Driving the energy transition through innovation and community engagement
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Driving the energy transition through innovation and community engagement WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
RYAN HALL
DECEMBER 2019
03
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S O L I S R E N E W A B L E E N E R G Y P T Y LT D
King Arthur, Executive Director at Solis RE, discusses how the renewable energy consultancy and project management firm drives powerful community-led projects in an evolving energy landscape
A
ustralia is in an interesting position when it comes to the energy transition. While the country, famed for its idyllic beaches
and unforgiving desert, is no stranger to sunlight, its 04
sheer size and lack of extensive transmission infrastructure are considerable limiters to the uptake of renewable energy systems. King Arthur, Executive Director at Solis RE, believes technological advances, alongside major shifts in international attitudes and local legislation regarding sustainability and renewable energy, mean that surmounting the challenge is increasingly possible. “Everyone is understanding of the fact that we can’t keep using fossil fuels. The Australian Government has adopted that to some extent, and the Victorian Government has embraced it,” he says. “The latter has legislated a target of 50% renewables usage in Victoria by 2030, which has given people confidence in the long-term focus.” Naturally, as with their contemporaries around the world, Victoria’s coal-fired plants DECEMBER 2019
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S O L I S R E N E W A B L E E N E R G Y P T Y LT D
“You can’t keep putting solar into the system as it’s produced because you end up with a massive peak in the middle of the day when the sun’s shining, and obviously you don’t have any power at night” — King Arthur, Executive Director, Solis RE
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DECEMBER 2019
CLICK TO WATCH : ‘CNBC – THE RISE OF SOLAR POWER’ 07
have found their days to be numbered.
of people have built big solar farms
While this shift towards renewable
in the sunniest parts of Victoria, the
energy facilities is a boon for the envi-
sunniest parts of Australia up in
ronment, the resultant job losses and
Queensland, but they don’t have the
need for reskilling workforces must
infrastructure to support it and they
be addressed with the same potency
don’t have the energy demand close
as the aforementioned infrastructural
to where they’re based. Therefore, you
challenges. Enter: Solis RE.
have to transmit the power over hun-
Co-founded by Arthur and long-time
dreds, if not thousands, of kilometres,
business colleague Michael Bugelly,
and you lose energy all the way along
also an Executive Director at the firm,
that transmission line,” Arthur explains.
Solis RE is shaking up the established
With this awareness at the top of the
methods by which Australian renew-
company, Solis RE focuses on areas
able energy projects take shape. “A lot
where there is tangible need and w w w.so l i sre . com . a u
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
“ The number of jobs that will be created as a result of developing the Gippsland Renewable Energy Park will be between 1,200 and 1,500 during the construction phase, with many hundreds of ongoing jobs over the next 10 to 15 years” — King Arthur, Executive Director, Solis RE
relatively easy access to the grid, and maximises the opportunity by bringing local communities on board. The company recently signed an agreement to develop the Gippsland Renewable Energy Park – a huge undertaking worth an estimated AU$2bn that also serves as the perfect example of its offering’s forward-thinking, community-driven and holistic nature. The project is a huge undertaking that will require a significant amount of land. “It’s about 23km2 in terms of
08 E X ECU T I VE P RO FI LE
King Arthur King Arthur has significant experience in retailing and manufacturing and expertise in corporate strategy, business transformation, procurement and contract negotiations. He has 15 years’ experience in the retail industry, including as General Manager Supply Chain of Myer. Arthur has run his own management consulting business since 2002, working in Asia, Europe, the US and Australia. Over the past 35 years, he has developed Strategic Supply Chain and Procurement teams for Myer, RACV, IAG, AAMI, Mitre 10 and Australian Paper. He has brought his procurement and project management skills to the solar industry, where he has developed commercial relationships with major solar manufacturing companies and specialist EPC groups.
DECEMBER 2019
space, and for something like that to
purchasing. Along with these arrange-
get dropped into a community you
ments, the company has committed
obviously need to have a lot of commu-
to a community benefit programme
nity support and benefit,” says Arthur.
funded by the park, and the allocation
“We went out to all of the large business
of those funds will be decided by the
and community groups before we even
community. The factor that brought
considered what was going to be in
local government support on board,
the park to hear about their issues and
however, was the promise of an injec-
discuss how we could address them.”
tion of jobs for the local economy. “The
Those issues, he elaborates, include
number of jobs that will be created as
the cost of power and the potential for
a result of developing the Gippsland
jobs. Solis RE is thus arranging special
Renewable Energy Park will be
deals with local businesses for power
between 1,200 and 1,500 during the 09
E XE CU T I VE PRO FI LE
Michael Bugelly Michael Bugelly is a Chartered Accountant who began his career with KPMG. He has experience providing advice on all stages of a business life cycle, business growth strategies, valuations, assisting with the purchase and sale of businesses and corporate restructuring. Bugelly is an Executive Director of The Rufus Partnership Pty Ltd, a corporate advisory firm with extensive experience advising on agribusiness and renewable energy projects. He has also been involved in the not-for-profit sector, providing professional services including corporate governance and investment guidelines and was a director of Oz Child for 13 years. He has a Bachelor of Commerce (University of Melbourne) and is a Fellow of the Chartered Accountants Australia and New Zealand.
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S O L I S R E N E W A B L E E N E R G Y P T Y LT D
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“ The Victorian government has set a target of 50% renewables usage in Victoria by 2030, and that’s given people confidence in the long-term focus” — King Arthur, Executive Director, Solis RE
11 construction phase, with many hun-
because you end up with a massive
dreds of ongoing jobs over the next
peak in the middle of the day when the
10 to 15 years,” says Arthur.
sun’s shining, and obviously you don’t
With the weight of local businesses
have any power at night.” Batteries
and Federal and State government
can moderate the flow of electricity to
members behind it, there is plenty
the grid, minimising the impact of mid-
of excitement in the potential for the
day peaks and night-time troughs. For
completed Gippsland project. The
the wider project, Arthur asserts that
first phase of the project, itself worth
artificial intelligence (AI) will be applied
approximately $125mn, is a 44MW
to the management of energy flow
solar farm complete with battery stor-
rates, particularly as more than solar is
age amounting to 50MWh. “That’s
planned for Gippsland. “With the larger
essential,” Arthur says of the battery
site, the Gippsland Renewable Energy
capacity. “You can’t keep putting
Park, we’re not just doing solar plus
solar into the system as it’s produced
batteries. That’s stage one, 500MW w w w.so l i sre . com . a u
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
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DECEMBER 2019
PA RT N E R S
The collaboration-focused Solis RE has a number of key partners that are driving the success of its projects, including Middletons Engineering, AusNet, the Australian Energy Market Operator (AEMO), the Latrobe Valley Authority, and Federation University Australia. 13 of solar and 500MWh of battery, but we’re also integrating a number of other renewable energy sources on that same site,” enthuses Arthur. Along with plans to install a gas peaker station to provide baseload energy when necessary, Solis RE is also examining the viability of biomass. “There’s a huge issue with municipal councils being able to environmentally dispose of waste – they don’t want to send it all to landfill, so we’re looking at how we can convert it into energy instead.” The innovative design of the park does not end there, with plans to w w w.so l i sre . com . a u
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
“ We went out to all of the large business and community groups before we even considered what was going to be in the park to hear about their issues and discuss how we could address them”
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— King Arthur, Executive Director, Solis RE
leverage the site’s enormous energy
noting that, until recently, hydrogen’s
generation potential to power a hydro-
viability had been deeply limited by
gen production plant. Onshore and
issues around production and storage.
offshore wind facilities are also being
The scope of Solis RE’s capabili-
fielded as potential sources for the
ties and capacity for bold innovations
Gippsland project. The sum is a renew-
belie the recency of its founding,
able energy facility that produces
and Arthur is enthusiastic about its
power at all times of day, feeding the
enduring prospects. He affirms that
grid reliably and sustainably. Solis RE
its community engagement-focused
is also keen to continue project devel-
foundations will remain essential to its
opment as more solutions become
strategy going forward. “As a project
commercially viable, with Arthur
developer, we want to ensure that we
DECEMBER 2019
2016
Year founded
$10mn
Revenue in Australian dollars
15
continue to have large local content.
get what they need as the market
When we lease land, the land owners
moves in the future.� In an age where
take equity in the project, and we also
the challenges of the energy transition
find key community liaisons to fill skills
are being answered in earnest, a lot can
gaps and make sure that they come
be learned from Solis RE’s model of
in as equity partners as well.� It is of
collaboration, community engagement,
paramount importance, Arthur says, to
and technological flexibility.
ensure communities reap the benefits of the projects. All these projects are 20 to 30-year projects, so you really do need that local attention, care and ownership to ensure those projects w w w.so l i sre . com . a u
Solis Renewable Energy Pty Ltd Level 5 24 Albert Road South Melbourne Victoria 3205 Australia T +61 (0) 429 148 938 www.solisre.com.au