Energy March 2024 Digital Edition by Monkey Media

ISSUE 25 ·

March 2024

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The key to tackling gas industry uncertainty

Driving diversity in the clean energy workforce

Project EnergyConnect: SA stretch complete

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Editor Katie Livingston Assistant Editor Steph Barker Journalists Tess Macallan Kody Cook Sarah MacNamara Design Manager Alejandro Molano Designers Danielle Harris Jacqueline Buckmaster National Media Executives Rima Munafo Brett Thompson Ryan Sheehan Marketing Manager Radhika Sud Marketing Associates Rhys Dawes Bella Predika Georgia Rogers Digital Marketing Assistant Emily Gray Publisher Chris Bland Managing Editor Laura Harvey

WELCOME

elcome to Energy’s first edition for 2024, and my very first as its new editor. While I’m a newcomer to Energy, I’m not so new to Monkey Media, and some of you may recognise me as the editor of its sister publication Utility. These two brands have long been intertwined, and I’m excited to utilise that experience to bring you the latest energy insights, reports and news. It’s an incredible privilege to be at the helm of this publication. My predecessor, Holly, took great pride in delivering high quality, informed content and this exceptional standard that she set is one that I intend to maintain and improve on. In this issue, we’re kicking things off with an update from ElectraNet on Australia’s largest transmission project, EnergyConnect – which has just been completed in South Australia. We also hear from Queensland Hydro about it’s Borumba and Pioneer-Burdekin pumped hydro projects that are forming the cornerstone of Queensland’s energy transition. The transition to renewables is well underway, and with the closure of coal-fired power plants it’s essential that the NEM continues to meet consumer demand during this process. In this edition, we break down AEMO’s Draft ISP 2024, which outlines the optimal, lowest-cost pathway to net zero. When it comes to this transition towards renewables, the role of natural gas has been widely debated. Outgoing

Australian Energy Regulator (AER) Deputy Chair, Jim Cox, shares his thoughts on how flexibility can help navigate the challenges of gas uncertainty, and reflects on his time at AER. We all know that there can be no transition without transmission, but there can’t be either of those without a strong workforce driving them forward. Powering Skills Organisation (PSO) shared some insights from its first workforce report, which underscores the importance of diversity in overcoming labour shortages and carrying out the transition to renewables. We hope you enjoy this issue of Energy Magazine, and look forward to bringing you relevant and engaging content for another year. As always, if you have any topics, projects technologies or challenges that you want to see us cover in future issues, I’d love to hear from you. Katie Livingston Editor

If you have a story idea, tip or feedback regarding Energy, I’d love to hear it. Drop me a line at katie.livingston@monkeymedia.net.au, and don’t forget to follow us on social media – find us on LinkedIn, Twitter or Facebook.

This document has been produced to international environmental management standard ISO14001 by a certified green printing company.

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Energy Magazine acknowledges Aboriginal Traditional Owners of Country throughout Australia and pays respect to their cultures and Elders past and present.

March 2024 ISSUE 25

CONTENTS

INDUSTRY INSIGHTS

RENEWABLES

10 Illuminating history: the solar cell evolution

34 King Island: a blueprint for Australia’s clean energy future

New research from CSIRO tracks a decade of developments in silicon photovoltaics, and discusses the future of the industry.

12 Securing a clean energy future for Queensland The $62 billion Queensland Energy and Jobs Plan (QEJP) was launched in September 2022 and laid out a detailed blueprint for Queensland’s transition to a clean energy future. One of the new entities created in the QEJP to deliver the transition is Queensland Hydro. It was established to design, deliver, operate and maintain two long-duration pumped hydro energy storage assets. These assets will be the cornerstone of the transformation of Queensland’s energy system.

18 The balancing act of building a future-ready electricity network

20 ENERGY NETWORKS 20 Driving a least-cost energy transition through policy and collaboration Australia’s transition to renewables is well underway. However, to ensure a timely transition at the least cost to consumers, industry and governments must work together to deliver policy that shapes the future and supports the best outcome for customers – a goal that Energy Networks Australia is focused on for 2024.

22 The role of customer energy resources in the transition to renewables Customer energy resources have an important role to play in supporting the energy transition. However, SA Power Networks CEO, Andrew Bills, says that more can be done to take advantage of the potential these resources have to offer.

26 Project EnergyConnect: SA side complete

Isolated communities are often overlooked in the renewable energy conversation, but in order to meet net zero targets, off-grid communities need to reduce their reliance on fossil fuels. Hydro Tasmania’s recent addition of a $1.5M solar farm to its King Island Renewable Integration Project has become a blueprint for bringing renewable energy to isolated off-grid communities.

36 The power of biosolids: from landfill to renewable energy hub 38 What is a microgrid? 40 Supporting local wind infrastructure with OE parts

42 SOLAR AND STORAGE 42 Maximising solar energy from sunset to sunrise 44 Bringing building integrated solar PV to market Building a green future for Australia means developing technology that is sustainable, functional and practical. For technology like solar PV, which is already consistently breaking records of integration on residential Australian rooftops, researchers are asking the question – why stop at rooftops? A new tool is being developed by researchers at RMIT to help make building integrated PV (BIPV) a practical and affordable solution.

48 Championing a cleaner future with sodiummetal chloride batteries

30 AEMO ISP 2024: a roadmap to net zero

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CONTENTS

50 DIVERSITY IN ENERGY 50 The lightning strike that inspired a powerful purpose Sefanit has been asking big questions her whole life. Electricity fascinated her as a child, and she yearned to make it more accessible in her native country of Ethiopia. Sefi’s passion for problem solving has found a home at Powerlink, where her unique perspective is exactly what’s needed at the forefront of the renewable future.

52 No diversity, no net zero: breaking barriers to the clean energy workforce

EACH ISSUE 1

Editor's Welcome

64 Features Schedule 64 Advertisers’ Index

NEWS

54 DECARBONISATION 54 Australia needs tangible action to reach net zero goals At the end of 2023, the year already declared to be the hottest on record, the world’s annual meeting on climate change, COP28, took place in Dubai. The clear takeaway from the conference was a growing sense of urgency to accelerate global efforts to reach net zero. It’s a sobering fact that at the halfway point to the UN’s Sustainable Development Goals, the world is on track to achieve just 15 per cent of our targets.

56 Australia’s path to renewable energy superpower

4 North Queensland hydrogen hub powers ahead 5

$569M NSW wind farm approved under strict conditions

6 Transgrid awards contracts for HumeLink construction 7 Bell Bay hydrogen hub to receive $70M federal funding 8 Applicants shortlisted for $2B Hydrogen Headstart 9 $179M investment in QLD community battery project

60 DOMESTIC GAS OUTLOOK 60 Flexibility the key to tackling gas industry uncertainty

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March 2024 ISSUE 25

NEWS

NORTH QUEENSLAND HYDROGEN HUB POWERS AHEAD

he Federal Government has announced it will invest up to $70 million to develop the Townsville Region Hydrogen Hub in North Queensland. The Federal Government said the project delivers on its election commitment to establish a hydrogen hub in North Queensland. The project is expected to create at least 200 direct job opportunities for local electricians, plumbers, fitters and concreters during construction, as well ongoing jobs in technical and engineering roles. The initial stage of the hub is designed to produce 800t of green hydrogen per year, enough to fuel more than 40 heavy vehicles. It is expected to ramp up to around 3,000t for domestic supply, and ultimately in excess of 150,000t for export. The hub, led by Edify Energy, will produce green hydrogen for use by local industry and in zero-emissions transport. It will also deliver a 17.6MW domestic production facility with integrated renewable energy generation and battery storage. Edify and its partners – including Siemens Energy, Queensland TAFE, James Cook University and Townsville Enterprise Limited – will work with industry bodies to provide education and training to ensure that Townsville’s workforce is skilled and ready to develop and sustain the region’s hydrogen industry. Construction will begin in 2025 and is expected to be completed in 2026, with initial commercial operations scheduled to start in 2027. The project has received more than $137 million of combined investment. The Federal Government’s contribution is up to $70 million, including $20.7 million from the Australian Renewable

Energy Agency. The remaining funding is being sourced from industry and the German Government. This Australian-German collaboration brings together Germany’s expertise in hydrogen technology and Australia’s potential to be a world leader in the production and export of renewable hydrogen. The Townsville project is part of more than $500 million in federal funding for hydrogen hubs in regional centres like Gladstone, Bell Bay, Kwinana, the Pilbara, Port Bonython and the Hunter. Prime Minister, Anthony Albanese, said, “Investing in Townsville’s hydrogen industry is investing in Australia’s future. “The global shift to clean energy and decarbonised economies is a huge economic opportunity for North Queensland. “We are determined to grasp this opportunity and are investing half a billion dollars into regional hydrogen hubs all around Australia,” Mr Albanese said. Federal Minister for Climate Change and Energy, Chris Bowen, said, “Renewable hydrogen is a game changer, opening the door to green metals, green fertiliser, green power and supporting industrial decarbonisation. “The whole world needs renewable hydrogen, and regional Australia is ready to provide it. “With its port, expertise in exports and access to Queensland’s abundant solar resources, Townsville is ideally placed to help power the world with Australian renewable energy and create jobs in regional Australia,” Mr Bowen said.

Enabling Project Delivery The Australian Marine Complex Common User Facility (AMC CUF) suppo s the renewable energy sector by providing extensive ocean-front assets, services and infrastructure including: • Loadout and maintenance wharves for cargo receival • Laydown area for staging and dispatch • Access to the High Wide Load Corridor for road transpo • 24 hour manned security with CCTV Contact us to discuss your next project or to find out more about our capabilities and infrastructure. info@amccuf.com.au I +61 8 9437 0500 australianmarinecomplex.com.au/cuf

March 2024 ISSUE 25

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NEWS

$569M NSW WIND FARM APPROVED UNDER STRICT CONDITIONS

new $569 million wind farm in the HunterCentral Coast Renewable Energy Zone (REZ) has been approved, with the New South Wales Independent Planning Commission imposing strict conditions on the development, including a reduction in the original number of turbines proposed. Bowmans Creek Wind Farm, owned by Ark Energy, sought approval for Bowmans Creek Wind Farm (SSD-10315), a state significant development which comprised a 347MW wind farm of 56 turbines up to 220m high. The then Department of Planning and Environment completed its whole-of-government assessment of the Bowmans Creek Wind Farm in November 2023. The project was referred to the Commission for determination because at least 50 people objected to the proposed development. The three-member Commission Panel, comprising Professor Alice Clark (Chair), Mr Richard Pearson and Mr Adrian Pilton, met with key stakeholders, conducted a site inspection and locality

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tour, held a public meeting where they heard from 18 speakers, and received 47 written submissions from the community. The Panel granted development consent to the Bowmans Creek Wind Farm on 6 February 2024, subject to strict conditions. The Commission acknowledged community concerns and imposed strict conditions of consent to mitigate a number of the issues raised. These conditions limit the development to a maximum of 54 turbines (335 MW). They also require the applicant to implement visual impact mitigation measures including landscape screening on the land of any non-associated residence within 4.4km of a turbine, undertake noise monitoring and publish the results on its website, and manage traffic and transport impacts in consultation with the local community. The applicant must also undertake decommissioning and rehabilitation of the site at the end of the project life. These and other conditions of consent are designed to: » Prevent, minimise and/or offset adverse environmental, social, and economic impacts » Set standards and performance measures for acceptable environmental performance » Require regular monitoring and reporting » Provide for the on-going environmental management of the development.

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NEWS

TRANSGRID AWARDS

CONTRACTS FOR HUMELINK CONSTRUCTION

wo key construction partners have been selected by Transgrid to deliver the proposed HumeLink project, designed to help secure energy supply for millions of Australians. Transgrid has awarded $2.9 billion in contracts to two Tier 1 delivery partners with strong experience in delivering infrastructure projects in regional New South Wales: » HumeLink East: ACCIONA and GenusPlus Group Ltd (JV) » HumeLink West: UGL and CPB Contractors (JV) Transgrid CEO, Brett Redman, said, “HumeLink is a vital link in the National Electricity Market, which will reinforce and support the critical southern network of New South Wales and Victoria. A secure national electricity grid is dependent on the acceleration of major transmission projects needed to realise the state and federal governments’ vision for Australia’s clean energy future.” Subject to the Australian Energy Regulator’s revenue determination and completion of finance arrangements, the delivery of HumeLink will involve the construction of a 385km route in two sections (east and west) including new transmission lines and new or upgraded infrastructure at four substation locations. The contracts are structured in two stages, with early works to begin immediately and finish in mid-2024, including detailed design, investigations, procurement and project mobilisation. The second stage of the delivery partner contracts will include the main construction works and commence after all project approvals and the final investment decision is made, which is expected to occur in mid-2024.

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Mr Redman said, “HumeLink will provide substantial opportunities for jobs and suppliers at regional and national level. It represents a once-in-a-generation investment in the nation’s energy future and is expected to deliver more than $500 million in net benefits for Australians. “We have consulted widely with participants in the domestic and international construction markets to ensure the achievement of long-term sustainable outcomes to benefit electricity consumers and support jobs, training and investment in communities in regional and rural New South Wales.” Transgrid also acknowledges the sensitivities of communities and landowners given the scale of this project and have therefore been rigorous to ensure that: » Significant community, stakeholder and consumer representative engagement has been undertaken and the most beneficial route that appropriately balances cost, environmental impacts and amenity impacts for local communities has been selected » Every practicable opportunity has been considered to reduce the cost to consumers, including embedding innovation in the design and technical solutions to deliver the most cost-efficient outcome, locking in longlead equipment on a program basis to reduce cost and time and engaging reputable delivery partners via a competitive process » The contracting model aligns Transgrid’s objectives with those of the delivery partners and consumers, with in-built incentives to deliver the HumeLink project at the lowest cost.

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NEWS

BELL BAY HYDROGEN HUB

TO RECEIVE $70M FEDERAL FUNDING

he Federal Government has agreed to develop the Bell Bay hydrogen hub in Northern Tasmania with a $70 million investment, which it says will create regional jobs and advance Australia’s future as a renewable energy superpower. The project is set to generate around 740 jobs in management and maintenance – such as engineers and technicians – while hub construction is expected to provide work for local skilled trades like concreters, plumbers, fitters and electricians. The hub will produce 45,000t of renewable hydrogen a year, enough to fuel over 2,200 heavy vehicles for a year. The Federal Government said Bell Bay is an ideal location for a hydrogen hub due to its deep-water port and being powered by Tasmania’s 100 per cent renewables-based electricity grid. The total investment will be at least $300 million, including funding from the Federal and Tasmanian Governments as well as the private sector. The project is due to commence in 2024 and is expected to be complete by early 2028.

Federal Minister for Climate Change and Energy, Chris Bowen, said supporting renewable hydrogen production was vital to Australia’s future as a green energy exporter and green manufacturing nation. “Investing in an Australian renewable hydrogen industry is investing in Australia’s future to become a renewable energy superpower,” Mr Bowen said. “Bell Bay is a production and export powerhouse, backed by 100 per cent renewable electricity, and this hub will provide jobs, support new manufacturing and spur investment in regional Australia as the world decarbonises.” The Tasmanian Government is leading a consortium of partners, including TasPorts, TasNetworks, TasWater, TasIrrigation and the Bell Bay Advanced Manufacturing Zone, to deliver the project. Bell Bay is part of over $500 million in federal funding for hydrogen hubs in regional centres like Kwinana, the Pilbara, Gladstone, Townsville, Port Bonython and the Hunter that are expected to create new industries and regional job opportunities.

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March 2024 ISSUE 25

NEWS

APPLICANTS SHORTLISTED FOR $2B HYDROGEN HEADSTART

he Australian Renewable Energy Agency (ARENA) has announced the six applicants that have been shortlisted for the next stage of the $2 billion Hydrogen Headstart Program. ARENA said that together, these applicants represent a total electrolyser capacity of more than 3.5GW across various end uses, placing them amongst the largest renewable hydrogen projects in the world. The shortlisted applicants include: » bp Low Carbon Australia Pty Ltd, H2Kwinana project, Western Australia » HIF Asia Pacific Pty Limited, HIF Tasmania eFuel Facility project, Tasmania » KEPCO Australia Pty Ltd (Korea Electric Power Corporation), Port of Newcastle Green Hydrogen Project, New South Wales » Origin Energy Future Fuels Pty Ltd, Hunter Valley Hydrogen Hub project, New South Wales » Stanwell Corporation Limited, Central Queensland Hydrogen Project, Queensland » Murchison Hydrogen Renewables Pty Ltd as trustee for Murchison Hydrogen Renewables Project Trust, Murchison Hydrogen Renewables Project, Western Australia These applicants are developing projects that involve deploying large-scale electrolysers of at least 50MW in size, making a significant and faster impact on implementing a new renewable hydrogen industry. The shortlisted applicants are developing projects in Queensland, New South Wales, Tasmania and Western Australia. Announced in the 2023–24 budget, the Hydrogen Headstart Program aims to catalyse Australia’s hydrogen industry to take advantage of Australia’s opportunity to be a global hydrogen leader.

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Under the program, projects seeking to produce renewable hydrogen or derivatives, such as renewable ammonia or methanol, at scale can apply for a production credit delivered over ten years to bridge the commercial gap between the cost of producing renewable hydrogen and the market price. ARENA CEO, Darren Miller, said that the strong interest in the program indicates that project developers are gaining confidence in Australia’s potential to host this important new industry. “Hydrogen Headstart is a crucial step towards keeping Australia on the path to become a global hydrogen leader, creating new export opportunities, while helping to decarbonise our economy,” Mr Miller said. “The applicants shortlisted for the next stage provide us with the best opportunity at fast tracking our renewable hydrogen industry. It’s great to see the commitment from Australian companies who are looking to invest in and utilise hydrogen in their own decarbonisation efforts.” Hydrogen Headstart builds on ARENA’s previous commitments of a total of more than $315 million to 48 renewable hydrogen projects since 2017. ARENA said that it was impressed by the overall strength of applications to the program and that it believes this forms an encouraging base for the industry to grow from in the future. Federal Minister for Climate Change and Energy, Chris Bowen, said that renewable hydrogen is crucial to reach net zero, while creating economic opportunities for regional Australia. “We have the largest pipeline of renewable hydrogen projects in the world – Hydrogen Headstart is about supporting these projects to become a reality, as Australia transforms into a renewable energy superpower,” Mr Bowen said. Shortlisted applicants have until 27 June 2024 to submit their full application. The Federal Government intends to announce funding recipients in late 2024.

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NEWS

$179M INVESTMENT IN QLD COMMUNITY BATTERY PROJECT

he Queensland Government is set to invest $179 million for stages three and four of its local network-connected batteries program. The funding, sourced from the Queensland Renewable Energy and Hydrogen Jobs Fund, will see 12 new local network-connected batteries installed across the state for stages three and four of its local network-connected batteries program. The package will also enable the installation of two flow batteries from Queensland manufacturers. This will allow Energy Queensland to help develop a local battery industry, providing a proving ground for the technology developing pathways for flow battery inclusion in future battery programs. Energy Queensland’s Chief Engineer, Peter Price, said, “With these battery projects we’re aiming for a win-win-win scenario that achieves the energy trifecta for communities throughout the state – affordability, security and sustainability.”

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Stage one of the program delivered five network-connected batteries built at Bundaberg, Hervey Bay, Toowoomba, Townsville and Yeppoon. Stage two is currently in delivery, with battery construction underway on 12 batteries in Cairns (two sites), Townsville, Mackay, Emerald, Mundubbera, Gladstone, Howard, Toowoomba, Raby Bay, Morayfield and Bribie Island in the Brisbane area. Stage three will deliver 12 additional 4MW/8MWh batteries, with Mooloolaba, Runaway Bay, Cornubia, Jimboomba, Woodridge, Yatala, Barcaldine, Dalby Central, Glenella, Toowoomba, Milchester and Maryborough currently being considered by Energy Queensland. Stage four includes the trial of two flow batteries. Sites are currently being considered in Burrum Heads and Ipswich. Queensland Premier, Steven Miles, said, “This battery program is fundamental to our success in achieving 70 per cent renewable energy by 2030, and Net Zero Emissions by 2050. “Additionally, flow battery development is an opportunity for Queensland battery

manufacturers – supporting good jobs, training and supply chains right around the state.” Energy Minister, Mick de Brenni, said that this project will take the heat out of the peak demand periods, which puts downward pressure on electricity prices, benefiting households and businesses. “Investing in batteries helps build the clean energy supply chain, creating business opportunities and jobs for Queenslanders”, Mr de Brenni said. Stages three and four will take Energy Queensland’s battery fleet to a total of 29.

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INDUSTRY INSIGHTS SPONSORED EDITORIAL

ILLUMINATING HISTORY: THE SOLAR CELL EVOLUTION New research from CSIRO tracks a decade of developments in silicon photovoltaics, and discusses the future of the industry.

new research paper led by CSIRO postdoctoral researcher Dr Bruno Vicari Stefani analyses ten years of data on developments in the silicon solar photovoltaic (PV) industry and explores why some technologies struggled to gain a foothold in the market, while others exceeded expectations. Published in Joule, a scientific journal focusing on sustainable energy, the paper Historical market projections and the future of silicon solar cells reports from the International Technology Roadmap for Photovoltaics (ITRPV) and concludes that many long-term predictions within the industry were inaccurate. The International Renewable Energy Agency (IRENA) notes that the decade from 2010–2020 saw renewable power generation becoming the default economic choice for new energy generation capacity, and solar joining wind as a competitive option. According to a 2023 research paper published in the IEEE Journal of Photovoltaics (Global Progress Toward Renewable Electricity: Tracking the Role of Solar) PV is now the most rapidly growing generation technology in the energy transition. Marking a milestone year, PV represented 56 per cent of newly installed global electricity generating capacity in 2022. “Solar is a very fast-moving, dynamic industry,” Dr Vicari Stefani said.

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“Our research explores some of the discrepancies between what was projected in the industry, and what transpired in reality.”

A short history of silicon PV technologies A solar panel is formed by connecting many individual solar cells. When sunlight hits the cell, the solar energy is absorbed, releasing an electron that flows to the metal contacts where it is collected. This produces an electrical current that is harnessed to provide power to the consumer’s home or business. The following guide takes us through a summarised history of the solar cell evolution, leading us to the challenges of future technologies. For example, the biggest challenge with the next generation of cells is finding the best material that can be coupled with silicon to form a tandem. Despite promising performance from perovskite materials, stability in the field remains a challenge. So far, perovskite-on-silicon tandem solar cells have shown to retain 80 per cent of their initial power after one year of operation in the field. In contrast, some silicon PV manufacturers provide warranted power outputs of over 88 per cent of the modules initial power after 40 years of operation.

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SPONSORED EDITORIAL INDUSTRY INSIGHTS

Key conclusions from the paper The ITRPV is a globally recognised annual report that takes a snapshot of the current PV industry landscape, and projects future trends. “Data is collected annually from stakeholders across the solar PV supply chain to assess the current state of play in the industry and make some projections about what is going to happen in future,” Dr Vicari Stefani said. “For our research paper, which was written in partnership with researchers from UNSW and the University of Oxford, we analysed ITRPV reports from 2012 to 2023, compiling their projections and comparing those with the actual estimated market figures.” The analysis highlights some significant discrepancies between the historically projected market shares and the market shares that were eventually realised. Those discrepancies come in two forms. In some cases, the market share of a technology increased much more rapidly than expected. This was the case with the adoption of the PERC solar cell design, due to the development of a thin passivation layer (a layer of material to reduce electrical recombination) that was rapidly translated from research and development to production, as well as the improvement and availability of PERC manufacturing tools. The ITRPV reports issued between 2013 and 2020 estimated that the market share of PERC would be limited to approximately 40–70 per cent. In reality, the PERC market share increased from 35 per cent to more than 80 per cent between 2018 and 2021. In other cases, technologies that were projected to rapidly gain market share never took off. This is what happened with SHJ solar cell design and n-type silicon wafers. In both those examples, the analysis suggests

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that the lack of observed market gain was related to sustained success of PERC. The analysis concludes that these discrepancies – in particular the potential for rapid transitions – reveal that business-as-usual evolution does not always apply in the photovoltaic industry, and that projections for future development must be approached with caution. The paper’s co-author and postdoctoral research fellow at the University of Oxford, Dr Matthew Wright, said, “Not only is it possible for the roadmaps to be inaccurate, but we show that the causes underpinning these inaccuracies can vary widely, which makes the industry trends difficult to project.”

What might happen next in the fast-moving PV industry? The first commercial tandem solar cell is still to be announced – despite optimistic predictions that this technology would enter the market in 2019. Notwithstanding its current durability challenges, further development on perovskite-on-silicon tandem solar cells may lead it to be the first commercial tandem PV technology. In the meantime, the adoption of TOPCon technology is – for the moment – closely following the projections outlined in the ITRPV reports. These indicate a market share of up to 60 per cent in the next decade. However, Dr Vicari Stefani is keen to stress the need for caution when it comes to projecting future developments in the PV industry. “Based on what we have seen during past transitions in the industry, it’s likely that TOPCon will experience an even more rapid uptake than predicted – as occurred with PERC – and will soon become the mainstream commercial PV technology,” Dr Vicari Stefani said.

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INDUSTRY INSIGHTS

March 2024 ISSUE 25

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INDUSTRY INSIGHTS

SECURING A CLEAN ENERGY FUTURE FOR QUEENSLAND By Kieran Cusack, CEO, Queensland Hydro

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March 2024 ISSUE 25

INDUSTRY INSIGHTS The $62 billion Queensland Energy and Jobs Plan (QEJP) was launched in September 2022 and laid out a detailed blueprint for Queensland’s transition to a clean energy future. One of the new entities created in the QEJP to deliver the transition is Queensland Hydro. It was established to design, deliver, operate and maintain two long-duration pumped hydro energy storage assets. These assets will be the cornerstone of the transformation of Queensland’s energy system.

t is Queensland Hydro’s job to provide the pumped hydro assets to make the shift to renewable energy a reality for Queenslanders. We have commenced planning for two proposed projects, one at Borumba, west of Gympie in the south east, and the other at Pioneer-Burdekin, west of the major North Queensland city of Mackay. In addition to Queensland’s plan, the agreement at COP28 to triple renewable energy capacity worldwide was supported by the Commonwealth. It means proven technology such as pumped hydro will be integral in enabling and delivering the historic shift in our energy system that is required to maximise the benefits of renewable energy. We possess a unique opportunity to shape the future of energy and Queensland Hydro is driven by an unwavering commitment to lead and deliver positive change – not just for the energy system itself, but in how we support and partner with the communities in which we operate, how we care for the environment and how we provide employment opportunities in the developing renewable energy sector. The proposed Borumba Pumped Hydro Project and Pioneer-Burdekin Pumped Hydro Project represent our best opportunity to both reduce carbon emissions and to provide the long duration storage we need to harness the high levels of renewable energy that will be fed into the new Queensland SuperGrid. These assets can have lifespans of up to 100 years with appropriate maintenance so the benefits of this technology are long lasting. The proposed Pioneer-Burdekin Project alone could store nearly the same amount of energy (120,000MWH) as is collectively used across Queensland each day (about 150,000MWH). This can provide the deep storage capability required for Queensland’s renewable energy system. Pumped hydro is a tried, trusted and proven technology that's been used to store energy worldwide for many decades. Queensland Hydro holds community information sessions where the community can speak with staff directly.

Kieran Cusack, CEO, Queensland Hydro

It works like a large, rechargeable battery by using water, geography and the force of gravity to generate energy when the grid needs it most. Pumped hydro stores excess energy that is generated on windy and sunny days that would otherwise be lost, and it can very quickly provide power on-demand into the grid for businesses and homes when they need it, like at night when solar and wind generation reduces. The power output produced by the wind and sun can change quickly, but fast and flexible pumped hydro has the tools (inertia, frequency control, black start, reactive power, voltage control) to keep the energy system reliable and secure. These proposed projects bring with them an exciting opportunity for the future – jobs, regional development, community benefits, the emergence of new industries and diversification of current ones, and an undeniable huge multiplier effect for small businesses in the regions. As a renewable energy project, Queensland Hydro’s intent is to be nature positive and deliver benefits to the environment over and above the long-term climate benefits of the pumped hydro projects. The proposed Borumba Project itself will enable up to 4 million tonnes of CO2 to be avoided each year.

Borumba Pumped Hydro Project This clean energy journey started with the proposed Borumba Pumped Hydro Energy Storage Project, which was initiated by Powerlink in mid-2021 and was then transferred to Queensland Hydro when it commenced. Queensland Hydro understands the proposed Borumba Project is in an area with ecological significance. As it progresses through each stage from environmental approvals to exploratory works to main works, we will work with community groups and other stakeholders who have local knowledge to seek their input as we plan the best ways to deliver environmental offsets from the outset.

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INDUSTRY INSIGHTS

Lake Borumba

We’ve already undertaken a vast body of initial work including ecological surveys, environmental investigations, geotechnical drilling and surveys, groundwater monitoring and hydrological studies. These studies culminated in the Detailed Analytical Report (DAR), which we submitted to the Queensland Government in March 2023 for their consideration. In June 2023, the Queensland Government made its final investment decision and committed $6 billion to progress the project. The Borumba Project is targeting first power in 2030. In late December 2023, The Federal Minister for the Environment and Water decided that Queensland Hydro’s proposed Borumba Project is a controlled action, meaning that further assessment is needed before a decision can be made to approve the proposed project or not under the Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) The proposed project will be assessed by accredited assessment under the State Development and Public Works Organisation Act 1971 (QLD). Accredited assessment by the Queensland Government will provide for one integrated Environment Impact Statement (EIS) process, rather than there being two separate EIS processes. The decision whether to approve the proposed project or not under the EPBC Act will be made by the Federal Minister. This means Queensland Hydro will build upon the initial studies and continue its assessment of all relevant environmental, social and economic impacts of the proposed project, which will be documented in the EIS. The EIS will also set out the proposed mitigation measures to avoid and minimise adverse impacts. In addition, the EIS assessment process includes a public consultation phase allowing the public to comment on the proposed Borumba Project.

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Late last year we also released for tender the most significant package of works to date for the Borumba Project – with the new phase of the critical and robust exploratory works program, designed to run until mid-2026. Procurement for the Underground Works – Tunnel Drilling package was undertaken in two phases with leading proponents invited to submit a request for proposal in February–March 2024. From there, the contract is expected to be awarded in August and work set to commence in November 2024. Work on the exploratory tunnel drilling package will only occur if and when Queensland Hydro receives all necessary environmental and planning approvals.

Pioneer-Burdekin Pumped Hydro Project Our other site is at Pioneer-Burdekin, outside Mackay and the site is an ideal location due to its upper and lower reservoirs being incredibly close together – meaning short tunnel lengths – delivering a capacity of 5000MW. The proposed PioneerBurdekin Project has three stages: » Investigation, including compiling the Detailed Analytical Report for Government » Exploratory phase, including the Environmental Impact Statement » Main works phase, which results in the delivery of power. Just like the Borumba Project, we know the ecological significance of the Pioneer-Burdekin Project area. We want the natural environment to be ultimately improved by our project, from threatened ecological communities to the restoration of waterways and flora and fauna habitat. We possess a unique opportunity to lead positive change and support the communities, the environment and the well-being of the places in which we operate. During the current investigation phase, we're undertaking a range of technical studies to build our understanding of the environmental, cultural, social, economic, and technical aspects March 2024 ISSUE 25

INDUSTRY INSIGHTS

Queensland Hydro is conducting a range of ecological studies to survey existing groundwater bores, water quality, soils, and both land-based and aquatic plants and animals

of the proposed project and the site, including geotechnical investigations and front-end engineering design. It is important to note that no final decisions have been made about whether the Pioneer-Burdekin Project will proceed. That will be done after we follow a similar process to the proposed Borumba Project and deliver the Detailed Analytical Report (DAR) to the Queensland Government by mid-2024. Based on the findings of the investigation phase, we will review the design of the project to avoid and minimise impacts to the greatest extent possible and are working with stakeholders, including key environment, community and First Nations groups to co-design best practice biodiversity offset solutions.

Queensland Hydro values We cannot deliver these projects alone. Collaboration forms the bedrock of Queensland Hydro’s strategic approach to both projects. We are committed to working productively with the communities where our proposed projects will be located, particularly landholders, other residents in the local community and local businesses and industry.

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Ensuring that both proposed projects deliver enduring benefits for regional economies and the environment is important to us. We are actively forging strong partnerships with contract partners and organisations who share our vision and values. Our focus is to truly work as “business partners” rather than a traditional contractor-client relationship. We’ve spent a great deal of time learning from other similar projects globally in Austria, Switzerland, Iceland, Spain and Portugal, as well as drawing on experiences from other major infrastructure proponents such as Queensland Transport and Main Roads and Sydney Water. The lessons learned are informing our approach. We want to make our projects attractive and ensure we have great working relationships with all of our stakeholders so that we can collectively realise the opportunities available to us all. At Queensland Hydro, we’ve been mindful from the outset of the skills shortage challenges being faced around the nation with a plethora of major infrastructure projects (many in the renewables sector) commencing over the next two to five years. We are doing the planning to address this now.

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There is always speculation about the volume of work in the market or work about to enter the market. We believe that by ensuring we have a fair and collaborative offering to our construction partners, we can attract the essential support both of our projects need. Just as we want to work collaboratively with industry, we are actively engaging our communities and listening to their needs and incorporating their insights into our projects because we know that social licence is a critical part of the pathway to success in any community. We have established stakeholder reference groups for both of our proposed projects to engage in two-way dialogue with our communities. We want to be good neighbours and we are committed to doing just that. We are also looking at ways to give back to these communities and planning for a community benefits framework is already underway. We are collaborating with local educational institutions, and will continue to do so, to create a legacy for generations to come. For example, we’ve already brokered a local partnership in North Queensland with the Resources Centre of Excellence in Mackay to collaborate on innovative training projects

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that will support the delivery of critical underground training opportunities for regional workforces. The QEJP will also focus on future jobs in the renewable energy sector, ensuring training and employment opportunities are available. Long duration pumped hydro energy storage is a critical contributor to the clean energy transition which will provide a stable and reliable renewable energy system for the future in Queensland. It is proven technology and will ensure that Queenslanders can continue to stay connected 24/7 to a system that does the job we all expect it to do while doing that job in a clean, reliable, renewable and affordable way. These projects really do offer a world of opportunity – to deliver nature-positive outcomes, new jobs, new industries, regional development, local investment and community benefits. This is our chance to build assets that leave a valuable legacy while also creating real benefits in real-time for our industries and communities. Queensland Hydro is privileged to take on this task for all Queenslanders.

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INDUSTRY INSIGHTS

THE BALANCING ACT OF BUILDING A

FUTURE-READY ELECTRICITY NETWORK

By Renate Vogt, General Manager, Regulation, CitiPower & Powercor

INDUSTRY INSIGHTS

ustralians today are living through a period of unprecedented change in our energy systems, and in our relationship with energy as consumers. The changing climate is bringing hotter temperatures and more frequent and extreme weather events. This means more power is needed to heat and cool our homes and workplaces, and our distribution networks need to be more resilient to withstand storms, fires and floods. Increased deployment of renewable energy technologies is transforming our energy systems. Aside from reducing emissions, they are enabling Australians to become active participants in the market, rather than just passive consumers. We’re seeing an increase in the electrification of our homes, industries and transport. In Victoria, this will gather pace when the ban on new home gas connections takes effect in the new year. Electric vehicle ownership is also on the rise, meaning more electricity and more charging facilities are required. Finally, we’re seeing fundamental shifts in how we live, work, play and learn – driven and enabled by new technologies. One major trend is the increase in working from home, which has meant greater day-time energy needs in our homes. All these things have major implications for our electricity distribution networks, including how much energy we need to deliver, and how, where and when it gets distributed to our businesses, schools, hospitals and homes. Continuous innovation is needed to make sure the networks can handle the increasingly complex and sophisticated systems they support, today and into the future. Our distributed energy resources – from centralised power generation facilities to rooftop solar, batteries, smart appliances, electric vehicles and future innovations – need to be integrated in a safe, efficient and flexible way, and fairly, so everyone benefits. Every five years, distribution network operators across the country are required to prepare proposals that outline their plans and investments in the coming five-year period. Proposals are submitted to the Australian Energy Regulator for approval in a process known as the Regulatory Reset. Proposals are currently being shaped for the 2026-2031 period.

The dynamic energy landscape that will evolve over the coming five-year period is coinciding with a cost-of-living crisis, which puts even more pressure than usual to manage costs so energy remains affordable for all. To balance all competing priorities, future network planning needs to be informed by consultation with customers, and to consider the full spectrum of views about future electricity needs and how networks need to operate and evolve. This includes city and suburb dwellers, as well people living in rural and regional areas, high- and low-income earners, young and old, and the full range of abilities including the most vulnerable, because no one should be left behind as the system evolves and transitions to renewables. As part of this effort, Monash University’s Emerging Technologies Research Lab recently conducted an innovative study to understand future customer behavioural trends. Researchers worked with 36 households and analysed 1,325 customer survey responses to develop the Future Home Demand Report. The report, launched last week, shows there are fundamental shifts happening in the way Victorians consume and manage energy, with 51 specific trends identified that will affect Victoria’s future energy needs. The increase in home-based care, a rise in the energy needs to support study and work from home and the increased adoption of electric vehicles (EVs) are among the key trends. The research will be used to inform our future business and investment planning. It will help us assist vulnerable customers, protect energy supplies to our communities, forecast demand and energy growth, set network tariffs, connect customers and design smarter demand management programs, among other things. For distribution network operators like us, research like this provides critical indicators as to where we need to focus our efforts and investments to evolve and future-proof the distribution network, to keep pace with customers’ changing needs. Network forecasting and investment planning has always been a balancing act, but in such a fast-changing energy market, the stakes are high, and input from our customers will help ensure we put the right foot forward.

ENERGY NETWORKS

DRIVING A LEASTCOST ENERGY TRANSITION THROUGH POLICY AND COLLABORATION A word from Energy Networks Australia

Australia’s transition to renewables is well underway. However, to ensure a timely transition at the least cost to consumers, industry and governments must work together to deliver policy that shapes the future and supports the best outcome for customers – a goal that Energy Networks Australia is focused on for 2024.

n the final quarter of 2023, Energy Networks Australia (ENA) welcomed the Australian Energy Market Operator's (AEMO) Draft 2024 ISP, which shows that the grid requires significant reconfiguring as it decarbonises over the next decade, due to the rapid pace at which renewable technologies are coming online. In the first half of 2023, renewable generation accounted for around 40 per cent of the National Electricity Market's (NEM) delivered energy, reaching a high of 72.1 per cent momentarily on 24 October 2023. ENA CEO, Dominique van den Berg, said there is an obvious and timely need to continue to deliver vital transmission projects to ensure that we are connecting renewable energy and taking it from where it is generated to where it is needed. “The Draft 2024 ISP shows that this no regrets investment approach will strengthen the backbone of the National Electricity Market (NEM), connect renewable energy zones, enable diversity of resources and help distribution grids manage more household solar, batteries and electric vehicles,” Ms van den Berg said. “These transmission projects are expected to pay for themselves twice over, delivering $17 billion in net market benefits. Essentially, every dollar spent on transmission projects will be paid back two-fold.”

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Securing reliable electricity throughout the transition Wind generation is expected to dominate grid scale connections, which will complement consumers’ rooftop solar. As electricity use increases, a fourfold increase in firming capacity will be needed to meet demand and offset retiring coal generation. Firming capacity that responds to dispatch signals using utility scale batteries, hydro, coordinated Consumer Energy Resources (CER) and gas fired generation will be crucial to keeping the lights on. CER (like rooftop solar and home batteries) are expected to play an even larger part in the transition, with a fourfold increase in rooftop capacity to 72GW expected by 2050. Gas, or renewable gas, will be needed for the firming of power supply through the transition. “When it comes to the grid, we are at the cusp of a once in a generation rebuild, which is not without challenges,” Ms van den Berg said. “The role of transmission and distribution networks to facilitate great outcomes for customers through the transition, and well beyond, is critical. “Our members, Australia’s transmission and distribution networks, are acutely aware of the significance of their role in getting the transition right, and this ISP acknowledges www.energymagazine.com.au

ENERGY NETWORKS

the transformative work they are doing to secure reliable and renewable electricity for customers now, and for future generations. “The energy transition is well underway, and we need to keep moving forward, to ensure that industry and governments work together to deliver policy that shapes our future and supports a least cost transition for Australia. “We want to see the right policies and decisions being made to match the energy transition at least cost to the consumer.”

Focusing on the best outcome to consumers ENA is focused in 2024 to policy and levers that drive a whole of system energy transition, at least cost, with best customer outcomes. It is widely understood and accepted that the biggest emissions reduction comes from removing coal from the electricity supply system and replacing it with clean generation at grid scale and behind the meter. For that to work, new transmission and distribution as well as adequate storage are needed. ENA is focussed on encouraging significant progress in this space, underpinned by good planning and policy to enable investment it needs.

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Another major opportunity for emissions reduction is in electric vehicles (EVs). Australia is starting to see this inflection point where EVs are getting to a cost point where more customers are starting to invest in them. But, the challenge is smart charging, where EVs become the opportunity rather than the problem from a grid perspective – which will in turn bring charging costs down for customers. There is a real opportunity to see big savings in terms of costs as well as emissions by leveraging and using the demand flexibility of EVs to soak up excess renewables. When we think of the whole system transitioning effectively, we also have to consider heavy industry, which has sustained the Australian economy, and how it is going to decarbonise. We can’t ignore the fact that complete electrification for industry is either impossible or really, really expensive. So now we are looking at how hydrogen and biomethane can work in this space. But this can’t happen without policy support in that space. These are some of the big focus areas for ENA and its members, as the organisation believes that 2024 and 2025 are going to define the energy transition in this country, and the decisions and learnings we take now, will help set us on the right path for decades to come.

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ENERGY NETWORKS

THE ROLE OF CUSTOMER ENERGY RESOURCES IN THE TRANSITION TO RENEWABLES Customer energy resources have an important role to play in supporting the energy transition. However, SA Power Networks CEO, Andrew Bills, says that more can be done to take advantage of the potential these resources have to offer.

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ENERGY NETWORKS

t the 2023 Future Energy Conference in Adelaide, SA Power Networks CEO, Andrew Bills, said that while more large-scale generation, storage and transmission is needed to support our energy transition, there is not enough attention being paid to the massive opportunity presented by customer energy resources embedded in the distribution network. Here, Mr Bills elaborates on these thoughts and discusses the future of energy.

The future of energy is here AB: I have a vision for a sustainable and sovereign Australian economy with new industry and prosperity driven by cheap and renewably sourced energy. A future where all energy consumers share the benefits at home and at work. Householders not only will rely on smart energy management systems to ensure that they are using energy when it is cheaper (or even free), their homes will also be airtight, insulated, comfortable and healthy, with minimal heating and cooling required. It’s a future where people are not worried about their next electricity bill but potentially looking forward to a credit from energy generated on their

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It’s a shift that cannot be achieved without significant investment, disruption for industry, worry for government and uncertainty for consumers, but it is a chance that as a nation we are taking because of the pressing challenges being posed by the heating of our planet.

roof, stored in a home or vehicle battery, and sold back into the grid at times of peak demand. Already today we have customers living this future of energy. They have invested in rooftop solar and an electric vehicle with a smart two-way charger and are trading successfully into the national electricity market via innovative retailer offers. While there are currently only a few, there was a first steam engine user, and a first mobile phone user. My view is that in some ways Australians have not understood the fundamental shift that is underway in energy and, for those that do, many do not have the means to get more involved.

The opportunity presented by the challenge AB: The challenge for this future energy model is to ensure that we minimise the disruption caused in what is an energy revolution; that we maintain reliable and secure energy supply; that we ensure energy is affordable; and that we do everything we can to ensure that everyone benefits from the change. We can deliver on the so-called “trilemma” of reliable, secure, and affordable energy, but there will be bumps on the road to get there. At SA Power Networks we believe one of those bumps is not having a clear transition plan. A target of net 100 per cent renewables is not a plan, it’s a target. How we get there in a stable, orderly, and efficient way and ensure that we meet our objectives is not clear. As such, a key aspect of SA Power Networks’ submission to the South Australian

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ENERGY NETWORKS FUTURE NETWORK ARCHITECTURE All new infrastructure built for 2-way flows Increased resilience through greater network automation, segmentation and self-healing DER INTEGRATION Flexible connection options for smart customer DER Open APls for DER registration, telemetry and operating envelopes Active integration of VPPs and aggregators Significantly increased asset utilisation as flexible loads and generators adapt to fill spare capacity

NEW SYSTEM SERVICES Enhanced network operations capabilities used to provide valuable system services Advanced and fine-grained load & generator shedding capabilities for system security, including small-scale PV Demand response

THE DIGITAL NETWORK Physical network enhanced with digital overlay for planning and real-time visibility and control Full LV network and DER model in Advanced Distribution Management System (ADMS) Enhanced network visibility through third-party data sources

Most residential and commercial customers have DER

ELECTRIC VEHICLES State-wide electric vehicle infrastructure Smart EV charging

GREATER INTERCONNECTION Additional interconnection to the NEM via ElectraNet

UTILITY-SCALE RESOURCES Renewable generation Energy storage Grid stabilisation plant Distributed hydrogen production

SMART SUBSTATIONS Smarter substations enable dynamic management of two-way flows Enhanced voltage control via line-drop compensation (LDC) and closed-loop Enhanced under-frequency load shedding (UFLS)

Decommissioned SWER where possible

VIRTUAL POWER PLANTS Hundreds of MW of residential batteries aggregated in VPPs MICRO GRIDS AND COMMUNITY ENERGY High-DER developments Embedded networks, community batteries and community energy schemes

Government’s Green Paper on the Energy Transition in 2023, was the critical need for an integrated energy plan that can manage state-based risks while still accounting for NEM-level planning and progress. The South Australian Government has acknowledged that need. As a basic principle, investment decisions in South Australia’s homes and businesses behind the meter will impact the level of investment needed on the supply side. Our hope is that the proposed creation of a planning and forecasting function in government will help in better harmonising both aspects of our energy system. In South Australia, we now have more than 37 per cent of customers (about 350,000) with solar, with a total installed capacity of almost 2.2GW – more than sufficient to regularly meet the state’s electricity needs in the middle of mild sunny days. We also have about 35,000 home batteries installed. Electric vehicles (EVs) are the next big thing influencing energy outcomes. They have three to ten times the storage capacity of home batteries and are a great opportunity to utilise abundant renewable energy. We can kill two birds with one stone when it comes to EVs with cheaper transport and cheaper total energy bills for households. Electricity is much cheaper for running a vehicle than petrol/

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RURAL AND REMOTE AREAS Fringe-of-grid customers supported via network-provided stand-alone power systems (SAPS) Advanced protection systems reduce fire-start risks in high bushfire risk areas

diesel, and indicatively we believe that the average household could halve their total energy spend from about $4,500 to about $2,400 per annum by switching to an EV. We also can accelerate our energy transition and ensure that more benefits flow to consumers more quickly by addressing the barriers to consumer investment in behind-the-meter smarts and technology that can deliver immediate energy bill benefits. We believe while the focus on more generation, more storage and more transmission is essential to the transition, we also should be directing much greater government and industry focus to demand-side opportunities.

For many customers, investing in energy management systems, solar, home batteries and/or electric vehicles is out of reach. Targeted financial assistance to help consumers make this shift will bring direct benefits in reduced energy bills – something that won’t immediately happen with investment on the supply side, which in fact will drive up prices in the short term. Assistance also should be targeted at tackling our substandard housing stock. There is plentiful evidence to demonstrate that energy reduction measures for houses pay off in just a few years and reduce the cost of ownership overall by significantly reducing household energy bills.

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We believe there is a need to move urgently on efficiency standards to ensure that all existing housing stock, as well as new housing, is highly energy efficient. This will deliver an immediate energy cost benefit to consumers and help reduce heating and cooling impacts on energy demand. If planned well, it could also be a significant economic stimulus.

The vital role of the network in the future of energy AB: With EV sales now reaching a tipping point, we are going to move more rapidly toward the electricity network’s additional role of being the primary fuel source for transport. The good news is that there is tremendous spare capacity in the distribution network to substantially meet demand from EVs and avoid the need for larger-scale network upgrades ultimately paid by consumers. Unlocking this spare capacity will need a mix of incentives to ensure we use as much electricity as possible in daylight hours to take advantage of low-cost rooftop solar energy; utilising smart energy management systems that look for the best outcome for customers and respond to network signals; ensuring vehicle charging is diversified; ensuring our homes and businesses are energy efficient; and helping customers understand how their energy use impacts their energy costs. So how will the distribution network of the future look to support this change? The key features chart (Figure 1) shows the significant change in the way the distribution network will need to be optimised to support our future energy vision. The system is complex with high levels of collaboration required from various players including customers and networks to manage multiple flows of energy. We are leading the way with innovative network tariffs, our Flexible Exports option for solar, and investment in information technology systems to help deliver this dynamic relationship between our network and customers. In the long run, I believe the future of energy is one that is more democratic, where customers have greater control over how they make, use and share energy and that they see energy companies as partners in achieving their goals. With the right settings we can have a reliable, cheap and clean energy system that works for customers, drives new industry and commerce and which improves environmental and health outcomes for all.

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ENERGY NETWORKS

PROJECT ENERGYCONNECT: SA SIDE COMPLETE Construction of the South Australian component of Project EnergyConnect, the new high-voltage transmission line between South Australia and New South Wales, has been completed.

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ENERGY NETWORKS

roject EnergyConnect is the largest transmission project ever delivered by ElectraNet. The South Australian component of the new transmission line covers 206km from Robertstown to the South Australia/New South Wales state border and includes South Australia’s first 330kV substation at Bundey.

Enabling a clean energy transition ElectraNet CEO, Simon Emms, said Project EnergyConnect is a transformational project for South Australia and the National Electricity Market. Project EnergyConnect is the latest in a series of major network projects delivered by ElectraNet in the past five years, essential to enabling South Australia’s clean energy transition and net zero goals. “The interconnector strengthens South Australia’s position as a leader in the transition to a low-carbon economy and enhances our ability to export our abundance of renewable energy resources,” Mr Emms said. “As well as unlocking renewable energy developments, it strengthens South Australia’s power grid, and will deliver price savings for customers. Once in full operation the new interconnector is expected to deliver bill savings of $127 for a typical South Australian residential power customer and between $6,000 and $18,000 for business customers. “Project EnergyConnect is already contributing to South Australia’s clean energy future through new renewable energy developments in excess of 2GW, including wind, solar and batteries that are now proposing to connect to the grid.” The new interconnector will have a capacity of 800MW, which is the equivalent of delivering energy to 240,000 extra households. South Australian Minister for Energy and Mining, Tom Koutsantonis said, “I congratulate ElectraNet for completing the South Australian side of Project EnergyConnect.” The South Australian Government now looks forward to final investment decisions being made by the many renewable energy companies, which intend to use this link to the New South Wales market. “South Australia has plenty of sun and wind resources which can be harnessed as energy for sale to NSW. “An alternative to South Australia’s transmission connection with Victoria should reduce reliability risk and price impacts that might occur if the Victorian line has operational issues,” Mr Koutsantonis said. Neoen Australia’s CEO, Louis de Sambucy, said the new interconnector was a significant factor in their South Australian investment. “South Australia is already a world leader in the renewable energy transition, and Project EnergyConnect will play a crucial role in enabling the state to reach its goal of net 100 per cent renewables,” Mr de Sambucy said. “Neoen currently has over 1GW of wind generation and battery storage in South Australia in operation or under construction. As a long-term owner-operator, SA’s ongoing energy policy leadership and our deep partnership with ElectraNet have been major factors in our continued investments here. “Among its numerous other benefits to consumers, Project EnergyConnect will help provide transmission capacity for additional stages of our Goyder Renewables Zone in SA’s Mid North, leveraging the area’s world-class renewable resources and unlocking billions of dollars in investment for South Australia.”

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ENERGY NETWORKS

Delivering on time and in budget Mr Emms said successful delivery of the South Australian component on time and within budget was a credit to all involved. “The engagement with a large number of stakeholders throughout the project’s duration has played an important role in ensuring its successful delivery,” Mr Emms said. “We would like to thank the Ngadjuri People, the River Murray Mallee Aboriginal Corporation (RMMAC), the First Peoples of the River Murray and Mallee Region 2, the Aboriginal Lands Trust, and the Renmark Paringa and Mid Murray councils for their assistance and support. “I would also like to acknowledge the hard work of the ElectraNet project team and the multiple project contractors that delivered the project despite several challenges including weather, equipment and COVID-19. “Our transmission line contractor Downer delivered the 384 new transmission towers and associated stringing works, and Consolidated Power Projects delivered the new Bundey Substation. Inter-network testing of Stage 1 of the new interconnector is scheduled to begin following construction completion of Stage 1 works on the New South Wales side by Transgrid by April 2024, with release of up to 150MW of power transfer capability by July 2024 – subject to successful testing. Release of the full transfer capability of up to 800MW is planned for mid-2026, following Stage 2 construction completion in NSW by Transgrid, subject to Stage 2 internetwork testing.

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“To deliver the South Australian component, about 15,000m3 of concrete was poured, 2,500km of new conductor, 10,000t of transmission tower steel and 1,500t of reinforced steel was used,” Mr Emms said. “The South Australian workforce had a peak of about 250 people and it’s anticipated the project will create 250 ongoing jobs in the state. “Around 600,000 hours of labour was completed to successfully deliver the project, which was a huge effort.”

The Bundey substation The new Bundey substation constructed in the Riverland as part of the project is also home to South Australia’s largest electricity transformers. The transformers play a critical role in enabling the flow of power across the new energy highway between South Australia and New South Wales, with each one weighing more than 250t when in operation. Some of the other key features of the South Australian component of the interconnector includes the Special Protection Scheme, a small environmental footprint and higher towers to minimise vegetation cutting. Providing local content opportunities was an important objective with more than $45 million in contracts awarded to South Australian-based businesses. “We had a large amount of services provided and work completed by South Australian and Riverland-based businesses during the project including concrete, accommodation, logistics, fuel, and staff and equipment hire,” Mr Emms said. “This was a significant investment into the regional South Australian economy and it was great to see so many local businesses involved in delivering the project.” Positive engagement with landholders forms a critical part of ElectraNet’s high voltage transmission projects and ongoing maintenance, with an understanding of landholder’s values and requirements critical in its planning and operations. As part of Project EnergyConnect (PEC), ElectraNet has continuously engaged with landholders from the early works right through to construction completion. This has made the project a collaborative effort, setting the benchmark for large infrastructure projects that are advancing South Australia’s transition to clean energy.

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ENERGY NETWORKS

AEMO

ISP 2024:

A ROADMAP TO NET ZERO

Australia’s coal-fired power generators are closing, but to ensure that homes and businesses still have access to a reliable power supply,major investment in renewable energy infrastructure is needed. The Australian Energy Market Operator (AEMO) has published a draft of the 2024 Integrated System Plan (ISP), a roadmap set to guide the energy transition along the lowest cost pathway to net zero.

EMO’s Draft 2024 Integrated System Plan (ISP) is a roadmap for the energy transition of the National Electricity Market (NEM) over the course of the next 20 years, in line with government policies to reach a net zero economy by 2050. The plan outlines the lowest-cost pathway of essential generation, storage and transmission infrastructure to meet consumers’ energy needs for secure, reliable and affordable energy, and to achieve net zero emissions targets. With the retirement of coal-fired power stations, the way Australia generates electricity is shifting towards renewable sources. However, as the country undergoes this transition, it is essential that the NEM is still able to meet demand. AEMO’s Draft ISP 2024 maintains that renewable energy connected with transmission, firmed with storage and backed up by gas-powered generation is the lowest cost way to supply electricity to homes and businesses throughout Australia’s transition to a net zero economy.

Future scenarios AEMO outlines three possible future scenarios: » Step Change, which fulfills Australia’s emission reduction commitments in a growing economy. » Progressive Change, which reflects slower economic growth and energy investment. » Green Energy Exports, which sees very strong industrial decarbonisation and low-emission energy exports. All three scenarios acknowledge that coal will continue to

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retire over the coming years, and all three scenarios align with government net zero commitments. After extensive consultation with more than 30 expert panellists that represent industry, government, network service providers, researchers, academics and consumers, AEMO has assigned likelihoods of 43 per cent for Step Change, 42 per cent for the similar Progressive Change and 15 per cent for Green Energy Exports. Step Change therefore is the ISP’s most likely scenario. Candidate pathways were then tested against these future scenarios, through to 2050. Some of these tests looked at greater electricity demand in the NEM and other influences that would increase the benefits of transmission – such as more rapid industry decarbonisation, faster coal retirements, and reduced energy efficiency. Others considered slower delivery of infrastructure and other influences that would instead reduce the benefits of transmission (higher costs of capital, more constrained supply chains, weaker host community acceptance for new infrastructure). Of these candidate pathways, the optimal development path (ODP) is the lowest cost, most resilient, pragmatic path to the NEM’s energy future.

The shift away from fossil fuels In the 2024 ISP, AEMO reports that coal is retiring faster than announced. Since Munmorah ceased operations in 2012, ten major coal-fired generators have closed and retirements have been announced for all but one of the remaining fleet, with about half shutting down by 2035 and the rest by 2051. www.energymagazine.com.au

ENERGY NETWORKS

On 1 In November 2023 a new emissions reduction element came into force in the National Electricity Objective (NEO) of the National Electricity Law. In its preparation of the Draft 2024 ISP, AEMO has chosen to apply the amended NEO by using only scenarios that comply with Australian State and Federal governments’ emissions reduction policies and by considering policies and targets in the Australian Energy Market Commission’s Emissions Targets Statement, including those which are on their way to meeting (but have not yet met) the National Electricity Rules requirements for public policies’ inclusion in the ISP. However, the draft 2024 ISP forecasts that the remaining coal fleet will close two to three times faster than those announcements. In the most likely Step Change scenario, about 90 per cent of the current 21GW of coal capacity would retire by 2034–35, and all before 2040. Even in Progressive Change, only 4GW of coal generation would remain in 2034–35. Coal retirements may occur even faster than these forecasts. AEMO states that ownership has become less attractive, with higher operating costs, reduced fuel security, high maintenance costs and greater competition from renewable energy in the wholesale market. Coal owners are only required to give three and a half years’ notice of a closure, which gives very little time for the NEM to react.

The essential shift to renewable energy With coal retiring, renewable energy connected with transmission, firmed with storage and backed up by gaspowered generation is the lowest cost way to supply electricity to homes and businesses throughout Australia’s transition to a net zero economy A number of different investments are needed for a transition that maximises benefits to energy consumers: » Low-cost solar and wind generation will take advantage of Australia’s abundant solar and wind resources. » Renewable energy zones (REZs) are being developed across the NEM to tap into high-quality wind and solar areas using economies of scale and providing new employment opportunities. » Transmission networks, existing and new, will connect the renewable energy from REZs through to consumers, bringing low-cost electrons to heavy industry, businesses and households. » Firming technologies will smooth out the variations in renewable supply: batteries for everyday variations, and strategic pumped hydro projects for longer-term and seasonal variations. » Gas-powered generation will provide necessary back up with critical power supply when it is needed, both for ‘renewable droughts’ of ‘dark and still’ conditions, or to meet peaks in consumer demand. » Batteries, gas and other network investments will deliver essential power system services to maintain grid security and stability. » Rooftop solar and local batteries, connected to modernized distribution networks, will generate consumers’ own electricity, store it for when they need it, and supply the excess back to the grid. Doing all this at once is complex. Across the electricity sector, people are working on the operational and engineering solutions needed to support our transition to a high-renewables power system. All the while, the priority is secure, reliable and affordable supply for Australian consumers.

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AEMO has selected an optimal development path that sets out the capacity of new generation, firming, storage and transmission needed in the NEM through to 2050. Under forecasts for the Step Change scenario, the ODP calls for investment that would: » Triple grid-scale variable renewable energy by 2030, and increase it seven-fold by 2050. About 6GW of capacity would need to be added every year, compared to the current rate of almost 4GW. Wind would dominate installations through to 2030, complementing installations of rooftop solar systems, and by 2050 grid-scale solar capacity would be 55GW and wind 70GW. » Focus grid-scale generation in REZs, selected to access quality renewable resources, existing and planned transmission, and a skilled workforce. REZs will support better grid reliability and security; reduce transmission, connection and operation costs for individual assets; and promote regional expertise and employment at scale. » Almost quadruple the firming capacity from sources alternative to coal that can respond to a dispatch signal, using utility-scale batteries, pumped hydro and other hydro, coordinated consumer energy resources as virtual power plants (VPPs), and gas-powered generation. This includes 50GW / 654GWh of dispatchable storage, as well as 16GW of flexible gas. » Support a four-fold increase in rooftop solar capacity reaching 72GW by 2050, and facilitating the use of consumer-owned batteries and VPPs to deliver 27GW of flexible demand response for the NEM. » Leverage system security services and operational approaches to ensure that the NEM stays reliable and secure even as the renewable share of generation approaches 100 per cent, as identified in AEMO’s Engineering Roadmap to 100 per cent Renewables.

Transmission driving the transition Transmission connects diverse generation and storage to towns, cities and industry. It brings electricity where it is needed, when it is needed, and improves the power system’s resilience. These transmission networks need to be able to meet the changing demands and connect the renewable energy from REZs through to consumers, bringing low-cost electrons to heavy industry, businesses and households. Transmission planners make the most of the existing network before considering new projects, for example by using real-time weather monitoring to maximise line use. In many cases, new transmission will complete a network that can take advantage of the NEM’s geographic diversity, allow REZs to transfer their future energy to where it is needed, and maintain a secure and reliable power system. The Draft 2024 ISP predicts that close to 10,000km of transmission would be needed by 2050 under the Step Change and Progressive Change scenarios. If Australia is to pursue the more transformational Green Energy Exports, then more than twice as much transmission would be needed, delivered at a much faster pace. The benefits of the ODP The selected ODP sets out the capacity of new generation, firming, storage and transmission needed in the NEM through to 2050. The path would: » Guide the capital investment needed for essential electricity infrastructure to sustain and grow Australia’s $2 trillion annual economy

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ENERGY NETWORKS

Avoid $17 billion in additional costs to consumers (in present value terms) if no transmission was included in this capital investment » Connect emerging areas of renewable generation to regional industries and to urban businesses and households » Firm variable renewable energy with batteries, hydro and gas-powered generation, and » Create new economic and job opportunities, particularly in regional areas. The annualised capital cost of all generation, storage, firming and transmission infrastructure in the ODP has a present value of $121 billion (in Step Change scenario to 2050). The equivalent upfront capital cost has a present value of $138 billion (as some technical life remains after 2050 for the long-lived assets). Of the annualised cost, transmission projects amount to $16.4 billion or 13.5 per cent of the total. AEMO ascertains that they would pay themselves back and deliver the additional $17 billion net market benefit noted above. »

Risks to delivery of the ODP and to the energy transition AEMO has identified the ODP as the most effective path to maintain reliable electricity supply as coal retires and to deliver the energy system needed for a net zero economy. Any delay to delivery of the ODP increases the likelihood of interruptions and higher costs. While significant progress is being made, challenges and risks are already being experienced. Unplanned coal generator outages are becoming more common as the fleet ages. Planned projects are not progressing as expected, due to approval processes, investment decision uncertainty, cost pressures, social licence issues, supply chain issues and workforce shortages. The possibility that replacement generation is not available when coal plants retire is real and growing, and a risk that must be avoided. The sooner firmed renewables are connected, the more secure the energy transition will be. To deliver the transition on time, industry and governments must also work together with communities throughout the NEM to ensure there is the needed social acceptance. AEMO outlines the following risks to the delivery of the ODP: » Risk of uncertainty for infrastructure investment » Risk of early coal retirements » Risk that markets and power system operations are not yet ready for 100 per cent renewables » Risk that consumer energy resources are not adequately integrated into grid operations » Risk that social licence for the energy transition is not being earned » Risk that critical energy assets and skilled workforces are not being secured AEMO’s Draft 2024 ISP sends a clear message: “urgent action is needed to deliver benefits for consumers as the NEM moves away from its traditional dependency on coal-fired generation.” This transition to renewables has already begun, and it’s the biggest transformation of the NEM since it was formed 25 years ago. A clear path is needed to ensure that new, essential infrastructure meets future energy needs, while balancing consumer risks and benefits to their long-term interests.

The read the full AEMO Draft 2024 ISP, visit aemo.com.au/consultations/current-and-closed-consultations/draft-2024-isp-consultation

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CONFERENCE + EXHIBITION

ENERGY NETWORKS

EN2024 would like to acknowledge and thank our host members

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RENEWABLES

KING ISLAND: A BLUEPRINT FOR AUSTRALIA’S CLEAN ENERGY FUTURE Isolated communities are often overlooked in the renewable energy conversation, but in order to meet net zero targets, off-grid communities need to reduce their reliance on fossil fuels. Hydro Tasmania’s recent addition of a $1.5M solar farm to its King Island Renewable Integration Project has become a blueprint for bringing renewable energy to isolated off-grid communities.

itting in the waters of the Bass Strait, roughly halfway between Victoria and Tasmania, King Island is one of Tasmania’s most picturesque destinations. It’s a place governed by the wind, sun and the sea. These powerful natural elements not only make King Island unlike anywhere else in Australia – but power the island itself. There’s no connection to mainland electricity supply on the island and until the late 1990s this meant that the community relied entirely on diesel generators to keep the lights on. Now, as a result of Hydro Tasmania’s efforts, the majority of King Island’s energy needs are being met by renewable wind and solar – something the island has in abundance.

Running on renewables In partnership with the Australian Renewable Energy Agency (ARENA), and consulting company, Entura, Hydro Tasmania delivered the King Island Renewable Integration Project (KIREIP) in 2013. A world-leading, hybrid off-grid

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power system that now supplies 65 per cent of King Island’s energy needs from renewable sources. The system uses as much of the available renewable energy as possible, backed up by diesel generators if required, to provide stable and reliable power around the clock. It’s able to meet the needs of an entire community, more than 1,600 people, as well as business and industrial customers. This system works by bringing together a range of renewable technologies, including 2.45MW of wind generation and 1.5MW of solar PV, two 1MVA flywheels, a 3MW/1.5 MWh battery, and a 1.5MW dynamic resistor, all managed through an advanced hybrid control system. When there is enough wind and solar to meet demand, diesel generation can be switched off, and switched back on as needed. This process is entirely automated delivering significant diesel savings, and ensures that rapid and unpredictable changes in sun or wind conditions do not interrupt power supply. It was the first system of its kind to achieve extended continuous periods of

zero-diesel or 100 per cent renewable energy generation at a megawatt scale, successfully overcoming daily peaks in demand, a world record at the time for a grid of this scale. In 2013, the KIREIP was awarded the Energy Supply Association of Australia (ESAA) Innovation Award, and the United Nations Association of Australia World Environment Day Award in 2014. Hydro Tasmania’s CEO, Ian Brooksbank, said the KIREIP has had a profound impact on King Island’s energy production. “Over the past ten years, we’ve slashed diesel consumption on King Island by 50 per cent. That saves 2.1 million litres of diesel and cuts carbon emissions by 5,700t a year,” Mr Brooksbank said.

The next big step forward Ten years on in 2023, the island’s hybrid-power system took another leap forward with the completion of a new $3.35 million, 1.5MW solar farm comprised of 5,000 panels. “The new solar farm will save an additional 300,000L in diesel and 800t in carbon emissions annually and deliver

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RENEWABLES

even greater reliability in electricity supply for local homes and businesses. “This type of hybrid, renewable energy system is also a model for the national electricity market. How we integrate wind, solar and storage, while reducing fossil fuels and maintaining grid stability, is an important lesson as the nation transitions to renewable energy,” Mr Brooksbank said. Isolated off-grid communities like King Island are often forgotten, or left out, of the renewable energy conversation, but all across the world off-grid communities are attempting to reduce their reliance on fossil fuels. Hydro Tasmania is working to further refine and commercialise this world-first approach, making the energy system more transportable and modular, streamlining logistics, transport and construction, enabling it to be deployed faster in more locations. Mr Brooksbank said that lessons from the KIREIP have already been incorporated into other projects, such as the Flinders Island Hybrid Energy Hub and Rottnest Island Water and Renewable Energy Nexus projects.

enthusiasm necessary for a successful transition to renewable energy.

“King Island has become a renewable energy blueprint for isolated off-grid communities in Australia and around the world and it continues to lead the way.” The KIREIP also highlights the importance of community engagement and support for the renewable energy transition to be successful. King Island residents were instrumental in the planning and execution of the project. Local involvement not only ensures that the project aligns with the community's needs but also serves as a testament to the broader social acceptance and

The journey towards net zero The King Island solar farm development also supports Hydro Tasmania’s broader journey towards net zero. As one of Australia’s largest generators of renewable energy, Hydro Tasmania is also already one of the lowest emitters in the energy sector – at just 0.1 per cent of Australia’s biggest carbon emitter. But the team are striving to do more. Renewable energy has never been more critical to a sustainable future as Australia and the world seek to reduce emissions to combat climate change. As a business, Hydro Tasmania has committed to an ambitious plan and achievable path to net zero scope one and two emissions by 2025. This action plan is redefining the way we generate, distribute and consume electricity, so we can address the impacts of climate change and help keep our planet healthy for future generations.

To learn more about Hydro Tasmania’s journey towards net zero, visit www.hydro.com.au/sustainability/towardsnetzero. Or, to follow the real-time performance of the King Island Renewable Integration Project head to www.hydro.com.au/clean-energy/hybrid-energy-solutions/success-stories/king-island

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March 2024 ISSUE 25

RENEWABLES SPONSORED EDITORIAL

THE POWER OF BIOSOLIDS:

FROM LANDFILL TO RENEWABLE ENERGY HUB By Sze-Fei Peng, Principal Environmental Engineer / Sector Lead – Waste & Resource Recovery, Tonkin + Taylor In a Victorian first, Melbourne’s Clarke Road metropolitan closed landfill site is set to be transformed into a utilityscale renewable energy facility. In preparation for this new infrastructure, the property owner collaborated with Tonkin + Taylor (T+T) and Chadwick Geotechnics to repurpose the site and mitigate the environmental risks.

he Clarke Road landfill-to-a renewable energy hub (utility scale battery, solar and heavy EV charging facility) project has successfully obtained a planning permit and is currently in the design stage, with construction expected to commence in 2024. But in order for the project to go ahead, the existing site had to be rehabilitated. In a Victorian first, biosolids were used to create an innovative landfill cap to manage surface water flow, minimise leachate generation and serve as a foundation for renewable energy generation. During its time as a landfill site, gas generated by the waste materials deposited at the site was collected and used for power generation, providing a valuable source of energy. The landfill gas-to-energy facility operated at the site for over 25 years, but over time, landfill gas generation declined and power generation was no longer viable. T+T and Chadwick Geotechnics, a specialist geotechnical testing company, were engaged to assess, design and implement the transition of the active landfill gas extraction system to a passive system to ensure landfill gas risks to the environment were safely managed. This rehabilitation was crucial to ensuring the new landfill-to-renewable energy hub project can go ahead.

Plan of action At the same time, the Clarke Road landfill site was subject to an EPA abatement notice, which prompted the rehabilitation of the site itself and an assessment of the site’s potential environmental risks. T+T was asked to undertake this assessment of the site as a whole, including whether or not the existing landfill cap was in good condition. The team found that the existing cap was of sufficient integrity and only required the surface grade to be improved, rather than replaced. A design was put together for reprofiling the site to enhance water drainage, prevent leachate generation and landfill gas surface emissions; all crucial steps in preparing the ground for the energy hub infrastructure. Embracing biosolids The reprofiling of the site required considerable depth and volume (over 600,000 cubic metres) of fill. As virgin fill is highly sought-after, expensive and contributes to the depletion of finite

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natural resources, an alternative was needed. Biosolids were identified as the ideal solution as they presented cost-effective advantages and aligned with the project's environmental ethos. Sourced from Melbourne Water Corporation (MWC), these biosolids’ clay-rich composition made them well-suited for capping material. As they were locally available this also minimised transportation emissions. Being a byproduct of wastewater treatment, biosolids were costly to dispose of and took up valuable landfill space. The utilisation of these biosolids stimulated a circular economy by transforming waste into a valuable resource.

Navigating challenges and embracing collaboration Biosolids perform well when capped over and surrounded by inert material, however they take on a slushy consistency when wet and turn to dust when dry. Meticulous planning, operational control, and adaptability was crucial to ensure that they were not impacted by weather conditions during construction. The biosolids also needed to be clay rich. T+T carefully planned around supply and availability of material. The application of biosolids in this context was unprecedented in Victoria. It therefore necessitated special exemptions from the EPA, as it deviated from standard landfill rehabilitation guidelines. Gaining the exemption required extensive collaboration between T+T, MWC, Progress Earth and EPA. This process involved demonstrating the material's suitability and compliance with EPA guidelines, showcasing a successful model of publicprivate partnership. By repurposing waste materials and transforming a landfill site into a renewable energy facility, the Clarke Road landfill-torenewable energy hub project elevates the standards of sustainable development. It serves as a model for similar initiatives worldwide, demonstrating that with creativity, collaboration and commitment, environmental challenges can be turned into opportunities for a greener future.

For more information about Tonkin + Taylor’s waste and resource recovery capabilities, visit www.tonkintaylor.com.au

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Complex challenges into sustainable solutions As a specialist provider of engineering and environmental services, Tonkin + Taylor brings your project ambitions to life. With proven experience on large-scale projects across Australia and New Zealand, we are the specialist partner of choice. From land development, transport, renewable energy, waste + resource recovery; to water resource management, industry, and mining – we are passionate about creating and sustaining a better world together.

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RENEWABLES

WHAT IS A MICROGRID? There’s no one-size-fits-all when it comes to providing stable and secure energy. This is especially true in Australia, where our country has many unique landscapes and communities. For many rural and regional locations across Australia, a microgrid is the most reliable and secure option for electricity. So what are they, how do they work, and how are they helping Australia transition to renewable energy?

t can be challenging to find a universal definition for the term “microgrid” due to the diversity in configurations and technologies associated with these localised energy systems. Microgrids can vary widely in size, components and operational characteristics, and encompass a broad range of applications, from small community-based setups to large industrial installations. Essentially, microgrids are small-scale electricity systems that coordinate local energy resources such as solar panels, battery storage and other distributed infrastructure. The key characteristic of a microgrid is its ability to generate, distribute and regulate its own electricity within a specific geographic area. Some microgrids can still remain connected to the main grids, and take energy from them when it's cheaper to do so compared to their local sources, such as solar, whereas some function totally independent of the main grids – this is called ‘islanding’. According to the Journal of Renewable and Sustainable Energy Reviews, the specific requirements of a microgrid are: » The distribution system of a microgrid must be distinguished from the rest of the system » The connected resources are controlled “in concert with each other rather than distance resources” » The microgrid can function outside of the macro grid Importantly, there is no expected size of distributed energy resources (DERs) or technologies that can be used. A microgrid can therefore be a small number of houses with solar panels, or a small-scale solar farm with community interest. While microgrids are used predominantly in remote and regional locations across Australia, essential services and even military facilities are often supported by backup diesel-powered emergency microgrids.

Microgrid advantages The most obvious benefit of microgrids is the reliability and security they provide their connected users. During periods of high energy usage, when the main grids are strained, disconnections or blackouts can occur. Utilising a microgrid can then create a more reliable service. When power disruptions occur due to fires, floods and other natural disasters or extreme weather events, microgrids can also offer homes and businesses a more resilient energy supply.

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Another advantage of microgrids is reducing reliance on a macro grid. In remote and regional locations that are unable to engage with main electricity grids, communities often rely on microgrids to meet their energy needs. Community-owned and operated microgrids also offer remote and Indigenous communities autonomy, ownership and control over their energy resources.

Green energy transformation While microgrids located in Australia’s remote and regional locations have traditionally used diesel-powered generators, newer systems are increasingly powered by renewable energy sources. The rising costs and environmental impact of diesel, coupled with the long journeys undertaken by diesel trucks in Australia’s remote areas, make diesel-powered generators an unsustainable option. In contrast, renewable energy technologies are becoming increasingly affordable. Moreover, microgrids are playing a larger part in Australia’s journey to net zero, and helping reduce stress on the macro grids. The increasing amount of renewable energy being sent to the grids, coupled with the closure of fossil fuel generators leading to insufficient base load times and high electricity prices, can be mitigated with the assistance of microgrids. By incorporating battery storage technology, microgrids effectively address grid voltage fluctuations without necessitating substantial changes to transformers or grid infrastructure. Recent research has looked at the potential to use renewable hydrogen to enhance microgrid resilience, as it is an efficient means of long-term energy storage. As the energy landscape evolves, so do microgrids, becoming key contributors to a more sustainable and resilient energy future. Microgrid challenges Despite the benefits of microgrids, there are many challenges in deploying these systems across Australia. Firstly, the country’s diverse geography and climate conditions make it difficult to effectively harness renewable energy sources like solar and wind across different regions. The need for sophisticated control systems to manage the variability of these sources adds another layer of complexity and increases the cost of implementation.

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RENEWABLES

Although renewable energy technologies have become cheaper, setting up a microgrid still requires substantial upfront investment in DERs. This can be a significant barrier to widespread adoption, especially for smaller communities or remote areas with limited financial resources. Collaboration and coordination between different levels of government is essential to creating an environment conducive to microgrid deployment. Engaging local communities is also important, particularly in areas where there may be resistance to change or concerns about renewable energy infrastructure.

Overcoming barriers to adoption In May 2023, the Northern Territory Government announced a $15 million investment in supporting microgrids in remote Indigenous communities to reduce their reliance on expensive diesel generators. On 25 August 2023, the Australian Renewable Energy Agency (ARENA) opened its Regional Microgrids Program, investing up to $125 million to develop and deploy microgrids across regional Australia. Under the program, $75 million has been allocated to microgrid projects in First Nations communities. ARENA CEO, Darren Miller, said microgrid solutions for remote communities that rely on diesel have “unique challenges” when it comes to transitioning to renewable energy. The program aims to resolve remaining barriers to final investment and full deployment of microgrid solutions. These initiatives underscore a concerted push towards a more sustainable and inclusive energy landscape in Australia’s regional and remote areas. Utilities and microgrid integration As microgrids become more affordable and widespread, utilities will continue to play a pivotal role in bringing them to life. Utilities can work with governments and other stakeholders, leveraging their expertise to integrate microgrids with the main grid. Large-scale microgrids can help utilities better serve communities that are vulnerable to being cut off from the grid due to damage from storms or severe weather. Microgrids also alleviate pressure on utility networks and reduce power outages. With the growth of electric vehicle charging, microgrids offer a solution for utilities facing an increased need for energy production. www.energymagazine.com.au

Current microgrids across Australia Onlsow Western Australia’s Horizon Power currently has 34 microgrids across the state, all exclusive of the South West Interconnected System (SWIS). An innovative microgrid has been Horizon Power’s Onslow Renewable Energy Project. This 2021 project was the first example of an Australian utility creating a regional microgrid thanks to a DER management system. Built across two stages, the project involved an 8MW capacity modular gas power station, a 1MW solar PV farm and a 1MWh battery storage system. This microgrid also utilises rooftop solar and residential batteries. Kalbarri Western Power’s Kalbarri microgrid was designed to reduce 80 per cent of the electrical outages experienced by the town and help to reduce the length of them when they do occur. Kalbarri includes a 4.5MWh battery, supplying 5MW of peak capacity and 2MWh of energy storage. The microgrid will also increase supply from the residential rooftop solar and a local wind farm, thanks to a future-forward design process that allows for integration of more renewable energy generation sources outside of the initial design and implementation. Bawley Point and Kioloa Endeavour Energy launched the Bawley Point and Kioloa community microgrid in December 2023. Funded with contributions from the Federal and New South Wales Governments’ Bushfire Local Economic Recovery Fund, the microgrid harnesses electricity from renewable sources including 1000 subsided home-based batteries, rooftop solar and 3MW battery located between the two towns. The microgrid is connected to Endeavour Energy’s network but will switch to its local ‘power island’ if the main electricity goes down due to bushfires, storms or peak holiday periods, providing Bawley Point and Kioloa communities with added security for their power supply.

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RENEWABLES SPONSORED EDITORIAL

SUPPORTING LOCAL WIND

INFRASTRUCTURE WITH OE PARTS

The global transition to renewable energy is putting pressure on wind turbine OEMs. With manufacturers requiring easy access to reliable, innovative power transmission solutions to maximise power generation uptime, relying on multiple suppliers is not the optimum approach.

egal Rexnord has been committed to Renewable Energy systems globally for more than 40 years. As an OEM partner and collaborative developer to many of the world's leading wind energy innovators and manufacturers, Regal Rexnord in Australia is in a powerful position to support the local service, repair and renew requirements of growing regional wind energy infrastructure.

Wind power capacity increase The move to a low carbon future has seen rapid expansion in the size of offshore and onshore wind turbines and power generation. With power output capacity increasing year on year to meet demand, wind turbine OEMs need to deliver designs that provide the utmost in reliability and efficiency. A key factor in achieving this is the performance of power transmission components and sub-assemblies. With reliable solutions, wind turbine OEMs can maximize uptime of turbines and help operators to produce more green energy to meet demand. A culture of innovation across Regal Rexnord means that cutting edge power transmission products are available to support the new advanced wind turbine designs. Engineers from all brands within Regal Rexnord collaborate with OEMs during the prototyping process, fast tracking projects and delivering tailored solutions for customers, further fostering innovation. Challenges for operators and service providers Wind turbines are complex. One turbine alone can feature yaw brakes, rotor brakes, shaft locking assemblies,

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hydraulic power units, drive couplings and shafting, even humble access door actuators – all of which require periodic maintenance and repair. Sourcing a multitude of key assemblies and components from varying suppliers can be confusing, time consuming and costly for procurement departments. Original equipment manufacturers rely not only on Regal Rexnord’s development support at design stage, their OE supply efficiencies and the quality of the product, but they also rely on Regal Rexnord’s global network of business units to support and supply the install base with high quality replacement parts.

A single source for power transmission Featuring leading brands Ameridrives, Stromag, Svendborg Brakes, Tollok, Warner Electric and many others, Regal Rexnord offers proven power transmission components and assemblies for wind turbine OEMs. These same brands can be supplied for service and repair through a network of Regal Rexnord business units globally. As each brand is an established manufacturer in its own right, local Regal Rexnord business units are uniquely positioned to provide the sort of replacement part service and supply that local operators demand. Regal Rexnord here in Australia is geared up to support the growing wind turbine install base with dedicated service technicians, inhouse and up tower maintenance capability as well as component load testing and stocks of common genuine OE components. Whether it is to support local service providers or to carry out critical maintenance, Regal Rexnord in Australia can react to the needs of the industry. www.energymagazine.com.au

GENUINE OEM PARTS, LOCAL SERVICE AND GLOBAL EXPERTISE Regal Rexnord has been committed to renewable energy systems globally for over 40 years. As an OEM partner and collaborative developer to many of the world leading Wind Energy innovators and manufacturers, Regal Rexnord Oceania is in a powerful position to support the local Service, Repair and Renewal requirements of growing regional Wind Energy infrastructure. Your partner for Original Equipment products backed by stock and expertise.

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INDUSTRIAL POWERTRAIN SOLUTIONS

SOLAR AND STORAGE SPONSORED EDITORIAL

MAXIMISING SOLAR ENERGY

FROM SUNSET TO SUNRISE

The off-grid battery system on Lady Elliot Island

Given the environmental benefits and cost saving potential, it is no surprise that more and more Australian businesses and individuals are utilising solar as their energy source. But in order to magnify the benefits and savings of solar, an investment in a high-quality, reliable battery is essential.

ince the 1970s, lead batteries have been utilised for energy storage in Australia’s harsh environs with great success. This technology was backed by more than a century of improvements in both the manufacturing processes and elements utilised in the production of these batteries to increase reliability, durability and longevity, resulting in consumers gaining energy security for their homes and businesses. Because the upfront cost of purchasing a solar battery was on the higher end, many solar consumers delayed the purchase until prices dropped further, but in doing so, they also delayed the savings and assurance that a battery provides. Many consumers are now seeing the benefits of batteries connected to their homes, including power bill savings and protection from black outs.

Delivering a reliable power supply The sun generates 1,012GWh of energy per year, which is fantastic for both domestic and commercial solar consumers, however, the energy generated by solar panels isn’t always all needed then and there, so a reliable energy storage solution is essential to maximising solar potential from sunset to sunrise. In an ideal system, the energy produced by a solar array is captured and stored in batteries to be utilised by the consumer when the sun goes down and power prices are at their highest. BAE solar batteries offer an excellent solar battery option for those wanting to take advantage of all that solar batteries have to offer.

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About BAE Located in Berlin, BAE has provided reliable energy around the globe for more than 120 years. BAE has earned a reputation in Australia for supplying quality German-built and -engineered batteries for a variety of needs from RAPS, UPS, emergency back-up, renewable energy storage to stand-alone and hybrid grid connected systems. BAE has proven performance in the harshest environments around the world, and innovative technology allows BAE batteries to ensure the tremendous energy potential provided by the sun is harnessed to its full potential. Secura Solar batteries BAE Secura Solar batteries are the perfect choice for energy supply in renewable energy applications such as photovoltaic power generation, stand-alone photovoltaic systems and hybrid applications. BAE Secura PVV batteries, which are available in both block and cell configurations, are not required to be refilled with water during their service life – meaning they are a maintenance-free battery. This eliminates the chore of checking the battery’s electrolyte level. Secura PVV batteries by BAE are used to store energy in small to large solar photovoltaic installations. Due to the robust, tubular plate design, PVV Solar Secura batteries are perfectly suited for the highest requirements regarding cycling ability and longevity. If you need power you can rely on for your domestic or commercial applications, BAE solar batteries are designed to provide uninterrupted operations and the maximum service life available. www.energymagazine.com.au

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SOLAR AND STORAGE

BRINGING BUILDING INTEGRATED SOLAR PV TO MARKET 44

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SOLAR AND STORAGE

Building a green future for Australia means developing technology that is sustainable, functional and practical. For technology like solar PV, which is already consistently breaking records of integration on residential Australian rooftops, researchers are asking the question – why stop at rooftops? A new tool is being developed by researchers at RMIT to help make building integrated PV (BIPV) a practical and affordable solution.

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SOLAR AND STORAGE

roject lead for RMIT’s Solar Energy Application Group and head of the BIPV Alliance, Associate Professor Rebecca Yang, said building integrated PV (BIPV) products need to satisfy requirements as a PV product and also the building regulation product requirements. This can include the solar heat gain coefficient performance to impact the thermal loads in the building, the fire safety rating, wind loads resistance and the value and static loads. BIPV takes solar PV a step further; not only can the panels generate electricity, but they also function as a building product that can replace any elements on the building surface. BIPV is a customisable product, with different colours, transparencies and even flexibilities compared to conventional PV panels commonly used on rooftops. This includes the roof tiles and roof sheets, but also includes vertical surfaces such as curtain walls, colliding products, windows, double-skin façades or shading devices. With all these aspects to consider, the RMIT team have created the BIPV Enabler tool. Funded by RMIT and the Australian Renewable Energy Agency (ARENA), it is the first of its kind to be designed for Australian buildings with domestic data.

consider BIPV benefits. Once you use BIPV products, you'll actually offset your cost for conventional alternative building materials, which we consider as well during our calculations.” “We also consider the local information, such as the energy price across different locations in Australia, of course, the weather condition in different locations across the country as well.” Assoc Prof Yang said these features allow users to create their building model mock-ups with the urban environment quickly, and even include simulations for shading loss. “After that, they can select products with their preferred criteria and then the tube will filter out the right products for them with different options, and then they can select one or multiple products and enable the calculation procedure, and tell them the result in terms of the economic and environmental benefits or the outcomes, let's say economic and environmental outcomes fairly quickly.” Assoc Prof Yang said BIPV Enabler also worked with computer-aided design programs and could be scaled and customised to incorporate other open-source datasets to suit changing needs.

The challenge In theory, building materials that simultaneously have the ability to generate energy sounds fantastic, but it comes with a few obstacles. Firstly, because of the technology involved, the product itself is more expensive per square metre compared to regular building materials. Secondly, the Australian market for BIPV products is smaller than overseas counterparts, making it more difficult for architects to have sufficient information to decide if BIPV is the right choice, let alone to select the right product for their designs. Assoc Prof Yang said there was also a clear need to understand the products, its characteristics and try to design in a way that better matches with the energy demand profile in the building as well as consider the local physical environment in an urban context. “On top of that, we always need to balance the capital investment and waste energy generation, so that causes a lot of difficulties for architects, property developers to make decisions regarding whether we should use the products or not.”

Development process and industry workshops From product design and development, to testing the tool within the industry, Ms Yang and the team received positive feedback across their multiple industry workshops. One feature that has been a major hit has been the design optimisation module. This feature allows users to select multiple products and input different design criteria for the selected buildings. The module options include low capital investment, more energy generation or lower payback periods. The user can then compare and contrast the combination of products to find the perfect partnership of products for their wanted design. “We incorporate a lot of local information for the calculation that's very unique, even globally.”

Overcoming barriers to architectural adoption Assoc Prof Yang and the RMIT researchers have been compiling solutions to BIPV adoption, which has led to the development of the BIPV Enabler tool. The tool integrates product, regulation, technical, economic and construction data to create 3D models and detailed life cycle simulations tailored to each building’s planned location. The tool provides the ability for users to create precise mock-up building models with accurate urban environments alongside specific filters for product comparison and design preferences. “We have 200-plus products in our database and when we collect the product information, we also record not only their electrical properties as a PV product but also their characteristics related to building requirements. “For example, their solar heat gain coefficient performance to impact the thermal loads in the building, their fire safety rating, their wind loads resistance, the value and static loads, et cetera. “We also collected information in relation to the conventional building material cost because that's quite important when we

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Supporting net zero Solar PV already plays a major role in Australia’s renewable energy industry. For mid or high-rise building owners, they can also capitalise on the opportunities to generate electricity on site, rather than relying on power purchase agreements from remote areas. Ms Yang explained that when electricity is bought offshore, there’s waste and loss on the transmission line, and this is avoided when energy can be generated on site. BIPV also creates energy generation benefits due to the ability for designs to involve vertical PV rather than relying on common, tilted PV which generates peak energy during midday. “Another benefit is that if you consider the PV integration on vertical surfaces, with proper designs that are combined with rooftop PV, you can actually stabilise your energy supply during daytime. With proper vertical PV designs, energy can be generated in the morning and evening, providing stable energy on site, while also reducing the impact to the grid and better satisfy the needs profile for the building – all with a product that triples as an aesthetic choice. “We hope to see more buildings capable of generating solar electricity, while maintaining good design standards – a win for the planet and aesthetics.”

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SOLAR AND STORAGE

Associate Professor Rebecca Yang and a student using the software in the classroom.

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SOLAR AND STORAGE SPONSORED EDITORIAL

CHAMPIONING A CLEANER FUTURE WITH SODIUM-METAL CHLORIDE BATTERIES

As the deadline for net zero approaches, sustainable, modern solutions such as Sodium-Metal Chloride (NaNiCl) batteries are shaping the modern energy landscape.

or generations, Decon Corporation has shaped Australia's electrical and telecommunications landscapes. Now, Decon is poised to play a pivotal role in a new era of clean energy, not just as innovators, but as passionate advocates for sustainable technologies. This transition is marked by its embrace of Sodium-Metal Chloride (NaNiCl) batteries, a game-changer for reliable and environmentally friendly energy storage.

A modular building block for clean energy independence Leveraging its existing manufacturing expertise, Decon has embedded these revolutionary batteries into its clean energy offerings, crafting reliable and sustainable solutions. Among the company's most notable developments is the Smart Power Cell, a product already adopted by major telecommunication carriers like NBN and Optus to bolster network resilience against disasters, ensuring continued communications to emergency services personnel and local residents in the event of power failure. Imagine the Smart Power Cell as a versatile building block for clean energy independence. It's a modular system that combines NaNiCl batteries with renewable energy sources like solar and wind. This allows the cell to store excess energy generated during peak hours, providing reliable power when the sun sets or the wind dies down. This adaptability makes the Smart Power Cell ideal for a diverse range of applications, from powering remote communities off the grid to providing backup power for critical infrastructure during blackouts. Furthermore, its compact size and minimal environmental impact make it a welcome addition to both sensitive ecosystems and urban landscapes.

Collaboration and innovation: beyond functionality The Smart Power Cell showcases not only Decon's technological prowess but also its commitment to collaborative innovation. The company actively works with renewable energy suppliers and system integrators to develop customised solutions tailored to specific needs. This collaborative approach ensures that the Smart Power Cell reaches its full potential, benefiting communities and businesses across Australia. Decon's commitment to innovation pushes beyond the existing Smart Power Cell. With funding from the Victorian Government, the company has developed an AC version, with the aim of unlocking even more application possibilities. This innovative product is set to harness the strengths of sodiummetal chloride batteries, offering robust and environmentally friendly energy solutions for diverse needs across a diverse range of sectors. In the rugged environment of construction sites, it provides consistent power for tools and equipment. Remote offices and research stations gain off-grid energy independence, while festivals and outdoor events can be powered sustainably and reliably. The Smart Power Cell AC can also be used in off-grid charging stations to enable electric vehicle charging in remote areas, while communities and vital services gain a dependable and sustainable backup power source in uncertain times. Championing a sustainable future for all Australians Decon's vision transcends simply building clean energy solutions. The company is championing a sustainable future for all Australians. Its dedication to collaboration, innovation, and responsible practices positions Decon as key players in this transformative chapter of our energy landscape. As the race for cleaner technologies intensifies, Decon is advocating for Australian progress and shaping a future powered by NaNiC batteries.

For more information, visit: www.deconcorp.com.au

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DIVERSITY IN ENERGY

THE LIGHTNING STRIKE

THAT INSPIRED A POWERFUL PURPOSE

Sefanit has been asking big questions her whole life. Electricity fascinated her as a child, and she yearned to make it more accessible in her native country of Ethiopia. Sefi’s passion for problem solving has found a home at Powerlink, where her unique perspective is exactly what’s needed at the forefront of the renewable future.

Daring to dream As five-year-old Sefanit gazed out her window at the darkening sky, her eyebrows furrow. “Mum, how did the electricity get up there?” Her young eyes dart around as bolts of lightning crack above her, blindingly bright, then disappearing before her eyes. “What do you mean, Sefi?” her mother asked, used to her daughter’s seemingly endless questions. “I don’t see any lines going up there. Where are the cables?” It didn’t make sense to Sefi how electricity could be up in the sky but not in rural towns in her home country of Ethiopia. When she visited her grandparents in the countryside, her bedtime stories were read by candlelight instead of a lamp, and she would see other children walking to school instead of travelling via bus or car. “I felt privileged to have so much when other children who had such potential were missing out because they lacked access to the basics like electricity,” Sefi reflected many years later. “I loved maths and science and I’d always think about how I could put my love for those subjects into helping those kids. I thought, ‘If I study electrical engineering, maybe one day I can find a way to help that region access electricity so those kids can have the same opportunities I had.’ Studying engineering teaches you how to think, how to solve problems. And my dream is to solve that problem.” As Sefi grew up, so too did her curiosity and thirst for knowledge. Her family moved to New Zealand when she was 14, and then to Brisbane as a late teenager, where she studied a Bachelor of Electrical Engineering and Bachelor of Business (Accountancy). She joined an engineering consultancy as a graduate but felt it lacked the support and large-scale impact she craved. She then came across an opportunity at Powerlink. “I started working at Powerlink as a Development Engineer, and what they promised in the advertisement was exactly what was delivered. I got so many training opportunities and rotations, and within each rotation, they gave me real projects to work on and made sure I got the support I needed to learn.”

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With such a diverse portfolio of projects and work, Powerlink placed Sefi right into the action, from working on a solar farm, a wind farm and with battery technology all at the same time. “Seeing the work progress from the early stages all the way through to the commissioning and generation stages was really cool. It means I get to see how different technologies manage or work on the issues that they're facing. It could be the same issue that they're trying to solve, but they may have different ways of addressing the issues. “My final rotation was in the Grid Connections team and I knew it was the right place for me, so it was great to have such a supportive manager who helped set up an interview for me.”

A career that matters As a Grid Controls Planning Engineer, Sefi is involved in every step of the journey of a new generator on the Powerlink network, from application to commissioning. And because Powerlink deals with so many different types of electricity on such a large scale, each project is a new opportunity to learn. “Powerlink’s network spans all of Queensland, so you have the full picture that many other engineering firms don’t have access to. Our team works on solar farms, wind farms and batteries; and we coordinate with many internal and external stakeholders that are involved in a project. “We also get the opportunity to understand the working principles of different technologies so the kind of learning experiences you get here aren’t available at many other places. It’s exciting, and with the government setting new targets for net zero, everyone is doing their absolute best to get there.” Sefi’s not one to let big possibilities scare her. With her sights set on a cleaner energy future for all, she loves that the Powerlink team are united in achieving the same purpose and passionate about educating others to join them. “The environment at Powerlink is much more diverse than other places I've seen. Powerlink supports us to learn from each other and if anyone is interested in being a talent ambassador, they are encouraged to go to schools and universities to speak www.energymagazine.com.au

DIVERSITY IN ENERGY

Powerlink Grid Controls Planning Engineer Sefanit.

to students who are interested in engineering. Now is the most exciting time to study engineering, so it’s great that we can share our perspective on what we do as an engineer at Powerlink and the possibilities that are ahead.” Sefi has achieved so much as part of the Powerlink team, but we’re sure her best is still to come. Her goals are bigger than most, so she values having the support she needs to succeed. “Powerlink is a great place to grow. There are many opportunities to advance your knowledge through internal or external training; and team members are also always happy to invest in you and help you learn.”

Developing a future Sefi has never been afraid of a challenge. Part of her job with her team is developing creative ways to solve problems under tight deadlines and performance requirements. “We often discuss internally how we can help projects progress to the next stage so that they can safely connect to the grid as fast as possible?” As for the challenge of the energy sector’s skill shortage, Sefi is cognisant that part of the challenge is getting the job done with fewer hands. There's not a shortage of work, with new opportunities being created all the time. “I think it's a good time to study engineering – any type of engineering. There are so many pathways you can take. You can be a project manager, you can be a team lead, or even aim to reach a higher management level. If you are more interested in the technical aspect, you can choose technical streams such as power systems performance, protection design, and substation design. Engineers have transferable skills that they can take to non-engineering jobs as well.” As for being a woman in the male-dominated industry, Sefi says work for what you want, and make sure you build a strong support network. “From my experience, the most discouraging thing for women is when you go into the electrical engineering sector, you're

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probably not going to find a lot of other women doing the same thing. “But having supportive people can make a difference in your life, both at your workplace and in your personal life. I like working at Powerlink because of the support from colleagues and the work-life balance. I also have a very strong support network from my family. I want to make a difference in other people's lives, give back to others the way I have received support from people.”

Connected to community Having lived in Australia for more than ten years, Sefi is proud to call herself a Queenslander and give back to her community by being part of the team that provides sustainable and reliable electricity to Queenslanders. She also still feels strongly connected to her home in Ethiopia, having returned to the country in early 2023 for the third time since moving away. “I actually went back to Ethiopia to get married because my husband and I both have family there. It’s important for me to stay connected with my family and not forget the language and culture. When you know your story and your beginning, you’re more likely to know where you want to go and be successful in the future. But if you forget your identity or values, it’s easy to feel lost. You also lose the opportunity to share your journey with others and create connections.” Sefi’s story is certainly a powerful reminder that if you understand the past, you can shape the future. And with such a bright future ahead, Sefi looks forward to seeing what new challenges she can find solutions for. “My main goal is to keep developing professionally, to understand the issues we are facing in the transmission network and be part of developing the solution. I also hope that someday in the future I can give back and help people in other parts of the world access electricity to fulfil their basic needs in life. That would be very rewarding.”

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DIVERSITY IN ENERGY

NO DIVERSITY, NO NET ZERO: BREAKING BARRIERS TO THE CLEAN ENERGY WORKFORCE As one of ten Jobs and Skills Councils established by the Federal Government in 2023, Powering Skills Organisation (PSO) is seeking to improve training for the energy, gas and renewable sectors and increase the number of apprentices. PSO recently released its first workforce report, underscoring the importance of diversity when it comes to carrying out the green energy transition.

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n the energy and renewables sectors, labour and skills shortages present a significant hurdle in reaching emission levels of 43 per cent below 2005 levels by 2030 and net zero by 2050. Powering Skills Organisation’s (PSO) report Powering Up – Initial Energy Workforce Scan shows there are approximately 275,000 people in the energy workforce, with electricians making up about 50 per cent of the sector. However, an additional 32,000 electricians will be needed in the next seven years, and the country is facing a major shortfall in supply. Many other energy occupations, including electrical lineworkers, technical cable jointers and gasfitters, also face shortages. The energy workforce will need to increase dramatically if the green energy transition is to be successful, while new skills are required for rapidly emerging sectors like hydrogen. Enrolments, commencements and completion rates in the energy workforce will require a sustained boost to meet future demand. A key factor in addressing this challenge is boosting female participation in the energy sector. Only 3.6 per cent of the workforce is female, according to 2021 data from the Australian Bureau of Statistics. Meanwhile, female participation accounts for five per cent of the total training activity, according to PSO’s report.

Urgent need for action PSO CEO, Anthea Middleton, said PSO’s findings did not come as a surprise. “Industry and the training sector have been talking about these issues for a long time,” Ms Middleton said. “What has been missing is an end-to-end evidence base that links workforce research to system wide programs of action. “We know there are systemic issues facing the capacity and capability within the VET sector to skill and train apprentices in a timely and industry focused way. In three years’ time we don’t want to be looking back to see that only minor changes have been made.” With a broad range of issues facing the energy sector, PSO’s initial report offers five focus areas to begin addressing workforce challenges: » Articulate pathways to trades to attract more diverse groups » Determine if training capacity and capability of the VET system can meet future demand » Assess barriers to commence and completion rates for energy trades » Conduct a review of training packages in PSO’s remit to determine suitability » Conduct a review of training packages to explore renewable pathways into the energy sector Ms Middleton said the report has enabled PSO to identify which focus areas would add value to its stakeholders. “It gives us an opportunity to flip the script – no point going over information already out there looking for a new answer. We know some of the training and workforce data doesn’t align with the lived experience of those in the industry, and therefore we want to interrogate where there is misalignment.” Improving diversity in renewables PSO has ambitious plans to tackle challenges such as female and First Nations people's participation in renewable energy careers. “First Nations people are critical to the success of achieving net zero,” Ms Middleton said. “A clean energy model is distributed at its centre, and this provides an unprecedented opportunity for First Nations people to own, control and benefit from reliable and affordable energy generation and distribution on country.” www.energymagazine.com.au

DIVERSITY IN ENERGY Another major issue is female participation in the sector. “We can’t meet net zero targets without increasing participation of women in energy trades,” Ms Middleton said. “Currently, only two per cent of electricians are female. This number needs to change if we are to increase the workforce by 2030 to meet targets set at both federal and state levels.”

Promoting pathways in trades Understanding why young people might not be choosing a career in energy trades, or otherwise be failing to complete their training, is a key focus area for PSO. “In some respects it’s a marketing issue,” Ms Middleton said. “School leavers aren’t informed about vocational and apprenticeship pathways in the same way that university is understood. The secondary system continues to promote and prioritise a university degree as being the preferred ongoing education pathway. I think parents also see this as being the best means for their children to gain a successful career. “The apprenticeship model is a paid employment and education pathway, and electricians in particular, have one of the most varied career path options of any occupation. A combination of on-the-job and college training means you are paid to learn, and this is of huge benefit when compared to the cost of a university education.” Ms Middleton said many young people, predominantly young men, commence a trade because that is what their father or other relative does. “There is a complete lack of promotion within the secondary system, and this impacts the visibility for diverse cohorts to explore a VET pathway.” A common misconception around energy trades is that there are only a few career pathways. “It is quite the opposite,” Ms Middleton said. “The clean energy workforce can have a career across multiple industry sectors such as renewable technologies, mining, construction, automotive, manufacturing, health, teaching and so many more. “We boast an exceptionally high-quality training system in Australia, with the potential to lead the world in clean energy training. Australian tradespeople are highly respected overseas for their consistent and high-quality skills.” The year ahead As for 2024, Ms Middleton said PSO’s goals are simple. “We’ll continue to establish our stakeholder networks to ensure the voice of industry, training, regulators, government and the workers is being understood. “We are an action-oriented organisation, led by evidence, and we plan to deepen our research and industry intelligence in 2024 to make informed decisions. These decisions will be a mix of short, medium and long term strategies that will guide our programs of activity.” PSO is commencing a nation-wide roadshow in February and plans to hold workshops across Australia. “The aim of these roadshows is to take localised training and workforce research and test it with each state and territory. While we are a national organisation, our success lies in being able to contextualise national issues at a local level, and use this evidence to form a holistic national view.” Diversity will remain a cornerstone of PSO’s mission. “Workplace diversity just makes sound business sense,” Ms Middleton said. “We know that board and senior leadership diversity helps companies to thrive, and that is what our vision is at PSO.”

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DECARBONISATION

AUSTRALIA NEEDS

TANGIBLE ACTION TO REACH NET ZERO GOALS At the end of 2023, the year already declared to be the hottest on record, the world’s annual meeting on climate change, COP28, took place in Dubai. The clear takeaway from the conference was a growing sense of urgency to accelerate global efforts to reach net zero. It’s a sobering fact that at the halfway point to the UN’s Sustainable Development Goals, the world is on track to achieve just 15 per cent of our targets.

f we are to reach our stated goal of limiting global warming to 1.5°C, experts believe global greenhouse gas (GHG) emissions must peak by 2025, decline 43 per cent by 2030, and reach net zero by 20501. While progress on decarbonisation has certainly been made since the Paris Agreement, on our current trajectory, we won’t meet these metrics. How we get back on track has been the key theme discussed at COP28.

Business has a critical role to play According to a new Accenture report, Destination Net Zero, 37 per cent of the G2000 companies are now committed to net zero – up 3 percentage points since 20221. However, our research also shows that only 18 per cent of these companies are cutting operational emissions fast enough, and over half have not yet started cutting emissions at all. The report also included data from 28 of Australia’s largest companies by revenue. At first glance, the results are encouraging: 96 per cent of the Australian companies surveyed have set net zero targets, compared to 55 per cent of

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counterparts in other regions. 75 per cent have also published net zero targets across all scopes (1, 2 and 3) compared with 57 per cent in the EU and 26 per cent in the US. While the sample size is small, these signals of intent are important as we know that companies that set targets typically reduce emissions faster than companies who do not, however, tangible action is still lagging. An area of concern highlighted in the research findings is that Australian companies, in particular, have an over-reliance on carbon offsetting, with 64 per cent relying on carbon offsets to meet their emission goals, compared to 27 per cent globally. Only 11 per cent were seeking to adapt their business models and reinvent their core offerings for a low carbon emissions future. So, what needs to be done? How can action be accelerated to produce real and tangible results?

Decarbonisation levers work, but adoption needs to rise Increasing the adoption of decarbonisation levers by individual businesses is imperative for accelerating the pace of emissions reduction. While deploying any single additional lever may not

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DECARBONISATION

By Glenn Heppell, Resources Lead ANZ, Accenture

be effective on its own, our research indicates companies that adopt ten or more levers see significant reductions in emissions. In contrast, those adopting fewer than ten levers often find themselves overseeing a continued rise in emissions1. Businesses should be aiming to “stack” levers, or simultaneously combine multiple decarbonisation measures. These levers include renewable energy adoption, process optimisation, sustainable sourcing as well as more complex actions such as upgrading to “green” technology and reinventing business models. The synergies created enhance the overall impact of each lever, creating a more resilient and adaptive framework for sustainable business practices.

Energy-intensive industries need to be supported in their transition “Heavy” industry sectors, including steel, metals and mining, cement, chemicals, and freight and logistics collectively contribute to almost half (40 per cent) of total global CO2 emissions1. In addition, their Scope 1 and 2 emissions become their customers’ Scope 3 emissions. Reinventing these industries to become more sustainable is really make or break for climate mitigation. However, placing the burden of the energy transition solely on companies operating within this sector without help or intervention, is unrealistic and unproductive. Decarbonisation ultimately comes down to cost – green alternatives to high carbon products and services are currently more expensive and the technologies that support them are new and not available at scale. To meet net zero, we have to accelerate the speed at which we bring down these costs. Encouraging investment in advanced technologies such as green hydrogen production, renewable electricity-powered processes, and AI-powered sustainable mining practices can significantly reduce the carbon footprint of these sectors and lower-emissions down the supply chain. This extends beyond the production level to investing in low-emission freight and logistic solutions. The creation of new industrial clusters throughout Australia, similar to the Kwinana cluster in Western

Australia, also holds much promise to reinvent heavy industry in a sustainable way.

Investment in clean energy needs to happen in tandem with decarbonisation Australia cannot succeed in our decarbonisation efforts until a clean energy industry is in place – for the sake of both domestic energy security, as well as creating a clean energy export market that can replace the economic contribution of our historic fossil fuel exports. Accenture research has found that clean energy exports could be worth $314 p.a in revenue to the nation by 2040. Assuming policy support, by 20401 this could set Australia as a global leader in clean exports; adding more value and more jobs to the Australian economy. But the window to capture this opportunity is closing fast as other countries invest heavily in their own sovereign capabilities. Australia needs its own globally ambitious, proportionate and targeted clean energy policy that will encourage and leverage private investment. What next? While investment and innovation will reduce decarbonisation costs and build a renewables industry, these investments simply aren’t happening at the scale or pace net zero requires because the value chain – from energy providers to heavy industry to light industry – is not collectively working together. We’re currently seeing a siloed approach with leaders focusing on their own organisations, and investors focusing on niche opportunities, rather than a collective effort across the wider value chain. This has created an investment standoff or stalemate, where all parties are waiting for others to move first. A greater focus on collaboration between the private and public sectors moving forward, along with a reinvention of both business and industry operating models and processes, will be needed to propel Australia’s energy transition and secure our future prosperity as a nation.

Accenture, 2023, Destination Net Zero report

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DECARBONISATION

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DECARBONISATION

AUSTRALIA’S PATH TO RENEWABLE ENERGY SUPERPOWER www.energymagazine.com.au

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DECARBONISATION When it comes to decarbonising the economy, Australia has the potential to punch above its weight to become a renewable energy superpower. Achieving this ambition, however, will require significant investment into the industries of tomorrow. Initiatives such as ARENA’s Hydrogen Headstart have a critical role to play.

cross the globe, governments are rolling out various energy transformation packages, increasing the pressure to remain competitive in the push to net zero. While Australia can’t match the likes of the Biden administration’s Inflation Reduction Act, recent investments from the Australian Renewable Energy Agency (ARENA) tap into the country’s unique advantages in this evolving green energy landscape. “The history of Australian innovation is rarely a history of inordinate sums of capital. Instead, we’ve played best when playing to our competitive advantages,” ARENA CEO, Darren Miller, said. “The government’s Hydrogen Headstart program, administered by ARENA, is a timely example of Australia playing to our strengths. The program will deliver $2 billion in funding over ten years to help Australia capitalise on its natural resource advantages to become a hydrogen heavyweight.” Australia’s natural resources are key to achieving the government’s renewable energy superpower vision. “Our nation records the highest average solar radiation per square metre of any continent on Earth and our wind resources are among the best in the world. “Australian renewables can satisfy our domestic energy needs, as well as be harnessed to transform our economy. And that transformation will require hydrogen.”

The role of renewable hydrogen The precise role hydrogen will play in Australia’s decarbonised economy remains unknown due to various factors, including the dynamic nature of the technology itself. Addressing these uncertainties will require targeted investment and appropriate policy settings, designed for the evolving environment necessary for fostering innovation.

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Mr Miller said hydrogen has the potential to help decarbonise heavy industries such as steel making and alumina production. “Australia’s miners are the world’s leading exporters of iron ore and the world’s largest producers of bauxite. If key markets start imposing green tariffs, then opportunities should appear for Australia to process emissions-free products rather than just export raw materials. “Hydrogen has the potential to become a leading emissionsfree fuel for powering long distance heavy land transport, planes and shipping. Together, these account for around ten per cent of all global emissions.” Hydrogen is a key ingredient in ammonia, which in turn is vital for fertiliser production and many manufacturing processes. “All told, high potential renewable hydrogen applications could tackle up to 15 per cent of global emissions. Closer to home, hydrogen is key to preserving domestic industries, not to mention helping to create new export opportunities that could even exceed our current fossil fuel revenues.”

Hydrogen Headstart Against this background, the Hydrogen Headstart initiative will offer financial support to bridge the current economic gap for participants. It is intended to scale up green hydrogen production in Australia to allow the country to compete on the global stage. “In that regard, Hydrogen Headstart is our first big step towards achieving our renewable energy superpower vision,” Mr Miller said. “Achieving that bold superpower vision requires an equally bold strategic approach, but boldness will be rewarded with benefits to our economy and the climate. “The alternative is an Australia continually playing catch-up with other economies and potentially losing out as the world makes its inevitable shift to net zero.” As Australia scales-up its green hydrogen production, building an allAustralian hydrogen electrolyser, like the pioneering technology being developed by Hysata, becomes critical. ARENA’s support has helped develop this project, which is getting the chance to prove itself at a commercial scale. Queensland Government-owned power company Stanwell Corporation is providing the site and facilities where the system’s trial will take place, and backing the project with $3 million. If it works, the project has the potential to transform the economics of renewable hydrogen production. Mr Miller says the project is a crucial step to enabling purchase orders for the technology. “Hysata’s electrolyser technology could be a game-changer for renewable hydrogen. “The demonstration at Stanwell’s site will be key to unlocking commercial demand for Hysata’s product by proving the technology works at scale.” www.energymagazine.com.au

DECARBONISATION

Currently, the production cost of renewable hydrogen (using renewable energy) is at least twice that of hydrogen produced from fossil fuels. Hysata says its technology will slash costs and produce hydrogen “well below” a competitive target price of $2 per kilogram (approx. US$1.50/kg).

Hysata’s technology explained Until now, electrolysers have produced a lot of heat due to electrical resistance. The heat generated is not only wasted energy, but it must also be removed. Electrolysers need a lot of cooling and that uses even more energy. Hysata has tackled this problem by completely redesigning their electrolyser to remove all the main sources of electrical resistance. It turns out, that means eliminating hydrogen and oxygen bubbles. When bubbles form on the electrolyser’s electrodes, they reduce the surface area available for electrolysis and increase resistance. Hysata says it has completely eliminated bubbles from its system and cut electrical resistance to virtually zero. As a result, Hysata says it expects a fully operational electrolyser will stay cool through good air ventilation alone. The combined effect is what has raised the overall efficiency of a Hysata electrolyser to around 95 per cent. That’s a huge jump on current technologies, which operate with efficiencies closer to 75 per cent.

To put that in context, to make renewable hydrogen competitive with its fossil-fuel derived alternative, the International Renewable Energy Agency (IRENA) in 2020 set an electrolyser efficiency target of up to 85 per cent by 2050.

Making progress Hysata CEO, Paul Barrett, said the project marked a significant milestone. “Green hydrogen is critical for decarbonisation of hard-toabate sectors. We are committed to helping our customers deliver the world’s lowest cost green hydrogen. “With exceptional 95 per cent efficiency combined with cost-effective materials and reduced engineering, procurement and construction (EPC) costs, Hysata’s electrolyser will transform the economics of green hydrogen production.” Stanwell CEO, Michael O’Rourke, said Hysata represented an important step in developing Queensland’s renewable hydrogen industry. “The development of a renewable hydrogen industry is a key component of our energy transformation. “The potential to utilise high efficiency Australian technology in large-scale hydrogen projects would be a real advantage.” Initial development of the system is currently underway, with the field pilot at Stanwell due to commence in 2025.

To read more about ARENA Hydrogen Headstart program visit www.arena.gov.au

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March 2024 ISSUE 25

DOMESTIC GAS OUTLOOK

FLEXIBILITY THE KEY TO TACKLING GAS INDUSTRY UNCERTAINTY By Jim Cox PSM, Deputy Chair, Australian Energy Regulator

March 2024 ISSUE 25

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DOMESTIC GAS OUTLOOK

T The role of natural gas in the renewable energy transition has been debated for a number of years now, with no firm conclusions reached. What does remain clear is that natural gas will be part of the Australian energy industry for a while to come, and as such, it remains a key consideration for the Australian Energy Regulator. In this article, Jim Cox has provided Energy with some reflections on his time at the AER and the challenges facing the future of gas regulation.

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his year marks the end of my journey as a Board Member at the Australian Energy Regulator. I will be retiring in the middle of this year having worked for the past 30 years in economic regulation, the last 10 of which have been with the AER. When I joined the Board in 2013, Australia’s climate change debate was in full swing. The controversial carbon tax scheme was slated to be abolished and investment in natural gas transportation and storage capacity was expanding. Fast forward ten years and we now have a legislated carbon emissions target of net zero by 2050 and a National Gas Objective that includes achievement of emissions reductions targets. Gas demand is expected to decline, but there is uncertainty as to how quickly it will happen. Gas underpins the security and reliability of our electricity network and for many thousands of household consumers, it has just always been there. Boil the kettle. Heat up the lounge room. Switch it on and it is instantaneously there. Maintaining aging gas pipeline infrastructure and the costs of doing so are far from household consumers’ minds. But it’s firmly front of mind at the AER. Everyone uses electricity, but not everyone uses gas. The customer base is different. It’s critical to Australia’s manufacturing base, but it’s increasingly being switched off in households as various government policies favour renewables. Protecting the long-term interest of consumers is at the core of what we do at the AER. If I think back to that first year as an AER Board Member in 2013, we made gas access arrangement decisions in that year that supported network investment and expansion while minimising bill impacts to consumers. But how do we deal with an increasingly uncertain future demand for gas, ensuring that fairness and equity for all gas consumers prevails? If, over time, there are fewer customers to share the fixed costs of the network, there may be some customers who cannot afford to electrify all of their energy supply and may face the very real possibility of higher gas bills. At the same time, investment will continue to be needed to maintain the safety, security and reliability of the network. Continuing investment will add to prices since the costs will be recovered from consumers. Some assets may become stranded if costs are high enough and demand is low enough. Access arrangements that are in the best long-term interest of consumers have just become a whole lot more challenging. Thankfully the economic regulatory framework is flexible and allows us to take the steps to manage the risks of uncertainty in the future of gas. My key message in all of this is that the AER is willing to listen, innovate, and move quickly on finding solutions. Our one constant is that it is done in the long-term interest of consumers. We did just that with our access arrangement decisions for three Victorian gas transmission businesses last year. We built in short-term solutions that address the possible future decline of natural gas demand and potential safety concerns if unused gas assets remain in place. The final decisions allowed for a small start to accelerated depreciation of the networks to balance recovery of asset costs between current customers, while the customer base is still relatively high before potentially reducing. We also worked with the network businesses to narrow the price gap between temporary and permanent gas disconnection services.

March 2024 ISSUE 25

DOMESTIC GAS OUTLOOK

We set a charge of $220 for the disconnecting consumer, with the remaining costs of the permanent gas disconnection service being recovered through the haulage tariffs which are spread across all gas consumers in their network. Socialising costs in this way helps to address the safety risk of leaving ‘live’ but unused assets in place. I was pleased that through our approach and willingness to meet network businesses ‘half way’ so to speak, we minimised the impact to consumers over the next five years of the revenue period. But we know this is only an interim measure and further work is required across the sector to develop a more sustainable solution to permanent disconnection and declining demand. In the longer term, it may be that five-year gas access arrangement reviews are not enough, or not the best avenue, to deal with these safety and equity issues. The policy directions set by government will continue to develop in response to changes in technology and costs, and community needs and preferences, to ensure that we have a safe, reliable and affordable transition to net zero by 2050.

March 2024 ISSUE 25

Market bodies, like the AER, should contribute to these discussions. However, they also need to be flexible enough to adapt their regulatory approach to a changing technological and policy environment. One of the key contributions the AER makes in this is through our extensive performance reporting of gas markets. Quarterly reports of wholesale and retail markets, annual network performance reports, and our flagship State of the Energy Market report offer up in-depth data and expert analysis that contribute to increased understanding and informed decision making. I would recommend anyone new to working in the energy sector to look through an AER State of the Energy Market report. Our team goes to great lengths to make the analysis and explanations in this report accessible to anyone interested in Australia’s energy markets. The AER’s new contract market monitoring powers, due to be legislated this year, are set to increase the transparency of both the wholesale gas and electricity markets. In relation to gas, a key element of our new powers will be to

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DOMESTIC GAS OUTLOOK

look at how gas contract markets impact operations of the spot wholesale markets and the implications they have for the final costs consumers face. Without understanding these contract positions, the AER can only speculate on what may be driving participant behaviour. These contract market powers will build on the gas market transparency measures already implemented in March 2023 to address information gaps across the east coast gas industry. We published our first Short Term Transactions Special Report in December 2023 which discusses the observations of the first six months of operation of these measures as they relate to the gas short-term trading markets. In the first quarter of 2024, the AER will be seeking input from across the sector through an Issues Paper on how we apply these

new contract market monitoring powers to ensure there is clear intention and benefits, without unnecessary regulatory burden. I urge interested market participants to get involved in this conversation, to set the right foundation for information requests and balanced reporting that will contribute to meeting the challenges of an uncertain gas future head on. It’s been a privilege to be part of the AER at this transformational time for Australia’s energy markets. The environment is now very different from when I first started but I leave knowing that the AER is a flexible, innovative regulator, with an ear to the ground, an eye to the future and the long-term interests of consumers at its core.

The Australian Energy Regulator’s gas market performance reports, the Short Term Transactions Special Report, as well as current and historical State of the Energy Market reports are available at www.aer.gov.au Jim is a keynote speaker at this year’s Australian Domestic Gas Outlook Conference, taking place in Sydney from 25-28 March 2024

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March 2024 ISSUE 25

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