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TRANSCRIPT
Offsite Renewable PurchasingAIE YEP
8th November 2016
Jonathan Prendergast0403 602 426
UTS TO SINGLETON SOLAR PPA
THIS PRESENTATION
• Why?
• The UTS-Singleton Project
• Some Details of Offsite Solar
• Conclusions
SOLAR POTENTIAL IN AUSTRALIA
Source: Andrew Blakers via ABC online
CURRENT INVESTMENT STALLING
CURRENT INVESTMENT STALLING
PROJECTDEVELOPMENTCHECKLIST
OptionforLand
Concept Design&CostEstimation
Feasibility &Optimisation
LocalSupport &PlanningApproval
ConstructionTender&Contracts
Debt&EquityArrangement
HighRECSprices
Electricitysalesoff-takeagreement X
MARKET FORCES
Source: Origin Investor update - June 2016
WHO CAN MAKE IT HAPPEN – INVESTORS?
WHO CAN MAKE IT HAPPEN?
Investors? • Moresolar=lowerprices=> reducedreturns
• NeedcontractedrevenuesX?
Utilities? • Ownexistinggenerationassets• Lowprices =>lowerrevenues• Increaseddeployment=>lowercostsolar• Uncertainfuture- disruption
X?
CorporatesCustomers
• Don’towngenerationassets• Consumingelectricityfornext20-50years
=certainty• Lowerenergyprices=good!
OFFSITE RENEWABLE IN THE US
Publicly announced contracted capacity of corporate Power Purchase Agreements, Green Power Purchases, Green Tariffs, and Outright Project Ownership in the United States and Mexico, 2012 – 2016. Excludes on-site generation such as rooftop solar PV. Last updated: May 10, 2016.
Corporate Renewable Deals2012 – 2016
Copyright 2016 by Rocky Mountain InstituteFor more information, please visit http://www.businessrenewables.org/ or contact [email protected]
GoogleApple
Apple
GoogleMicrosoft
BD
IKEA
Mars
MicrosoftWalmart
Yahoo IKEA
Apple
Procter & Gamble
General Motors
Kaiser Permanente
Kaiser Permanente
Dow Chemical
Walmart
AmazonAmazon
Cisco
FacebookAmazonSwitch
HPEEquinix
Procter & GambleEquinixEquinix
Owens CorningOwens Corning
Amazon GoogleAppleSwitch
BloombergGoogle
Google General Motors
CorningPhilipsSalesforce
Salesforce
Lockheed Martin
Steelcase
3M
Iron Mountain
Google0.05
0.56
1.18
3.21
0.43
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2.2
2.4
2.6
2.8
3
3.2
3.4
2012 2013 2014 2015 2016
Capacity (GW)
RENEWABLE PURCHASING OPTIONS
üGreenpower
üRooftop Solar
üDirect Offsite Solar
üLREC Purchase under contract
üVirtual PPAs
üRetailer Aligned
CURRENT SOLUTIONS - GREENPOWER
Electricity
Retailer $$9 c/kWh
4 c/kWh$
5 c/kWh
Electricity
Customer
NEW SOLUTIONS – RETAILER ALIGNED
$$6 c/kWh
8 c/kWh
$
5 c/kWh
Electricity
Retailer
Electricity
Customer
UTS-SINGLETON SOLAR PROJECT
‘Think Big, Start Small’
UTS SINGLETON SOLAR PROJECT
Electricity Retailer
$
$
5-8 c/kWh
$
5-8 c/kWh
15% Supply
85% Supply
5-8 c/kWh
Electricity Only
SOLAR FARM REVENUES
Electricity Sales Revenue – c/kWh
RECS Sales Revenue – $/MWh
SOLAR FARM ASSET
ADVANTAGES
• Don’t need suitable roof
• Can be sized to suit demand
• Great for tenants
• Can move with the customer
• More secure property arrangements for investment by 3rd
parties
• Just contracts
THE NUMBERS – ILLUSTRATIVE COSTS
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-60% -40% -20% 0% 20% 40% 60% 80% 100%
OffsiteSolarCostDifference
IncreaseinOverallElectricityBill
CONCLUSIONS
• Attractive to corporate customers
• Direct Offsite potentially most cost effective
• Other models emerging for beyond 30%
• Potential opportunity for 100kW to ~2,000kW projects
WHAT DOES A RENEWABLE PROJECT NEED?
Investor/Owner
Builder/DeveloperLand/Site
Customer
