Australia’s Investment in Renewable Energy

1. Australia’s Investment in Renewable Energy

2. Renewable Energy Policy and Measures • The National Greenhouse Strategy (NGS) (1998) • The Mandatory Renewable Energy Target (2001). • Measures for a Better Environment (2000). • Energy White Paper, Securing Australia’s Energy Future (2004).

3. Mandatory Renewable Energy Target (MRET) • A mandatory increase in the contribution of renewable energy to national electricity supplies. • The target involves reaching 9,500 GWh by 2010, which will be maintained until 2020. • Aims to increase the competitiveness of renewable energy against traditional energy sources. • Information on MRET is available atwww.greenhouse.gov.au/markets/mretandwww.orer.gov.au

4. Australian Government Programs for Renewable Energy • Almost $1 billion committed to greenhouse gas mitigation since 1997. • Including over $300 million in industry assistance programs: • Renewable energy for remote power generation – over $200 million • Solar power on residential and community buildings – $51.8 million • Equity funding – venture capital for innovation – $26.5 million • R&D and industry development activities - $55.6 million

5. Energy White Paper Measures • $500 million Low Emission Technology Demonstration Fund • $75 million Solar Cities trial • $100 million Renewable Energy Development Initiative • $20 million Advanced Electricity Storage Technologies initiative • Up to $14 million to develop an advanced Wind Forecasting Capability • Identify barriers to renewables in the National Electricity Market • Information on the Energy White Paper, Securing Australia’s Energy Future, is available atwww.dpmc.gov.au/publications/energy_future/

6. Renewable Energy Action Agenda • Industry and government worked together to develop a Renewable Energy Action Agenda. • Significant progress has been made in the first four years by Government and industry to implement initiatives. • Aim is $4 billion in annual sales by 2010.

7. Hydroelectricity • Approximately 7,500MW hydroelectric generating capacity and significant design, construction and operation experience. • Mini-Hydro experience, domestic and international.

8. Solar Energy Australia has been producing solar energy technology since the1950’s • Photovoltaics (PV) The University of New South Wales - Single Crystal PV Cell The Australian National University/Origin Energy – Sliver Cell • Solar Hot Water Solahart, Beasley and Edwards • Solar Thermal Solar Heat and Power developed Compact Linear Fresnel Reflectors (CLFR) – using solar energy for low cost heating. Complements fossil fuel power plants by heating feed-water into coal-fired generation process.

9. Solar concentration systems • Solar Systems Pty Ltd has constructed an award winning power station that concentrates solar energy for conversion to electricity for use in the central Australia. • The CSIRO National Solar Energy Centre is developing the only multi-collector facility of its type in Australia, and the largest high-concentration solar array in the southern hemisphere.

10. Geothermal Energy • Australian companies are experienced in managing hydrothermal resources. • Geodynamics Limited was successfully floated, supported by Government, to develop hot dry rock pilot projects in South Australia and NSW.

11. Bioenergy Bagasse Cogeneration • Bagasse is used as a boiler feedstock for cogeneration in several sugar mills. • Stanwell Corporation’s 30 MW Rocky Point plant generates more than180 GWh of green energy.

12. Waste to Energy Global Renewables • Developed world leading UR-3R processing technology for municipal solid waste. • Pilot UR-3R project at Eastern Creek, NSW. • Preferred bidder to design, build, own and operate the Lancashire Waste Partnership private finance initiative project.

13. Waste to Energy: Energy Developments Limited • World leader in landfill gas power generation. • Over 35 projects in Australia, Europe, Asia and the US. • 97MW coal seam methane project in NSW.

14. Wind Turbines • Australian companies are world leading manufacturers of small-scale wind turbines. • These smaller turbines are often used in conjunction with a small diesel generator and a battery bank as part of a remote area power supply system. • A number of companies are now experienced in identifying, constructing & operating large scale wind farms.

15. Remote Area Power Supply (RAPS) Australian suppliers of integration technologies are the best in the world. We develop systems capable of operating in Antarctic, tropical and desert conditions.

16. Training and Accreditation • Australia has expertise (both locally and internationally) in renewable energy training program design, implementation and accreditation. • ResLab (at the Research Institute for Sustainable Energy, Murdoch University) specialises in testing renewable energy technologies.

17. Biofuels in Australia • Biofuels with commercial prospects in Australia are ethanol and biodiesel. • The Australian Government has put in place a number of initiatives that aim to boost the development of a commercially viable domestic biofuels industry by addressing market barriers to the production and use of biofuels.

18. Ethanol • Currently 3 producers including: Manildra, CSR and Rocky Point • In 2004-05, Australian production was 23 ML but capacity is around 75 ML • 3 projects funded under Biofuels Capital Grants Program • Potential Future Ethanol Projects : • Ethanol production capacity will rise to approximately 210 ML once all Biofuels Capital Grants Program projects come online • A further 780 ML could potentially come online in proposed plants

19. Biodiesel • Two small producers • Current production capacity around 16 ML • 4 projects funded under Biofuels Capital Grants Program (3 greenfield, 1 expansion) • Potential future biodiesel projects • Production capacity is likely to be around 105 ML by mid-2006 • Biofuels Capital Grants Program and other potential projects could bring production capacity up to over 500 ML by 2006-07 • Proposed projects are in QLD, NSW, VIC, SA, WA and NT

20. Australian Government Alternative Fuels Policy • These initiatives include: • A target that biofuels contribute 350 ML to Australia’s transport fuel supply by 2010 • A capital grants program to encourage investment in new or expanded biofuels capacity • Fifty percent discounted excise rate from 2015 • Two Ethanol Industry Roundtables with ethanol proponents and fuel retailers • The Prime Minister’s Biofuels Taskforce

21. Australian Government Alternative Fuels Policy (cont.) • In response to the report of the Biofuels Taskforce, the Government announced additional measures to help address market barriers and restore consumer confidence including: • Working with oil majors to develop Industry Action Plans; • Encouraging E10 use in Commonwealth vehicles; • Promoting biodiesel through a B5 trial in Kakadu National Park; and • Further work on vehicle testing and fuel standards. • The Prime Minister met with oil company representatives in September 2005 to discuss the Government’s biofuel target.