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ARENA and off-grid renewable energy

Steve Rodgers

RAPS 2016 23 March 2016

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About ARENA ARENA is a commercially oriented agency.

We have two objectives:

•improve the competitiveness of renewable energy technologies

•increase the supply of renewable energy in Australia.

ARENA’s timeframe for delivering its objectives is 2022, with an intent to provide competitive energy solutions up to 2030-40.

We share knowledge to help the renewable energy industry and other stakeholders learn from each other’s experiences.

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ARENA & remote renewables

Our initial aim was to show renewables can play a valuable role in isolated power supply ...

•save money for businesses

•and deliver non-price benefits (e.g. security of supply)

We still think this is right. The downturn in diesel and commodity price highlights the challenge for what it is. The job is to:

•Make it easier for businesses engage with the ‘black box’ that is renewable integration

•Prove and optimise the integration solutions

• and show they work in remote environments

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What ARENA brings to the table

We have funded around ten projects at mine sites to remote tourism businesses through the Regional Australia’s Renewables Program and our ongoing investment priority.

All face a common challenge: deploying renewables into existing isolated diesel systems and making them work!

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Where are the barriers?

Commercial Structures • Allocating and pricing risk associated with intermittent generation

and shift to a high capex/low opex model

• Packaging and simplifying decision making

• Capacity building incl. RE supplier awareness of end user and financier needs

Integration • Demonstrating integration solutions that work

• Improving intermittency management

• Making mid-to-high penetration solutions more capital efficient o E.g. Displacing batteries through low load diesel / demand side

management

Remoteness • Logistics, construction, WHS

• Climate and weather

• Community engagement

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ARENA’s role

Our role is to leverage ARENA funded projects to:

•set reference points (demonstration) that build interest and market confidence, and

•Address these barriers to improve the competitiveness and applicability of hybrid solutions through

•knowledge sharing (esp. collection, synthesis and disemination) and

•support for future projects

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How do we contribute?

Demonstration

•Proactive approach to project management o Collaboration to maximise the chance of success

•Showcase achievements and make them relevant to future investors

Competitiveness

•Knowledge sharing •Helping grantee’s to help others better understand the challenges (nominally driven through KS obligations)

•ARENA sharing cross project learning's

•ARENA cataloguing and initiating work/discussion to address barriers

•Business development •Developing opportunities that target identified challenges

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Knowledge sharing

We are formalising an ARENA knowledge sharing plan that

•Seeks to deliver information and learning about how to overcome key barriers to remote deployment, and

•Provides opportunities for others to contribute and help refine the approach.

We are keen for your feedback on what we should try to answer and how.

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Knowledge sharing plan

The process for providing an answer

Headline question: Can renewable energy technologies successfully transfer to remote contexts and deliver savings?

Integration: will RE work as

expected?

Headline measure: availability +

energy volume delivered = system

capability

Commercial structures: how do

you capture the value of RE?

Headline measure: diesel savings +

cost of RE (MWh) = savings

opportunity

Remoteness: does RE work in

harsh, remote conditions?

Headline measure: remote

deployment cost / grid deployment

cost = remoteness premium

(multiplier)

Host generator capabilities

Penetration levels

Intermittency

Enabling technologies

...

....

Curtailment calculations

Mine life risk

Allocation of risk

Procurement options

...

....

Logistics

Construction & safety

Climate & weather

Community consultation

O&M performance

...

....

For each line item

(left) generate a

response that

specifies:

What the finished

product would look

like. e.g.

A figure showing

average ...

Its intended impact

(what it will do and be

used by whom?). e.g.

Enable end users

to...

Specify what data or

information is required

to support the

measure, incl.

Qualitative or

quantitative?

Public or

commercially

sensitive (and

treatment).

Specify how the data

will be captured, by

whom and when it will

be available

Specify who will be

responsible for

analysis.

Specify when and in

what forum the

product will be

delivered.

Articulating barriers Sharing knowledge

Barrier Specific challenges Product Data & information Delivery

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Business development

We are in the process of reviewing the forward work program

We think there are gaps in:

•Demonstration - mine critical load, greenfield sites and high penetration solutions

•Competitiveness – improving the technical and commercial solutions available

Keen to hear your views.

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Accelerating innovation icons*

Instructions for use: • Icons should be used with accompanying text.

• Knowledge sharing, Creating links, Accelerate icons should be used together.

• Bridging the gap icon can be used on its own.

Knowledge sharing:

Capturing and sharing knowledge is an essential requirement for all ARENA-supported activities. Sharing successes is critical to overcoming barriers and advancing renewable energy.

Knowledge, links, accelerate

Creating links:

ARENA helps to create links and share knowledge between researchers, industry and investors.

Bridging the gap

Accelerate:

ARENA helps to accelerate renewables along the innovation chain towards commercialisation.

Investment gap:

ARENA support helps to bridge the investment gap and reduce investment risk

* Note: these icons are also available in black or white.

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Find out more at arena.gov.au

ARENA at LinkedIn

@ARENA_aus on Twitter

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