Beryl Solar Farm Sold To New Energy Solar

We’ve written about the Beryl Solar Farm reaching a financial close back in May – now the 87MW (108MW according to the AFR) project has a new owner and is continuing construction. 

Beryl Solar Farm Sold To New Energy Solar

Beryl Solar Farm Sold to New Energy Solar
Beryl Solar Farm Sold to New Energy Solar (source: FirstSolar.com.au)

According to PV Magazine, the farm has been purchased by New Energy Solar – who also bought the 50MW Manildra Solar Farm for $113m last month. Both farms were previously owned by First Solar and the Beryl farm will be using their 420W large-format Series 6 thin film PV modules. Beryl also comes with a 15 year PPA with Transport for NSW – who will purchase 134,000 MWh from Beryl Solar Farm each year – using the power for the Sydney Metro Northwest railway. This long PPA with a AAA rated customer (i.e. the government) makes the farm a great buy in its current shape.

The EPC project was estimated at $150m according to Reuters, but it’s now estimated at $187m. Downer Utilities started work on the project in May and hope to have it finished in mid 2019. The farm will produce enough energy to power 25,000 households and doesn’t require any water for its electricity generation.

New Energy Solar said the cost of the farm won’t be announced but it was pegged to a target for five-year annual average gross yield of 8.2%, in comparison with yield on its existing portfolio of about 6.8% p.a, so by those metrics it looks like a canny purchase. 

New Energy Solar’s CEO, John Martin, discussed how the extra-long 15 year PPA helped get the sale of this project over the line:

“Beryl, New’s second investment in Australia, will further enhance the scale and contracted cashflows of our Australian portfolio,” said Martin. “Following the Manildra acquisition last month, we are delighted to be consolidating our relationship with First Solar through this second sizeable transaction in the Australian market.”

Martin continued to say that ~69% of the energy provided by the Beryl project will go to Transport for NSW – with the rest slated to package up with a 20MWh battery and sold to a corporate customer as commercial solar

To learn more about the project from the First Solar website please click here

If you’re interested in solar employment and working at the Beryl Solar Farm, please click here to visit the Downer Group’s careers website.

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Rooftop solar subsidies – ACCC calls for axe.

Rooftop solar subsidies should be completely removed and the solar feed-in tariffs should be managed at a state rather than a federal level, according to recommendations from the competition watchdog.

Rooftop solar subsidies in Australia

The Australian Competition & Consumer Commission’s electricity affordability report, which was released this week, highlights the cost of our National Energy Market, which include the large-scale renewable energy target, the small-scale renewable energy scheme and solar feed-in tariffs.

The ACCC said the cost of the LRET are expected to fall in the years after 2020, and were happy to leave the scheme to wind up on its 2030 end date. They said that the SRES, however, cost $130 million in 2016-17, and should be wound down and abolished by 2021, almost ten years ahead of schedule, to reduce costs for all consumers – not just those with solar installed.

The report, according to the Australian, found that households with solar panels installed earn $538 per year via feed-in tariffs, which doesn’t count the fact that they pay less for electricity as well:

“Meanwhile, non-solar households and businesses have faced the burden of the cost of premium solar feed-in tariff schemes and the SRES,” the ACCC said.

“While premium solar schemes are closed to new consumers, the costs of these schemes are ­enduring.”

With the New South Wales solar feed-in tariff to drop by 44% this financial year, the glory days of feed-in tariffs could be behind us. But at what point do we stop to count the social cost (i.e. the environmental displacement)? 

Rooftop solar subsidies in Australia - Opposition Leader Bill Shorten
Rooftop solar subsidies in Australia – Opposition Leader Bill Shorten (source: Wikipedia)

The 398 page report has ‘produced vital ammunition to reform energy’, has been ‘hijacked by zealots’ and doesn’t justify the building of new coal-fired power stations, depending on who you ask. About an hour ago Bill Shorten admitted he hasn’t read the ACCC report yet so it’ll be interesting to see what his thoughts are. Certainly just early days for this conversation, but it’s good to see Australia talking about our energy future and trying to come up with a plan. Watch this space! 

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Solar PV installations in Australia Triple From 2017

Solar PV installations in Australia have tripled in the first half of 2018 in comparison to solar uptake in 2017. How will this affect our renewable economy and can we expect this to continue for the rest of the year? Where are all the installs coming from? Let’s take a look. 

Solar PV installations in Australia

Solar PV installations in Australia Triple From 2017 (source: Canberra Times via Green Energy Markets)
Solar PV installations in Australia Triple From 2017 (source: Canberra Times via Green Energy Markets)

The Canberra Times is reporting that household systems are now, on average, around 5 kilowatts. As the technology improves we’ll see this figure rise and (potentially) prices fall. They’ll certainly fall in terms of per watt pricing but the system uptake has resulted in 44% lower feed-in tariffs in New South Wales already – we’ll have to wait and see how this affects the rest of the country. It certainly doesn’t seem to have curbed the ACT’s appetite for solar systems – with the state leading Australia by a huge margin with a 130.8% uptake in installs over Q1+2 in 2018 vs. the same period. 

Green Energy Markets are also predicting that by 2020 renewable energy will represent around 33% (1/3) of Australia’s energy mix – almost double the 17.3% measured in 2015. Ric Brazzale of Green Energy Markets told the Canberra Times they are expecting to see around 30% higher figures by the end of the year:

“If we continue on at the same rate of installations we will end the year at between 1450 MW to 1500 MW – this will be more than 30 per cent higher than the 1100 MW installed last year,” he said.

It’s important to note that the amazing growth commercial solar (i.e. systems which are more than 15kW) has also seen over the last 12 months is heavily reflected in these figures. Over a quarter of June’s solar system demand is due to companies wanting to insure themselves from rapidly rising electricity prices and take control of their bills back by installing a commercial solar system on their premises. 

If you’re interested in reading all the specifics of their report, please click here to download Green Markets’ Renewable Energy Index for May 2018.

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New South Wales solar feed-in tariff to drop by 44%

The New South Wales solar feed-in tariff is set to drop by 44% after IPART, the state pricing regulator, confirmed previously drafted cuts to the state’s feed-in tariff benchmark for 2018/19.

New South Wales solar feed-in tariff

New South Wales solar feed-in tariff IPART
Click to view New South Wales solar feed-in tariff changes via IPART (source: IPART.NSW.GOV.AU)

The regulator, IPART (Independent Pricing and Regulator Tribunal for NSW) advised in May that they will be recommending heavy drops in the tariff with the release of a draft publication entitled ‘Solar feed-in tariffs: the value of electricity from small-scale solar panels in 2018-19. 

It looks like the solar feed-in tariff drops will be going ahead – so let’s take a look at what this means for people with solar, and people without:

As per Renew Economy, IPART justified their slashing of the prices in advising that all customers would be affected if they didn’t act.

“We set the benchmark range based on our forecast of the average price that retailers would pay for solar exports across the day (weighted by solar output) if they were buying this electricity on the wholesale spot market,” the report, released yesterday, said.

“We consider that this is reasonable, and that a higher benchmark would lead to unacceptable outcomes.

“Specifically, if retailers were required to pay more than this for solar exports, they would be paying more than they pay for wholesale electricity on the NEM.

“As a result, retail prices for all customers would need to be higher to recover the difference,” the report continued.

Those who have already invested in solar are a little less magnanimous about the changes – with Shani Tager from Solar Citizens conveying her opinon via email to RenewEconomy: 

“The decision to cut the feed-in tariff punishes solar owners, it’s like getting a pay cut for working overtime,”

That particular analogy might be a bit of a stretch but it’s interesting IPART aaren’t considering the ‘social price’ of carbon like Victoria are currently doing. This has raised the ire of the Greens as well:

“If the NSW government are serious about supporting renewable energy then they should be change the criteria to assess solar feed-in tariffs to recognise the multitude of benefits solar energy brings,” Greens MP Tamara Smith said.

To sign off, IPART gave us a hint of things to come and how they plan to deal with the situation in the future:

“We consider that solar customers should be treated like any other generator in the competitive electricity market, which means that they take or pay the market price – and are not otherwise compensated or penalised for their impact on these prices,” the report said.

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UTS Solar – aiming to fully offset all energy.

UTS Solar and renewables – the University of Technology Sydney have asked for proposals from large-scale renewable energy projects as they’re hoping to enter into a Power Purchasing Agreement (PPA) in order to fully offset the energy usage of buildings developed under UTS’ $1.3b City Campus Master Plan program.

UTS Solar – City Campus Master Plan

UTS Solar Large Scale PPA Tender
UTS Solar Large Scale PPA Tender (source: Seb Crawford via uts.edu.au)

According to the UTS Newsroom, their goal is for renewable energy purchasing to meet 40-50% of the university’s entire needs by 2019. The energy requirements of the newest buildings at UTS will be fully offset and are a great representation of UTS’s ongoing commitment to sustainable operation. 

UTS Deputy Vice Chancellor (Resources) Patrick Woods was quoted as saying, “UTS has a strong record of innovation in energy, with Australia’s first offsite solar corporate PPA with Singleton Solar farm, followed by another in Orange NSW and Australia’s first district cooling connection contract with Brookfield Central Park.”

According to Vice Chancellor Woods, “Corporate renewable energy PPAs are a method for institutions to secure competitive and firm energy prices whilst contributing to our sustainability objectives. They’ve been particularly successful in the US for corporations seeking the benefits of renewable energy. The ACT and Victorian Governments, and Telstra have had similar success in Australia.” Woods noted that there are already a number of projects with DA, ready to break ground, but need a PPA for the generation so they can secure financing – so hopefully one of them can pair up with UTS and get started! 

UTS could purchase large-scale generation certificates (LGCs) and electricity for a 10-15 year period – and according to the tender, they plan on implementing the PPA within the next two years. As such renewable technology projects of suitable scale and in the correct phase (i.e. already under development/with development approval and awaiting a PPA) are being sought to tender. 

University solar farms are far from a new thing, with the University of Southern Queensland’s innovative solar carpark winning awards and saving USQ over $1m so far. Although UTS isn’t actually installing solar in this circumstance, it’s still fantastic to see them tendering for a PPA – they do have a lot of solar panels on the premises and support many different renewable endeavours – such as the Solar Stand and their Centre for Clean Energy Technology

 

 
 

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