findings to address the limited constraints on existing pipeline operators.

“Another key focus of the council will ensure consumers can confidently take advantage of new technologies such as battery storage through the introduction of appropriate consumer protections,” Environment and Energy minister and council chair Josh Frydenberg said.

“Council acknowledged the important role played by interconnectors in the National Electricity Market (NEM) and agreed to review regulatory settings to ensure they do not present barriers to appropriate investment in the current market environment.

“Officials have also been asked to provide advice on economic and operational impacts of existing and proposed state and territory

emissions reduction policies on the energy system.”

The energy ministers agreed on a plan to increase onshore gas supply, apart from the Victorian government, which was still considering its position.

The council also agreed The Senior Committee of Officials would complete a review of the Limited Merits Review (LMR) regime by December 2016.

Clean Energy Council chief executive Kane Thornton said the meeting was an overall success but substantive reform would take longer than a day.

“The way our electricity system operates today is already very different to when it was first designed almost 20 years ago,” Mr Thornton said.

“The rise of solar and wind, and the coming of home batteries mean the way we

think about energy in 10 or 20 years will be vastly different to business as usual.

“The kind of considered national energy strategy that is required will take time to negotiate and develop.”

Energy Network Association chief executive John Bradley supported the decision to accelerate the assessment of a new interconnector between NSW and South Australia, and increased onshore gas supply.

“Governments must remove unnecessary barriers to new sources of gas supply,” Mr Bradley said.

“It is surprising Victoria has not joined other states, given it is more exposed with its manufacturing sector, and large household gas consumption.”

The COAG Energy Council will meet next on 2 December 2016 in Melbourne.

COAG gas strategy welcomed

At the fifth COAG Energy Council meeting in August, ministers agreed to a number of reforms to ensure Australia’s energy system remained reliable and affordable.

Image: Western Power

The Australian Unregulated Utilities: Increased Price Volatility to Benefit Flexible Generators report stated flexible power stations would cope with the surges, while base load generators could be under pressure.

"Individual generators that can rapidly adjust their output in response to price swings will likely benefit, but those that cannot could prove commercially unviable over time," Mr Ng said.

Electricity retailers that could meet customer demand from their own generation fleet would be well placed to manage prices, while those with fixed tariffs for 12-18 month contracts would face risks.

The report explained the growth of low cost intermittent renewable generation, specifically wind, had caused some thermal base load generators to withdraw capacity- an upshot that would also continue.

Power cost fluctuations set to continue: report

(continued from page 1)

Image: US Energy Information Administration

4 September 2016

THE AUST�LIAN ENERGY REVIEWNEWS

INDUSTRY and economic forecaster BIS Shrapnel expects a weakened economic growth forecast over the next three years will have positive offsets, underpinned by further LNG and other mining capacity coming on stream.

The Long Term Forecasts: 2016-2031 report estimated that Australian GDP growth would ease to 2.8 per cent in 2016/17 from about 3 per cent in 2015/16.

Based on BIS Shrapnel’s forecasts, Australia’s economy is now around half way through what would turn out to be a 75 per cent fall in mining construction.

“Growth will again weaken over the subsequent two years as mining investment continues to decline, as residential building runs out of steam and falls sharply, and as parts of non-dwelling building plateau,” BIS Shrapnel senior economist Richard Robinson said.

The saving grace would be strong growth in resources exports and production, now being boosted as long lead-time projects come on stream; albeit at lower prices.

$80 billion worth of LNG projects are set to come online within the next 18 months – Inpex’s Ichthys, Shell’s

Prelude and Chevron’s Wheatstone – providing strong growth in resources production and exports.

While that maintains the viability of low cost producers, high cost producers and mining investment service providers face a bleak outlook, according to the

report.BIS Shrapnel stated that that solid

household spending and a pick-up in infrastructure investment would also help sustain growth across the next three years, but not enough to offset the impact of falling mining investment.

Blackouts predicted in 10yr forecast

SOUTH Australia, Victoria and NSW are at high risk of power outages in the next 10 years as a result of coal-fired generation withdrawals, according to forecasts from the Australian Energy Market Operator (AEMO).

The 2016 Electricity Statement of Opportunities (ESOO) report found in the absence of new generation, network and non-network development, power shortages would be likely by 2025-26 if the market remained at its current state.

“AEMO has modelled the impact of withdrawing a further 1360 megawatts (MW) of coal-fired generation capacity to meet the COP21 commitment under AEMO’s neutral

scenario, with results suggesting potential reliability breaches occurring in South Australia from 2019-20, and New South Wales and Victoria from 2025 onwards,” AEMO chief operating officer Mike Cleary said.

“These breaches would most likely occur when demand is high (usually between 3-8pm), coinciding with low wind and rooftop photovoltaic (PV) generation, and low levels of electricity supply imported from neighbouring regions.

“In this scenario, the majority of coal-fired generation withdrawals are assumed to come from Victoria, which would reduce that State’s generation output to support South Australia and New South Wales via the interconnected network.”

Mr Cleary said AEMO was working to identify network and non-network

developments to maintain secure electricity supply.

“Possible solutions could include an increased interconnection across NEM regions, battery storage, and demand side management services,” he said.

Energy Networks Association (ENA) chief executive John Bradley said the report recognised a need for an integrated carbon and energy policy.

“Australia needs a clearer process for integrating carbon and energy policy nationally, because the current system isn’t working,” Mr Bradley said.

Mr Bradley said solutions could involve concentrated solar thermal technology and battery storage, renewable biogas, carbon capture and storage, or storing energy in gas networks through Power to Gas technology.

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CamEron DrummonD

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A platform under construction in Korea for Chevron’s Wheatstone LNG project. Image: Chevron.

LNG to keep GDP growth positive: Report

in brief

Sundance completes another raising

US-focussed oil and gas company Sundance Energy Australia has raised $9 million from existing shareholders via a share purchase plan after recently completing an $80m share placement to professional and sophisticated investors.

Proceeds would be used to accelerate development, provide working capital to target acquisitions, and other general corporate purposes.

Sundance, which holds 45,000 acres in South Texas, estimated 2016 production of between 7000 and 7500 barrels of oil per day.

The company’s development program is expected to drive year-end proved reserves to between 33 million and 36 million barrels of oil.

OiL & GAs

Big three decrease imports in 2015

THE three largest importers of liquefied natural gas (LNG) in the world – Japan, South Korea, and China – recorded a 5 per cent (0.9 billion cubic feet per day) decline in 2015 from the previous year.

Combined LNG imports in these countries averaged 18.2 Bcf/d for 2015; the first annual decline in these countries' combined LNG imports since the global economic downturn in 2009.

Imports in India and Taiwan, the fourth and fifth largest LNG importers respectively, increased slightly in 2015.

Increased LNG imports also came from emerging Asian LNG markets, such as Malaysia, Singapore, Thailand, and Pakistan.

LNG

THE Australian Government has released 28 new exploration zones as part of its 2016 Offshore Petroleum Exploration Acreage Release.

The areas were located across five offshore basins in Commonwealth waters in WA, the Territory of Ashmore and Cartier Islands.

Minister for Resources and Northern Australia Senator Matt Canavan said the areas were selected from industry nominations, and were supported by pre competitive geological and geophysical data and analysis undertaken by Geoscience Australia.

“I am pleased to see continued momentum for exploration in our north and the opportunities for boosting jobs and economic growth this presents,” Mr Canavan said.

Offshore exploration areas releasedPEtrolEum

http://www.questevents.com.au

6 SePtember 2016NEWS THE AUST�LIAN ENERGY REVIEW

Victoria bans fracking and CSG

Shelf Subsea acquires Fugro TSM

THE Victorian Government has announced a permanent ban on the exploration and development of all onshore unconventional gas, including hydraulic fracturing (fracking) and coal seam gas.

To be introduced later this year, the legislative ban is aimed at protecting the ‘clean green’ reputation of Victoria’s agriculture sector which employs more than 190,000 people.

The Andrews Labor Government stated that it would provide much needed certainty to regional communities.

The legislation is in response to the 2015 Parliamentary Inquiry into Onshore Unconventional Gas in Victoria that received more than 1600 submissions, mostly opposed to onshore unconventional gas.

“Victorians have made it clear that they don’t support fracking and that the health and environmental risks involved outweigh any

potential benefits,” Victorian premier Daniel Andrews said.

“Our farmers produce some of the world’s cleanest and freshest food. We won’t put that at risk with fracking.”

The current moratorium on unconventional onshore gas exploration and development would stay in place until the legislation was passed.

“There has been a great deal of community concern and anxiety about onshore unconventional gas – this decision gets the balance right,” Mr Noonan said.

“We have carefully considered the parliamentary inquiry’s key findings and recommendations, consulted widely and made our decision on the best available evidence.”

The legislation is at odds with industry sentiment that both conventional and unconventional gas extraction techniques were safe and necessary for energy supply in Victoria.

Shell Australia chairman Andrew Smith lambasted the State Government, saying

the move would ripple through the state’s economy and impact on all large gas users, including manufacturers, fertiliser producers and the construction industry.

“Today’s move by the Andrews Government means every Victorian household and business will now pay higher energy prices moving forward,” Mr Smith said.

“In the state that depends most on gas, this means less jobs, lower growth, less investment and a higher cost of living.”

Australian Petroleum Production & Exploration Association (APPEA) chief executive Dr Malcolm Roberts said there was no reason to prohibit onshore gas development in Victoria.

“Every independent, scientific inquiry confirms that, properly regulated, unconventional gas is safe,” Dr Roberts said.

“Activist fear campaigns can create confusion and uncertainty in the community but our political leaders have a responsibility to rise above such campaigns and support an honest, factual debate.”

A MERGER worth $40m has been made between Shelf Subsea (Shelf) and Fugro TSM (TSM), a subsidiary of global geosciences company Fugro.

The two Perth-based companies would combine, with Shelf to acquire TSM for $20m in cash and the rest to be paid in shares.

Shelf – formally Caldive Australia – is a commercial diving company which has provided saturation diving, air diving and shallow water solutions to the oil and gas sector in the Asia Pacific (APAC) region for more than 20 years.

TSM, a subsea contractor in the APAC region, supplies a range of services to the oil, gas and marine industries, providing a full life field offering including engineering, construction, inspection, repair and maintenance, intervention and decommissioning.

The new entity will employ more than 300 staff to ensure a strong presence in the APAC region with offices in Australia, Singapore and Malaysia.

The combined business would be headed by TSM’s Colin McGinnis as chief executive with the support of existing TSM and Shelf management teams, while Shelf’s John Edwards will fill the role of non-executive chairman.

“The merger of TSM and Shelf creates a strong and exciting company that will offer a significantly enhanced range of subsea services in the Asia Pacific region,” Mr

Edwards said.“By combining Shelf’s extensive shallow

water saturation and air diving capability with TSM’s proven experience in deep water,

IMR and light construction our customers will benefit from our ability to provide integrated and competitive services in all water depths.”

industry has voiced opposition to the Government’s ban on unconventional gas exploration and development. Image: Beyond Zero Emissions

CamEron DrummonD

CamEron DrummonD

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shelf subsea provides commercial diving services to the oil and gas sectors. Image: Shelf Subsea

Brisbane petrol prices were on average 5.2 cents per litre higher than other cities. Image: Shell International Ltd

Rising petrol prices sparks inquiry

QUEENSLAND Energy minister Mark Bailey is urging the Australian Competition and Consumer Commission (ACCC) to launch an official investigation into Brisbane’s rising petrol prices.

The minister’s comments come as the State continued to report 5.2 cent per litre higher petrol prices than Sydney, Melbourne, Perth and Adelaide, on average.

“Petrol prices are at their lowest in 14 years due to historically low crude oil prices and international refined petrol prices, but retail margins are at a record high.

Clearly, this is not being passed on to Queensland motorists,” Mr Bailey said.

ACCC chairman Rod Sims has said the consumer watchdog would take a look at why this was the case, and said a possible reason was high retail profits.

“Taking a look isn’t enough in my opinion, it doesn’t go far enough,” Mr Bailey said.

“He’s admitted Brisbane motorists are being price-gouged.

“We need a full investigation into why Brisbane drivers are being ripped-off at the bowser.”

SOLAR power purchase agreement (PPA) providers can sell electricity to WA consumers more easily under new retail license exemptions.

In August, the State Government announced solar PPA providers could apply directly to the Public Utilities Office (PUO) to be exempt from holding a license to sell electricity.

The arrangement would encourage more providers to install rooftop systems at no up-front cost, while the customer signed a contract to purchase all electricity from the system for an agreed time and price.

WA Energy Minister Mike Nahan said the exemption would bolster the state’s solar power industry, making the renewable energy source more accessible to households.

"West Australians are embracing solar energy in unprecedented numbers and the State Government wants to ensure everyone has access to this exciting technology," Dr Nahan said.

"By creating the exemption, we have broken down barriers, cut red tape and reduced the regulatory costs for solar PPA providers to offer electricity services to customers.

“This will help the emerging market

to develop and increase the choices that customers have to access these innovative and renewable sources of electricity at an affordable price.”

Eligible customers could also export electricity back into the grid under the Renewable Energy Buyback Scheme.

"Retail licence exemptions, which can now be submitted to the PUO, will also include important consumer protection conditions to ensure consumers are aware of their rights and obligations under the solar PPA before entering into a contract," Dr Nahan said.

8 SePtember 2016NEWS: rENEWablE ENErgy THE AUST�LIAN ENERGY REVIEW

Knowledge sharing at Lakeland

Red tape cuts promote solar growth

BHP Billiton is one of a number of resources companies that is showing interest in a large-scale solar and battery storage project in North Queensland.

Developed by German-based solar energy company Conergy, the $42.5 million Lakeland Solar and Battery Storage project includes $17.5m of funding provided by the Australian Renewable Energy Agency (ARENA).

The 10.8MW solar photovoltaic (PV) plant and 1.4 megawatt (MW) / 5.3MW hours lithium-ion battery storage project aimed to provide affordable, large-scale battery storage to allow electricity generation after the sun went down and the wind stopped blowing.

Conergy has forged a knowledge-sharing partnership with BHP Billiton, Origin Energy, Ergon Energy and ARENA.

Utility provider Origin Energy signed a power purchase agreement with Conergy and

the project and will be connected to the Ergon Energy network.

BHP contributed $350,000 towards the project.

BHP Billiton senior environment manager Dr Graham Winkelman said solar and storage projects could assist BHP in the future to reduce its own operating emissions and help support energy reliability at some of its more remote operations.

“BHP Billiton has a commitment to accelerating the development and deployment of low emissions technologies and we believe that to do this we must facilitate the sharing of knowledge and lessons from projects such as the Lakeland Solar and Storage Project,” Dr Winkelman said.

Conergy managing director David McCallum said utility-scale storage and solar with effective management software was the “holy grail” of the global renewable energy industry.

“This is an exciting opportunity to combine

the latest developments in solar technology with utility-scale battery storage to feed consistent, quality power into the existing electricity grid,” Mr McCallum said.

A detailed battery testing plan will be implemented over the first two years of operations, culminating in testing ‘island mode’ during the evening peak.

ARENA chief executive Ivor Frischknecht said the project was well placed to work alongside ARENA’s major push to deploy more large-scale solar PV plants across Australia.

“This plant will generate and store enough renewable energy to power more than 3000 homes and create up to 60 jobs in the Lakeland region during construction,” Mr Frischknecht said.

“The local town of Lakeland will be powered solely by solar and batteries for several hours during these tests,” Mt Frischknecht said.

The project is scheduled for completion in April 2017.

Concept art of the Lakeland solar and Battery storage project in North Queensland. Image: Conergy

solar PPAs are contractual arrangements between customers and providers. Image: Solar Citizens.

Evergen chief executive Dr Glenn Platt with the Evergen intelligent home energy management system.

CamEron DrummonD

ElizabEth Fabri

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SYDNEY start-up Evergen has launched Australia’s first solar and battery power management system that allows users to monitor home energy use via a smart phone app.

The CSIRO-developed technology looked at weather forecasts and power consumption patterns to make smart decisions on the most efficient and low cost energy source solution for the home whether this was solar, battery power or the grid.

"CSIRO has been at the forefront of solar and battery technology research for many years, and we are committed to the development of intelligent systems and tools which change the way we use energy," CSIRO energy director Dr Peter Mayfield said.

"We know that consumers are viewing their household electricity differently and taking more control; intelligent systems allow them to do this with ease."

The system would be remotely managed by Evergen with regularly updates from CSIRO, and was expected to reduce energy costs by up to 60 to 80 per cent.

Evergen chief executive Glenn Platt said the system was now available in an early release program, with the second-stage program in January 2017.

“Distributed energy technologies such as rooftop solar are the biggest growth areas in the market globally, and upcoming new technologies will completely change a market that has operated the same way for decades,” Dr Platt said.

“We are already working on a range of product innovations, which will add new options to the Evergen smart system during the next five years.”

Smart energy app an Australian first

99SePtember 2016

THE AUST�LIAN ENERGY REVIEW NEWS: rENEWablE ENErgy

in brief

PoliCy

INNOVATION would be stifled right across Australia’s clean energy sector if the Australian Parliament supported legislation to cut $1 billion from the Australian Renewable Energy Agency (ARENA), according to a briefing paper released by the Clean Energy Council.

Clean Energy Council chief executive Kane Thornton said ARENA had funded hundreds of projects that would not otherwise have gone ahead, bridging major knowledge gaps across the renewable energy industry, reducing technology costs, and supporting home-grown Australian research and development activities.

“While we understand the government is looking for savings, slashing grant funding for renewable energy massively undermines the industry’s efforts to meet our national emissions reduction targets, as well as the 2020 Renewable Energy Target (RET) and beyond,” Mr Thornton said.

Legislation seeks ARENA funding cuts

ESCO announces 320MW worth of QLD projects

ESCO Pacific has submitted development applications to build three new solar farms in Queensland with a combined capacity of 320MW.

The projects included an 85MW solar farm at Isis River; 125MW farm at Susan River; and an 110MW farm in Rollingstone; which followed on from the approval of its $250 million 135MW Ross River Solar Farm in June.

ESCO said project approvals for the three farms were expected late 2016, and the company was in discussion with potential offtake partners to secure grid connection contracts.

sOLAr

Tesla gets green light for SolarCity takeover

TESLA has been given the green light to acquire solar power company SolarCity after US federal regulators said the deal, worth $US2.6 billion, did not herald any antitrust concerns.

A red flag was previously raised by regulators, as Tesla chief executive Elon Musk was also one of the largest stakeholders and chairman of SolarCity.

Tesla stated that the SolarCity takeover was a part of its drive to become a vertically integrated sustainable energy company, resulting in lower costs for the hardware and installation of its products.

intErnational

“Given our solar farm will make a significant addition to WA’s renewable energy generation, we look forward to helping the State meet obligations under the Federal Government’s renewable energy target and provide a source of WA produced LGCs,” Prof Wills said.

Sun Brilliance said it was finalising regulatory approvals and hoped to begin construction in January 2017, and be operational by July 2017.

The company has applied to connect to Western Power’s grid and has proposed to build its own 120 kVA, 132 kV/22 kV

sub-station at the plant site.“We have been very pleased with the

professionalism of Western Power in their early consideration of our project needs, and subsequent guidance in applying for access to the grid,” Prof Wills said.

100MW solar farm to be WA’s largestThe 165 hectare site in Cunderdin WA, where the 100MW solar farm will be built. Image: Sub Brilliance

(continued from page 1)

Jeroen De CorelCheck Point Europe Security Architect

Cameron Drummond spoke with cyber security expert Jeroen De Corel about his work with Check Point and the possible ramifications of cyber attacks for Australia.

A Day in the Life, page 30

10 September 2016

THE AUST�LIAN ENERGY REVIEWNEWS

A THREE year lithium-ion battery trial has been launched in Canberra to compare and test eight batteries available in Australia.

The $609,000 trial, supported by the Australian Renewable Energy Agency (ARENA), would help energy system designers, suppliers and consumers make informed decisions on the best renewable energy battery storage systems to suit their needs.

Six lithium-ion batteries, including the Tesla Powerwall, were selected,

along with one conventional lead acid battery and one advanced lead battery.

“At ARENA, we’re committed to accelerating Australia’s shift toward a sustainable, affordable and reliable energy future, and we know that batteries are shaping up as a big part of this future,” ARENA chief executive Ivor Frischknecht said.

“A study commissioned by ARENA and prepared by AECOM last year predicted that the price of home batteries will drop by up to 60 per cent by 2020.

“And, while many Australians are currently hanging back waiting for prices to go down, it is expected they will

soon be entering the market in rapidly growing numbers.”

Testing would take place at the Canberra Institute of Technology and results would be displayed in real time online.

“Over the next three years, the vital information produced by the centre will help Australians decide which battery to install in their homes and will also help power companies design and transition to innovative renewable energy projects and technology solutions,” Mr Frischknecht said.

“Accurate data on how different batteries work will be invaluable.”

NEWS: rENEWablE ENErgy

ACT signs Crookwell contract

THE ACT Government has awarded Crookwell 2 Wind Farm with a 20-year feed-in tariff contract to help the Territory meet its 100 per cent renewable energy target.

The 91 megawatt project, developed by Union Fenosa, will be built near Goulburn

in NSW and generate 80 construction and 14 operational jobs.

“The $200 million Crookwell 2 Wind Farm project is an exciting and innovative project that will help NSW deliver on its commitment to increase renewable energy jobs and infrastructure in the state,” NSW Resources and Energy deputy secretary Kylie Hargreaves said.

“Wind farms harness an unlimited and

readily-available resource to generate electricity and parts of NSW have been identified as some of Australia’s best areas for wind resources.

“The construction of this wind farm will contribute to the financial security of the people of the Upper Lachlan, Crookwell and Goulburn, and demonstrate the potential of renewable energy to transform our regional communities.”

This includes Union Fenosa’s Community Enhancement Fund of $2500 per turbine, which would contribute about $70,000 each year to the local community for the life of project, estimated to be 25 years.

The project was the second NSW wind farm to be backed by the ACT government, after Sapphire wind farm was awarded a feed-in tariff in March.

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Battery trial compares industry’s best

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(Left to right) ArENA chief executive ivor Frischknecht, ACT Deputy chief minister simon Corbell and iTP renewables managing director simon Franklin touring the lithium-ion battery test centre.

The Crookwell wind farm area. Image: Union Fenosa

$18m boost for National Energy Productivity Plan

THE Federal and state governments have invested $18 million to fast track Australia’s energy productivity target set out in the National Energy Productivity Plan (NEPP).

The NEPP was released in December 2015 to provide a framework to deliver a 40 per cent improvement in Australia’s energy productivity by 2030.

Environment and Energy Minister Josh Frydenberg said Energy Performance Standards in the past had driven significant improvements that Australia now needed to build on.

“For example, the most efficient air conditioners sold in 2003 would no longer meet the minimum standard today, while houses built after 2010 use around 30 per cent less electricity than houses built before 2007,” he said.

“This is why the COAG Energy Council developed the National Energy Productivity Plan (NEPP) to boost Australia’s competitiveness, help consumers manage their energy costs and reduce Australia’s greenhouse gas emissions.”

The minister said the funding would go towards a research grant for Energy Consumers Australia to make energy decisions easier for consumers; an Energy Use Data Model to support better forecasting and policy; Gas Supply Strategy related works; accelerating appliance energy efficiency standards; and improving energy efficiency of buildings.

“The Coalition Government will continue to drive new measures through the NEPP and other programs to unlock Australia’s full energy productivity potential,” he said.

12 SPECIAL FEATURESAll-EnErgy AustrAliA 2016

SePtember 2016THE AUST�LIAN ENERGY REVIEW

All-Energy Australia is set to be a convergence of key energy experts from industry, government and academia.

A renewable agendaTHE free to attend, clean and renewable energy event All-Energy Australia will be taking place on 4 and 5 October at the Melbourne Convention and Exhibition Centre.

More than 150 industry speakers lined up for this year’s event will cover seven conference streams including smart grid, off-grid solutions, community energy, investment opportunities, electric cars, bioenergy, and wave energy technology.

Speakers from government, key industry influencers and researchers aim to ensure a rewarding experience for attendees.

Presentations will be made by leaders from organisations such as the Clean Energy Regulator, CSIRO, The World Wind Association, AECOM, Huawei, Transgrid, and Citipower/Powercor.

The agenda features a strong focus on solar and wind developments as part of the broadest range of topics at any Australian renewable energy event, with key insights and updates on government initiatives, low carbon transport, market developments, new technology, and clean energy project development.

All-Energy Australia exhibition director Robby Clark said that energy storage, smart grids and energy efficiency have been earmarked as standout streams for

the conference, with each set to attract internationally renowned speakers.

“We surveyed our visitors last year to work out what the areas of interest would be for our next event and these three topics stood out; this will be reflected at All-Energy Australia this year.”

Mr Clark said visitors can expect a number of new elements at this year’s event and on the exhibition floor.

“We’re always looking for ways to innovate, which includes the ongoing strategic partnership with the Clean Energy Council (CEC) and this year’s partnership with the Australian Technologies Competition (ATC) which is sure to pique the interest of the investment sector in our free, two day event,” he said.

All-Energy Australia will host part of the ATC on site this year, with a focus on new energy, smart cities and global development.

The ATC is a strategically designed technology incubator program, with a history of strong results in terms of successful commercialisation and project finance outcomes for participants.

More than 100 exhibitors will take to the floor this year with confirmed representatives from Canadian Solar Australia, ABB Australia, Jinko Solar, Fronius Australia, Trina Solar, SMA Australia, Huawei Technologies, Enphase Energy, RES Australia, Clenergy, MPower, Victron, Redback, Ingeteam, RF Industries, Solax Power, Schletter, IMEON Energy, AC Solar Warehouse, IPD, and Outback Power.

Highlights on display will include SMA Australia’s recently developed Sunny Boy Storage battery inverter designed for high voltage batteries such as the Tesla Powerall; Enphase Energy’s Enphase Home Energy Solution; and ABB’s renewable energy accumulator and conversion technology (REACT).

Other additions to the event include the introduction of All-Energy Australia’s business matching program, which offers delegates the opportunity to pre-book a networking session with one of the event’s global and domestic exhibitors, supporting targeted business-to-business opportunities.

“It’s all about maximising the visitor’s time while onsite at All-Energy to ensure their business objectives are met and their expectations exceeded,” said Mr Clark.

“As Australia’s single largest, free, clean and renewable energy conference and exhibition, there is a lot to pack into two days and so we want to make their experience as simple and useful as possible.”

High profile speakers billed for the conference include AGL chief executive Andrew Vesey, CEC chief executive Kane Thornton, and Powershop chief executive Ed McManus, with the event’s international keynote announcement scheduled for the coming weeks.

Day one begins with Victorian State minister for Energy, Environment and Climate Change Liliana D’Ambrosio providing a welcome address together with information on the Victorian Government’s commitment to renewable energy targets of 25 per cent by 2020 and 40 per cent by 2025.

Mr Vesey will deliver the national keynote speech, addressing the shifts toward a clean energy and consumer centred energy market.

He will also take part in a panel discussion as a component of the opening plenary on the same topic, chaired by Mr Thornton.

Mr Thornton and Mr Vesey will be joined by chief executive Ed McManus from fast growing electricity retailer Powershop to discuss if the industry is equipped and adaptive enough to stay ahead of the shifting consumer tides.

CamEron DrummonD

ENErgy STOragE, SmarT gridS aNd ENErgy

EffiCiENCy havE bEEN EarmarkEd aS STaNdOuT

STrEamS fOr ThE CONfErENCE.

More than 100 exhibitors will be in attendance at All-Energy Australia 2016.

(continued on page 14)

13September 2016

THE AUST�LIAN ENERGY REVIEW all-ENErgy auSTralia 2016

14 September 2016

THE AUST�LIAN ENERGY REVIEWall-ENErgy auSTralia 2016

The Women in Renewables Luncheon will again be held on the first day; hosted by the CEC, the luncheon will aim at achieving better gender balance at all levels of the renewable energy industry.

The CEC’s extensive free program of

continuous professional development (CPD) for solar designers and installers will run concurrently with plenary sessions on day one, serving as a one-stop shop for delegates to get their fix of expert advice on the big design and installation issues currently facing the industry.

At the end of day one, the Grand Networking Event, sponsored by SMA Australia, will allow delegates and exhibitors to network and unwind.

A CEC sponsored night for the small-scale solar industry – the Appropriate Technology Retailers Association of Australia (ATRAA)

Dinner – will provide an opportunity to celebrate the work being done in the solar industry in Australia with the Solar Design and Installation Awards to be announced on the night.

The second day will kick off with more international and national keynote presentations, as well as Redback Technologies chief information officer Paul Liddell showcasing cutting-edge technological advances in clean energy.

The ATRAA conference on day two is a specialist conference co-located at All-Energy which delves into detail on

issues and opportunities for the small-scale renewable energy industry across two streams; a technical stream and a business stream.

Delegates who participate in the CEC’s PD programs and ATRAA conference will be able to accrue 15 CPD points per session attended.

All-Energy 2016 will finish with its Grand Closing Plenary, with closing addresses and a discussion on the topic of renewable energy targets and the role of governing policies on the Australian energy industry, moderated by Mr Thornton.

mOrE ThaN 150 iNduSTry SpEakErS COvEriNg SEvEN CONfErENCE STrEamS arE liNEd up fOr ThiS yEar’S

EvENT.

All-Energy event director robby Clark.Delegates will be provided business networking opportunities throughout the two day event.

(continued from page 12)

15September 2016

THE AUST�LIAN ENERGY REVIEW all-ENErgy auSTralia 2016

THYCON has been honoured with the prestigious 2016 Victorian Government Hall of Fame – Manufacturer of the Year Award in June for its clean, commercial-scale alternative power supply solutions.

Victorian Minister for Industry and Employment , Hon Wade Noonan MP, said the State Government was committed to building a strong advanced manufacturing sector, which had the potential to underpin growth across the economy.

“It is innovative companies such as THYCON that make a significant contribution to our quality of life,” he said.

Since the company’s foundation in 1968, THYCON’s dedication to research and development innovation has enabled its product line to grow steadily in response to technical advances and market needs.

Today, it encompasses airfield lighting regulators, high-current rectifiers, inverters, UPS, static frequency converters, power factor correctors, transformers, and more recently, fault current limiters, energy storage and micro-grids for which it’s received recent innovation awards.

THYCON was also ranked #17 in AFR’s 50 Most Innovative Companies 2016 for the Fault Current Limiter (TFCL) that enables connection of distributed energy resources, such as renewables and cogeneration to the electricity grid.

The TFCL enables fast fault limitation where breakers are unable to intervene with sufficient speed. The main disadvantages and reliability issues of current technologies include the impact on voltage regulation and stability, size/footprint, impact on system efficiency and lack of fail safes.

These issues are addressed by the TFCL, ensuring it is easy to install, requires little

maintenance and is low cost by nature. Unlike electronic limiters or breakers, the TFCL requires no control electronics and is failsafe. Being self-acting and self-resetting, it is also suitable for remote and isolated installations.

THYCON, #24 in BRW’s 50 Most Innovative Companies 2015, was awarded for its 320kW Uninterruptible Mini Grid Power Supply (UMGPS) solution that enables clients to operate independently of the grid 24 hours a day.

THYCON’s UMGPS is able to provide a 24×7 off-grid solution on a commercial scale – using only solar and battery energy storage – with the capability to synchronously transfer

the Mini Grid to the commercial grid in times of need.

For commercial applications, the UMGPS reduces the need for electrical networks to invest in infrastructure to meet peak load fluctuations, by providing local energy storage close to the source of demand.

This reduces pressure to install generator and distribution infrastructure to meet these peaks, reducing the level of investment required to maintain the grid.

For Military bases and remote locations, the UMGPS reduces the dependence on external fuel deliveries. The deployment of a 24×7 grid-independent renewable energy facility provides tactical independence

of these facilities, securing their power requirements against external interruptions while reducing daily energy costs.

THYCON’s dedicated customer service includes preventive maintenance, 24x7 remedial service, smart monitoring, customer training programs, and engineering advisory services.

The company’s reputation for robust, long life, quality equipment is well established, with many products still in operation after more than 25 years of service. It’s enduring reputation and philosophy for state-of-the-art and rugged design provides an excellent foundation for recent growth into international markets.

thyCon's reputation for robust, innovative, and long-life equipment is well established.

THYCON awarded for alternative power solutions

All-Energy event director robby Clark.

16 September 2016

THE AUST�LIAN ENERGY REVIEWall-ENErgy auSTralia 2016

IPD Group and Cellpack are introducing the new CKM plug-in straight-through joint for single core 11kV and 24kV XLPE cables from 50mm to 240mm.

Reliable cable joints are indispensable for good working and high quality electrical distribution networks, and must exhibit the same operational reliability as the cable itself. Due to the high costs incurred by energy producers for their medium voltage networks, shut off time has to be avoided wherever possible.

Therefore it is of outmost importance to energy producers that cable joints are reliable, quick and easy to install.

Innovative solutions are in demand, particularly for medium voltage networks where installation defects result in high costs; which must be reduced drastically.

The CKM plug-in straight-through joint, the result of more than five years of intensive development work at Cellpack, represents the perfect joint system for the medium voltage cable range.

This joint was developed for connections made with plastic-insulated medium voltage cables. Its system components are harmoniously matched to one another ensuring that assembly is very easy, reliable, and can be done quickly.

The integration concept for this type of joint permits the majority of installation steps (formerly performed at the construction site) to be accomplished in advance, under controlled conditions, at the Cellpack factory where every element can be tested electrically.

Therefore, only a few installation steps are required to be performed on-site by the installer.

Advantages of the CKM include the

highest operational security and easy, and reliable and rapid installation.

It can be assembled using standard tools even in tight spaces, is mechanically robust, has an unlimited shelf-life, and is electronically tested individually.

Companies enjoy reduced costs for assembly, inventory and transport; reduced operational costs for the cable network; and improved network reliability.

The insulating materials used in the CKM joint possess outstanding electrical and mechanical characteristics. They are manufactured from high voltage stable silicon rubber under a controlled injection moulding process.

The individual material components have been subjected to years of extensive research, both electrical and mechanical, and have exhibited proven performance in actual applications for decades.

Only the CKM joint has the proven shear bolt connector system built into its splice body. This shear bolt connector is designed to ensure a reliable connection for copper conductors as well as aluminium conductors over the entire range of cross-sections.

Its contact screws have been designed in a way that a single conventional tool is necessary for assembly throughout the entire Cross-section range.

Cellpack‘s refractive field control system, used and proven millions of times around the world, is already integrated into the CKM joint‘s insulated body.

The tested and proven cable joint range is available with IPD for purchase. Interested parties can visit the company at www.ipdgroup.com.au or call on 1300 556 601 for further information.

The CKM plug-in straight-through joint is the perfect joint system for the medium voltage cable range.

The Perfect Connection

17september 2016

THE AUST�LIAN ENERGY REVIEW ChEvrON

In March this year Chevron celebrated a first LNG production and shipment from the $US54 billion Gorgon Project on Barrow Island – a massive highlight in a bittersweet year thus far for the energy giant.

A defining yearTHE maiden shipment from Gorgon was delivered to one of Chevron’s foundation buyers, Chubu Electric Power, for delivery into Japan by the Asia Excellence, one of Chevron's new state-of-the-art LNG carriers.

To support Chevron’s growing position as a leading LNG supplier, Chevron Shipping Company had undertaken its largest shipbuilding and fleet modernisation program in recent history, which included the addition of six new LNG carriers to its fleet.

Chevron chairman and chief executive John Watson said the company expected legacy assets, such as Gorgon and Wheatstone, to drive long-term growth for decades to come.

“The long-term fundamentals for LNG are attractive, particularly in the Asia-Pacific region, and this is a significant milestone for all involved,” he said.

Chevron is positioning itself to become a major LNG supplier by 2020. Its Australian assets are particularly well located to meet growing energy demand in the Asia-Pacific region, with more than 80 percent of Chevron’s equity share LNG from the Gorgon and Wheatstone projects covered by sales and purchase agreements and heads of agreements with regional customers.

A setback

Disaster stuck in April, when, after just one shipment, Chevron was forced to temporarily halt Gorgon production due to “mechanical issues” with the propane refrigerant circuit on Train 1 at the plant site.

At the time Train 1 was producing LNG at 70 per cent of its 5.2 million tonne a

year capacity, or about 90,000 barrels of oil equivalent a day.

Base on initial findings, work on the propane refrigerant circuit – a closed system used to cool natural gas supplied to the plant – would be of “a routine nature and all the necessary equipment and material is available on site”; but the plant would not be restarted until mid-July.

Train 1 ramp-up to full capacity was still expected to occur between six to eight months from initial start-up of the facility. Meanwhile, construction activities continued to progress on LNG Trains 2 and 3, which were not affected by the repairs on Train 1.

At full capacity, the Gorgon Project’s three train LNG plant would supply 15.6mtpa of LNG for export to customers in Asia.

A legacy project

In April, at the LNG 18 conference in Perth, Mr Watson said the company had learnt lessons from the setback at Gorgon, but had “absolutely” no regrets about going ahead with the Barrow Island project.

Moving forward, he said the company would spend more time on project engineering and logistics before moving ahead with multi-billion-dollar developments.

“We are going to do more work with the supply chain to ensure we understand costs before we get started,” Mr Watson said.

“Those are the responsibilities of our company and our contractors to make sure when we make final investment decisions we have a very strong understanding of

what the requirements are going to be so we can deliver a project on schedule and on budget.

Mr Watson said it was important to view Gorgon – which would be profitable at an equivalent oil price of below $US30 a barrel – in the context of its long term, 40-year production profile.

“So Gorgon will be profitable at any kind of reasonable prices, the exact level of profitability will depend on where prices are over time,” he said.

“It is a vast resource base, a big project and we think it will certainly have good results for us over time.”

Wheatstone

Also in April, Chevron announced the signing of a domestic gas sales agreement with Alinta Energy for natural gas from the $US29 billion Chevron-operated Wheatstone project near Onslow, WA.

Under the agreement, Chevron would supply Alinta Energy with 20 Petajoules per year of its equity domestic gas for seven years starting in 2020. Wheatstone had also been troubled by delays, with first LNG pushed back in January from end of 2016 to mid-2017.

Chevron plans to produce 8.9mtpa of LNG through two trains to be supplied by permits WA-235-P and WA-17-R, located in the Wheatstone field, offshore WA.

rEuBEN ADAMs

First shipment of LNG from the Gorgon Project departed in March. All images: Chevron Australia.

A satellite image of the Gorgon LNG plant on Barrow island.

“WE CONTiNuE TO makE prOgrESS TOWardS Our

gOal Of gETTiNg CaSh balaNCEd.”

(continued on page 19)

18 september 2016

THE AUST�LIAN ENERGY REVIEWChEvrON

19september 2016

THE AUST�LIAN ENERGY REVIEW Chevron

SCHNEIDER Electric believes access to energy is a basic human right; the company wants everyone on the planet to have access to safe, reliable, efficient and sustainable energy. But energy demand is rising – in fact it will double in the next 40 years – so this finite resource must be managed appropriately.

Achieving energy efficiency is a must. Schneider Electric has experience in providing fully integrated services and solutions that improve business performance, energy efficiency, and safety.

From the field to the enterprise level,

Schneider Electric provides flexible solutions which simultaneously include automation, information, process, and energy management, together with training, safety, and security.

Leveraging its expertise across the Internet of Things, big data, analytics, mobility and other emerging IT trends, Schneider Electric drives convergence with operational technology to overcome industry challenges.

The company intimately partners with customers and listens to their unique requirements, which allows it to find the right solutions.

Maximise production, safety and staffing

Chevron Australia managing director Roy Krzywosinski said Wheatstone was a significant new source of energy for WA and would be a leading domestic gas supplier for many years to come.

“At full capacity, the Wheatstone Project has the capacity to produce 200 terajoules per day (TJ/d) of domestic gas for the Western Australian market,” he said.

“This agreement is an important step in Chevron's rapidly expanding domestic gas business in Western Australia and the establishment of our leading domestic gas portfolio across the Wheatstone, Gorgon and North West Shelf Projects,” Krzywosinski said.

Wheatstone is expected to deliver domestic gas to the WA market in 2018.

Changing of the guard

In June, as both WA mega-projects neared the end of the development phases, a strategic changing of the guard took place.

Mr Krzywosinski was appointed to the new position of vice president of Engineering in Chevron’s Energy Technology Company (ETC) in Houston, with Nigel Hearne, deputy managing director of Chevron Australia and its Australasia Business Unit (ABU), becoming managing director of the ABU. Both appointments were effective 1 June.

Chevron Asia Pacific Exploration and Production president Steve W. Green said Mr Hearne’s appointment reflected his strong downstream and upstream operating experience, combined with his proven record of leading large, complex operations, such as the company’s Richmond refinery.

“He is well-qualified to position us for success as Australia commences operations at our world-class Gorgon and Wheatstone facilities,” he said.

Mr Green said that Mr Krzywosinski and his team had achieved extraordinary things in developing Gorgon and Wheatstone.

“Gorgon, itself, represents the largest

resource project in the history of Australia and the single largest capital investment in our company’s history,” he said.

“These two projects will generate significant value for Australia and Chevron’s shareholders for decades to come.”

A challenging outlook

Mr Hearn’s appointment pre-empted a lacklustre second quarter result for the parent company, which reported its third straight quarterly loss in line with a challenging market. The second quarter loss of $US1.5 billion – blamed on impairments and lower crude prices – compared with earnings of $571 million in the corresponding 2015 quarter.

Included in the quarter were impairments and other non-cash charges totalling $US2.8 billion, partially offset by gains on asset sales of $US420 million.

Foreign currency effects increased earnings in the 2016 second quarter by $279 million, compared with a decrease of $251 million a year earlier. Sales and other operating revenues in second quarter 2016 were $28 billion, compared to $37 billion in the year-ago period.

Mr Watson said the second quarter results reflected lower oil prices and Chevron’s ongoing adjustment to a lower oil price world.

“We continue to make progress towards our goal of getting cash balanced,” Mr Watson said.

“Our operating expenses and capital spending were reduced over $6 billion from the first six months of 2015.

“In addition, we’re bringing our major capital projects to completion. We have restarted LNG production and cargo shipments at Gorgon and Angola LNG, and started up the third train at the Chuandongbei Project in China.

“Construction at our other key projects is progressing, and we expect additional start-ups later this year. As these projects continue to ramp up, they are expected to increase net cash generation in future quarters.”

The Wheatstone project.

(continued from page 17)

20 september 2016

THE AUST�LIAN ENERGY REVIEWChEvrON

V Swans win community award

THE education and community development department of the Swan Districts Football Club, V Swans, has taken out the 2016 Onslow Chamber of Commerce and Industry Excellence Awards for the ‘Best Community Organisation of the year’.

The V Swans Active Education Program, supported by the Chevron-operated Wheatstone project since 2010, is having a major impact on the town in both the education and community space.

The Business Excellence Awards were created to recognise and celebrate the achievements, innovation and enterprising spirit of small businesses in Onslow.

They provide a unique chance for

local businesses to have their hard work, commitment and successes recognised. It is also an excellent opportunity to take a step back and reflect on their business, products, staff and services.

The V Swans Ashburton team is very proud of what it has achieved in partnership with the Onslow community, through education programs ranging from pre-primary and kindergarten through to Year 12.

VET outcomes are provided for senior high school students that would not be offered without the V Swans program.

V Swans Primary School programs JET and JET Kids allow students to learn in a practical and theory based environment using sport and IPad technology as an engagement tool.

“The JET program really complements the classroom activities; it enables the kids to have another outlet while they’re learning in a different format,” Onslow Year 6/7 teacher Kelli Symmonds said.

“I think it’s an amazing program after seeing what the kids have learned and achieved – and it’s really beneficial for kids with different academic skills.”

V Swans also provides the Human Resources support to the Onslow Early Years group, employing the coordinator to support the outcomes of the group for children up to four years old. This program is supported by the West Pilbara Communities for Children.

IN late 2017, V Swans will complete its first youth facility in the region with

the V Swans Powerhouse (as the building is the old Onslow Power station building) opening later in the year in Onslow.

Funded by Lotterywest and using local contractors, this project will provide a safe and inclusive space for the whole community with activities for all people, including special engagement with Onslow youth.

“V Swans are committed to the youth of Onslow and they are really making a difference,” Onslow Police Station Officer-in-charge Senior Sgt Drew Taylor said.

“Their work is going a long way towards tackling the crime issues linked to at risk-children, bringing a range of benefits to the whole community.”

The V swans Ashburton team receiving their award.

21September 2016

THE AUST�LIAN ENERGY REVIEW SOlar pOWEr iN auSTralia

Global solar photo voltaic costs (PV) have come down significantly – a lot faster than expected. According to the Australian Renewable Energy Agency (ARENA), large scale solar PV is likely to be one of the most competitive forms of energy in many parts of the world in the long term.

It’s no surprise then that large scale solar PV – which is lagging behind Australia’s world leading position in small scale solar penetration – is one of ARENA’s investment priorities. Through its large scale solar competitive round, the Agency hopes to accelerate development of large scale,

commercially competitive projects in Australia. Reuben Adams spoke with ARENA chief executive Ivor Frischknecht.

A sunny outlook

ACCOrDING to a recent IEA report the global pV market broke several records in 2015, surging 25 per cent to 50GW. Where does Australia’s solar industry sit globally?

Right now we don’t have much large scale solar, but we do have a lot of small scale solar. We actually lead the small scale or rooftop solar market globally with the highest penetration – almost 20 per cent of homes have solar on their roof.

However, we are really lagging in large scale solar. There’s about 240MW installed which puts us outside the top 20 in terms of country rankings, and behind places that aren’t very sunny like the UK, and even smaller places like Romania. We are working hard to change that.

It’s interesting because while solar produces a commodity – electricity –when you first start deployment the cost is a lot more than any alternative. This means you need some sort of policy support to get it going.

In this country we chose to support rooftop solar, and we chose not to support large scale solar. Other countries have made quite different choices.

The good news is that we have managed to benefit from the global decline in costs for large scale solar. The bad news is that at some point we had to, and are having to, pay for the local costs to come down.

The costs of large scale solar break down to roughly 60 to 70 per cent for the imported kit, and the rest of it is local costs; costs of construction, installation and the costs of financing the project. We can’t actually drive those costs down without doing the projects

locally. ARENA supported some projects a couple of years ago; the ACT Government has also supported projects, the WA Government has supported one. That, in combination with the large scale solar round we are doing now,

is going to get us most of the way caught up in terms of cost.

ARENA announced a large scale solar competitive round, with the successful projects to be announced in September.

The round is up to $100 million for large scale solar projects through a competitive auction process, whereby projects are effectively competing for the minimum grant. We are trying to minimise the amount of support and get them to be as commercially competitive as possible, which is this part of a pathway towards large scale solar becoming fully commercial.

A couple of years ago those other big projects needed a lot of support. But with costs coming down, this current round we expect to at least double the existing 240MW of installed capacity.

Does the reduction in costs include both imported kit and local costs as

well?

It is the local costs that we are trying to reduce. We can’t impact the imported kit costs; they are coming down, but they are coming down no matter what we do. The first comprehensive analysis of local costs was done in 2012, and it’s come down by something like a factor of three since then – costs of capital; costs of construction; costs of materials.

With 20 project proposals seeking $211 million funding towards $1.6

billion worth of projects, would you agree/disagree that the investment environment for large scale solar in Australia is more positive than it has

been in recent years?

That’s right. In September we expect to announce the final list of supported projects.

All images: ARENA

22 september 2016

THE AUST�LIAN ENERGY REVIEWSOlar pOWEr iN auSTralia

There is no question that stability in policy is a positive. It takes a while for investors to jump back into the market, and it takes a long time to develop these projects.

You need to secure the land from landowners; finalise development approvals and environmental assessments; negotiate with the network company to figure out how and where they can connect, and how much that will cost, and what sort of guarantees are going to be provided.

That project development and planning takes a long time. In Australia, these projects are driven by the RET, which is providing the main revenue for the projects. There was uncertainty about the RET which was slowing things down, but also – in the case of solar – it simply wasn’t competitive with wind, unless there was some other form of support, which is where ARENA comes in.

Industry stakeholders have said that large-scale solar in Australia would not be competing at the price point it was

right now if ARENA hadn’t grant-funded early large-scale solar development in

Australia. How crucial has ARENA’s role been in driving down costs?

With very few exceptions – and those exceptions effectively have some other form of support like State-base support – none of these large scale projects would have gone ahead. The good news is that in a couple of years it’s very likely that, as long as the RET or some sort of policy like that stays in place, we are going to see solar competing with wind.

This means that projects will be built without any additional support being required.

The RET basically says that if you’re an energy retailer you have to have a certain percentage of electricity energy

from renewable sources, which is what’s driving wind farm development. There is no other funding falling into those projects.

Obviously the retailers are trying to find the very cheapest renewable energy that they can, and in most cases that is still wind. We are trying to give them a choice between wind and solar.

You’ve noted that the costs of solar PV technology are rapidly coming down. How important are local Research and

Development projects in supporting the industry and making solar even more

competitive?

It is really important. Solar energy is a major focus of innovation for Australia. We have some of the best educational facilities in that space, some of the best research activity globally is happening in Australia – in PV especially.

For example, by 2020 most of the worlds solar panels will incorporate technology developed at the University of NSW that makes every panel 10-15 per cent more efficient. This technology means that everyone is paying less for the same output, or getting more output for the same cost.

It’s pretty phenomenal when you think about it; it’s not just Australian consumers benefiting, it’s the entire world.

So through a fairly modest research grant funding that we provided we are helping the entire world access cheaper renewable energy.

Where does Australia rank globally in terms of solar R&D?

The University of NSW in particular has held the global record for silicon cell efficiency (the primary technology that is deployed on rooftops) for all but two of the last 20 to 30 years. They have a facility that is well tied into Chinese manufacturing, which allows them to test innovations and commercialise them very quickly.

But they aren’t the only ones. The Australian National University is doing some world-leading work; and there is some fabulous work happening at the CSIRO, Monash and some other places around Australia. Curtin University in WA is doing some very interesting work on integrating solar into different types of developments,

such as strata titles. These [R&D projects] are answering

other questions besides the basic R&D into reducing solar costs; we need to figure out how to use it in new situations, and how to ensure we can use solar energy at night, for example.

What will the Solar R&D review entail?

It’s a strategic review looking at the entire R&D that we are doing in the solar space, which is where most of ARENA’s R&D funding goes. It is looking at where we should prioritise funding by examining where we have been particularly successful, and where we have been less so.

What we are finding is that the research into bringing costs down is really important, but there is actually increasing value in looking at some of the integration and deployment aspects of solar, such as how to utilise solar in strata titles and big community developments, and how to deal with the variable output of solar.

We are working through it now with stakeholders, but we don’t have a timeframe to release that publically yet.

How significant is the solar industry at the small to medium sized enterprise

level in Australia?

It is very important. Rooftop solar is almost 100 per cent small business, with something like 4000 installers in Australia. In terms of the large scale solar farms, a lot of the work is done by subcontractors; companies that drill piles into the ground, conduct geotechnical analysis, electrical subcontracting, and the companies that connect the solar panels on solar farms. These are pretty significant projects; The Nyngan Solar Farm in NSW used 1.3 million panels which are essentially the same size as those that sit on people roofs.

Will there be a growing specialised demand for these sorts of services?

No question. That is the key to driving the costs down.

One of the companies that jumped into the game is a car parts manufacturer called IXL Manufacturing, which makes the frames that the solar modules snap into. They have developed ways to manufacture them efficiently and make it easy for installers to

snap the panels into. The first time they did it they had to come

up with a design and manufacture new tooling. They are still improving their manufacturing processes, getting feedback from the field and from the installers on how they can make it even better.

So you can see how doing it twice, five times or ten times over is going got drive down their costs a lot.

The exact same is true for other small businesses, like the subcontractors who are putting the panels in and driving the piles.

At one solar farm it was taking up to 5 minutes to put in one pile – which is driven into the ground before frames placed on top and the panels are snapped into the frames.

Once they really improved their efficiency the company improved that time to about one minute each pile. That is a fivefold improvement in efficiency, and if you are doing hundreds of thousands of these in the one solar farm it makes a huge difference.

It was reported that the Government would take $1.3 billion of funds from

ARENA and end its grant-funding mechanisms. How important is a stable

political environment for a growing Australian industry like solar? Will this

have tangible effects on investment and the ability to hit the RET?

The RET increases pretty dramatically through to 2020 and then it flattens out, so you can imagine that project developers don’t have a good sense of what their renewable energy certificates are going to be worth past 2020.

This is a real issue now and drives up the cost of finance for all renewable energy projects. In the recent large scale round we have seen some long term off-take contracts emerge but they are still very hard to secure and may become harder as 2020 approaches.

It remains Government policy to take all of ARENA’s uncommitted funding, other than this large scale solar round. There is a process planned for early next calendar year to review all climate change related policies [and] those mechanisms which contribute to lowering emissions long term and providing a stable environment [for the industry].

“buT WiTh COSTS COmiNg dOWN, ThiS CurrENT rOuNd WE ExpECT TO aT lEaST dOublE ThE ExiSTiNg 240mW Of

iNSTallEd CapaCiTy.”

23September 2016

THE AUST�LIAN ENERGY REVIEW SEaaOC 2016

Northern Territory Resources Week 2016 sees three major conferences running side-by-side – the South East Asia Australia Offshore & Onshore Conference (SEAAOC), Mining the Territory, and Building the Territory –, bringing petroleum, mining, exploration, engineering, construction, and

gas leaders together to discuss the latest developments within Northern Australia and South East Asia.

Developing the Top End

AUSTRALIA is well on its way to becoming the world’s largest LNG exporter in 2020. In the Northern Territory, world class projects such as ConocoPhillips’ Darwin LNG, INPEX’s Ichthys LNG and the onshore supply base for Shell’s Prelude FLNG will play a key role. Furthermore, the Territory onshore shale gas industry boasts estimated resources exceeding 200 tcf. This makes SEAAOC a must-attend gathering for Australia’s oil and gas industry professionals.

Now in its 22nd year, SEAAOC is Northern Australia’s largest and longest established petroleum conference, bringing together major players involved within Australasia’s oil, gas and petroleum industries.

The joint Informa Australia and Northern Territory Government initiative attracts the highest calibre of speakers and delegates from across the globe.

SEAAOC represents a significant opportunity to discuss key oil, gas and petroleum developments across northern Australian and South East Asia.

This years’ SEAAOC program is designed to examine the industry in the context of the current complex and challenging global market dynamics. Delegates will gain important insights on project and operational developments, such as Darwin LNG, Ichthys LNG, Prelude FLNG, and the Northern Gas Pipeline.

Views on global and domestic industry trends from experts such as Dr. Fereidun Fesharaki (FGE), Dr. Neil Beveridge

(Bernstein HK) and Mr. Rod Sims (ACCC) will be discussed.

Importantly, attendees will learn

about overcoming the current challenges and how Australia’s industry can best be positioned to stay ahead in today’s market, while also taking advantage of networking opportunities to develop future business.

NT Resources Week is not just about the conferences – the event also features Northern Australia’s largest resources and construction based exhibition running on the 14-15 September 2016 at the Darwin Convention Centre. Attracting an estimated 1100 people across the two days, the free-to-attend exhibition is open to trade visitors as well as conference delegates.

Speaker highlights

FGE is an international energy consultancy group that services produces research, analysis, and forecasting of the international oil and gas markets.

FGE founder and chairman Dr. Fereidun Fesharaki will kick off day one with his keynote Oil and Gas Markets in Turmoil: Implications for Australia.

Dr Fesharaki – who received the 2016 Adelman-Frankel Award from the US Association for Energy Economics for his unique and innovative contribution to the field of energy economics – will discuss the outlook for oil prices and direction of oil markets.

His keynote will focus on whether OPEC will reach an agreement; the evolution of supply and demand and oil prices in the short, medium and long term; when balance in LNG markets can

All images: Informa

NOW iN iTS 22Nd yEar, SEaaOC iS NOrThErN

auSTralia’S largEST aNd lONgEST ESTabliShEd

pETrOlEum CONfErENCE.

aTTraCTiNg aN ESTimaTEd 1100 pEOplE aCrOSS ThE TWO dayS,

ThE frEE-TO-aTTENd ExhibiTiON iS OpEN TO

TradE viSiTOrS aS WEll aS CONfErENCE dElEgaTES.

sEAAOC — part of NT resources Week.

24 september 2016

THE AUST�LIAN ENERGY REVIEWSEaaOC 2016

be reached; how oil prices and hub prices for LNG converge; and whether spot prices in Europe and Asia become a larger determining factor in new contracts.

The day would also incorporate project updates and industry outlooks from LNG heavyweights ConocoPhillips, INPEX, and Shell Australia. These include Shell Australia vice president Production David Bird’s Prelude FLNG: Industry innovation coming to WA; ConocoPhillips vice president Growth Steve Ovenden’s Building on a decade of world class operations in Darwin; and updates on the Ichthys LNG project from INPEX director Corporate Coordination Hitoshi

Okawa.Wood Mackenzie Asia-Pacific

Upstream Research senior analyst Matthew Howell will address global LNG market dynamics and the implications for Australia’s LNG industry.

Herbert Smith Freehills Partner and Co-Head of Global Energy Rob Merrick will tackle the outlook for mergers and acquisitions in the Australian energy market.

APPEA chief executive Dr. Malcolm Roberts will discuss getting regulations right, countering critics and winning community support in his keynote address Challenges and opportunities

in developing Australia’s natural gas resources.

Networking & Social Events

Attendees to the 8th Annual NT Resources Week will be welcomed at the official NT Resources Week Welcome Reception, held in the picturesque surroundings at Parliament House and featuring gorgeous views of the Darwin horizon. This is complimentary event for all NT Resources Week attendees (excluding expo visitors).

The NT Resources Week Networking Drinks allows delegates to browse through the 160-plus stand exhibition and arrange

business meetings, all over a refreshing beverage.

Delegates can also join INPEX and 550 other attendees for a social evening of networking over a lavish dinner and drinks reception at the NT Resources Week Gala Dinner.

On day two, the NT Resources Week Breakfast is the perfect way to get ready for the day’s proceedings.

Delegates can then unwind from a very busy few days by taking in the famous Darwin sunset via the harbour cruise at the NT Resources Week Closing Harbour Cruise; which also gives them one last chance to solidify newly developed business contacts.

25INDUSTRY PROFILESCOMPANIES GEARING UP

SePtember 2016 THE AUST�LIAN ENERGY REVIEW

DESPITE the current low oil price environment, the cost to generate electricity from diesel fuel in remote mining areas in Australia is still significantly higher than grid-connected generation sources.

The integration of solar PV solutions into new or existing diesel generation systems has the ability to create significant savings for mining operations in the current operating cost constrained environment.

The cost of utility scale solar PV construction is on a downward trajectory worldwide, and in Australia the levelised cost of electricity (LCOE) from unsubsidised grid-connected solar PV is projected to achieve parity with wind generation by 2018-19.

This rapid decline in LCOE reflects a maturing solar industry in Australia and has filtered into the off-grid market as equipment prices fall and the growth in construction experience by local contractors translates into reduced installation costs.

Solar PV’s ability to compete on a LCOE basis with generation from diesel fuel provides the potential to reduce remote electricity generation costs and removes the impact of diesel price volatility on mining operations.

Over the past year, Australia has seen a boost in interest across the solar-diesel hybrid generation value chain, from developers, miners (as both developers and off-takers), equipment suppliers and construction contractors.

This interest has largely been garnered through the support of the Australian Renewable Energy Agency’s (ARENA) funding programs targeted at increasing the development and reducing the cost of solar installations in Australia.

With the support of ARENA, Australia’s first utility-scale commercial diesel displacement solar PV plant, the 1.7 MWdc Weipa Solar Farm developed by First Solar, began commercial operations in September of 2015.

The Weipa Solar Farm is a landmark project for the mining industry, increasing confidence from the resources sector in the possibility for remote solar PV-diesel hybrids.

The Weipa Solar Farm is currently generating and delivering electricity to Rio Tinto’s remote electricity grid, supplying power to the Weipa bauxite mine, processing facilities and township on the Western Cape York Peninsula in Queensland.

Weipa Solar Farm was developed under an independent power producer (IPP) structure, with electricity and renewable energy large-scale generation certificates (LGCs) sold to Rio Tinto at a bundled price under a long term power purchase agreement (PPA).

This structure has proven to be effective in providing low-cost electricity generation and LGCs to offset Rio Tinto’s obligations under the Australian Renewable Energy Target (RET), without impacting Rio Tinto’s capital expenditure budgets.

Weipa Solar Farm is assisting in reducing current and future mine operations costs, with minimal upfront capital expenditure by Rio Tinto.

After more than six months of commercial operation under its belt, the Weipa Solar Farm is not only demonstrating the viability of solar PV installations in remote areas by providing diesel fuel savings and LGC creation, but also proving out the reliability of solar PV electricity supply and the benefits of emission reductions and sustainable power generation in remote communities.

During the first year of operations, First Solar has continued to work with Rio Tinto to optimise the project’s performance through inverter ramp rate adjustments and the testing of cloud prediction technology developed by the CSIRO to further improve the grid reliability.

Building on the achievements of the Weipa Solar Farm, there has been a significant uptake and growing confidence within the resources sector in the development of solar PV solutions to offset diesel usage in remote mining areas in Australia.

Various projects and programs supported by ARENA are coming to fruition, including notable projects such as the DeGrussa Solar Project in Western Australia and the Coober Pedy Renewable Hybrid Power Project.

Following the success of the first phase, First Solar, as owner and developer of Weipa Solar Farm, is currently in the discussion stages for a potential second phase of the project.

Weipa Solar Farm Phase 2 would include an additional 5 MWdc solar PV facility at Weipa, as well as the installation of a storage solution which will provide additional reliability to the Weipa grid.

First Solar’s work with CSIRO cloud prediction technology on Phase 1 will also provide additional data to understand the PV plant and grid’s response to cloud intermittency as the solar PV penetration increases for Phase 2.

With the majority of analysts predicting the current low commodity price environment to continue for at least the short to mid-term, operating cost reduction and capital expenditure restraints look to continue to be high priorities for the resources sector.

Solar PV-diesel hybrid solutions through IPP structures are shaping to be a low capital intensive solution to operating cost reduction goals across the mining sector.

With landmark projects such as Weipa Solar Farm already complete and demonstrating the potential of such solutions, the prevalence of remote solar PV facilities integrating with existing and new diesel systems is set to reshape the mining sector in the coming years.

Australia: Leading the Charge in Solar PV-Diesel Hybrid Power Solutions

As the impact of low commodity prices continues to be felt across the Australian resources sector, the focus of mining executives remains fixed on reducing operating costs and capital expenditure. Australia is leading the world in the development of solar photovoltaic (PV)

solutions to reduce electricity generation costs and boost reliability of electricity supply to support mining operations.

Aaron Hawkins First Solar Manager Asset Management Australia

ThErE haS bEEN a SigNifiCaNT upTakE

aNd grOWiNg CONfidENCE WiThiN ThE

rESOurCES SECTOr iN ThE dEvElOpmENT Of

SOlar pv SOluTiONS TO OffSET diESEl uSagE iN

rEmOTE miNiNg arEaS iN auSTralia.

The Weipa solar Farm, developed by First solar.

27September 2016

THE AUST�LIAN ENERGY REVIEW27Hire & rental

28 september 2016

THE AUST�LIAN ENERGY REVIEWpumpS & valvES

30 September 2016

THE AUST�LIAN ENERGY REVIEW30 a day in the life

Jeroen De CorelCheck Point Europe Security Architect

Cameron Drummond spoke with cyber security expert Jeroen De Corel about his work with Check Point and the possible ramifications of cyber attacks for Australia.

Q. What is your professional history?

I’ve worked at Check Point for almost 10 years now. Before this, I have held similar roles at other vendors such as Cisco, StormShield, MCI WorldCom and Compaq. I have about 20 years of professional experience in the field of security.

Q. What is your current role and what

does it involve?

I work in a pan-European overlay team providing second line support to local sales teams for specific technologies such as datacenter virtualisation, SSL inspection, DDoS protection and SCADA. As a security architect, I run workshops with customers, reviewing their entire security infrastructure. The purpose is to optimise security and reduce TCO.

Q. What challenges do you face in these

roles?

There are only 24 hours in a day. Writing the report after a workshop is a very time consuming process because our customers expect quality. On one hand I truly enjoy doing this type of work and wish I could meet more customers and run more workshops, on the other hand I also want to make sure I spend enough quality time with my family and friends.

Q. describe a typical day in the office.

My “office” is wherever my laptop gets connected to the internet. I work at hotels, airport lounges, local Check Point offices, and sometimes even on airplanes (which coincidentally is where I’m writing this right now, between Brisbane and Sydney at 33000 feet). There is no 9 to 5 rhythm, especially when crossing time zones. This makes this line of work both challenging and appealing at the same time.

I truly enjoy meeting new people and seeing new places. The good stuff certainly outweighs the inconveniences; otherwise I would not be doing this.

Q. What importance does cyber security

have to the energy sector?

It plays a very big role because energy is a commodity. People expect power when they insert a power plug into the socket. When commodities are no longer a given, the general public will rightfully start asking pertinent questions.

If the power grid goes down, it usually makes the national news. If it were to go down because of a cyber attack, people will talk about it for weeks. There is usually a lot of redundancy built in to power grids and they are resilient. The problems start when enough components in the grid are brought down at the same time: a domino effect will occur and the entire grid can and will go down. This is what is often referred to as an “unfortunate sequence of events” – and they do indeed happen (remember the census).

This is not fiction: it has already happened in the past when substantial parts of the USA have blacked out.

Those cases were not caused by a cyber attack, but because too many components failed one after another. These days, plenty of countries are under constant threat of terrorist attack. So far, we haven’t seen them use the internet as a vehicle to attack just yet, but I am sure it is only a matter of time before it will happen.

Think about the potential consequences of the nation-wide power grid going down and the attack being claimed by a terrorist organisation: we’ve seen what happened after the grid went down for an extended period in Louisiana after hurricane Katrina hit – looting, public unrest, and street justice.

Hospitals and other critical infrastructure usually have backup generators, but not enough fuel to keep them going for weeks. And guess what? You need electricity to run the pumps at petrol stations.

Nuclear plants also need power, believe it or not. They too have emergency generators to keep the pumps going that cool down the nuclear reactor. These too will eventually run out of diesel, but the consequences are borderline unimaginable; a nuclear meltdown being the worst case scenario.

I believe it is safe to say that (cyber) security is essential. Believing that Australia might be isolated from this type of thing is a bit naïve, as Australia is connected to the internet, much like the rest of the world.

Having just spent two weeks in Australia and New Zealand and met with plenty of customers who operate in this space, I am happy to say that everyone I talked to is taking cyber security very seriously. Unfortunately, there is no such thing as being 100 per cent secure or safe. It’s a constant battle between the good guys and the bad guys and trying to stay ahead of the game. Our customers can count on our help to assist with this.

Q. Can you give us an example of how

a cyber attack has affected energy sector infrastructure?

The night before Christmas Eve 2015, the Ivano-Frankivsk region in western Ukraine, an area the size of Sydney, experienced a power blackout due to what was later identified as a cyberattack. The attack affected at least 80,000 people, which is approximately half of the region's population.

This issue has often been discussed by experts in the past, but up until now these discussions had no public realisation.

The attack was caused by malware that managed to infiltrate through a spear phishing email attack. Emails disguised to look as if they were sent from the Ukrainian parliament were sent to the company. The emails contained a PowerPoint file that had a macro command embedded in it. Once the file was opened,

users were tricked into allowing the macro command to be executed, enabling the malware to infect the computers.

One possible way to combat this sort of attack, aside of being very careful and avoiding suspicious emails, is by using Check Point’s SandBlast Threat Extraction capability, which eliminates macro commands in incoming files. This measure of protection can tip the scales in avoiding spear phishing attack, which commonly deceive users.

This attack is the first proven cyberattack to successfully damage electric utilities. This incident demonstrates the potential implications of an attack on critical infrastructure.

It is crucial for all countries to provide adequate protection for their infrastructure due to the significant risk of this attack being replicated by hackers elsewhere around the world, as this attack is likely to be imitated in the future.

Q. What advice would you give to someone wanting to work in cyber

security?

Always remain curious; never assume you know everything there is to know. Staying ahead of hackers means you have to be at least as smart as they are. Experts in this line of work will never have to worry about job security though (pun intended).