Indigo Shire - renewable energy mapping - Indigo Shire Council

Earth Systems
Mapping and Brokering Local Energy Solutions in Indigo Shire
economic equation in the short to medium term. The Shire should carefully watch the space and develop
a strategy to capitalise on the opportunity for large-scale solar when the economics improve. In the
meantime, generation of less than 100 kW e in Victoria is currently eligible for a FIT of 8 c/kWh. (Indigo
Shire may consider facilitating the installation of a number of 99.9 kW e solar PV systems on suitable roof
areas as an immediate form of local generation.)
Wind: Overall, the resource is marginal, but specific low-speed turbines may be able to capitalise on it.
The economics are expected to be very sensitive to actual wind velocity at these low speeds. Payback
periods are, however, better than solar due to lower capital equipment cost and better capacity factor.
Wind data available may not accurately characterise particularly localised, higher-than-average wind
velocity resources peculiar to specific land topography within the Shire, and local knowledge should be
evaluated. The Shire should also consider engagement opportunities with other regions in which wind
resources are more significant.
Biomass: At present, about 3.4 MW e of generation is possible from the recovery of absolutely all
available waste biomass in the entire Shire (including agricultural wastes). Energy crops, waste from
forest fuel reduction, and/or a significant import of biomass from outside the Shire would be needed to
provide a significant bioenergy contribution. Significant (but currently fully utilised) plantation waste
resources exist just beyond Shire boundaries, equating to a maximum power generation of about 8.3
MW e . To generate the whole-of-Shire target of 13 MW e , an area of approximately 16,100 Ha would be
required under an appropriate solid block short rotation coppice cropping (SCC) scheme. Under an intercropping
SCC scenario this extends to 132,400 Ha. Depending on the scenarios, bioenergy plant
economic modelling at the small, medium and large generating capacity had LCOEs of 185, 118 and 110
$/MWh e including electricity and thermal heat sales. Possible co-generation opportunities exist at a
number of sites within the region, including Uncle Toby’s and Murray Goulburn, provided their existing
waste resources could be augmented by additional biomass. These, and several other sites are to be
addressed in further detail in Phase 2 of the project.
Geothermal: No significant geothermal resource is indicated in Indigo Shire. The existing data is limited,
so the finding should be re-visited in the event that a new dataset for the region is developed.
Hydropower: Large-scale hydro in and near to the Shire appears to have been fully exploited. Some
small-scale (e.g. < 1 MW e ) resources exist in the Shire, however they are mostly associated with areas of
cultural significance. There may be justification for individual small-scale projects, but these lie outside
the scope of this Study.
Suggested Priorities for Decision Making
Reviewing the variety of resource potentials, generation costs and grid constraints presented in the
preceding sections, it is possible to make some general observations on how a total generation output of
13 MW e may be accomplished within the Indigo Shire region.
There is little economy of scale benefit in going larger within the range of generation considered,
other than for bioenergy plant. Therefore, generation scale is likely to be dictated by network
capacity (i.e. largest generator that can be connected without major network infrastructure costs).
There are significant economic benefits in generation resulting in avoided retail power purchase.
There are significant economic benefits in co-generation (possibly even tri-generation) at a given
site.
There may be additional incentives for installing site generation if it avoids the need for the
network operator to undertake other infrastructure upgrades.
Although the resource is marginal, the LCOE of wind means it is an attractive option..
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