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Close to $3bn being invested in eight major South Australian renewable energy projects

TWO years after South Australia was plunged into a statewide blackout, companies are preparing to spend billions of dollars on solar, wind and hydro-electric projects to keep the state and nation powered up, reports Valerina Changarathil.

CLOSE to $3 billion is being invested in eight major renewable energy projects that are under construction or due to start soon in SA, indicating the sector’s healthy appetite for investment and potential economic boost for the state.

The longer term picture for jobs and the local economy is even better with three new major projects announced this year pushing the investment pipeline to more than $9 billion, creating thousands of jobs in construction over the next few years.

An artist's impression of the Bungala solar photovoltaic (PV) project near Port Augusta. .
An artist's impression of the Bungala solar photovoltaic (PV) project near Port Augusta. .

Close to 30 solar, wind and battery storage projects in SA have the potential to add more than 6000MW to the grid — more than double the state’s average peak demand.

Experts believe the excess power will then be distributed across the grid through the interconnectors.

Currently, of the 21 large-scale solar projects under construction in Australia, the biggest one is the 220 MW Bungala solar farm at Port Augusta.

Early next year, it will be country’s largest operating solar farm generating enough energy to power 82,000 Aussie households.

That’s before Whyalla saviour Sanjeev Gupta’s $1 billion energy plan for the state even gets off the ground or before Solar River turns the sod on its two-phased $450 MW project near Robertstown — both announced earlier this year.

Clean Energy Council’s Kane Thornton
Clean Energy Council’s Kane Thornton
GFG Alliance chairman Sanjeev Gupta
GFG Alliance chairman Sanjeev Gupta

The Clean Energy Council (CEC) is confident most of the projects in SA will come to fruition despite recent concerns around the stability of the power grid.

“South Australia, along with the ACT, has long been the national leader in adopting renewable

energy,” said CEC chief executive Kane Thornton.

“With its abundant wind and solar resources, and falling renewable energy costs, there’s

every reason to expect the commercial appetite for new energy investment in the state will

continue,” Mr Thornton said.

But he admits Australia needs to start thinking about stabilising the grid, which was originally built for baseload power plants that are now ageing and being pushed out of the market by cheaper renewable energy.

“The need to reform and change our grid is increasingly important as the amount of renewable

energy generation increases,” Mr Thornton said.

“But both the CSIRO and the Chief Scientist have said that Australia can have much higher levels of renewable energy than we currently do before we need to make any special arrangements.

“These projects that have been given the green light will already have a commitment to connect into the grid, and generally increased distributed energy boosts the resilience of our electricity system.”

This week energy retailers Origin and AGL warned the electricity market was becoming more volatile as necessary baseload (guaranteed) power gets priced out of the market due to cheaper, variable renewable power, threatening the stability of the grid.

A combination of the falling global cost of solar systems, funding support from Federal Government bodies ARENA and CEFC and quicker approval and construction times for renewable projects has fast-tracked investment across the country.

About 45 per cent of SA’s electricity came from renewable sources in 2017.

Promisingly, a growing focus of major clean energy projects now is the storage element, which is helping push the case to investors, policymakers and attracting commercial/industrial customers.

While the statewide blackout on September 28, 2016 showcased SA’s vulnerability due to its reliance on renewable energy, it also helped secure the world’s largest lithium ion battery.

The Australian Energy Market Operator has highlighted the quick response time of the battery, which is powered by Neoen’s Hornsdale Wind Farm in stabilising the grid.

For instance, it was able to respond quickly when the coal-fired Loy Yang power plant tripped and went offline, outpacing traditional generators to help stabilise the electricity system.

AEMO says it continues to monitor and manage the grid’s stability and believes it’s under control.

“Power system security is absolutely front of mind for us as the grid and market operator. We need to ensure that our changing generation fleet is able to meet future system challenges,” a spokeswoman told The Advertiser.

She said AEMO was regularly making requests to update rules to bring it up to speed with new generators entering the market “to better manage power system security related issues”.

RENEWABLE ENERGY PROJECTS IN THE PIPELINE

.

1. AURORA SOLAR ENERGY PROJECT

Owner: SolarReserve

Solar thermal & storage

$650 million

Port Augusta

2. BARN HILL

Owner: Barn Hill Wind

Farm Pty Ltd

Wind — onshore

Cost not stated

Barn Hill

3. BUNGALA SOLAR POWER PROJECT

Owner: Reach Solar

Management Co

PV panels

$400 million

Bungala

4. CARMODYS HILL

Owner: Energy Pacific

Vic Pty Ltd

Wind — onshore

$350 million

Carmodys Hill (near

Georgetown)

5. CERES PROJECT

Owner: Senvion

(formerly REpower)

Wind — onshore

$1.5 billion

20km southwest of

Ardrossan

6. EXMOOR

Owner: Acciona Energy

Wind — Onshore

Cost not stated

15km north of

Naracoorte

7. KEYNETON

Owner: Energy Pacific

Vic Pty Ltd

Wind — onshore

$240 million

Keyneton

8. KINGFISHER SOLAR STORAGE

Owner: Lyon Solar

PV-tracking, flat panel &

storage

$350 million

Roxby Downs

9. KONGORONG

Owner: Ratch Australia

Wind — onshore

Cost not stated

Kongorong

10. KULPARA

Owner: Ratch Australia

Wind — onshore

Cost not stated

Kulpara

11. LINCOLN GAP WIND FARM

Owner: Lincoln Gap

Wind Farm Pty Ltd

Wind — onshore

$450 million

Lincoln Gap

12. PALMER WIND FARM

Owner: Tilt Renewables

Australia

Wind — onshore

Cost not stated

Mt Lofty Ranges

13. PORT AUGUSTA RENEWABLE ENERGY PARK

Owner: DP Energy

Australia Pty Ltd

PV panels, wind — onshore

$680 million

Port Augusta

14. PORT AUGUSTA SOLAR

Owner: Solastor Pty Ltd

Solar thermal & storage

$700 million

Port Augusta

15. RIVERLAND SOLAR STORAGE

Owner: Lyon Solar

PV-tracking, flat panel

$1 billion

Morgan, Riverland

16. SPENCER GULF PUMPED STORAGE HYDRO

Owner: Energy Australia

Pump storage of water

$200 million

Spencer Gulf

17. STONY GAP

Owner: Energy Australia

Wind — onshore

Cost not stated

Stony Gap

18. TAILEM BEND — SOLAR

Owner: Equis

PV panels

$200 million

Tailem Bend

19. WHYALLA — SOLAR

Owner: Adani

PV panels

$200 million

Whyalla

20. WHYALLA SOLAR FARM

Owner: Energy Pacific

Vic Pty Ltd

PV-tracking, flat panel

Cost not stated

Whyalla

21. WILLOGOLECHE

Owner: Willogoleche

Power Pty Ltd

Wind — onshore

$250 million

Willogoleche Hill (5km

from Hallett)

22. WOAKWINE WIND FARM

Owner: Infigen Energy

Wind — onshore

$850 million

Near Tantanoola

23. YORKE PENINSULA BIOMASS

Owner: Kallis Family

Trust

Steam subcritical

(straw-based fuel)

$100 million

Near Ardrossan

NEW PROJECTS

24. CULTANA SOLAR PROJECT

Owner: SIMEC ZEN Energy

Solar

Part of a $1 billion energy plan

Cultana (5km north of Whyalla)

25. SOLAR RIVER (TWO STAGES)

Owner: Solar River Project Pty Ltd

Solar

$450m

Near Robertstown (45km south of Burra)

26. BAROOTA PROJECT

Owner: Rise Renewables

Solar, pumped hydro

$700m

40km north of Port Pirie

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Original URL: https://www.adelaidenow.com.au/business/sa-business-journal/close-to-3bn-being-invested-in-eight-major-south-australian-renewable-energy-projects/news-story/91f19bd03eac240b348566200ce4ac27