Victoria
Victorian wind energy developments totally $3 billion could be at risk under the new coalition government.
Victoria has up to $9 billion of new wind farm investment proposed over the next ten years. The CEC has said $3 billion of wind energy investment maybe taken interstate if the proposed Baillieu are adopted.
Transfield
Transfiled has been singled out by the NSW Coalition and the Greens for not disclosing Labor party donations in the Collector wind farm planning application.
BP Solar
BP is vying for a slice of the Australian government’s Solar Flagship funding to develop a solar energy project in Moree, NSW.
BP’s proposed $600 million, 150 MW PV project, is proposed near the country town of Moree, 640km northwest of Sydney. SunTech/Infigen are also proposing a smaller 60MW solar project in Moree as part their four site Solar Flagship proposal.
IEA
The International Energy Agency (IEA) estimates $5.7 trillion will be invested in electricity generation from renewables such as wind and solar power during the next 25 years, according to their World Energy Outlook, published yesterday.
Global subsidies for renewable energy totaled $57 billion in 2009. The agency estimated that last year $37 billion of support was given to electricity from renewable power, and $20 billion to biofuels. Government support for the industry can be justified “by the long term economic, energy security and environmental benefits they can bring,” the agency said.
Transfield Services
Transfield Services had recently made improvements to increase the efficiency of the poor performing turbines at Starfish Hill wind farm, but that was not enough to stop a turbine fire two weeks ago. The details of the fire are yet to be released.
Infigen
Infigen shares jumped 18 per cent on Monday with rumours of a prospective buyers.
Insiders are also wondering that with some cash in the war chest, will Infigen try to secure the Emu Downs wind farm which is only 200km away from their Alinta/Walkaway wind farm.
Transfield
Collector residents are getting loud about the prospect of up to 80 wind turbines being constructed nearby.Transfield Services submitted a project application last month for the $400million Collector wind farm development. The proposed project is 55km north-east of Canberra just south of the Cullerin Range wind farm. The project has local residents uneasy about the possible visual impact of 80 turbines up to 150m tall along the north south escarpment.
Rugby Wind Farm
Environmental assessment work has been undertaken for a proposed large wind farm in-between Rugby and Boorowa in South West NSW. Windlab Developments, together with Suzlon Energy, are jointly investigating the development of the Rugby Wind Farm, located between Rugby and Boorowa. Windlabs has been investigating the area since 2004. The proposed wind farm will comprise of up to 90 wind turbines, up to 160m tall.
ACT
The ACT government is standing by its solar feed-in tariff despite the NSW governments actions to slash the tariff for household solar installations. ACT installation up to 10kW receive 45.7c per kWh, compared to the revised NSW tariff of 20c/kWh.
UFWA
UFWA’s new manager is set to move their office closer to the action in the CBD of Sydney.
Acciona
Two top executives in Acciona’s North America business have left the group, amid continuing rumours of a switch in emphasis from its US operations due to this years downturn in the US wind market.
Solar Flagships
The federal government is relying on a solar power generation assessment panel to choose two projects to kick off the $1.5 billion solar flagships program.
The final bids for the from the eight shortlisted consortiums are expected in October 27th.
See the following article for more information on the solar flagship program and the short listed parties and solar technologies offered.
Loy Yang
Transfield Services Infrastructure Fund (TSI) and AGL energy are likely to face three years of no cash contributions from their investment in Victoria’s biggest generator Loy Yang A as it looks to cut its gearing.
The holding company of the power station, Great Alliance Corp, didn’t pay any distributions in the year ending Dec 2009 and investors including TSI (which owns ~14%) played down the financial impact of the likely suspensions of distributions.
Collector Wind Farm
Transfield Services progresses with the Collector wind farm, as they move towards seeking planning approval. The proposed Collector wind farm site is located approximately 55km north-east of Canberra and 35km south-west of Goulburn. The proposed wind farm is expected to have a total generating capacity of approximately 150 megawatts (MW), comprising 50-80 wind turbines.
Infigen
Manildra in central west NSW and Nyngan in north west NSW are rumored to be two of the proposed site options for ~50MW solar PV projects in the Infigen/ Suntech consortium Flagship bid. The bid plans to have a up to 195MW of PV generation over three sites.
GE
GE Finance is among a raft of companies looking at the sale Emu Downs wind farm. Emu Downs is a joint venture between Griffin Energy and Stanwell Corporation.
Bids are expected on the wind farm and the associated stage 2 Badgingarra site in late October. It has been rumored that Infrastructure Capital Group, APA Group unit Energy Infrastructure Investments and Macquaire Group have been approached to make an offer. But others already in the industry such as GE and Meridian could also be outside contenders. Atco Group and InterGen have already ruled themselves out of the deal.
A typical evaluation of between $2.5 million and $2.75 million per MW would put the proposed sale in the range of $200 to $220million excluding Badgingarra.
The Badgingarra site (up to 130MW) could be worth ~$6.5M with the higher WA electricity prices and the site’s wind resource, however there are risks with securing a PPA and HV transmission line. The Badgingarra could be a good project if the transmission line went ahead and Synergy or others were open for more wind project PPAs.
Other recent activity to estimate the sale price:
Emu Downs initial cost 2006 - $180M, the forecasted sale cost in Stanwell sale: $158M ($2.25M/MW). Average operating cost in Stanwell sale: ~$0.0473 p.a. (2007)
Another recent sale from the same stable - Mount Millar, initial cost 2005 - $130M,
the forecasted sale cost in Stanwell sale: $138M ($1.86M/MW). Average operating cost in Stanwell sale: ~$0.0573 p.a. (forecasted 2007), sold recently to Meridian Energy for $191M in May 2010 ($2.73M/MW).
Gamesa
Gamesa Corporacion Tecnologica SA said today in an e-mailed statement that it sold six wind parks with an installed capacity of 45 megawatts to Ikea. No financial details were provided.
Brolgas
South West Victoria Brolga Research Project is a three year research project led by PhD candidate – Inka Veltheim who is based at the University of Ballarat.
The wetlands of south-west Victoria are home to the stately Brolga, (Grus rubicunda). However loss and degradation of habitat and predation by foxes has over the last two decades seen a steep decline in the Victorian Brolga population, with nesting pairs now around 200-250. With proposed wind farm projects entering the areas of known Brolgas, more needed to be done to understand their movements, spatial requirements, and vulnerability to collision with man-made structures.
The project findings will increase awareness about the birds and avoid possible further decreases in Brolga numbers. Key representatives involved are the Victorian wind energy industry in south-west Victoria, the Clean Energy Council, State and Commonwealth Government departments and the Bird Observation & Conservation Australia (BOCA) will assist with the research on Brolgas in this region.
Crowlands windfarm approved
Pacific Hydro’s Crowlands wind farm, has been approved by the Brumby goverment for 72 turbines. The approved wind farm has a proposed generating capacity of 172 megawatts.
The wind farm is located 25 km north-east of Ararat in Victoria.
Emu Downs Wind Farm Sale
The sale process for Emu Downs wind farm in WA will begin next week as the owners look to capitalise on the strong interest in one of the largest wind farms in the country.
The wind farm is a 50/50 JV between the Griffin Group and QLD’s Stanwell corporation. The sale also comes with Badgingara an approved 130MW stage 2 wind farm proposal.
Based on a typical industry valuation prices of $2.5 to $2.75 million per MW could be expected for the 80MW wind farm commissioned in 2006.
The wind farm located 200km north of Perth, near Joanna Plains, consists of 48 Vestas 1.67MW turbines and cost around $180 million to build in 2005/6, constructed by Vestas via an EPC contract.
Bandgingara is located 5km north of Emu Downs on 22,000ha site reportedly to be also owned by Rick Stowes empire. The wind farm was estimated to generate around 430GWh/yr from 130MW. The wind farm will require the delayed Western Power HV transmission line upgrade adjacent to the site, to proceed before it could be constructed.
CSIRO has faith in wave power
CSIRO researchers say half of Australia’s electricity needs could be met by harnessing just 10 per cent of the energy generated by waves near the southern Australian coastline.
Infigen
Analysts are weary of Infigen’s planned revision of production forecasts. Greg Dover, CFO of Infigen said the revision was always planned and was all part of business as usual.
Mr Dover did however say on the topic of REC prices “Macarthur will partially satisfy AGL’s own REC obligations, the long term shortfall in REC obligations still exists across the board”
Eight projects are short listed under the governments plan to get two power plants up and running by 2015.
The shortlisted consortiums so far have attracted a fair bit of controversy, given the government is choosing the technologies and not the market.
The short listed solar flagship companies will share $15 million in public funding to prove their bids through feasibility studies. The study results will be used to select two succesful projects.
The government will choose one PV project and one solar thermal project and will have to juggle potential risk against support for technologies when it makes its final decision.
SOLAR PHOTOVOLTAIC
• AGL Energy proposes a multi-site project using thin film cadmium telluride solar photovoltaic technology generating up to150MW at multiple sites across Australia including ACT, NSW, Victoria, Queensland and South Australia. AGL, FirstSolar and Bovis Lend Lease;
• TRUenergy proposes a single site near Mildura with CSIRO and Bovis Lend Lease, using thin film cadmium telluride solar photovoltaic technology to generate up to 180MW;
• Infigen Suntech’s crystalline silicon solar photovoltaic technology would be deployed at up to three sites in New South Wales or Victoria to generate up to 195MW; and
• BP Solar proposes a single axis tracking photovoltaic system to generate 150MW from plants constructed at several locations in New South Wales.
SOLAR THERMAL
• ACCIONA Energy Oceania proposes to generate 200MW using solar thermal parabolic trough technology at a single site in either Queensland or South Australia. Acciona, Mitsubishi, BMD Constructions;
• Parsons Brinckerhoff proposes to construct a 150MW solar thermal parabolic trough power station at Kogan Creek in Queensland. Soalr Flair Alliance inc PB, Siemens, John Holland, CS Energy, Infrastructure Capital Group, QUT and Curtain University;
• Wind Prospect CWP proposes to use linear fresnel technology at Kogan Creek in Queensland to construct a 250MW power plant; and
• Transfield proposes to convert the Collinsville coal-fired power station in Queensland into a 150MW solar thermal linear fresnel power plant.
DESIGN / PROCUREMENT / TENDERING STAGE
We can tailor a procurement strategy to suit your risk level, finance options and time frame. A procurement strategy will outline various suppliers and contractors suitable for the work package(s) to be let for the project. From here the project managers will be responsible for managing the design specification through to completion, competitive pricing via calling of tenders or negotiated contracts; letting of contracts, supervising of the required construction works (off-site and on-site). Visit the website www.elementalpower.com.au for more information on our services.
The Australian Government has announced eight projects that will be invited to participate in the second stage of assessment for Round One of the $1.5 billion Solar Flagships Program.
The Government intends to announce the two final successful applicants – one solar thermal and one solar photovoltaic – for Round One of the Solar Flagships Program in the first half of 2011.
The following shortlisted projects will share up to $15 million in feasibility funding going into the second stage of assessment:
SOLAR PHOTOVOLTAIC
• AGL Energy proposes a multi-site project using thin film cadmium telluride solar photovoltaic technology generating up to150MW at multiple sites across Australia including ACT, NSW, Victoria, Queensland and South Australia. AGL, FirstSolar and Bovis Lend Lease;
• TRUenergy proposes a single site near Mildura with CSIRO and Bovis Lend Lease, using thin film cadmium telluride solar photovoltaic technology to generate up to 180MW;
• Infigen Suntech’s crystalline silicon solar photovoltaic technology would be deployed at up to three sites in New South Wales or Victoria to generate up to 195MW; and
• BP Solar proposes a single axis tracking photovoltaic system to generate 150MW from plants constructed at several locations in New South Wales.
SOLAR THERMAL
• ACCIONA Energy Oceania proposes to generate 200MW using solar thermal parabolic trough technology at a single site in either Queensland or South Australia. Acciona, Mitsubishi, BMD Constructions;
• Parsons Brinckerhoff proposes to construct a 150MW solar thermal parabolic trough power station at Kogan Creek in Queensland. Soalr Flair Alliance inc PB, Siemens, John Holland, CS Energy, Infrastructure Capital Group, QUT and Curtain University;
• Wind Prospect CWP proposes to use linear fresnel technology at Kogan Creek in Queensland to construct a 250MW power plant. Consortium consisting of Wind PRospect, CS Energy, Areva and Mistsui & Co.; and
• Transfield proposes to convert the Collinsville coal-fired power station in Queensland into a 150MW solar thermal linear fresnel power plant using Novatec technology.
Government funding for feasibility studies will enable these companies to develop robust project proposals for final assessment and project selection by the Solar Flagships Council.
Stage Two of the application process will involve more detailed work by each of the applicants for their shortlisted projects.
This will include final selection of sites; community consultation and site approvals; evaluation of solar radiation data; network connections; and finalisation of financial information – including 2 electricity offtake agreements; engineering, procurement and construction (EPC) contracts; and project financing.
The State and Territory governments will have an important role to play in finalising these elements.
Although the projects propose different technologies, they are each capable of providing the foundation for large-scale, grid-connected, solar power to play a significant role in Australia’s electricity supply and operate within a competitive electricity market.
Fifty-two proposals were received under Round One of the Solar Flagships Program.
Of these 52 proposals, eight projects were recommended by the independent Solar Flagships Council, after a rigorous assessment against the Solar Flagships Eligibility and Merit Criteria. Proponents who were not successful in Round One will be encouraged to submit eligible proposals in Round Two of the program.
The Solar Flagships Council has also made recommendations relating to the siting of photovoltaic projects. The Government will review these recommendations, including whether to allow shortlisted photovoltaic projects to be located on multiple grids, for example, both the National Electricity Market and South West Inter-connected System in Western Australia.
The solar thermal mandate was a fascinating battle between two technologies struggling for ascendancy: the “parabolic trough” proponents such as Germany’s Solar Millennium (teamed up with Leighton’s JB Holland), Siemens, and Spain’s Acciona; and the solar tower group headed by US companies eSolar and BrightSource (teamed up with Bilfinger/Abigroup, Worley-Parsons and Macquarie), and Spain’s Abengoa.
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EPi has superior knowledge and experience in the development of solar projects within Australia. We have been involved with numerous large PV and solar thermal projects. Including site identification, site studies, plant sizing, configurations, estimating, business models and integration with other equipment like CCGTs. Visit the website www.elementalpower.com.au for more information on our services.
Transfield Services Infrastructure Fund (TSI) is rasing equity, selling assets and refinancing debt following a long-running review of its capital structure aimed at funding wind farm investments.
Transfield will takeup $110 million of planned raising and will also sell the Mt Millar wind farm in South Australia for $191 to Meridian Energy.
He said at $2.73M/MW the Mt Miller sale price valued the project at over 13x the 2010 normalised earnings before interest, tax, depreciation and ammortisation.
