Renewable Energy Handbook 2010 - Department of Finance - The ...

enewableenergyhandbookWESTERN AUSTRALIA2010Government nt of Western Australiatr l aOffice of Energy

=0Renewable Energy HandbookThe information, representations and statements contained in this documentare provided for general information purposes only.DisclaimerThe State of Western Australia nor any of their respective officers, employees and agents:93 -59 37(1) Make any representation or warranty as to the accuracy, reliability, completeness or currencyof the information, representations or statements in this handbook (including but not limited toinformation which has been provided by third parties);(2) Shall be liable, in negligence or otherwise, to any person for any loss, liability or damage arisingout of any act or failure to act by any person in using or relying on any information, representation orstatement contained in this handbook.The information and advice contained in this handbook is provided in good faith. However, the accuracyand appropriateness of that information and advice is not guaranteed. The Office of Energy, its employeesand agents disclaim all liability in respect of any act or omission occurring in reliance on the contentsof this handbook. This handbook can be made available in alternative formats to meet the needs of peoplewith disabilities.Government of Western AustraliaOffice of EnergyGovernment of Western Australia, September 2010.

ForewordOFFICE OF ENERGYRENEWABLE E ENERGY HANDBOOK 201003FOREWORDRENEWABLE ENERGY HANDBOOK – FOREWORDWestern Australia faces a number of challenges in meeting the long term energy needsof the community while supporting the State’s growing economy.Renewable energy will play a key role in meeting these needs, as the State Governmentworks to deliver a secure, reliable, competitive and cleaner energy future.While the community at large has a genuine desire to embrace low-emission andrenewable energy sources, the State Government has already introduced a suite ofinitiatives to promote renewable energy generation.1-=It has implemented a residential net feed-in tariff, allowing homes powered byrenewable energy to earn on what they export into the electricity grid.It has encouraged the development of a 5 MW demonstration wave power stationnear Garden Island and the creation of a Geothermal Centre of Excellence, to build theState’s capacity and knowledge about geothermal resources.Further, the Government has thrown its support behind the construction ofWestern Australia’s biggest renewable energy project – the Collgar wind farm,which will almost double the total renewable energy generation in the South WestInterconnected System (SWIS).These projects will make a major contribution to Western Australia’s long termenergy security, while helping the State to achieve its share of the nationalrenewable energy target of 20 per cent by 2020.Meeting this target is a key objective of the State Government’s Strategic Energy InitiativeEnergy2031. This involves industry and community consultation to develop an ambitiousand practical plan to meet the State’s energy needs over the next 20 years.The State Government has prepared this Handbook as a practical guide for thoseseeking to develop commercial renewable energy projects in Western Australia.It is a valuable resource for anyone with an interest in renewable energy inWestern Australia. It provides an overview of the relevant approvals needed forproposed projects, as well as detailing important information for the community,local government, landholders and other stakeholders keen to fi nd out moreabout renewable energy in Western Australia.The State Government will continue to invest in renewable energy and otherlow-emission generators, ensuring we have a safe and secure electricity systemwhilst also delivering a cleaner energy future for Western Australia.Hon Peter Collier MLCMinister for Energy

4TABLE OF CONTENTSOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Table Of Contents1.1 PURPOSE OF THE HANDBOOK 91.1.1 Introduction 91.1.2 How to use this Hanbook 91.1.3 History of Renewable Energy in Western Australia 101.1.4 Renewable Energy Policy Context 101.2 WHY RENEWABLE ENERGY IN WESTERN AUSTRALIA? 121.2.1 Electricity Generation from Renewable Energy in Western Australia 121.2.2 Benefi ts to Western Australia 13GEOTHERMAL CASE STUDY: WA GEOTHERMAL CENTRE OF EXCELLENCE 1402 RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIA 152.1 INTRODUCTION 162.1.1 Background – Closed Market 162.1.2 Western Australia’s Electricity Reform 162.1.3 Market Power Mitigation Measures 162.2 THE WHOLESALE ELECTRICITY MARKET 172.2.1 Introduction 172.2.2 Independent Market Operator 172.2.3 Wholesale Bilateral Contracts 172.2.4 The Short-Term Energy Market 172.2.5 Balancing 182.2.6 The Reserve Capacity Mechanism 182.2.7 Security Services – Spinning Reserve 182.2.8 Opportunities for Renewable Energy Generators 182.3 WESTERN AUSTRALIA’S ELECTRICITY NETWORK INFRASTRUCTURE 192.3.1 Introduction 192.3.2 Governance of Electricity Networks in Western Australia 202.3.3 Western Australia’s Electricity Network Operator 202.3.4 System Voltage and Frequency Control and Renewable Energy 212.4 MARKET INCENTIVES 212.4.1 State Government Support 212.4.2 National Support 222.4.3 Carbon Pollution Reduce Scheme 222.4.4 Expanded National Renewable Energy Target 222.4.5 GreenPower Program 23WAVE CASE STUDY: CARNEGIE WAVE ENERGY LIMITED 232.5 LEGISLATIVE FRAMEWORK 242.5.1 Introduction 242.5.2 State Government Legislation 242.5.3 State Regulatory and Governing bodies 252.5.4 Commonwealth Legislation 2603 DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA 273.1 OVERVIEW OF THE DEVELOPMENT PROCESS 283.1.1 Introduction 283.1.2 Exploration of Options 283.1.3 Feasibility Study 283.1.4 Project Design 313.1.5 Implementation and Operation 313.2 HERITAGE APPROVAL 313.2.1 Introduction 313.2.2 State Processes 313.2.3 Commonwealth Process 32

OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20105TABLE OF CONTENTS3.3 PLANNING APPROVAL 333.3.1 Overview of the Planning Process 333.3.2 Development within Zoned Land 333.3.3 Development within Reserved Land 333.3.4 Scheme Amendments and Rezoning 333.3.5 Role of State Government 343.3.6 Appeals 343.3.7 Role of Local Government 343.4 ENVIRONMENTAL ASSESSMENT AND APPROVALS 353.4.1 Introduction 353.4.2 State Approvals 353.4.3 Commonwealth Approvals 363.5 ELECTRICITY NETWORK CONNECTIONS AND APPROVALS 373.5.1 Introduction 373.5.2 Applying for a Network Connection or Upgrade 373.5.3 Registration (Independent Market Operator) 383.5.4 Licensing (Economic Regulation Authority) 383.5.5 Network Connection Costs 383.5.6 Access Queue 383.5.7 Disputes over Network Access 393.5.8 Future developments in Access Arrangements and Technical Rules 393.5.9 Western Power’s Transmission and Distribution Annual Planning Report 393.5.10 Western Power’s Generation Connection Capacity Map 393.6 OTHER APPROVALS – GEOTHERMAL APPROVALS 403.6.1 Introduction 403.6.2 Acreage 403.6.3 Geothermal Titles 403.6 OTHER APPROVALS – WAVE ENERGY APPROVALS 413.6.4 Introduction 413.6.5 Regulatory Approvals 413.7 RENEWABLE ENERGY ACCREDITATION 413.7.1 RET Accreditation 413.7.2 GreenPower Program 423.8 OPERATIONAL APPROVALS – ELECTRICITY GENERATION 433.8.1 Worksafe 433.8.2 EnergySafety 433.8.3 Resource Safety 433.9 MINERAL PROSPECTIVITY 443.9.1 Introduction 443.9.2 GeoVIEW.WA 443.10 COMMUNITY CONSULTATION 443.10.1 Introduction 443.10.2 When and who to consult? 443.10.3 Types of Consultation 44

6TABLE OF CONTENTSOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010APPENDIX 1 – RENEWABLE ENERGY BACKGROUND 45A 1.1 WIND ENERGY 46A 1.1.1 Introduction 46A 1.1.2 Technical Information 46A 1.1.3 Capacity Factor 36A 1.1.4 Specifi c Considerations 47A 1.2 SOLAR ENERGY 48A 1.2.1 Introduction 48A 1.2.2 Technical Information 48A 1.2.3 Current Applications 48A 1.2.4 Specifi c Considerations 49A 1.3 BIOENERGY 50A 1.3.1 Introduction 50A 1.3.2 Bioenergy Resources 50A 1.3.3 Technologies 50A 1.3.4 Generating Heat and Power 50A 1.3.5 Current Applications 50A 1.4 HYDRO ENERGY 51A 1.4.1 Introduction 51A 1.4.2 Current Applications 51A 1.5 WAVE ENERGY 51A 1.5.1 Introduction 51A 1.5.2 Potential 51A 1.5.3 Technologies 51A 1.6 TIDAL ENERGY 52A 1.6.1 Introduction 52A 1.6.2 Technologies 52A 1.6.3 Current Usage 52A 1.6.4 Potential 52A 1.7 GEOTHERMAL ENERGY 52A 1.7.1 Introduction 52A 1.7.2 Geothermal Resources 52A 1.7.3 Technologies 53A 1.7.4 Current Usage 53A 1.7.5 Potential 53A 1.8 FURTHER INFORMATION 53A 1.8.1 The Australian Energy Resources Assessment 53A 1.8.2 The Renewable Energy Atlas of Australia 53A 1.8.3 The Renewable Energy Map of Australia 53APPENDIX 2 – RENEWABLE ENERGY IN WESTERN AUSTRALIA 54A 2.1 RESOURCES AVAILABLE IN WESTERN AUSTRALIA 55A 2.2 RENEWABLE ENERGY TECHNOLOGY DEVELOPMENT 55A 2.3 UTILISATION IN WESTERN AUSTRALIA 55A 2.3.1 Remote Area Power Supply (RAPS) Systems 55A 2.3.2 Small Grid-Connected Systems 56A 2.3.3 Wind 56A 2.3.4 Bioenergy 56A 2.3.5 Photovoltaic Industry 58A 2.3.6 Solar Thermal Industry 58A 2.3.7 Geothermal 58A 2.3.8 Wave energy 59A 2.3.9 Hydro energy 59

OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010APPENDIX 3 – OTHER RESOURCES 60A 3.1 USEFUL CONTACTS 61A 3.2 USEFUL LINKS AND PUBLICATIONS 62A 3.2.1 Planning 62A 3.2.2 National Government Policy 62A 3.2.3 General Energy 62A 3.2.4 Wind 62A 3.2.5 Biomass and Bioenergy 62A 3.2.6 Solar 63A 3.2.7 Geothermal – Regulatory application guides 63A 3.2.8 Geothermal – General publications 63A 3.2.9 Electricity Networks and the Wholesale Electricity Market 647TABLE OF CONTENTSA 3.3 LEGISLATION AND REGULATIONS 64A 3.3.1 State Legislation 64A 3.3.2 Commonwealth Legislation 65A 3.4 USEFUL WEBSITES 65A 3.4.1 Associations and Organisations 65A 3.4.2 Bioenergy 65A 3.4.3 Wind 65A 3.4.4 Solar 65A 3.4.5 Geothermal 65A 3.4.6 Hydro Energy 66A 3.4.7 Renewable Energy and Energy General 66A 3.5 GEOGRAPHIC INFORMATION SYSTEM DATASETS RELEVANT TO LARGE SCALE SOLAR FACILITIES 67A 3.5.1 Potential Datasets 67A 3.6 GLOSSARY 70A 3.7 LIST OF ABBREVIATIONS AND ACRONYMS 72TEXTBOXESTextbox 1. Handbook Outline 9Textbox 2. What is Renewable Energy? 10Textbox 3. Case Study: Geothermal 14Textbox 4. Case Study: Wave 23Textbox 5. Key Financial Risks 30FIGURESFigure 1. Breakdown of Renewable Energy in Western Australia by Source 2008/09 12Figure 2. Breakdown of Renewable Energy in the SWIS by Source 2008/09 12Figure 3. Consumption of Renewable Energy in the SWIS by Source 2008/09 12Figure 4. Western Australia Energy Resources and Infrastructure Map 2010 19Figure 5. How Western Australia’s Wholesale Electricity Market operates in the SWIS 20Figure 6. CETO Technology 23Figure 7. Indicative Development Plan of a Generic Renewable Energy Project 28Figure 8. Applying for a Network Connection 37Figure 9. Western Power’s Generation Connection Capacity Map 39Figure 10. Mean Wind Speed at 80 metres above ground level 47Figure 11. Daily Sun Exposure – Annual Average 2008 49Figure 12. Geothermal 52Figure 13. A Simple Hot Dry Rock Power Plant 53TABLESTable 1. State Legislation related to Renewable Energy 24Table 2. Legislation related to the role of the Economic Regulation Authority 25Table 3. Commonwealth Legislation related to Renewable Energy 26Table 4. Characteristics of the various types of Geothermal Titles 40Table 5. RET Accreditation Requirements 42Table 6. Commercial Wind Farms in Western Australia 56Table 7. Existing and proposed Bioenergy projects in Western Australia 57Table 8. Examples of existing Solar PV projects in Western Australia 58

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1.1 Purpose of the Handbook1.1.1 INTRODUCTIONThis second version of the Renewable EnergyHandbook has been prepared as a “one-stop shop”for information on the development of commercialrenewable energy projects within Western Australia.Since the fi rst edition of the Handbook, published inJanuary 2006, there have been signifi cant changesto the electricity market in Western Australia.The major changes are the disaggregation of thestate-owned vertically integrated electricity provider,the establishment of a competitive electricity market,increases in regulated electricity tariffs to movetoward cost refl ectivity, the emergence of newrenewable energy technologies and changes toplanning approvals. The Handbook has been revisedto refl ect these changes and to build renewableenergy project proponents understanding of theelectricity market.The Handbook takes you through the relevantapproval processes for a renewable energy project.It does not focus on any single renewable energytechnology, but rather provides an overview of theissues relevant to all renewable energy projects.As well as being a guide for project proposals,the Handbook is a resource for all those with aninterest in renewable energy, renewable energyprojects and related policies in Western Australia.Decision makers, including Local and StateGovernment agencies, investors, landholders,local community members and other interestedstakeholders, will fi nd this Handbook useful.1.1.2 HOW TO USE THIS HANDBOOKThe Handbook steers the reader through therenewable energy project development processin a logical, step-by-step way. Key relevantinformation on the renewable energy market andthe steps in development of a renewable energyproject in Western Australia are provided inChapters 1 to 3. Supplementary details and directionsto additional sources of information are provided inAppendixes 1 to 3. For answers to the followingquestions see the chapter outline.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201001HANDBOOK OUTLINECHAPTER 01What exactly is renewable energy?What are the history andbenefi ts of renewable energyin the global and, specifi cally,the Western Australian context?CHAPTER 02How does renewable energy fi twithin the electricity market, includingthe legislative and policy frameworkfor renewable energy withinWestern Australia?CHAPTER 03What are the approval processesapplicable to project developmentin Western Australia?APPENDICESFor helpful details on specifi crenewable energy technologies seeAppendices 1 & 2.For a range of useful industry andgovernment contacts, publications andwebsites, a glossary and an acronymtable see Appendix 3.9PURPOSE OF THE HANDBOOK

10PURPOSE OF THE HANDBOOKOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20101.1.3 HISTORY OF RENEWABLE ENERGYIN WESTERN AUSTRALIARenewable energy is not a new concept in WesternAustralia. The Indigenous people were the State’sfi rst users, burning wood for cooking and heating.The fi rst European settlers made similar use ofwood as an energy supply, as well as harnessingthe forces of nature in the form of waterwheelsand windmills to grind fl our.Global interest in alternatives to fossil fuels andrenewable energy took a great leap forward duringthe oil crisis in the 1970s, which saw oil pricesquadruple around the world. By the late 1980s theenhanced greenhouse effect emerged as a majorenvironmental issue. Global warming was directlyattributed to human activities, particularly the burningof fossil fuels such as oil, coal and natural gas.More environmentally sensitive energy alternativesbecame a priority.02WHAT IS RENEWABLEENERGY?Western Australia has a number of renewable energyprojects, including Australia’s fi rst grid-connectedphotovoltaic system in Kalbarri and commercialwind farm at Esperance and a demonstrationwave energy plant.Geographic issues including the vastness of ourState, the remoteness of our settlements and thehigh cost of delivering energy have also given riseto renewable energy projects in areas where thesupply of more conventional power is costly.1.1.4 RENEWABLE ENERGYPOLICY CONTEXTThe Western Australian Government has a range ofpolicies and initiatives that aim to increase the useand awareness of renewable energy in the State.The risks posed by climate change highlight theneed to reduce Australia’s carbon footprint and thisis increasingly refl ected in State Government policy.Western Australia’s Strategic Energy Initiative,Energy 2031 currently under development, will providea framework delivering the State’s present andfuture energy needs, including renewable energy.The State Government also provides a number ofsupport schemes to assist in the removal of barriersand addressing market failures for renewableenergy projects.Renewable energy refers to any source of energy that Section 17 of the Renewable Energy (Electricity)can be used without depleting its reserves.Act 2000 (Commonwealth) more specifi cally defi nesThis can include energy the following sources: these broad groups into a number of ‘eligible· Solarrenewable energy sources’ for the purpose ofgenerating Renewable Energy Certifi cates (RECs)· Windunder the Renewable Energy Target (RET) measure.Bioenergy, such as wood, agricultural crops and Solar, wind and bioenergy technologies are all·residues, animal wastes, and municipal solid currently utilised commercially in Western Australia.(green) wasteA number of technologies, including geothermal,· Hydropowerhave signifi cant potential for greater deployment.Further explanation of these technologies isGeothermal and hot dry rock· available in Appendix 1 with examples of theirTidal and waveutilisation specifi cally within Western Australia·· Alternative fuels such as ethanol and biodiesel presented in Appendix 2. More detailed informationon specifi c technologies can be sourced from thereferences in Appendix 3.

OFFICE OFENERGYRENEWABLE ENERGYHANDBOOK 201011PURPOSE OF THE HANDBOOKThe Australian Government recognises the importanceof supporting and encouraging growth in therenewable energy fi eld. In August 2009, the Councilof Australian Governments (CoAG) agreed to expandthe Renewable Energy Target (RET), from 9500Giga Watt hours (GW.h) to 45,000 GW.h by 2020.Voluntary initiatives such as the GreenPower Programalso encourage the accessibility of electricity fromrenewable energy sources. The GreenPower Program,supported by Western Australia provides a meansfor consumers to purchase their electricity fromaccredited renewable sources.The legislative and policy framework withinWestern Australia and market incentives aredescribed in further detail in Chapter 2.

12PURPOSE OF THE HANDBOOKOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20101.2 Why Renewable Energyin Western Australia?Interest in renewable energy is growing worldwide,both for environmental and economic reasons.The increasing impact of greenhouse gas emissionson the global climate, coupled with a rising crude oilprice, is making renewable energy an increasinglyattractive alternative. International agreements(such as the Kyoto Protocol and Copenhagen Accord)and market mechanisms (such as carbon trading)have also increased world interest in the use ofrenewable energy technologies.Western Australia is ideally suited to the generationof electricity from renewable sources. The Statehas a plentiful supply of natural resources, such asabundant sunshine and wind, which provideopportunities for renewable energy projects. The Statealready has a number of major renewable energyprojects, both grid-connected and remote systems,under development or already operational.13%BIOENERGY65%WIND20%HYDROFigure 1. Breakdown of RenewableEnergy in Western Australia bySource 2008/09.*1.7%SOLAR PV1.2.1 ELECTRICITY GENERATIONFROM RENEWABLE ENERGY INWESTERN AUSTRALIABy the end of 2008/09, there were 18 renewableenergy facilities connected to the SWIS with acombined rated capacity of 216 MW.81%17%BIOENERGYFigure 2. Breakdown of RenewableEnergy in the SWIS by Source 2008/09.** PERCENTAGES MAY NOT ADD UP TO100% DUE TO ROUNDING.There were also 6500 grid-connected photovoltaicsystems in 2008/09 with a total installed capacityof about 7 MW – a 250% increase on 2007/08.WIND1.6%SOLAR PVIn 2008/09 the amount of renewable energy generatedoff the SWIS was around 220 GW.h. There were eightsignifi cant renewable energy facilities in operationwith a total installed capacity of 39 MW.Further information on electricity generation fromrenewable energy can be found in the Electricitygeneration from renewable energy fact sheet at:www.energy.wa.gov.auCONSUMPTION (GWh)90080070060050040030020010001.0%Estimated ElectricityConsumption (GWh)Share of ElectricityConsumption (%)3.1%1.1%126 GWh 147 GWh410 GWh5.4%763 GWh5.3%791 GWh5.0%755 GWh5.0%4.0%3.0%2.0%1.0%0.0%Figure 3.Consumptionof RenewableEnergy inthe SWIS bySource 2008/09.2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

1.2.2 BENEFITS TO WESTERN AUSTRALIAIncreasing the level of generation from renewablesources can deliver a range of environmental,social and economic benefi ts to Western Australia.Energy generated from clean energy sources aidsin diversifying Western Australia’s electricity generationmethods, reducing dependency on fossil fuels andsubsequently reducing greenhouse emissions.Concurrently the use of renewable energy resourcesallows for generation costs independent of fl uctuationsin fossil fuel prices.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201013PURPOSE OF THE HANDBOOKGovernment initiatives designed to lower emissionsprovide fl ow-on environmental benefi ts to theWestern Australian community. The expansion of theRenewable Energy Target Scheme to 45,000 GW.h ofadditional renewable energy generation by 2020 willencourage investment in renewable energy, assistingin managing the environmental impact of energy usein the State.The Australian Government has proposed theCarbon Pollution Reduction Scheme (CPRS) in 2013,which will make renewable energy technologiesmore competitive with traditional fossil fuel sources.By internalising the cost of carbon the CPRS willincrease the opportunities for renewable generation,making it more competitive with conventional fossilfuel generation technologies.Opportunities exist in regional areas where renewableenergy resources are easily accessible and other fuelsources, such as diesel, are expensive. Jobs createdduring the construction and operation of renewableenergy power stations can support local communities.Renewable energy can increase the sustainabilityof regional communities. For example, over 45%of electricity consumption at Hopetoun is met fromits wind turbines, signifi cantly reducing its relianceon expensive diesel.59163-=Renewable energy also plays an important role inproviding power to more remote areas of the State.Pastoral stations, Aboriginal outstations, small touristoperations and telecommunication systems are justa few of the operations in these areas that benefi tfrom renewable energy.Further information on the renewable energy marketin Western Australia is provided in Appendix 2.

14PURPOSE OF THE HANDBOOKOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201003CASE STUDY:GEOTHERMALGeothermal Case Study:WA Geothermal Centreof ExcellenceGeothermal energy offers significant potentialbenefits for Western Australia. Recognising thisand the need to better understand how thesebenefits can be harnessed, the Western AustralianState Government provided $2.3 million to fund theWestern Australian Geothermal Centre of Excellence.Established in February 2008, the Centre aims tolead and develop the exploration and exploitationof geothermal heat in Western Australia.The Centre comprises three participants:The University of Western Australia;·CSIRO; and·Curtin University of Technology.·Focusing on direct heat use technology, the Centrewill drill down into the hot deep aquifers of the Perthbasin and use this energy to power air conditioning.Data collected from the project will then be used toinform the design of a desalination plant for cities andremote communities where hot groundwater is available.Air conditioners are a major user of electricity andthe significant contributor to peak electricity demand.Direct use of geothermal energy provides opportunitiesto displace energy from fossil fuels used forheating and cooling, reducing the need to upgradethe electricity network and build new generation.It is estimated that air conditioners directly powered bygeothermal energy for large commercial buildings inthe Perth metropolitan could displace up to 100 MW ofelectricity generation capacity. This technology also hasthe potential for application in combined district heatingand air conditioning in new suburban developments.The Centre combines ‘below-ground’ geologicalunderstanding and research with ‘above-ground’engineering developments, by modelling low-tointermediatetemperature geothermal systems todeliver new technologies for utilising low-grade heat.Modelling will also be used to identify deeper andhotter geothermal sources including Hot Rocks.The Centre aims to underpin a new era of energydevelopment by achieving excellence in geologicalunderstanding and exploitation of convectivegeothermal fields.The Centre’s principle areas of research include:Assessment of geological and geophysical data from· the Perth Basin to identify geothermal targets andconstruct a three-dimensional geological model;·····Development of Australia’s first commercialgeothermal-powered heating andair conditioning units;Direct-heat technology for air conditioning viasorption chillers to advance the potential forincorporation into geothermal systems;Development of existing desalination technologiesby incorporating geothermal power and improvingprocess efficiencies;The identification of deeper and hotter geothermalsources (both in Hot Sedimentary Aquifers andHot Rocks); andInvestigation of the chemical and mechanicalfactors that contribute to the management ofdeep permeability in geothermal systems.Building on local expertise and collaborationwith other efforts in Australia and worldwide theCentre is working to advance the geothermal industryand the application of the technology in Perth.Further information on the WA GeothermalCentre of Excellence can be found online at:www.geothermal.org.au

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16RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20102.1 IntroductionWestern Australia’s electricity industry has changedsignifi cantly over recent years from a State-owned,vertically integrated monopoly to a competitivemarket. This section provides a brief background ofthe past and future arrangements for the electricityindustry, and the implications for renewable energy.2.1.1 BACKGROUND – CLOSED MARKETUntil 1997, the State Government had an effectivemonopoly on the electricity market, with theexception of some self-generators on the SWIS andin remote locations of WA. In 1995 the State EnergyCommission of Western Australia (SECWA) was splitinto two, Western Power Corporation was allocatedresponsibility for electricity-related functions andAlinta for gas-related functions. Western PowerCorporation was then the State’s major generator,transmitter and retailer of electricity.2.1.2 WESTERN AUSTRALIA’SELECTRICITY REFORMFrom 1997 to 2006 there was a gradual deregulationas the electricity market was opened up to competitionwith new generators and retailers. The contestabilitythreshold has been progressively reduced to 50 MW.hper annum (from 300 MW.h per annum). Electricityconsumers above this threshold are able to purchaseelectricity from any supplier.In 2004 the Electricity Network Access Code wasestablished as the new regulatory framework tofacilitate third party access to covered networks.Western Australia’s electricity reform process resultedin the disaggregation of Western Power Corporationon 1 April 2006. Four separate Government-ownedelectricity corporations were established:Synergy, retailer;·Verve Energy, generator;·Western Power, network service provider; and·Horizon Power, vertically integrated utility·for supply outside the South WestInterconnected System.The objective was to create a competitive electricitymarket to encourage private sector investment,improve reliability of supply and place downwardpressure on prices.This led to the establishment of the WholesaleElectricity Market (WEM). The WEM consists of threecomponents – The Reserve Capacity Mechanism,the Short-Term Energy Market and the BalancingMarket. The energy trading component of the WEMcommenced operation in September 2006.2.1.3 MARKET POWERMITIGATION MEASURESThe break-up of a State-owned monopoly utility stillleft the new Government entities with considerablemarket power. In recognition of this, the reformprocess also implemented a range of measuresto mitigate the potential for abuse of market powerand to support the development of a more competitiveelectricity market. Specifi c measures include:Restricting Synergy from generating electricity·and Verve Energy from retailing electricity until2013 with the potential to extend this to 2016;Capping Verve Energy’s fossil fuel generation·capacity to 3000 MW; andThe establishment of vesting contract arrangements·for the wholesale supply of energy and CapacityCredits between Verve Energy and Synergy thatdiminishes over time.Further information on the Vesting Contract and itsarrangements can be found at: www.energy.wa.gov.auCapacity Credits are discussed in Section 2.2.6.

2.2 The WholesaleElectricity Market2.2.1 INTRODUCTIONThe Wholesale Electricity Market consists of threecomponents, the Reserve Capacity Mechanism (RCM),the Short-Term Energy Market (STEM) and theBalancing Market. The Independent Market Operator(IMO) has the responsibility to operate and administerthe WEM, supported by the Market Advisory Committee,an advisory group of industry representatives.The monitoring and surveillance of the functions ofthe overall market is undertaken by the EconomicRegulation Authority (ERA).2.2.2 INDEPENDENT MARKET OPERATORThe IMO administers and operates the WEM inaccordance with the Wholesale Electricity MarketRules (the Market Rules). The Market Rules coverthe roles and functions of the IMO and other marketgovernance bodies, and guide the operation of themarket (including the trading and dispatch of energy,the reserve capacity mechanism and settlement).The Market Rules are available at:www.imowa.com.au/market_rules.htm.2.2.3 WHOLESALE BILATERAL CONTRACTSBilateral contracts are the major mechanism fortrading energy in the SWIS. Bilateral contracts arecommercial agreements formed between electricitygenerators and retailers or large energy users forthe provision of energy.Each day market generators are required to providesubmissions to the IMO, indicating the level of bilateralcoverage for the next trading day. This informationis used for the next day’s scheduling of electricitygeneration. Generators are required to follow theirschedule, unless they are intermittent generators,such as wind farms. Intermittent generators mayspill their entire output into the market, receivingbalancing payments for all electricity generated.Outcomes from MAC REWG program may affectthe spill arrangements for intermittent generators.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20102.2.4 THE SHORT-TERM ENERGY MARKETComplementing wholesale bilateral contracts is theSTEM. The STEM is an energy-only forward-lookingmarket operated by the IMO each day to facilitatetrading around bilateral contract positions. The primaryrole of the STEM is to provide a mechanism for energytrade between market participants. This allows thosetrading under bilateral contracts to change theirposition, while also allowing those not trading underbilateral contracts to participate in the market.The STEM exists to allow participants to eithersell any excess generation capacity that they have,or purchase extra energy at specifi ed times of theday. Participation in the STEM is open to all marketparticipants, but is not compulsory.17RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIA

18RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20102.2.5 BALANCINGBalancing refers to the process of settling thedifference between market participants’ submittedsupply and demand curves and the amount ofelectricity produced or consumed in real time,taking into account dispatch instructions issuedby System Management and real time outages.The IMO settles the balancing market and transferspayments between market participants.2.2.6 THE RESERVE CAPACITY MECHANISMThe Reserve Capacity Mechanism ensures that thereis adequate generation and Demand Side Management(DSM) capacity to maintain reliability and security ofelectricity supply.A Capacity Credit is a notional commodity that can betraded between Market Participants. Capacity Creditsapply for a particular Reserve Capacity Year and areassigned to a specifi c generating plant or DSM facility.Generators, and providers of DSM, can apply forCapacity Credits by providing capacity into the SWIS.Market customers are assigned Individual ReserveCapacity Requirements based on their expectedmaximum demand, measured during periods ofsystem peak demand, plus a contribution to thesystem-wide reserve margin. The Individual ReserveCapacity Requirements are used to determine eachcustomer’s contribution to pay for the capacity onthe system. Capacity Credits can either be tradedbilaterally or through the IMO.2.2.7 SECURITY SERVICES –SPINNING RESERVESpinning reserve is extra generation capacity thatsits idling ready to quickly start up on requestby the system operator. It is needed for stabilisingfrequency variations in the supply network and forquickly compensating sudden changes in load.Spinning reserve is provided by those generators/energy suppliers that have made a commitment tothe market and the system operator to have theirgenerators constrained to a lower-than-maximumcapacity level of energy output.End users with peak demand can cause variations inenergy output, as can renewable generators such aswind turbines and solar arrays, which will generallyrequire substantial use of the spinning reserve service.Section 2.3.4 provides more detailed informationon the causes and effects of network voltage andfrequency control. Spinning reserve pricing andarrangements are subject to the Market Rules.2.2.8 OPPORTUNITIES FOR RENEWABLEENERGY GENERATORSWestern Australia is prospective for renewable energydevelopment due to its excellent resources andcomparatively high conventional generation costs.Low emissions electricity generation is expected toplay an increasing role in the state’s electricity supplyas a result of national greenhouse policy drivers,including the national renewable energy targetand the introduction of carbon pricing.Western Australia has excellent intermittentrenewable energy resources, including geothermal,solar, wave energy and wind energy. It also hassubstantial bioenergy resources distributed throughthe south-west of the State.The market objectives include the principle ofavoiding discrimination against particular energyoptions and technologies, specifi cally recognisingsustainable energy options and technologies thatmake use of renewable resources or reduce overallgreenhouse gas emissions. A number of the featureswere built into the electricity market design tofacilitate access by renewable energy resources:Intermittent renewable energy generators may·self-dispatch power into the STEM in recognitionof the limitations on their capacity to commit aday in advance;The contribution to system reliability of intermittent·renewable energy generators is recognised throughthe Reserve Capacity Mechanism; andPlanning of transmission upgrades must consider·distributed generation options.The rules of the WEM evolve over time. In 2009,consideration of issues for the market associatedwith large-scale integration of intermittent generationsources was initiated. Information on the latestmarket rules and proposed rule changes is availablefrom the Independent Market Operator’s website.Similarly, Western Power is reviewing its accessarrangements in light of a large number of applicationsfor connection from renewable energy generators.

2.3 Western Australia’sElectricity Network Infrastructure2.3.1 INTRODUCTIONThere are three major electricity networks inWestern Australia. These are:The South West Interconnected System (SWIS);·The North West Interconnected System (NWIS); and··The Esperance System.These three major networks are shown on theEnergy Resources and Infrastructure map below.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010While there are some privately owned electricitytransmission and distribution networks within the State,primarily in the Pilbara, Western Power (SWIS) andHorizon Power (non-SWIS) own the principal electricitynetworks that supply to the public. Horizon Poweralso owns and operates 29 isolated power systems.South West Interconnected System (SWIS).·This extends from Kalbarri in the North, to Albanyin the South, and Kalgoorlie to the East. It containsmore than 140 major substations, 6000km oftransmission lines (66 kV and above) and over64,000km of distribution lines (33 kV and below).North West Interconnected System (NWIS).·Is jointly owned and operated by Horizon Power asthe Regional electricity utility owned by the Governmentof Western Australia, Pilbara Iron, Alinta and BHPBilliton. It contains over 400km of high voltage lines,serving the communities of Dampier to Tom Pricethrough the Pilbara Iron Network and areas fromPort Hedland, Karratha, to Point Samson throughthe Horizon Power Network. Further informationcan be found at: www.nwis.com.au·Regional Networks. There are 29 separateRegional Networks, which are generally based onregional towns including Esperance, Kununurra,Kalgoorlie and Carnarvon.The SWIS has a load varying between about 1500and 4000W, which is small in comparison to someother networks. Unlike the National Electricity Market,the SWIS lacks interconnection with other networksand is unable to balance fl uctuations in networksupply and demand by supplying or receiving surpluspower from other systems. As a consequence,the SWIS is potentially more sensitive to fl uctuationsin load and generation.19RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAFigure 4. Western Australia Energy Resourcesand Infrastructure Map 2010Copies of the map are available at:www.energy.wa.gov.au

20RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20102.3.2 GOVERNANCE OF ELECTRICITYNETWORKS IN WESTERN AUSTRALIALegislation and codes overviewProvision has been made for “open” access to theelectricity networks to enable producers, retailers,and consumers to transfer electricity from onelocation to another. Access to the SWIS is currentlymandated under the following:Electricity Industry Act 2004 –·gives responsibilities for the economicadministration of the power system tothe Economic Regulation Authority (ERA).Provision is also made for the formationof the Electricity Networks Access Code.Electricity Networks Access Code 2004 –·outlines commercial arrangements, includingcharges that apply to electricity generatorsand retailers accessing Western Power’selectricity network within the SWIS.Technical Rules – promote the economically·effi cient, safe and reliable production and supplyof electricity-related services in the South WestInterconnected System. Technical rules consistof the standards, procedures and planning criteriagoverning the construction and operation of anelectricity network, and deal with all matters listedin Appendix 6 of the Electricity Networks AccessCode 2004. The Technical Rules are written byWestern Power and approved by the EconomicRegulation Authority.Electricity Corporation Act 1994 –·makes provision for access to the electricitycorporation’s transmission and distribution systems.The Offi ce of Energy administers the legal frameworkfor the operation of the power system, on behalf ofthe Western Australian State Government.Economic Regulation Authority (ERA)Western Power’s SWIS is regulated by the ERA,in accordance with the Electricity Networks AccessCode. The ERA is required to approve terms andconditions, including prices, to access coverednetworks. A task of the ERA is the assessment,during a transparent and public process, of an“access arrangement” proposed by the ownerof a covered network.Currently, the only covered network in WesternAustralia is the SWIS. Following the ERA’s approvalof a proposed Access Arrangement, an accessseeker will be able to obtain access to the networkon terms and conditions that have been set by anindependent body.The Western Power Access Arrangement for the SWISwas approved in April 2007 and has been effectivesince 1 July 2007. Western Power submitted proposedrevisions to its access arrangement for the SWIS on1 October 2008 for approval by the ERA. The proposedrevisions took effect on 1 March 2010.Further information on the Western Power AccessArrangement can be found via the ERA website at:www.erawa.com.au2.3.3 WESTERN AUSTRALIA’SELECTRICITY NETWORK OPERATORWestern PowerWestern Power is responsible for the distributionand transmission of electricity in the SWIS,connecting electricity to both homes and businesses.Western Power is also responsible for maintainingand expanding the electricity network in the SWIS.As the only transmission and distribution agent/operator of electricity in the SWIS, Western Powerprovides access to the electricity network to allowgenerators, retailers and consumers to transportelectricity from one location to another.Figure 5. How Western Australia’s WholesaleElectricity Market operates in the SWISSOURCE: WESTERN POWER

System ManagementSystem Management is a ring-fenced businessunit within Western Power established under theMarket Rules.System Management is responsible for the operationand control of generator facilities, transmission anddistribution networks, and large customer retailer supplymanagement, including demand side management.It has a central role in the scheduling of generatorand transmission outages, and manages the real-timeoperation of the power system in order to maintainsafe, secure and reliable operation of the system.System Management controls key technicalcharacteristics of the power system, such asfrequency and voltage, through ancillary services.Types of ancillary services:LOAD FOLLOWING: the primary mechanism inreal-time to ensure supply and demand arebalanced. ‘Load following’ accounts for thedifference between scheduled energy, actual loadand intermittent generation.SPINNING RESERVE: holds capacity in reserve torespond rapidly should another unit experiencea forced outage.LOAD REJECTION RESERVE: requires that generatorsbe maintained in a state where they can rapidlydecrease their output should a system fault resultin the loss of load.DISPATCH SUPPORT: ensures voltage levels aroundthe power system are maintained, and includesother services required to support the security andreliability of the power system that are not coveredby other ancillary services.SYSTEM RESTART: allows parts of the power systemto be re-energised by black start-equippedgeneration capacity following a system-wide blackout. Unlike other generators, black start-equippedgenerators can be started up without requiring asupply of energy from the transmission network.2.3.4 SYSTEM VOLTAGE AND FREQUENCYCONTROL AND RENEWABLE ENERGYThe impact of intermittent renewable generatorson network operations is an important consideration,particularly with regard to the location and size of theproposed project. Rapid changes in load and generationcan cause voltage variations in the power system.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010These swings can interfere with and damageusers’ equipment, and consequently must bemanaged by the system operator. Voltage variationcaused by a change in output from intermittentgenerators makes this task more diffi cult.All fossil fuels and some renewable energygenerators, such as bioenergy are dispatchableor non-intermittent technologies. This means thattheir level of output can be dictated as required bythe system operator. This is generally achieved byvarying the amount of fuel consumed at any instant.Other renewable energy generators, such as windand solar, are considered intermittent as they cannotguarantee supply at any given time due to the variabilityof the source of energy required to power them.2.4 Market Incentives2.4.1 STATE GOVERNMENT SUPPORTThe Western Australian Government has a rangeof initiatives to encourage innovation and supportgreater use of renewable energy technologies.The Low Emissions Energy Development (LEED) Fundwas established to assist in the commercialisationof renewable energy technologies where WesternAustralia has clear competitive advantage. More than$30million dollars over four years will be investedinto technologies including geothermal, bioenergyand clean coal technologies, and renewable energytechnologies such as wind, wave, tidal and solar.Further information on LEED funding can be found at:www.dec.wa.gov.auSupport for smaller-scale renewable energytechnologies is provided through initiatives includingthe Household Renewable Energy Scheme (HRES)and the residential Feed-in-Tariff (FiT). The StateGovernment, through HRES, provides three annualpayments to owners of eligible renewable energysystems to assist in recovering the capital cost oftheir systems. Feed-in tariffs pay owners ofrenewable energy systems at above the marketrate for the electricity they export to the grid.21RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIA

22RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010The Western Australian State Government alsoprovided $2.3million dollars of funding to establishthe Centre of Excellence for Geothermal. The Centreaims to lead and develop the exploration andexploitation of geothermal heat in Western Australia.Discussed further in the Wave Case Study.2.4.2 NATIONAL SUPPORTThere are a number of renewable energy incentiveprograms at the national level. The former MRET,now known as the expanded national RET,commenced in 2001 and will now continue to 2030,driving renewable energy investment. Further informationon the expanded national RET is provided below.Australian Government initiatives aim to address thecost barriers affecting the uptake or commercialisationof renewable energy. In addition to the expanded RET,the Australian Government announced a range ofmeasures that will support research, development anddemonstration of low emissions energy technologies.The $4.5 billion Clean Energy Initiative wasannounced in the May 2009 Budget. As a part of theClean Energy Initiative, the Australian Governmentproposes to establish the Australian Centre forRenewable Energy (ACRE) to promote the development,commercialisation and deployment of renewableenergy and enabling technologies.Further information on the Clean Energy Initiative, ACREand its programs is available at: www.ret.gov.au/energy/energy%20programs/cei/acre/Pages/default.aspxThe Australian Government’s Clean Business Australiainitiative provides $75million in funding over four yearsthrough competitive grants to proponents for researchand development, proof-of-concept and early-stagecommercialisation activities in developing small-scalerenewable energy.Additional information on Australian Governmentfunding opportunities can be found at the Departmentof Climate Change and Energy Effi ciency, AusIndustryand Department of Resources, Energy and Tourismwebsites at: www.climatechange.gov.auwww.ausindustry.gov.au and www.ret.gov.aurespectively.2.4.3 CARBON POLLUTION REDUCE SCHEMEThe proposed CPRS is a market-based policyinstrument, aimed at reducing Australia’s carbonpollution. Recently delayed by the Government untilat least 2013, the scheme will assist Australia inmeeting its expanded emissions reductions of asmuch as 25 per cent of 2000 levels by 2020.The Scheme employs a ‘cap and trade’ emissionstrading mechanism to limit greenhouse gas emissionsputting a price on carbon. Internalising the cost ofcarbon will increase the cost of conventional energysources, making renewable energy more competitive.On 27 April 2010, the Prime Minister announced thatthe Commonwealth Government has decided to delaythe implementation of the CPRS until after the end ofthe current commitment period of the Kyoto Protocoland only when there is greater clarity on the action ofother major economies, including the US, China and India.Further information on the CPRS, emission tradingand the Department of Climate Change and EnergyEffi ciency’s CPRS White Paper is available at:www.climatechange.gov.au2.4.4 EXPANDED NATIONAL RENEWABLEENERGY TARGET (RET)The expanded RET scheme requires all nationalelectricity retailers and wholesale purchasers ofelectricity to contribute to the generation of anadditional 45,000 GW.h per annum of renewableelectricity by the year 2020.Retailers meet their obligations by surrenderingRECs according to their proportional share of nationalelectricity consumption. A non-tax-deductible penaltyof $65/MWh applies if they fail to surrender suffi cientcertificates to meet their liabilities (one certificate equalsone MWh of eligible renewable energy generatedfrom an accredited renewable energy generator).RECs may also be created for eligible installationsof a solar water heater. Eligible sources of renewableenergy are defi ned in Section 17 of the RenewableEnergy (Electricity) Act 2000.Additional information on the expanded national RETaccreditation process is provided in Section 3.8.1.3-5963079

OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201023Figure 6. CETOTechnology.SOURCE: CARNEGIEWAVE ENERGY LIMITED04CASE STUDY:WAVEWave Case Study:Carnegie Wave Energy LimitedCarnegie Wave Energy Limited is an AustralianASX-listed clean technology developer. The companyis currently developing CETO Wave Energy Technology.Studies have forecasted that up to 1500 MW of waveenergy capacity could be installed along the southerncoastline of Australia, contributing around 4 per centof Australia’s forecast electricity needs.Western Australian CommercialDemonstration PlantTesting undertaken by Carnegie, assessing potentialsites for CETO projects, identified the waters to thewest of Garden Island as the preferred location for itsCETO commercial demonstration plant.The project, connected to the SWIS, will be 5MWcapacity and capable of generating sufficient powerfor around 3500 households. Carnegie forecaststhat the project will save over 500,000 tonnes ingreenhouse gas emissions over its operating life.Carnegie has been granted $12.5 million from theWestern Australia Government LEED fund.RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIATechnology Overview-Carnegie’s CETO wave energy technology utilisesfully submerged buoys that are anchored to sea floorpump units, figure 6. The buoys move in motion withthe ocean waves, activating the pumping units topressurise the sea water and send it through asub-sea pipeline to an onshore power generationfacility. The high-pressure seawater drives the hydroelectricturbines, generating emissions-free electricity.=2.4.5 GREENPOWER PROGRAMThe GreenPower Program is a national accreditationprogram that sets stringent environmental andreporting standards for renewable electricity productsoffered under the scheme to households andbusinesses across Australia.3-The scheme guarantees that for every MW.h ofGreenPower a consumer purchases, a MW.h ofaccredited renewable energy, additional to thatrequired under the RET, will be generated.GreenPower retailers are independently audited toensure that they are complying with this requirement.Further details on the accreditation program arediscussed in Section 3.8.2 and are available at:www.greenpower.gov.au56

24RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20102.5 Legislative Framework2.5.1 INTRODUCTIONThe renewable energy sector is governed by variousacts, regulations and policies at Commonwealth,State and local government levels. The followingsection provides an outline of legislation most relevantto the Western Australian renewable energy sectorand the bodies that administer them. Legislative andregulatory requirements addressing the developmentapprovals process for a renewable energy project areaddressed in Section 3.2.5.2 STATE GOVERNMENT LEGISLATIONThe most signifi cant legislation with respect to therenewable energy sector and business consumersis described in Table 1.TABLE 1. STATE LEGISLATIONRELATED TO RENEWABLE ENERGYLEGISLATIONElectricity Corporation Act 1994Electricity Industry Act 2004and RegulationEnergy Coordination Act 1994Energy Operators (Powers) Act 1979Electricity Act 1945, Electricity Regulations1947, Electricity (Supply Standards andSystems Safety Regulations) 2001 andElectricity (Licensing) Regulations 1991PURPOSESpecifi es the powers and functions of Western Power Corporation. Alsogoverns third party access to the Corporation’s transmission and distributioninfrastructure. (These access arrangements are expected to cease in mid-2006 in recognition of the new Electricity Networks Access Code arrangements).Governs the operation and regulation of the Western Australian electricityindustry, including electricity licensing, customer protection, industrycodes of conduct, network access and wholesale electricity market.Provides for, amongst other things:Administration of a licensing scheme for gas supply by the·Economic Regulation Authority·A public offi cer to coordinate and advise on energy policy with functionsrelating to energy supply and the promotion of energy research.Vests powers in energy operators and makes other provisions for thefunctions of those operators.Makes provision for the safety and performance of electricity networks,the regulation of electrical workers, safety of consumer installations,acceptable standards for electricity quality and reliability, safety andenergy effi ciency of electrical appliances.Further information regarding the above legislation can be accessed through the State Law Publishers websiteat: www.slp.wa.gov.au or via the Offi ce of Energy website at: www.energy.wa.gov.au

2.5.3 STATE REGULATORY ANDGOVERNING BODIESEconomic Regulation Authority (ERA)The ERA was established on 1 January 2004 toregulate the gas, rail, water and electricity industriesin Western Australia, under the provisions of theEconomic Regulation Authority Act 2003.The ERA:Regulates third party access to covered electricity·networks in Western Australia;Issues, amends, monitors and enforces licences·for electricity industry activities;Oversees wholesale electricity market functions,·including reviews into the operation of thatmarket; andManages inquiries referred by government, and·research involving economic, fi nancial, technicaland legal issues.The legislation listed in Table 2 provides theoperating framework for the ERA.TABLE 2. LEGISLATION RELATED TO THE ROLE OF THEECONOMIC REGULATION AUTHORITYOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Independent Market OperatorThe IMO is established under the Electricity Industry(Independent Market Operator) Regulations 2004 toadminister and operate the Wholesale ElectricityMarket. It is an independent entity, with no commercialinterest in the market. The functions performed bythe IMO include:Administering the Market Rules;·Registering market participants;·Managing the Reserve Capacity Mechanism (RCM),·the Short-Term Energy Market (STEM) and thebalancing process;Settling transactions under the Market Rules;·Administering the tender processes for·Network Control Services (alternatives toenhancement options);Preparing and releasing market information;·Monitoring compliance by market participants;·Assisting the Economic Regulation Authority in its·market surveillance and monitoring functions; andCarrying out system adequacy studies and·publishing a statement of opportunities.25RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIALEGISLATIONEconomic RegulationAuthority Act 2003Electricity Network Access Code2004 – gazetted 30 Nov 2004PURPOSEEstablishes the Economic Regulation Authority and provides it withvarious functions in respect of the water, gas, rail and electricityindustries. It also makes consequential and other amendments tovarious Acts.Provides a framework for the independent regulation of covered electricitynetworks in Western Australia.The ERA also has a number of specifi c functionsprescribed under the Electricity Industry Act 2004,for example, licensing, customer protection, industrycode and wholesale electricity market functions.Further information can be accessed through theERA website at: www.erawa.com.au

26RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOffice of EnergyOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010The Offi ce of Energy has been established to assistthe Coordinator of Energy in planning and coordinatingenergy supply in Western Australia. The EnergyCoordination Act 1994 provides for the appointmentof a Coordinator of Energy and sets out the functionsof this position. The Coordinator of Energy advisesthe Energy Minister on all aspects of energy policy,including ways of achieving greater effi ciency in theuse of energy, energy sources and methods of use,including renewable energy.As a government agency, the Offi ce of Energyprovides State Government with policy advice andcoordinates economic and commercial matters inthe Western Australian energy sector. It also providesa range of other services including research,analysis and advice on energy sector developments,trends and issues.TABLE 3. COMMONWEALTH LEGISLATIONRELATED TO RENEWABLE ENERGYDirector of Energy SafetyThe Energy Coordination Act 1994 also provides forthe statutory authority of the Director of Energy Safety.The Director of Energy Safety manages the technicaland safety regulation of electricity production,electricity transmission and distribution and utilisationof both electricity and gas in Western Australia.This role includes ensuring that electricity networkoperators’ supply systems meet compliancerequirements, and undertaking the investigationof electrical incidents.2.5.4 COMMONWEALTH LEGISLATIONThe Offi ce of the Renewable Energy Regulator (ORER)was established to oversee the implementation of theAustralian Government’s RET. A description of the RETis provided at Section 2.4.4 and 3.8.1. The RenewableEnergy Regulator is appointed by the Minister forClimate Change and Water to administer thelegislation outlined in Table 3.LEGISLATIONRenewable Energy (Electricity)Act 2000 and Renewable Energy(Electricity) Regulations 2001Renewable Energy (Electricity)(Charge) Act 2000PURPOSEEstablishes and administers a scheme to encourage additionalelectricity generation from renewable energy.Imposes renewable energy certifi cate charge.Further information can be accessed throughthe ORER website at: www.orer.gov.au or viathe Commonwealth of Australia Law website at:www.comlaw.gov.au

enewableenergy03

28DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.1 Overview of theDevelopment Process3.1.1 INTRODUCTIONThis chapter describes in detail the approval processesfor the development of a renewable energy projectin Western Australia. It also is intended to provideinterested parties with a broad overview of theprocess for developing renewable energy projects,from concept through to the construction stage.A fl ow diagram of the various stages involved in thisprocess is available at Figure 7. The diagram breaksdown the process into four discrete stages:Exploration of options;·Feasibility study;·Project design; and·Implementation and operation.·3.1.2 EXPLORATION OF OPTIONSProject Identification andPreliminary EvaluationThe fi rst task in the development of a project isto identify an opportunity that could be developedinto a viable renewable energy facility. This willrequire knowledge of local resources and infrastructure(for example, wind speed over various seasons;the quality and type of solar radiation, quality andquantity of landfi ll site methane; proximity to theelectricity grid and grid capacity) and an appreciationof the minimum resource or process requirementsto develop a feasible project. A preliminary fi nancialevaluation will need to be developed to determineproject fi nancial viability. For a preliminary evaluation,initial costings are typically based on information fromcomparable projects, industry contacts and generalengineering “rules of thumb”. Revenue streams, suchas RECs and Green Power rights should also be factoredinto the analysis along with market energy prices.3.1.3 FEASIBILITY STUDYA feasibility study will need to be undertaken to assessthe technical and economic viability of the project,as well as to identify any barriers or obstaclesto project development (such as environmentalsensitivity, heritage issues, planning processes,equipment supply lead times) that will need to beovercome. Initial consultation with local stakeholders,including the local government, is also encouragedat this stage as it can aid the progress of a proposalthrough the approvals process.Figure 7. Indicative Development Planof a Generic Renewable Energy ProjectP roject DesignStudy FeasibilityExplore OptionsPreliminary negotiations for PPAwith energy customerProject identificationPrepare preliminary financial evaluationDecision toproceedYesSite investigation and data collectionReview power generation optionsFinancial analysisPrepare and submit feasibility studyDecision toproceedYesStop projectInvestigate environmentaland planning approvalsPreliminary negotiations withgovernment agencies and investorsStop projectFormalise PPA Obtain necessary approvals Secure investorsPrepare project definition documentDecision toproceedYesNoNoNoStop projectThe most common constraints a company will needto address in establishing a project are selecting ordeveloping a competitive renewable energy technology,access to land, project approvals, access to transmissioninfrastructure from the resource location and salesto a competitive and regulated market.Implementationand OperationFormalise contractsDetailed design procurement constructionand commissioningOperation of power station

A number of different assessments will be undertakenduring the feasibility study. These include a siteinvestigation (including data collection); a preliminaryengineering assessment; and a preliminary land use(environmental, heritage and planning) assessment.A site inspection will also be required to obtain thenecessary data to complete the study. Information tobe collected for the feasibility study should include:Project site, infrastructure location and·infrastructure access corridors, includingproximity to sensitive environmental areas;Community issues and concerns;·Physical and legal access to the site;·Details of the local transmission network;·Security of resource supply, including possible·resource monitoring or audit;Whether the site is deemed prospective for·minerals by the Geological Survey ofWestern Australia;Proximity to a workforce;·Distances to services such as electrical substation·and water;Projected site energy expenditure and consumption;·Preferences regarding the use and/or sale of·energy generated; andPreferences regarding project fi nancing and·ownership.The preliminary engineering assessment is animportant part of the feasibility study. The marketshould be canvassed for information on the capitalitems required for the project, such as gas extractionsystems, power generation equipment or windturbines and towers. From the initial data collectionand review, a number of technologies will typicallybe selected for technical assessment and economicreview. Factors to consider include:Capital cost estimates, based on Australian·manufacture or transport and import to Australia;Supporting infrastructure costs;·Operation and maintenance costs;·Electrical connection costs;·Revenue streams from sources such as generated·energy and RECs; andLikely environmental impacts and assessment·of relevant legislation.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010After identifying all the options for utilising theappropriate technology from a technical andeconomic analysis, the likely environmental andheritage impacts need to be assessed. Similarly,planning policies and legislation will also needto be reviewed to determine the likely land usedevelopment approval process for the project.Following the selection of the most appropriatetechnology from a technical, economic andenvironmental perspective, a preferred projectdesign can be developed. It will also be importantto begin preliminary negotiations for a PowerPurchase Agreement for the sale of electricitygenerated and any “environmental credits”such as RECs associated with the project.Preliminary discussions with investors are generallyheld during this part of the project development.Increased market demand for renewable energyhas stimulated considerable interest in this areafrom the fi nancial sector. Banks, venture capitalistsand other investors, including energy retailers, mayfund renewable energy projects through either theprovision of debt or equity, provided that key projectrisks can be appropriately managed. The availabilityof this fi nance is a critical element for the developmentof renewable energy projects as the capitalexpenditure requirements can be signifi cant.Projects should be based on commercial viability,however State and Federal Governments may offerother incentives and grants. The range of fi nancialsupport will change over time and should bereviewed as options in the feasibility study.Some of the key risks a project fi nancier mayidentify when undertaking their due diligenceprocesses for a renewable energy facility areoutlined in the Textbox below. The table alsodescribes risk mitigation measures that a fi nanciermay require evidence of prior to becoming involvedwith the process.29DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA

30DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA05KEY FINANCIALRISKSOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010591KEY PROJECT RISKRISK MITIGATIONProject DesignProject design documentation (feasibility study, project definition document etc)6prepared by an organisation with demonstrated skills and experience in thissector. Most fi nancial organisations will commission an independent duediligence assessment of the project, at the project developer’s expense, prior tocommitting to providing fi nance. One of the key areas on which the organisationundertaking the due diligence will focus on is the identifi ed quantity of powerproduction, and they will evaluate the likelihood of achieving this fi gure.Financial institutions will also typically require a project design guarantee froman appropriately qualifi ed organisation with adequate insurance provisions andfi nancial stability.3Project constructionGuarantee from an appropriately qualifi ed organisation with adequateinsurance provisions and fi nancial stability.Project operationGuarantee from an appropriately qualifi ed organisation with adequate-insurance provisions and fi nancial stability.Access to site and resourcesDocumentation outlining the project developer’s right to the proposed projectsite and any resources required. A guaranteed right to resources, specifying0both the quantity and term and price structure, is particularly important to thedevelopment of any bioenergy project.Power salesA power purchase agreement from an energy retailer or third party, such asan industrial site, guaranteeing the purchase of electricity and/or heat, and/orRECs at a specifi ed price for an identifi ed term.New Technology RiskPrice SensitivitiesPower transmissionSpecifi c project fi nance requirementsThere are many new technologies being developed in the renewable energysector, until a technology has operated successfully in a commercial setting,fi nanciers may associate additional risks and caution to a project. Governmentgrants are designed to help offset the new technology risk and should be reviewed.Also different fi nancial backers will have varying acceptance of risk. Theappropriate fi nancial backers and business model will help address this issue.Many renewable energy technologies are evolving and established on the basisof existing market structures and government support. Markets and governmentcan change suddenly so price sensitivity analysis should be undertaken toanalyse the impact of critical policy or resource costs. This may include interestrates, cost of bioenergy, RECs and Carbon prices or the removal of grantsupport. Develop scenarios and options and analyse the fi nancial impact.Documentation from the network owner stating that they agree to thetransmission of the electricity from the project at the specifi ed amount andvoltage. This issue is particularly important in rural areas where the typicallylow voltage lines of the distribution network may not be of a suitable standard.All fi nancial organisations will have specifi c fi nancial parameters that theproject must be able to demonstrate it can meet prior to the provision offi nance. This will vary depending on the type of project fi nancier selectedand the fi nancial structure of the project. For example, a bank providing debtfi nance for a project will assess whether the project can provide appropriatedebt service throughout the life of the loan. A venture capitalist will look fora particular return on the money invested over a nominated time period.7=Understand the goals of the type of fi nance provider being approached andaddress their specifi c needs in project fi nancing documents.

State and Australian Government departments andagencies can also be approached to enquire aboutcurrent funding assistance that may be availablefor the project and guidelines.Once all the economic data has been collected,a fi nancial model should be created and a seriesof scenarios envisaged at ensuring an economicallyfeasible project. This is an iterative process andvarious stakeholders may have to be consultedfurther to assist in the analysis.The feasibility study should also typically include afuture development strategy that outlines recommendedactions to progress the project through to operation,including a timetable for implementation.3.1.4 PROJECT DESIGNFinalisation of Agreements andObtaining Project ApprovalsA key component for any renewable energy projectis the identifi cation and contracting of a customerfor energy and other products. This stage allows forthe formalisation of the preliminary negotiations fora Power Purchase Agreement (PPA).Securing investment and funding from fi nanciers iscrucial at this stage of development. If any additionalfi nancial support is available from government,this should also be secured at this point. Heritage,environmental and planning approvals from relevantgovernment agencies or authorities, such asWestern Australian Planning Commission (WAPC),Department of Environment (DoE), Department ofIndigenous Affairs (DIA) and local government,will also need to be secured at this stage. Approvalsare discussed in greater detail in sections 3.2 to 3.9.Project Definition DocumentThe Project Defi nition Document formally establishesthe parameters that guide the detailed design anddevelopment of the project. It typically includes:Technical information such as the type and size of·the generating units, how and where the energywill be used on site, how and where the electricityis transferred to the grid and process flow diagrams;Details of the formalised Power Purchase Agreement·with an energy retailer or wholesale purchaser;Environmental and planning approvals; and·Investment details including any funding from·fi nanciers if required and support fromgovernment agencies if available.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.1.5 IMPLEMENTATION AND OPERATIONIf the Project Defi nition Document is signed offand a decision is made to proceed with the project,formal contractual documentation can then beinitiated and fi nalised. Once all the required contractshave been signed, the detailed design, construction andcommissioning of the power station can commence.3.2 Heritage Approval3.2.1 INTRODUCTIONThe development of a renewable energy proposalmay impact on areas of importance and signifi canceto Aboriginal people. Anyone planning to develop landin a way that might disturb an Aboriginal site shouldbe aware of his or her legal obligations under Stateand Commonwealth legislation. The law requires thata reasonable effort must be made to fi nd out if anyAboriginal heritage sites exist in the development area.Identifying this issue during early project planningwill help to avoid potentially time-consuming andcostly delays later.A diverse range of sites can constitute a heritage site,but essentially sites fall into two broad categories:Archaeological: places of material cultural remains·(engravings, artefact scatters); andAnthropological: places of spiritual signifi cance·to Aboriginal people (eg. mythological andceremonial grounds).3.2.2 STATE PROCESSESAreas and objects of Aboriginal signifi cance areprotected under the State’s Aboriginal Heritage Act1972 (AHA). Prior to the proposed development/activity, it is recommended that suitably qualifi edconsultants be engaged to conduct ethnographicand archaeological surveys of the area to ensurethat no site is damaged or altered that would resultin a breach of Section 17 of the AHA. These surveyswould involve archival research via a search of theRegister of Aboriginal Sites’ database maintained bythe DIA, a review of relevant survey reports as wellas consultations and on-the-ground inspections.31DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA

32DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010If an Aboriginal site has been previously recorded onthe proposed project land, the proponent or heritageconsultant will need to determine the type, extentand signifi cance of the site in consultation with theappropriate stakeholders, which can include localelders or others who have knowledge of the area.Ideally the developer should consider options foravoiding the site, but if this is not possible and theland on which the site is located will be impacted,approval from the Minister for Indigenous Affairs willneed to be gained pursuant to a Section 18 notice ofthe AHA, referred to as a ‘Consent for Certain Uses’.The AHA empowers the Aboriginal Cultural MaterialsCommittee (ACMC) to make a recommendation to theMinister for Indigenous Affairs under this legislationand the owner of the land (or a proponent, with theowner’s consent) therefore needs to submit a Section18 notice with accompanying heritage reports tothe ACMC. The ACMC may then recommend thatthe Minister provides consent, or consent withconditions or refuse the project. The fi nal decisionrests with the Minister.It should be noted that some Aboriginal sites are notrecorded for reasons of sensitivity or a specifi c areamay never have been surveyed for Aboriginal sites.It is up to the proponent to attain suffi cient advice fromthe DIA, the relevant local community and heritageconsultants to make a valid assessment in relationto the likelihood of the potential for unrecordedAboriginal heritage sites to be present.If a Section 18 notice was not sought prior toground-disturbing works and Aboriginal artefacts areuncovered, it is a legal requirement to cease worksimmediately and report the fi ndings to the Registrarof Aboriginal Sites. A site inspection may then needto be undertaken by a specialist archaeologist andthe relevant Aboriginal community(s), with a reportprepared and submitted to the DIA. If the fi ndingsare determined to be a site under Sections 5 and39(2) of the AHA, the developer would be required tosubmit a Section 18 notice, following the procedurediscussed above.This is not an ideal approach, and to ensure that themost effective outcomes are achieved, developers areencouraged to ensure they have suffi cient knowledgeof Aboriginal heritage sites and have consultedwith relevant Aboriginal people early in the projectplanning stages.The development of a project on Aboriginal landswill also require approval from the Aboriginal LandsTrust, undertaken in accordance with a CommunityLayout Plan or equivalent, with the appropriate levelof community consultation determined by the Trust.Further information regarding Aboriginal heritageissues can be obtained from the DIA website at:www.dia.wa.gov.au3.2.3 COMMONWEALTH PROCESSThere are several pieces of Commonwealth legislationprotecting Aboriginal people, their culture, lands andobjects of signifi cance that may be of relevance to arenewable energy project.National Heritage ListSites of national heritage values can be nominatedto the National Heritage List as a signifi cant siteunder the Commonwealth’s Environmental Protectionand Biodiversity Conservation Act 1999 (EPBC Act).If a site is listed, any action that has, will have, or islikely to have, a signifi cant impact on the nationalheritage values of a listed place, must be referred tothe Department of the Environment, Water, Heritageand the Arts (DEWHA). A further explanation of theEPBC Act has also been included in Section 3.4.3.Further information on this legislation can be found at:www.environment.gov.au/heritageAreas and Objects of SignificanceThe DEWHA also administers the Aboriginal andTorres Strait Islander Heritage Protection Act 1984.The purpose of this Act is to preserve and protectareas and objects in Australia and in Australianwaters that are of particular signifi cance to theIndigenous population.Native Title‘Native Title’ was the name given by the High Courtto Indigenous property rights recognised by the courtin the Mabo judgment (3 June 1992) and subsequentlyunder the Native Title Act 1993. This landmark Courtdecision delivered signifi cant rights to IndigenousAustralians in respect to the control of land.Any developer will need to determine whethertheir project site is affected by a Native Title claim.Where land is affected, the developer will be requiredto undertake negotiations with the recognised NativeTitle claimants.

Entry on the National Heritage lists does notaffect Native Title rights. Section 8 of the EPBC Actspecifi cally states that nothing within the EPBC Actwill affect the operation of section 211 of theNative Title Act 1993.Further details on the relevant Commonwealthlegislation with regards to Native Title can be foundat the Commonwealth of Australia Law website at:www.comlaw.gov.au at the DIA website at:www.dia.wa.gov.au and the National Native TitleTribunal at: www.nntt.gov.au3.3 Planning Approval3.3.1 OVERVIEW OF THE PLANNING PROCESSPlanning approval is required for most forms ofdevelopment across WA. In general terms, land iseither ‘Zoned’ for specifi c purposes (i.e. commercial,residential, industrial development etc), or ‘Reserved’for public purposes (i.e. schools, open space,infrastructure etc). Local and Regional PlanningSchemes, controlled and implemented throughLocal and State Government, will state if and howdevelopment is possible within these areas.It is most likely that a renewable energy projectwill require planning approval. Applications willbe referred to relevant government agencies forcomment. The respective local government shouldbe the fi rst port of call to provide advice in thisregard and planning offi cers at the Departmentfor Planning can advise when required.3.3.2 DEVELOPMENT WITHIN ZONED LANDZoned land is controlled through the Local GovernmentPlanning Scheme. Renewable energy projects –depending on their scale, form and proposed location– are likely to be considered as either one of thefollowing use types under the Scheme:P (Permitted) – This means the development·is considered to be most appropriate in the zone.A planning application may need to be made andthe development will be assessed against thevarious planning provisions to ensure compliance.A Local Government cannot refuse a “P” usebecause of unsuitability of the use, however,the project may need to be amended to complywith planning requirements and the approvalmay be granted with special conditions.···OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010D or AA (Discretion) – This means thedevelopment can only be permitted with theCouncil’s discretion. A planning application mustbe made. The application can be either refusedor approved with or without conditions.A or SA (Requires Advertising) – This meansthe development must be publicly advertised priorto being considered by Council. Council willconsider the merits of the proposal and anysubmissions it receives. The application can eitherbe refused or approved with or without conditions.X (Prohibited) – This means the development isnot permitted and a planning application cannot bemade. The only alternative in this instance may beto rezone the land or the relevant planning schemetext with a Scheme Amendment (refer to section 3.3.4).3.3.3 DEVELOPMENT WITHINRESERVED LANDDevelopment within Reserves is controlled by RegionSchemes (an instrument of the WAPC) and LocalPlanning Schemes (an instrument of the respectiveLocal Government). Applications for use of a Reservewill need to be made to the relevant authority.Reserves are to be principally used for their statedpurpose. In most cases, Reserved land is ownedby the Local government or the public authority thatuses it or intends to use it in the future. Some reservesare privately owned and are acquired by the relevantauthority when required.Applications for a renewable energy project in aReserve would need to demonstrate that the use doesnot compromise the intended purpose of the Reserve.3.3.4 SCHEME AMENDMENTS AND REZONINGIf a proposed development is not possible withina certain area, a planning scheme amendment toamend either the zoning of the land or the text ofthe planning scheme may provide an alternative.Scheme amendments are much lengthier than thenormal planning approval process and include referralto other relevant agencies. All scheme amendmentsare required to be referred to the EnvironmentalProtection Authority (EPA), which may subject theamendment to environmental impact assessment (EIA).This assessment would be undertaken as anintegrated part of the planning approval process.33DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA

34DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Amendments take a minimum of nine monthsfrom the time of application, with fi nal approval to bedetermined by the responsible Minister. There are norights of appeal in the scheme amendment process.However, there are also no limits to how many timesa proposed amendment can be sought. An initiallyunsuccessful scheme amendment may prove successfulduring a future attempt, although modifi cation is likelyto be required.Once a scheme amendment has been fi nalised(by way of Gazettal), an application for thedevelopment will still need to be made.3.3.5 ROLE OF STATE GOVERNMENTThe State Government planning agency,the Western Australian Planning Commission (WAPC),is the independent statutory authority responsiblefor administering and reforming the planning process.The WAPC is supportive of renewable energy projectsand has been proactive in developing policy anddevelopment guidelines for their implementation.The WAPC is also responsible for establishing StateGovernment policy with regard to planning matters.Known as State Planning Policies (SPPs), these coverbroad issues such as the environment, natural resourcedevelopment and conservation, specifi c land use andspecifi c locations. A full and updated list of thesepolicies can be viewed at: www.planning.wa.gov.auThe WAPC may also be directly involved in theapplication process, whether as the ResponsibleAuthority (if, for example, the proposed developmentwas within or adjacent to land reserved under a RegionScheme) or as a key referral agency (if, for example,the development was deemed to be a major project,or was possibly at variance with a State Planning Policy).3.3.6 APPEALSWith the exception of ‘Prohibited’ uses and schemeamendments, there is an opportunity to lodge anapplication for review’ should planning consent berefused. A Review can be made against a refusalor against any conditions imposed on an approval.The hearing on a review is a fresh hearing on themerits of the application.Reviews are determined by the State AdministrativeTribunal (SAT) as either Class 1 (development valuedat less than $250,000) or Class 2 applications(if the value is greater). Applications for review mustbe made within 28 days of refusal and prescribed feesare payable. Different fees apply for Class 1 andClass 2 applications respectively. The timing of theprocess is not prescribed and may take anywherefrom 12 weeks to more than 12 months, dependingon the complexity of the development and the statedgrounds of the Review. Eighty per cent of applications forreview are resolved within 30 weeks of commencement.Once a decision has been handed down by the SAT,an appeal can be made to the Supreme Court,but only on matters of law.Further information on the appeals process can befound at: www.sat.justice.wa.gov.au3.3.7 ROLE OF LOCAL GOVERNMENTThe relevant Local Government is a good fi rst contactfor any inquiries about development. Developmentwithin its boundaries is commonly assessed underits authority and, if not, planning staff can advise onthe alternative processes and point of contact.Pre-application meetings with senior planning staffare strongly encouraged. Staff specialise in advisinghow applications can be best presented with allthe requisite information. This will assist in clarifyingthe proposal and will ultimately reduce delays in theapplication process.If a site for the proposed development has not yetbeen determined, planning staff can also provideadvice on preferred locations and zoningrequirements. Staff will also be able to advise onthe scheme amendment process and may be ableto provide preliminary – albeit informal – advice onits chances of success.

3.4 EnvironmentalAssessment and Approvals3.4.1 INTRODUCTIONIt is important to assess the environmental risksof a renewable energy project proposal at an earlystage to ensure the minimisation of harm throughappropriate planning and design. An assessment ofthe proposal should consider, amongst other things,the following issues:Environmental, cultural and social values of the area;·Likely impacts and risks posed by the renewable·energy development to the environment and to thehealth, welfare, convenience, comfort or amenityof people affected by the project;The ability to avoid or appropriately manage·identifi ed risks and impacts; andThe likely level of public interest and the ability·to consult with stakeholders and interest groupsand respond to their issues (refer to Section 3.8for further details).Proponents are required to identify if there are anysignifi cant environmental impacts associated withtheir renewable energy development and ensurecompliance with the appropriate environmentallegislation and approvals processes.Local Government authorities and the Departmentfor Planning work closely with the Department ofEnvironment and Conservation and the EnvironmentalProtection Authority when processing applicationsfor planning approval. Where significantenvironmental issues need to be considered aspart of a proposed development, it is often benefi cialto prepare both the planning and environmentaldocumentation simultaneously.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.4.2 STATE APPROVALSEnvironmental Impact Assessment by the EPAA proposal that is considered to have a signifi canteffect on the environment, whether it is of local,state or national signifi cance, must be referred tothe State’s Environmental Protection Authority (EPA)under Part IV (Environmental Impact Assessment)of the Environmental Protection Act 1986.Proposals should be referred to the EPA for adecision on whether or not it will be assessed,and if so, the level of assessment. The EPA expectsproponents to consider all development and siteselection options that would avoid direct and indirectimpacts on natural areas in the fi rst instance,before referring the proposal to the EPA.The EPA can determine not to assess the proposalbased on the potential impact(s) on the environment.Where the EPA decides to assess a proposal, it willadopt one of two levels of assessment; either anAssessment on Proponent Information (API) or aPublic Environmental Review (PER).The API level of assessment provides for an expeditedassessment of a proposal where the environmentalacceptability or unacceptability of the proposal isapparent at the referral stage. A public reviewperiod is not considered necessary either becausethe proponent has consulted with the stakeholdersduring the preparation of the proposal, or furtherconsultation through a public review process isunlikely to identify additional stakeholders orraise additional signifi cant environmental issues.The assessment procedure for an API level ofassessment is outlined within the Environmental ImpactAssessment Administrative Procedures 2010.Where a proposal has regional and/or State-wideimpact, several signifi cant environmental issues orfactors, some of which are complex in nature, or thelevel of interest in the proposal warrants a publicreview period, the EPA would apply a PER level ofassessment. This process is more involved,requiring additional documentation, and providesfor comment by the public. The PER assessmentprocess is outlined within the Environmental ImpactAssessment Administrative Procedures 2010.35DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA

36DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010If the proposal is subject to a formal assessmentunder Part IV of the Environmental Protection Act 1986,the proponent must demonstrate that:Best practicable measures have been taken in·planning and designing the proposal to avoid and,where this is not possible, minimise impacts onthe environment; andThe unavoidable impacts of the proposal are·environmentally acceptable, taking into accountcumulative impacts which have already occurredin the region, and principles of sustainability.Statutory appeal rights apply at a number of pointsin the EIA process. These rights can be exercisedby proponents, agencies and the public.Once the appropriate level of assessment procedureis complete, the EPA provides advice to the Ministerfor the Environment, who makes the decisionwhether a proposal is approved, and what enforceableconditions are attached to that approval.Further details regarding the environmental impactassessment process can be found on the EPAwebsite at: www.epa.wa.gov.auOperational Approvals –Environmental ConsiderationsOnce the proposal has been through the EIA processand proceeds to development, it may trigger Part V(Environmental Regulation) of the Act. Some facilitieswill require a Works Approval at the construction stageand a licence or registration during operation, whileothers will only require registration for their operation.Further details regarding Works Approvals, Licencesand Registrations can be found on the DEC websiteat: www.environment.wa.gov.auThe construction and/or operation of a facilitymay also require licensing under other legislation.Examples of additional licences and permits thatmay be required include:Water allocation licenses in areas proclaimed·under the Rights in Water and Irrigation Act 1914;··Native Vegetation Clearing Permits under theEnvironmental Protection (Clearing of NativeVegetation) Regulations 2004; andSome bioenergy projects may require licensingunder the Environmental Protection (ControlledWaste) Regulations 2004.The examples used are for guidance only and arenot exhaustive. The proponent should always speakto offi cers at the Department of Environment aboutthe specifi c project for further details regardingoperational approvals relevant to their project.3.4.3 COMMONWEALTH APPROVALSThe EPBC Act requires persons proposing to take anaction that will have, or is likely to have, a signifi cantimpact on a matter of national environmentalsignifi cance (NES) to refer that action to the DEWHAfor a decision by the Commonwealth Minister onwhether assessment and approval is required underthe EPBC Act. The EPBC Act also requires approvalfor actions likely to have a signifi cant impact onCommonwealth land. The matters of NES includeworld heritage sites, national heritage places,wetlands of international importance (‘Ramsar’ wetlands),threatened species and ecological communities,migratory species, Commonwealth marine areas,the Great Barrier Reef Marine Park and nuclear actions.To ensure compliance with this legislation,Western Australian project developers will needto determine whether their project is likely to havea signifi cant impact on any of the matters of NESprotected by the EPBC Act.In general, where assessment and approval of anaction is required under both the EPBC Act and WAlegislation, the action may be able to be assessedunder a WA assessment process that is accreditedfor the purposes of the EPBC Act, such as a processaccredited under the bilateral agreement relatingto environmental impact assessment betweenthe Commonwealth and WA. Where an action isassessed under an accredited WA assessmentprocess, separate assessment under the EPBC Actwill not be required as the WA assessment processis used to allow the Commonwealth Minister tomake an informed decision on whether to approvethe taking of the action for the purposes of theEPBC Act. Though an approval decision following theassessment will still be required under the EPBC Act,the use of an accredited WA assessment processreduces the regulatory burden for persons proposingto take an action that requires approval under bothCommonwealth and WA legislation, by removingduplication in environmental assessment processes.Further information on the EPBC Act can be foundvia the DEWHA EPBC Fact Sheet at:www.environment.gov.au/epbc/publications/pubs/epbc-act-fact-sheet.pdf

3.5 Electricity NetworkConnections and ApprovalsOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.5.1 INTRODUCTIONThe process may conclude in a legally bindingConnection to the SWIS is a formal processConnection Offer by Western Power. All generatorsgoverned by Western Power’s Access Arrangement. connected to the SWIS must comply with WesternGenerators must apply using Western Power’s Power’s Technical Rules.Connection Application form for connection.3.5.2 APPLYING FOR A NETWORKConnecting a generator to the SWIS involvesCONNECTION OR UPGRADEsignifi cant investigation (technical and economicstudies using information specifi c to the designGenerations at 6.6kV to 33kV (distribution)·of the individual generator to be connected) byGenerations and loads 66kV and above (transmission)·Western Power into:Network capacity;·Network impacts; and·· Connection requirements.37DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAFigure 8. Applying for a Network ConnectionSOURCE: WESTERN POWER’S“CONNECTION TO THE NETWORK FACT SHEET”

38DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.5.3 REGISTRATION(INDEPENDENT MARKET OPERATOR)Generators with a capacity of 10 MW or more arerequired to register their capacity for the WholesaleElectricity Market with the Independent MarketOperator, as all generators that wish to participatewithin the Reserve Capacity Mechanism are requiredto do. However, the market rules do allow a generatorto be represented by another registered participantand this may be preferable for very small generators.Once the company has registered as a marketparticipant, the company is then required to applyfor registration for each new generation facility withthe IMO. The application is an online process, andrequires information about contractual agreementsfor operation as well as relevant technicalinformation about the generator facility.Further details of the registration process with theIMO can be found at: www.imowa.com.au3.5.4 LICENSING(ECONOMIC REGULATION AUTHORITY)The Economic Regulation Authority is responsiblefor issuing, amending, monitoring, and enforcinglicenses for all parties involved in the generation,transmission, distribution and retail of electricity.It is a mandatory requirement that all developers ofpower generation facilities be licensed with the ERAbefore construction commences. Compliance withthe ERA’s licensing conditions in relation to electricitygeneration and retail form a fundamental part of theproject development path and should be addressedin some detail.Further details, including application guidelines,are available at: www.erawa.com.au3.5.5 NETWORK CONNECTION COSTSEconomic Regulation AuthorityGeneration License FeeThis fee is payable to license a generation facilitywith the Economic Regulation Authority (a licenseis not required for generators less than 30 MW).Independent Market OperatorRegistration FeeOne fee is payable to register as a market generatorwith the Independent Market Operator, this coversadministration costs of the admission of thegeneration company to the Wholesale ElectricityMarket. Additional fees are required for each newgeneration facility registered.Western Power Processing CostsWestern Power charges a cost to ensure a proposedgeneration facility meets the Technical Rules forconnection to the SWIS.Each connection application attracts an applicationfee payable on submission. The estimated costsof processing a specifi c application and the scheduleof rates will be outlined with an Initial Response tothe connection submission.Costs to generate a scope of work, estimates,approvals and draft contracts vary depending onthe type of applications.Normal ‘use of system’ charges apply once a projectis operational.For further information on costs please contactthe Access Solutions Manager on (08) 9326 6647,or email: access.services@westernpower.com.auCapital Contribution CostsThe capital contributions policy is the mechanismthat Western Power uses to calculate a customer’scontribution for works to connect to the network.This is determined in Western Power’s modellingof the proposed generating facility meeting thetechnical requirements for connection to the SWIS.If the generator’s network access fee will recoupthese costs within a period of less than or equal to15 years (if the proponent’s project is deemed tohave a life span of less than 15 years then a lesserperiod could be used), then the capital contributionwill be zero, although some form of guarantee maybe required. If not, then the customer is required tocover the shortfall as a capital contribution.Further information on the capital contributionspolicy can be found in the Capital ContributionPolicy fact sheet at: www.westernpower.com.au3.5.6 ACCESS QUEUEQueuing Rules apply when there are competingapplicants for the same network capacity or assets.Western Power’s Applications and Queuing Policy allowsWestern Power to prioritise and process applicantsequitably and consistently. It explains the operationof the Access Queue, including Queuing Rules.Western Power’s Queuing Rules are subject to changeand further information can be found in QueuingPolicy fact sheet at: www.westernpower.com.au

3.5.7 DISPUTES OVER NETWORK ACCESSIf a dispute arises over access to the Network and itcannot be resolved with Western Power, the proponentmay be able to seek redress from the Energy DisputesArbitrator, which assumes certain electricity-relatedfunctions conferred under the Electricity Industry Act 2004)in accordance with dispute resolution provisions of Chapter10 of the Electricity Networks Access Code 2004.The functions of the Energy Disputes Arbitratorrelating to electricity include:Negotiation of contracts for access to regulated·electricity networks; andWhere agreed by the parties to an access contract, the·Arbitrator has jurisdiction to hear contractual disputes.A proponent seeking to bring a matter beforethe Arbitrator for resolution should fi rst contactthe Economic Regulation Authority.Further information can be found at:www.erawa.com.auOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.5.8 FUTURE DEVELOPMENTS IN ACCESSARRANGEMENTS AND TECHNICAL RULESThe Economic Regulation Authority (ERA) is responsiblefor the management of the review of the AccessArrangements and Technical Rules. These are reviewedin conjunction approximately every three years.Information regarding changes to the accessarrangement and invitations for public submissionscan be found at: www.erawa.com.auAmendments to the Technical Rules may be submittedto the ERA for approval at any time. Western Powerwrites the Technical Rules and a Technical RulesCommittee was established to provide specialistknowledge and advice to the ERA in approvingtechnical rules proposed by Western Power forthe South West Interconnected System.Information regarding changes to the Technical Rulescan be found at: www.erawa.com.au3.5.9 WESTERN POWER’STRANSMISSION AND DISTRIBUTIONANNUAL PLANNING REPORTWestern Power’s Transmission and DistributionAnnual Planning Report is a public document releasedannually to inform stakeholders of network constraintsand projects that are planned to improve the capacityand reliability for the following ten years.There is also an opportunity to provide feedback toWestern Power through the Transmission and DistributionAnnual Planning Report Survey. The online surveycan be accessed and submitted via the WesternPower website at: www.westernpower.com.au3.5.10 WESTERN POWER’S GENERATIONCONNECTION CAPACITY MAPWestern Power has created a map showing spareconnection capacity in the network to help generatorsidentify the best potential locations for new small tomid-sized generation assets.The map’s colour coding system shows the areas of thegrid that are at capacity and would incur signifi cantcosts when adding generation, and areas wherefurther generation capacity up to 30 MVA couldbe accommodated at relatively low cost.39DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAFigure 9. Western Power’s Generation ConnectionCapacity Map SOURCE: WESTERN POWERFurther information: Western Power’s GeneratorGrid Connection Guide: An Introduction toPower Systems and the Connection Process at:www.westernpower.com.au

40DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA3.6 Other Approvals –Geothermal ApprovalsOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.6.1 INTRODUCTIONGeothermal resource ownership is vested in the Crown.Therefore geothermal resources that are located withinWestern Australia are administered by the Governmentof Western Australia. The management of theseresources is the responsibility of the Minister forMines and Petroleum in Western Australia,administered through the Department of Mines andPetroleum (DMP). The State Government, throughlegislation, allocates access rights to the privatesector to commercialise the geothermal resourcesby conducting exploration and development of thegeothermal resources.3.6.2 ACREAGEWestern Australia was divided into four regions for thepurpose of geothermal acreage release. Since 2009,there have been three leases of acreage, the latestrelease covering the whole State of Western Australia.Geothermal exploration areas are defi ned as blocks,each 5 minutes of latitude by 5 minutes of longitude.Further details of acreage areas and releases can befound at: www.dmp.wa.gov.au3.6.3 GEOTHERMAL TITLESGeothermal titles can be divided into explorationand development categories with development titlesevolving from the exploration titles. Acreage isawarded on a competitive basis.Further information regarding work programassessment and criteria is available via Criteriafor Assessment of Applications for the Award ofGeothermal Exploration Permits at:www.dmp.wa.gov.auOnce a geothermal energy resource is identifi ed,the permit holder has the right to convert theGeothermal Exploration Permit to a GeothermalProduction Licence. A notice outlining the nature ofthe proposed development, the method of operationand its environmental impact is then required to besubmitted. However, if it is found that the discoveryis presently uneconomic, it may be retained forfuture use as a Retention Lease.The following table summarises the characteristicsof the various types of geothermal titles.TABLE 4. CHARACTERISTICS OF THE VARIOUS TYPESOF GEOTHERMAL TITLESTITLE TERM AREA RIGHTS OBLIGATIONS CONDITIONSExplorationDesign6 years;5 years renewalthereafter160 blockmaximumTo explore forgeothermalenergyTo convert anygeothermalexplorationpermit to ageothermalproduction orretention leaseTo fulfi ll the work commitmenton which the grant was madein the timeframe prescribedTo conduct operations inaccordance with good oil fi eldpracticeTo provide a safe workingenvironment for employeesTo pay the annual feeWork commitmentsField operations, installation ofequipment not to be undertakenwithout approval of the MinisterPayment of royalty on geothermalenergy producedEnvironmental protectionCompliance with the enabling Act,regulations and directionsDrillingReservation3 years;(possible12 monthextensionCorrespondsto potentialsize of prospect(usually 3-4blocks)As for anexplorationpermitAs for an exploration permitAs for an exploration permitRetentionLease5 years; rightof renewal forsubsequent5 year periodsCorrespondsto size ofgeothermalenergy resource(usually 3-4blocks)To explore forgeothermalenergy toconvert to ageothermalproduction titleonce economicAs for an exploration permit,in additional to an economicfeasibility studyAs for an exploration permitProductionLicence21 years;subsequentrenewal termsof not more than21 years eachCorrespondsto size ofgeothermalenergy resource(usually 3-4blocks)To recovergeothermalenergyTo recover geothermal energyin accordance with directionsof the MinisterTo conduct operations inaccordance with good oil fi eldpracticeTo provide a safe workingenvironment for employeesTo pay the annual feePay royalty at prescribed rateField operations, installation ofequipment not to be undertakenwithout approval of the MinisterEnvironmental protectionCompliance with the enabling Act,regulations and directions

3.6 Other Approvals –Wave Energy Approvals3.6.4 INTRODUCTIONGiven the infancy of this technology, regulatoryapprovals for a wave energy project, and theconstruction of a sub-sea pipeline for electricitygeneration is yet to be clearly defi ned.3.6.5 REGULATORY APPROVALSIt is suggested that proponents explore the followingregulatory approvals:A seabed lease may be required from State LandServices, Department of Regional Development andLands. Some form of Land Administration Act leaseor licence may be required for the shore crossing.Further information can be found at:www.rdl.wa.gov.auA wave energy project would require environmentalapproval. Commonwealth and State Governmentenvironmental approvals are covered in detail undersection 3.4.The Department of Transport, Marine Section,could advise in relation to interaction with shippingand boating. For further information visit:www.transport.wa.gov.auOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.7 Renewable EnergyAccreditationAs discussed previously in section 2.4.4 renewableenergy generators need to become accredited to beeligible to create Renewable Energy Certifi cates (RECs)to meet commitments under the expanded nationalRET scheme. Eligibility requirements also exist forrenewable energy generators under the NationalGreen Power Accreditation Program (NGPAP).3.7.1 RET ACCREDITATIONBefore they are eligible to create RECs, renewableenergy generators must fi rst be registered under theRenewable Energy (Electricity) Act 2000 and havetheir power stations accredited by the Offi ce of theRenewable Energy Regulator (ORER).To become an accredited renewable energy powerstation, the power station must:use one or more of the eligible renewable energy·sources to generate electricity;···have obtained, and comply with the provisions of,all relevant environmental and other approvals forthe operation of a power station;be able to measure the amount of electricitybeing generated; andsupply the generated electricity to directly meetdemand for electrical energy.Detailed information, along with electronic copiesof the relevant application and registration forms,are available from the ORER website at:www.orer.gov.auContact details for the ORER are provided at Appendix 3.RegistrationTo apply for accreditation of a power station,the power station owner will need to becomeregistered by submitting a registration applicationand a processing fee to the ORER. There are anumber of different registration forms dependingupon whether it is an individual or company thatintends to become the registered party. These formsare available directly from the ORER.Once registered, parties can apply for accreditationfor any power stations owned or operated by them.Once registered, parties can apply for accreditationfor any power stations owned or operated by them.41DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA

42DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010AccreditationApplications for registration and accreditationcan be submitted at the same time with the ORERaccreditation process, working in conjunction withthe State approvals processes.There is a range of information that is required toaccompany any application for accreditation to the ORER.Table 5 itemises the key information requirements.This list is not exhaustive and the ORER should beconsulted for any up-to-date details on accreditationinformation requirements.TABLE 5. RET ACCREDITATION REQUIREMENTSRET ACCREDITATION REQUIREMENTS······Power station detailsDescription of fuel sourceDemonstration of compliance with relevant Government approval processesBaseline assessment details (if expansion of a pre-1997 facility)Anticipated electricity generation projectionsMeasurement of eligible electricity outputA fee applies to the power station accreditationprocess, which can vary depending on the complexityof the accreditation and the size of the power station.Application fees range from $50 for a small powerstation with a default or nil baseline to $3000 for apower station greater than 25 MW in size.3.7.2 GREENPOWER PROGRAMThe GreenPower program is a voluntary schemedesigned to increase the amount of renewableenergy generation beyond the expanded nationalRenewable Energy Target requirements. A descriptionof the GreenPower Program has been provided insection 2.4.5 of this Handbook. The following sectionprovides a description of eligibility requirements for aGreenPower Provider and the process for becomingaccredited as a GreenPower Provider under theGreenPower Program.EligibilityAny electricity generator used in a GreenPowerproduct must be approved as a GreenPower Generatorby the GreenPower Program Manager – Accreditation.Textbox 2 summarises the eligibility requirementsthat must be met prior to accreditation as aGreenPower Generator.Further information on GreenPower eligibility can befound within the National GreenPower AccreditationProgram: Program Rules Version 5.1 June 2009.AccreditationTo become accredited as a GreenPower Generator,the applicant must apply to the Program ProjectManager. Details required for the application to beassessed are available at the GreenPower website at:www.greenpower.gov.auThere may be cases where a project does not meetthe eligibility criteria or information requirements.Where these cases occur the GreenPower ProgramManager – Accreditation may grant a SpecialApproval if there is believed to be ‘signifi cant merit’in the project.Additional information on the accreditation processcan be found at: www.greenpower.gov.au

3.8 Operational Approvals –Electricity GenerationThis section provides an overview of the operationalapprovals required for the generation of electricity,in addition to any heritage, planning or environmentalapprovals previously mentioned in this section.3.8.1 WORKSAFEWork safety and health laws aim to reduce and controlpotential hazards in the workplace. In Western Australia,this is regulated by the Occupational Safety and HealthAct 1984 and the Occupational Safety and HealthRegulations 1996.The Worksafe website www.commerce.wa.gov.au/WorkSafe carries details of specifi c codes of practicefor all construction and operational phases of projectdevelopment.3.8.2 ENERGYSAFETYEnergySafety within the Department of Commerce isresponsible for the technical and safety regulation of:Electricity production;·Electricity transmission and distribution;·Electricity utilisation (consumers’ installations·and appliances);Gas distribution (and gas production plants·connected to gas distribution systems); andGas utilisation (consumers’ installations·and appliances).In Western Australia, the Electricity (Licensing)Regulations 1991 provide that electrical work mayonly be carried out by persons with the appropriateelectrical worker’s licence (as issued by theElectrical Licensing Board) unless it is a type ofwork that is exempted by regulation. EnergySafetyappoints and oversees all inspectors in the State(including those of network operators) ensuring thesafety of electrical and gas workers by enforcingprescribed safety requirements and providingguidance in respect of safe work practices.EnergySafety is able to advise on the technicalstandards and codes to be adopted in the design,construction and operation of electrical facilities,public safety, and inspection of facilities andcertifi cation of electrical works.Further information on EnergySafety and licensingpurposes is available at: www.commerce.wa.gov.au/EnergySafetyOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.8.3 RESOURCE SAFETYA Dangerous Goods Licence from the Department ofMines and Petroleum (DMP) may be required if largequantities of fuel, or other fl ammable material, are tobe stored on-site. This particularly applies to diesel/hybrid systems, or biodiesel and bioethanol plants.Bioethanol plants may also require a licence tooperate a still.The responsibility of a Dangerous Goods Licence iscurrently the responsibility of Department of Minesand Petroleum, more specifi cally the ResourcesSafety area.Resource Safety has published guidance material andinformation covering the safe storage, handling andtransport of dangerous goods in Western Australianand for related purposes, including:Storage and handling of dangerous goods –·code of practice: www.dmp.wa.gov.au/documents/Code%20of%20Practice/DGS_COP_StoreHandleDG.pdfStorage and handling regulations overview:·www.dmp.wa.gov.au/documents/DGS_Overview_Storage.pdfStorage and handling – licensing and exemptions:·www.dmp.wa.gov.au/documents/Guidelines/DG_GN_S01_09_LicensingAndExemptionsForStorageAndHandling.pdfAll published information can be found at:www.dmp.wa.gov.au/6611.aspxThe forms, fees and charges pertaining to DangerousGoods can be found at: www.dmp.wa.gov.au/6649.aspxNote in particular the following three forms:Application for dangerous goods site licence:·www.dmp.wa.gov.au/documents/Forms/DG_F_DangerousGoodsSiteLicence_Application.pdfApplication for explosives storage licence:·www.dmp.wa.gov.au/documents/Forms/DG_F_ExplosivesStorageLicence_Application.pdfApplication for security risk substance storage·www.dmp.wa.gov.au/documents/Forms/DG_F_SRSStorageLicence_Application.pdf43DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIA

44DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 20103.9 Mineral Prospectivity3.9.1 INTRODUCTIONThe Geological Survey of Western Australia of theDepartment of Mines and Petroleum (DMP) activelyassesses and promotes the prospectivity of WesternAustralia for minerals and petroleum. Under amemorandum of understanding between the DMP,the Western Australian Planning Commission and theDepartment of Planning, development proposals arereferred to DMP for comment. Where the GeologicalSurvey assesses the land in question as being highlyprospective for minerals or petroleum, it may objectto the development proposal.3.9.2 GeoVIEW.WAIt is advisable for proponents to check any proposedsites for mineral prospectivity and mining andpetroleum tenements. Information on geology,mineral occurrences, resources and mining andpetroleum tenements is available from DMP’s websiteusing an interactive map viewer called GeoVIEW.WAavailable at: www.dmp.wa.gov.au/. The GeologicalSurvey encourages proponents to contact them earlyin the development process to discuss prospectivityissues; this may avoid costly problems later.It should be noted that the rights of mineral andpetroleum tenement holders are protected underthe Mining Act 1978 and Petroleum and GeothermalEnergy Resources Act 1967. Where tenements exist,the proponent should consult with the tenement holders.3.10 Community Consultation3.10.1 INTRODUCTIONCommunity consultation is an important factor toconsider in the development of a renewable energyproject. Renewable energy projects are understoodto be of benefi t to the wider community and thenatural environment. However, any development thathas an impact on residential amenity, aspects of theenvironment or the functionality of an area is likelyto attract community interest. An effective programof community consultation may be critical to thesuccess of the project.3.10.2 WHEN AND WHO TO CONSULT?Community interests and specifi c stakeholdersshould be identifi ed as early as possible in theproject, particularly once a site has been identifi ed.It is encouraged that proponents undertake genuinecommunity involvement early in the planning stage.Involving the community at an early stage ofdevelopment can be benefi cial as it provides agreater sense of community ownership of the fi nalproduct and will reduce the likelihood of publicopposition as the development progresses.Effective community consultation may also be criticalto those approval processes where consultation is astatutory requirement of the process – including theprocesses for obtaining heritage approval (Section 3.2),planning approval (Section 3.3) and environmentalapproval (Section 3.4). Local Government may beable to advise on any key community groups thatshould be consulted as part of the process.Depending on the scale, nature and location ofthe development, community consultation can beundertaken in a variety of ways. Given the rangeof stakeholders that can potentially be involved,community consultation programs are best tailoredspecifi cally to the particular development.3.10.3 TYPES OF CONSULTATIONCommon forms of community consultation generallyinvolve a combination of personal letters, a series ofproject newsletters, personal meetings, public notices,letter drops, advertising in local media, media releases,information forums, display stands and publicworkshops. Nominating a single point of contactmay assist in ensuring consistency of information.The consultation program should have the objectiveof providing information that is clear, transparentand up-to-date, whilst also providing an opportunityfor the public to participate in the decision-makingprocess. Two-way reporting can also be considered,whereby the proponent should respond to issuesraised by members of the public as well as provideinformation directly to the public.

enewableOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010energy45DEVELOPING A RENEWABLE ENERGY PROJECT IN WESTERN AUSTRALIAA1

46RENEWABLE ENERGY BACKGROUNDOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 1.1 Wind EnergyA 1.1.1 INTRODUCTIONThere are two types of towers used in modernWind power is one of the most advanced andwind turbines – enclosed, tubular, steel towers andcommercially available of renewable energyan open steel lattice tower. Only the tubular towertechnologies. Commercial-scale wind-generated is used in Australia, as although they are moreelectricity has, however, only emerged in the past two expensive, they are more aesthetically pleasing,decades, particularly in Northern Europe. Wind energy provide better protection for equipment and personnelis a major source of power in over 70 countries across and have no perching platforms for birds.the world. Globally, installed wind energy capacity grewA 1.1.3 CAPACITY FACTORby 28 per cent in 2008, compared to 2007, makingwind energy the fastest-growing electricity source. Capacity factor is one element in measuring theproductivity of a wind turbine or any other powerIn Australia, even higher growth rates have beenproduction facility. It compares the plant’s actualachieved with a total installed wind capacity at theproduction over a given period of time with the amountend of 2008 of 1306 MW, a 37 percent rise on 2007.of power the plant would have produced if it hadIn 2009, a number of new wind farms wererun at full capacity for the same amount of time.commissioned, increasing total operating capacityof 1476 MW.Energy from high-quality modern wind turbinesCapacity Factor =has become one of the cheaper renewable energytechnologies. Large-scale wind energy projects cancost as little as two to three cents more per kilowatthour above the national electricity market pool prices.Modern utility-scale wind turbines typically haveA 1.1.2 TECHNICAL INFORMATIONoverall capacity factors of 20 per cent to 40 per cent,Wind energy is a proven, mature and internationally depending on the average energy that is availableestablished technology. Modularity and a short in the prevailing wind conditions. In comparison,construction period are positive features of wind farms. a capacity factor of 40 per cent to 80 per cent isThe greatest challenge to the economic use of wind typical for conventional electricity generators,power is its variability. Energy storage, or a backup however this is normally not limited by the generatorsystem, is required for off-grid systems for extremely itself, but a consequence of how the generator iswindy or windless periods, and also to level the supply dispatched to meet system demand.even when the wind is blowing. Managing variabilityAvailability factor (or just “availability”), on thecan be a challenge for network operators requiringother hand, is a measurement of the reliability ofancillary services to compensate and to providea wind turbine or other power plant. It refers to thecontinuous automatic voltage adjustments.percentage of time that a plant is ready to generateHorizontal-axis turbines are the most commercially (i.e., not out of service for maintenance or repairs).successful wind technology. The most signifi cant trend Modern wind turbines have an availability of morein this technology has been the continuing increase in than 98 per cent, which is higher than most otherthe size of individual machines. This means that more types of power plant.power can potentially be produced by fewer turbines.The turbine will generally consist of the followingcomponents:· Rotor;· Generator;Directional system;·Protection system; and·· Tower.Actual amount of power produced over timePower that would have been produced if turbine operatedat maximum output 100 percent of the time

A 1.1.4 SPECIFIC CONSIDERATIONSWind speed varies considerably with height aboveground, and is affected by local environmentalconditions. Practical wind turbines are designed towork between certain wind speeds. The lower speed,called the ‘cut in speed’, is generally 4-5m per secondas there is insuffi cient energy below this speed toovercome system losses.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201047RENEWABLE ENERGY BACKGROUNDRENEWABLE ENERGY ATLAS OF AUSTRALIA:Mean Wind Speed at 80m above ground levelDarwinBrisbaneMetres per Second5.65.86.06.16.26.36.46.56.66.76.97.07.27.810Figure 10.Mean Wind Speedat 80m aboveground level.SOURCE:RENEWABLE ENERGYATLAS, DEPARTMENTENVIRONMENT, WATER,HERITAGE AND THE ARTS.Perthwww.environment.gov.au/renewable/atlas0 250 500 1,000KilometresAdelaideSydneyCanberraMelbourneHobartData Sources:Capital Cities© Commonwealth of Australia (Departmentof the Environment, Water, Heritage andthe Arts) 2008State Borders© Commonwealth of Australia (GeoscienceAustralia) 2008Wind Speed© Windlab Systems Pty Ltd 2007Caveat:All data are presumed to be correct asreceived from data providers. Noresponsiblility is taken by theCommonwealth for errors or omissions.The Commonwealth does not acceptresponsibility in respect to anyinformation or advice given in relationto, or as a consequence of anythingcontained herein.Map produced by:Environmental Resources InformationNewtork (ERIN), Department of theEnvironment, Water, Heritage and theArts, October 2008.Albers Equal-Area Projection (GDA94)Another consideration is that much of rural WesternAustralia has limited capacity power lines that arenot suitable for commercial, utility-scale wind farmswithout an upgrade.Wind turbines can also present challenges for systemmanagement especially during low load periodsovernight, which are characteristic of the South WestInterconnected System. As load reduces in the evening,generation plants would normally be taken out ofservice to be restarted as load rises the followingmorning. Only the minimum required plant continuesoperation overnight – typically the most costefficient plant to run, but often also the least fl exible.Wind generators, which have very low operating costs,effectively compete with those generators that wouldotherwise have operated over this period.Complicating the management of low overnight loadsis the fact that conventional generators have a minimumoutput below which they cannot maintain stableoperation and that wind turbines require a level ofconventional generation support to securely managethe variability of wind generator output on the electricitysystem. Together these factors can require the operationof a more costly fl exible plant overnight to support windgeneration and the overnight shutdown of a minimum costplant that would otherwise have operated continuously.Finding a technically secure and economically effi cientresponse to this challenge is a matter receiving closeattention both here in WA and elsewhere in the world,as the contribution of wind generation grows.The North Country Reinforcement project (NCR) willcontribute to addressing this issue. The NCR consistsof a 330 kilovolt transmission line from the Pinjarsubstation, just north of Perth, to a new terminalat Moonyoonooka, just outside Geraldton. There area number of wind farms proposed for the Mid WestRegion and the NCR Project may allow some of theseto proceed. In July 2009, Stage One of the NCRproject was approved extending the 330 kilovoltpower transmission line from Pinjar to Eneabba.

48 OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010RENEWABLE ENERGY BACKGROUNDA 1.2 Solar EnergyA 1.2.1 INTRODUCTIONThe average amount of solar energy falling on Australiaequals about 15,000 times the nation’s energy use.Use of solar thermal energy has been documentedsince 1860. In 2008, Australia generated just over100 MW of photovoltaic (PV) power, equivalent to0.07 per cent of the world’s total PV output.Technologies for producing electricity from the suncome in two forms – solar thermal and photovoltaic.Both solar thermal and photovoltaic systems aregenerating commercial-scale electricity around theworld today.Recent trends show that the capital costs ofphotovoltaic systems have decreased steadily,effi ciencies have improved and the market forthe technology is growing markedly. Despite this,the cost of electricity derived from solar energysources remains largely uncompetitive with othertypes of renewable and conventional energy ingrid-based applications, without fi nancial supportfrom funding schemes.The development of photovoltaic technology hasimproved over the past decade, driven by demandfor rooftop grid-connected systems and remote areapower requirements. Effi ciency and unit cost haveimproved as a result. Most of this improvement inperformance and cost is a result of developments inthe device architecture and manufacturing techniquefor silicon-based devices.Commercially available silicon solar cells currentlyhave maximum effi ciencies of about 18 per centand a life of between 20 and 30 years. They typicallyhave low maintenance requirements and norefuelling needs, although when used with invertersor batteries, the maintenance costs can increase.A 1.2.2 TECHNICAL INFORMATIONSolar photovoltaic panels are comprised of asemi-conductor material that converts solar energydirectly into electricity by producing an electriccurrent when exposed to sunlight.Solar thermal electricity is generated byconcentrating incoming sunlight using lenses andrefl ectors, then trapping its heat – as used for solarwater heaters. If used for electricity production,the heat collected in the receivers is sent to acentral location where the energy is stored as heat.An engine then converts this heat to electricity.A 1.2.3 Current ApplicationsSolar-powered systems are used extensively inAustralia for a variety of purposes. Some examplesof typical current economical uses of solar powersystems in Australia are listed below:Atmospheric Monitoring StationsBattery Charging and MaintainingCathodic Protection of Pipelines andUnderground FoundationsDisaster Power Systems and Civil DefenceDisaster Lighting SystemsElectric Fence ChargingElectric Gate Openers on Remote FencesMicrowave RepeatersPavilion Lighting Railroad Switching and Signal LightsRefrigeration for Homes or VillagesRemote Schoolhouse LightingRemote Health Clinics in Hot and Dry EnvironmentsSecurity and Car Park LightingSign and Billboard LightingTelecommunications SystemsWater PumpingWeather StationsPond Aeration Systems

A 1.2.4 SPECIFIC CONSIDERATIONSIn undertaking a solar assessment, it is importantto consider the intermittent and diffuse nature ofsolar energy, and that different solar technologiesdepend on different sunlight qualities. For example,photovoltaic technology can generate electricity fromboth direct and diffuse sunlight, whereas solar waterheating depends on direct sunlight to a much largerdegree. A thorough assessment of the solar resourcein Western Australia requires information on a widevariety of solar characteristics. The average annualdaily hours of sunshine in Australia are presentedin Figure 11. More detailed data is available fromthe Bureau of Meteorology.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201049RENEWABLE ENERGY BACKGROUNDRENEWABLE ENERGY ATLAS OF AUSTRALIA:Daily Solar Exposure - Annual AverageDarwinMegaJoules/m²121314151617181920212224Figure 11.Daily Sun Exposure –Annual Average 2008.SOURCE:RENEWABLE ENERGYATLAS, DEPARTMENTENVIRONMENT, WATER,HERITAGE AND THE ARTS.BrisbanePerth0 250 500 1,000KilometresAdelaideMelbourneSydneyCanberraData Sources:Capital Cities© Commonwealth of Australia (Departmentof the Environment, Water, Heritage andthe Arts) 2008State Borders© Commonwealth of Australia (GeoscienceAustralia) 2008Solar Exposure© Japan Meteorological Agency (JMA) andCommonwealth of Australia, Bureau ofMeteorology 2008Caveat:All data are presumed to be correct asreceived from data providers. Noresponsiblility is taken by theCommonwealth for errors or omissions.The Commonwealth does not acceptresponsibility in respect to anyinformation or advice given in relationto, or as a consequence of anythingcontained herein.www.environment.gov.au/renewable/atlasHobartMap produced by:Environmental Resources InformationNewtork (ERIN), Department of theEnvironment, Water, Heritage and theArts, October 2008.Albers Equal-Area Projection (GDA94)

50RENEWABLE ENERGY BACKGROUNDOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 1.3 BioenergyA 1.3.3 TECHNOLOGIESBioenergy technologies are similar in that they relyon chemically complex and heterogeneous reactions,A 1.3.1 INTRODUCTIONand are versatile in that they can provide solid,liquid or gaseous fuels. These products can be usedOrganic matter, or bioenergy, can be converted intoas transport fuels or to generate electricity and heat.energy (heat and/or electricity) using a variety ofIn some cases, the technology may produce multipletechnologies. Bioenergy technology is a proven,products, such as charcoal, activated carbon, plantmature technology. The two main forms of bioenergyextracts, fertilisers, soil conditioners, as well asinclude the gasification of bioenergy (e.g. organic waste)energy products. Energy crops may also be usedunder anaerobic conditions to form biogas (includesto alleviate salinity problems, provide habitat forwaste-to-energy streams such as landfi ll) and thenative fauna, limit erosion, improve water qualitydirect combustion of bioenergy to generate energy.and improve nutrient cycling.The energy value of bioenergy originally comes from The basic bioenergy technologies available are:solar energy, through photosynthesis. The chemicalanaerobic digestion;energy that is stored in plants and animals, or inthe wastes they produce, is called bioenergy.direct combustion;During conversion processes such as combustion,pyrolysis;bioenergy releases its stored chemical energy.gasifi cation;Bioenergy can be used directly for electricityfermentation; andgeneration, steam for industrial uses, heating, cooking, transesterfi cation.or indirectly by converting it into a liquid or gaseous ·fuel (eg, ethanol from cellulose in woody bioenergy A 1.3.4 GENERATING HEAT AND POWERor starch/sugar crops or biogas from animal waste). Products created in the above technologies in theBioenergy-based generators have the advantage of form of biogas, producer gas, syngas, ethanol andnot being dependant on weather conditions and can biodiesel can be converted to thermal energy bydeliver output at specifi c times of demand, providing combustion. Electrical energy is achieved by conversionmaximum fi nancial return, due to the inherent of the thermal energy via a number of different methods.energy storage in bioenergy.The current technologies capable of converting theseproducts into useable forms of energy include:A 1.3.2 BIOENERGY RESOURCESreciprocating gas engines;There are many types of bioenergy that can be utilised gas turbines;as a resource for renewable energy. These resourcesboiler and steam turbines;can be grouped under the following broad headings:Stirling engine; andEnergy crops – e.g. fast growing agricultural crops· fuel cells (potentially).and forestry species;·Agricultural crop residues – e.g. straw,A 1.3.5 CURRENT APPLICATIONS·husks and stubble;In 2007, less than one per cent of Australia’s totalForestry residues – e.g. sawmill andenergy supply was generated using bioenergy.·plantation residues;In comparison, the USA generates 40 terawattAnimal wastes – e.g. manure and abattoir wastes; hours of electricity. This is equivalent to the entireIndustrial wastes – e.g. fruit and vegetable scraps grid-connected electricity demands of Western·and processing wastes;Australia, South Australia and Tasmania combined.Bioenergy contributes 14 per cent of Finland’sMunicipal solid (green); and· Waste sewage. energy needs, 6 per cent in Denmark and delivers5 per cent in Sweden.Mallee has the potential to be a large-scale salinitycontrol crop and source of bioenergy for industrialproducts and electricity generation. There is alsosignifi cant potential to generate energy from plantationharvest residue in Western Australia. The applicationsof bioenergy can be categorised for use as transportfuels, heating, cooling or electricity generation.75963- 0

·=A 1.4 Hydro EnergyA 1.4.1 INTRODUCTIONHydro-electric power refers to electricity producedby the movement of water from rivers and lakes.It is the most established and mature form ofrenewable energy, with commercial hydro plantsoperating since the late 1800s.Globally, hydroelectric output increased by 2.8 per centin 2008. China accounted for all of the world’snet increase, with output rising by 20.3 per cent.Today, about 860,000 MW of hydro power contributesto one sixth of the electricity generation capacity ofthe world. It is estimated that only one third of theeconomically feasible hydro power potential worldwidehas been developed so far.A 1.4.2 CURRENT APPLICATIONSThe installed hydro power capacity in Australiais 7.8 GW, which represents over 6.1 per cent ofAustralia’s total energy supply.The advantages of hydro power include:virtually free generation of energy once·the dam is built;water can be stored above the dam ready to cope·with peaks in demand;possibility to supply rated power output very·quickly after start, unlike other power stations; andcontinuous generation of electricity.However, Western Australia has few suitable sitesfor signifi cant hydro-electric facilities and nonenear major load centres. The establishment of newlarge-scale hydro power schemes in Australia isunlikely due to widespread environmental concernsregarding the fl ooding of large areas of land.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 1.5 Wave EnergyA 1.5.1 INTRODUCTIONWave energy could offer an alternative source of baseload power. The regular storms in the Southern Oceanalong the southern coastline of Australia deliverconstant swells to the shoreline, making wave energyhighly predictable and reliable.Waves, particularly those of large amplitude,contain large amounts of energy. Wave energycan be considered a stored and concentratedform of solar energy, since the winds that producewaves are caused by pressure differences in theatmosphere arising from solar heating.A 1.5.2 POTENTIALIt is estimated that near-shore wave energy couldprovide four times our current national power needs.By utilising just 10 per cent of this potential waveenergy, around 35 per cent of Australia’s currentpower demand could be supplied through thisrenewable energy source.A 1.5.3 TECHNOLOGIESThree approaches to capturing wave energy are:fl oats or pitching devices;·oscillating water columns (OWC); and·wave surge or focusing devices.·However, the attempts to design and deploycost-effi cient devices have been met with limitedsuccess (the main success being the use of waveenergy to power several hundred navigation buoys).A renewed interest in wave energy throughout theworld has been seen, with several companiescurrently developing and deploying new devicesthat represent a signifi cant improvement overolder concepts.51RENEWABLE ENERGY BACKGROUND

52 OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010RENEWABLE ENERGY BACKGROUNDA 1.6 Tidal EnergyA 1.6.1 INTRODUCTIONTidal power utilises the twice-daily variation in sea levelcaused primarily by the gravitational effect of the moonand, to a lesser extent, the sun, on the world’s oceans.Tidal power is not a new concept and has been usedsince at least the 11th Century in Britain and Francefor the milling of grains. The generation of electricityfrom tides is very similar to hydro-electric generation.However, tidal generation water is able to fl ow in bothdirections and this must be taken into account in thedevelopment of the water fl ow and generator systems.A 1.6.2 TECHNOLOGIESThe simplest generating system for tidal plants,known as an ebb generating system, involves adam or barrage across an estuary. Sluice gateson the barrage allow the tidal basin to fi ll on theincoming high tides and to exit through the turbinesystem on the outgoing tide (known as the ebb tide).Alternatively, fl ood-generating systems that generatepower from the incoming tide are possible but lessfavoured than ebb-generating systems.A 1.7 Geothermal EnergyA 1.7.1 INTRODUCTIONGeothermal energy involves extracting the internalheat of the Earth to create electricity. Geothermal energyis a renewable energy source, which is undevelopedin comparison to renewable technologies such as wind.However, the development of hot rock technology andthe risk posed by climate change has increased theinterest in research and provided a better understandingof Australia’s geothermal potential.A 1.7.2 GEOTHERMAL RESOURCESAustralia’s geothermal resource falls into twocategories: hydrothermal (from hot groundwater)and hot fractured rock. Hot rock technology is similarto conventional geothermal energy in that it uses theheat from inside the earth. Traditional geothermalenergy relies on steam that is vented naturally infractured or porous rock at shallow to moderate depths(100m to 4.5km). This is the most common form ofgeothermal energy being exploited at present.A 1.6.3 CURRENT USAGEThere have only been a few projects that havemade use of this technology to generate electricity.Total world tidal power generation is 300 MW.The world’s largest tidal power station of 240 MW,La Rance project, was constructed on the RanceEstuary in France. Smaller tidal power stations havealso been constructed at Annapolis Royal in Canada,and the Bay of Kislava and Jangxia Creek in China.Concerns over the environmental effects of barragetidal plants since the construction of the La Rancetidal power station have lead to the development oftechnologies that have less impact on the environment.Two key areas of development have been in tidalfences and tidal turbines (also known as tidal mills).A 1.6.4 POTENTIALTidal energy potential is particularly prevalent alongthe north-western coast of Australia, where tidal rangesare amongst the largest in the world. This coastlinehas numerous inlets and bays that offer promisingsites for barrages. The development of tidal energyis disadvantaged, however, by the small range ofneap tides, which is too low for power generation,and the impracticality of absorbing large amounts ofintermittent power in a remote region without installingcostly long transmission links to population centres.Figure 12. Geothermal.SOURCE: DEPARTMENT OF MINES AND PETROLEUM (WA), COPYRIGHT DMP 2010.

A 1.7.3 TECHNOLOGIESHot rock process requires water to be pumped deepbelow the earth’s surface in to heated geological formation.Signifi cant investment has been made to develop thetechnology with proof of concept projects in Hot Rocktechnology underway. Australia has several thousandcubic kilometres of high heat-producing granite rock.Geothermal energy produced from hot rocks is anadvantageous option for reducing emissions as it is acontinuous and inexhaustible source of zero-emissionpower generation. Geothermal also has the potentialto displace or balance other renewable technologiesthat are affected by changing weather conditions.A 1.7.4 CURRENT USAGEWorldwide, geothermal energy is utilised for directheat and power generation. In over 30 countries,geothermal resources provide a directly used heatcapacity of around 15,000 MW. Twenty-four countriesobtain 15 to 22 per cent of their national electricityproduction from geothermal energy with an installedcapacity totalling 9064 MW. Currently there is onlyone geothermal project in operation in Australia, foundin Birdsville Queensland. It uses hot water from theGreat Artesian Basin and is rated at 120 kW.Figure 13. A Simple Hot Dry Rock Power Plant.SOURCE: AUSTRALIAN GEOTHERMAL ENERGY ASSOCIATION INC.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 1.7.5 POTENTIALAccording to Geoscience Australia, hot rocks within5km of the earth’s surface contain energy suffi cientto deliver 2.6 million years of energy to Australia,based on current supply. It has also suggested thatif one percent of this energy could be tapped, it wouldbe equivalent to 26,000 times Australia’s annualpower consumption.In a report by the Australian Geothermal EnergyAssociation it is suggested that the Australian geothermalenergy industry could provide up to 2200 MW ofbase load capacity by 2020, with the cost of generatingelectricity from geothermal resources at around $90 permegawatt hour for commercial-scale plants by 2020.A 1.8 Further InformationA 1.8.1 THE AUSTRALIAN ENERGYRESOURCES ASSESSMENTAdditional information on Australia’s energy resources,including renewable resources can be found in theJoint Report by Geoscience Australia and AustralianBureau of Resource Economics, Australian EnergyResources Assessment 2030 – released on 1 March2010, The Australian Energy Resource Assessmentexamines the nation’s identifi ed and potential energyresources ranging from fossil fuels and uranium torenewables. The assessment reviews the factors likelyto infl uence the use of Australia’s energy resourcesto 2030, including the technologies being developedto extract energy more effi ciently and cleanly fromexisting and new energy sources. The report can befound on the Geoscience website at www.ga.gov.auA 1.8.2 THE RENEWABLE ENERGYATLAS OF AUSTRALIAThe Renewable Energy Atlas is an interactive Atlasof Australia that provides information on Australia’sRenewable Energy Resources. The Atlas profi leswind, solar, geothermal, ocean energy and bioenergyresources. There is also contextual data such asenergy infrastructure, transmission lines and powerplants, roads, land tenure and climate information.Available at: www.environment.gov.auA 1.8.3 THE RENEWABLE ENERGYMAP OF AUSTRALIAThe Renewable Energy Map of Australia providesinformation about operational renewable energygenerators across Australia. A link is also providedto a map of proposed sites. The generators areclassifi ed by technology. Raw data about all thegenerators can be viewed via spreadsheet at:www.ga.gov.au/renewable/53RENEWABLE ENERGY BACKGROUND

54RENEWABLE ENERGY IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010energyrenewableA2

A 2.1 Resources Availablein Western AustraliaWestern Australia is generously endowed withrenewable energy resources. Sunshine and wind areplentiful and there are a number of locations throughoutthe State where bioenergy, hydro, wave, tidal andgeothermal energy resources are potentially available.The use of renewable energy within WA is growingin signifi cance for a number of reasons, but mainlyin response to programs addressing concernsabout greenhouse gas emissions. In the State’s mainelectricity grid, the SWIS, the proportion of totalelectricity consumption met from renewable energyhas increased from less than one per cent in2002/03 to fi ve percent in 2008/09.There is a wide range of both large-scale andsmall-scale applications for renewable energy in thisState, although the commercial success of these varies.In order to be commercially successful, renewableenergy technologies and products must be technicallydeveloped, appealing to the market, cost-competitiveand supported by a signifi cant resource base.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Small wind energy, geothermal heat pumps,hydrothermal energy, and tidal energy have high levelsof technical development, but low levels of marketuptake. Hydrothermal energy and tidal energy areconstrained by the limited size or isolation of theirresource base. New large-scale hydro-electricdevelopments have limited potential to be commerciallysuccessful in Western Australia. Premium sites havealready developed and new projects are subject toconcerns over their potentially negative environmentalimpacts. Small wind power generators are uncompetitivecompared against conventional fuels and power sources,and are more suited to off-grid applications.Solar thermal electricity, hot dry rocks, wave energy,and fuel conversion technologies such as fuel cellsand hydrogen fuel technologies are pre-commercialtechnologies, with lower levels of technical developmentand market uptake. All of these, however,are supported by large resource bases.A 2.3 Utilisation inWestern Australia55RENEWABLE ENERGY IN WESTERN AUSTRALIAA 2.2 Renewable EnergyTechnology DevelopmentSolar hot water, bagasse-fi red and bioenergy-basedgeneration; and large wind energy are technologicallymature and commercially viable and, in manyapplications, have high levels of both technicaldevelopment and market uptake.Liquid biofuels, cogeneration, enabling technologies,remote area power supply (RAPS), small hydro-electricity,and photovoltaics (PV) are less commercially mature.These have high levels of technical development butlower levels of market uptake, and are less competitiveagainst conventional fuels and power sources.These technologies are supported by substantialresource bases.A 2.3.1 REMOTE AREA POWER SUPPLY(RAPS) SYSTEMSIn Western Australia, stand-alone and hybrid RemoteArea Power Supply (RAPS) Systems are used widelyto provide power through the use of solar energysystems. Examples of where they are used includeholiday homes and shacks, boats and recreationalvehicles, small rural farms (single homes), large stationhomesteads (with multiple residences), remoteAboriginal communities, small mining operationsand various telecommunications applications.Most renewable energy RAPS systems are installedin remote areas of Western Australia, where thepenetration of renewable energy systems on pastoralstations is now 34 per cent. Surveys show that thereis a growing acceptance of remote area powersupply technologies, which is also being refl ectedby bigger systems recently installed.

56RENEWABLE ENERGY IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 2.3.2 SMALL GRID-CONNECTED SYSTEMSRenewable energy devices such as PV modules andwind turbines are also being used on a small scale inareas where the electricity grid is available. In somecases, they are demonstration sites set up by electricityutilities or equipment manufacturers. In others, theyare owned by people who want to make a contributionto the generation of renewable energy.The output from the renewable energy conversiondevices is exported to the grid (after being convertedto AC at the correct voltage and synchronised withthe grid frequency) during times of excess supply,and imported from the grid when supply is limited.The Government retailers, Synergy and HorizonPower’s Residential Renewable Energy BuybackScheme, supports households and communitygroups that want to install environmentally friendlyrenewable energy systems to generate their ownelectricity by allowing them to sell any excessrenewable energy back to the retailers.A 2.3.3 WINDAustralia’s fi rst commercial wind farm at Ten MileLagoon, north of Esperance, consists of nine 225 kWVestas variable pitch wind turbines and is connectedto Esperance’s conventional diesel power station.Western Australia has some of the best wind resourcesin Australia, especially in south west coastal areas,with average wind speeds of 7.5m per second(27km per hour). The limiting factor for this technologyis the size of the grid and the amount of wind that canbe integrated in the system without costs being too high.TABLE 6. COMMERCIAL WIND FARMS IN WESTERN AUSTRALIALOCATIONPROPONENTCAPITAL COST$MILLION (APPROX)YEARAlbany Verve Energy 45 2001 21.6Bremer Bay Verve Energy 2.6 2005 0.6Cocos Island Powercorp 3.6 2006 0.8Coral Bay Verve Energy NA 2007 2.24Cervantes,Emu DownsGriffi n Energy NA 2006 80Denham Verve Energy NA 1999 0.69Exmouth Horizon Power NA 2002 0.06Hopetoun Verve Energy 2.6 2004 0.60Kalbarri Verve Energy 5.2 2007 1.6Nine Mile Beach,EsperanceRottnest Island,PerthTen Mile Lagoon,EsperanceVerve Energy 10.6 2003 3.6Powercorp 3 2004 0.6CAPACITY(MW)Verve Energy 6 1993 2.025Table 7 includes commercial wind farms currentlyoperating in Western Australia in 2010.Alinta Wind Farm,WalkawayRenewablePower Ventures200 2005 90A 2.3.4 BIOENERGYLandfi ll gas is used in several small power stationsoperated by Landfi ll Gas and Power within the Perthmetropolitan area, with total installed capacity ofstations at Redhill, Canning Vale, Mt Claremont andKalamunda around 10 MW.The growing awareness of the environmental impactsof landfi ll sites has driven change in the wastedisposal industry. Further change can be expectedas the availability of landfi ll sites in proximity topopulation centres tightens. As a result, the scopefor the expansion of landfi ll gas utilisation inWestern Australia is not clear. The use of wasteto energy facilities, however, can be expectedto grow as the cost of energy and disposing ofwaste continues to grow.The use of sewage gas for electricity production isincreasing. It is expected that the amount of methanerecoverable from wastewater treatment plants willcontinue to improve markedly within the next fewyears. Sewage gas from the Water Corporation’sWoodman Point wastewater treatment plant generatesaround 6 GW.h of electricity a year. Three 600 kWreciprocating engine generator sets, fuelled by thebiogas, provide electricity for use on site with theexcess exported to the State grid.

Wood represents 3.1 per cent of Australia’s totalprimary energy consumption. Most of the heat energythat is produced is consumed as fi rewood in theresidential sector. The remaining heat energy is usedin the wood products, paper and food industries.Western Australia has several sources of bioenergyresources that could be developed further:Forestry and tree crop resources include residues·from forestry plantations and the potential newwoody crops for wheat belt agriculture, such as oilmallee; agricultural crops which have high starch/sugar content (such as cereals and sugar cane),or herbaceous annual crops which have high oilcontent (sunfl owers or canola). The waste fromthese crops can be used in the production oftransport fuels (ethanol and biodiesel).Animal wastes, classifi ed as wet wastes, can be·ideal feedstocks for anaerobic digestion. The mostcommonly used animal wastes are manures frompigs, chickens and cattle (in feedlots). As theseanimals are reared in confi ned spaces, and thusgenerate a large amount of waste in a small area,these resources are ideal for bioenergy generation.Meat processing and abattoir wastes are alsopotential resources, for example tallow can beused as a feedstock for biodiesel.Industrial wastes – the food industry produces a·large number of residues and by-products that canbe used as bioenergy energy sources. Dry wastesinclude peelings and scraps from fruit andvegetables, food that does not meet quality controlstandards, pulp and fi bre from sugar and starchextraction, fi lter sludges and coffee grounds.···OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Dry wastes may be suitable for direct combustion,gasifi cation or pyrolysis. Wet industrial wastestreams are generated by washing meat, fruit andvegetables, blanching fruit and vegetables,pre-cooking meats, poultry and fi sh, cleaning andprocessing operations and wine making. Thesewaste waters contain sugars, starches and otherdissolved and solid organic matter. The potentialexists for these industrial wastes to beanaerobically digested to produce biogas,or fermented to produce ethanol.Municipal Solid (Green) Waste (MSW) can beconverted into energy by direct combustion,gasifi cation or through anaerobic digestionoccurring when the material is disposed in alandfi ll. In Western Australia there are a numberof landfi ll gas plants. The gas produced at thesesites through the anaerobic decomposition ofMSW (approximately 50 per cent methane and50 per cent carbon dioxide) is collected from thestored material and scrubbed before feeding intointernal combustion engines or gas turbines togenerate heat and power.Sewage Energy can be extracted from sewageusing anaerobic digestion to produce biogas.The sewage sludge that remains can then becombusted or undergo gasifi cation or pyrolysisto produce more biogas and ‘bio-oil’.Table 7 provides some current examples ofbioenergy projects in Western Australia.TABLE 7. EXISTING AND PROPOSEDBIOENERGY PROJECTS IN WESTERN AUSTRALIA57RENEWABLE ENERGY IN WESTERN AUSTRALIAPROJECTPROPONENTCAPITAL(MW)START DATELandfi ll gas (produced from the anaerobicdecomposition of commercial, industrial anddomestic wastes) at Redhill, Canning Vale, MtClaremont, Kalamunda and Tamala ParkLandfi ll Gas and Power12.3 MW(total capacity)1995 – 2004Woodman Point Wastewater Treatment Plant: Water Corporation 1.8 1998Manjimup Bioenergy power facility Western Australian Bioenergy 40 Late 2010Perth metropolitan (2 sites) landfi ll gas project Landfi ll Management Services 4.4 –Perth metropolitan (1 site) landfi ll gas project Waste Gas Resources 2.1 –Landfi ll gas extraction and generation site:AGL Energy Services Pty LtdGosnellsRockingham2.11.62003

58RENEWABLE ENERGY IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 2.3.5 PHOTOVOLTAIC INDUSTRYWithin Western Australia, photovoltaics are usedin grid-connected and stand-alone power systems,remote telecommunications infrastructure andwater-pumping systems. There are approximately18,000 PVs installed within Western Australia.PV modules are also utilised in many nicheapplications, including emergency telephones,street and other outdoor lighting, and marinenavigation buoys, and are increasingly competitivewhere cabling costs are high compared to thepower demand.Verve Energy owns Australia’s fi rst grid-connectedPV system at Kalbarri. The site was chosen becauseof its location at the end of a long distribution linewith a growing summer peak and high solarradiation levels. The $500,000 project producesenough power for some local homes, whilst alsoreducing fl uctuations in grid electricity voltage.The 256 PV panels are mounted on 16 locallyproduced trackers and connected to the grid viaa locally produced power conditioning system.Verve Energy has also installed a 20 kW photovoltaictrough concentrator system at Murdoch University’sRockingham campus. Using only a relatively smallnumber of photovoltaic cells, the system uses40 pairs of parabolic mirrors, mounted on a trackingsystem, to concentrate solar energy on the PV cells.Under sunlight concentrated 30 times, individual celleffi ciency of 22 per cent is achievable.The largest off-grid PV system began operation inAugust 2006 near Laverton. The Western AustralianDepartment of Corrective Services has installed the32 kW systems at its Mount Morgan work camp.The system will reduce the camp’s reliance ondiesel-generated power saving about 30,000 litresof diesel and reducing greenhouse gas emissionsby 89 tonnes each year.Another large system in Western Australia is the 31 kWphotovoltaic system installed by Hamersley Iron PtyLtd at Hamersley Station in 2005. The hybrid solar/diesel system consists of 260 solar panels, a 40 kVAinverter, 552 kW.h battery bank and 53kVA dieselgenerator. The solar array contributes an estimated130 kW.h per day to help meet the station’s power needs.Examples of existing solar PV projects inWestern Australia are shown in Table 8.TABLE 8. EXAMPLES OF EXISTING SOLAR PV PROJECTSIN WESTERN AUSTRALIAPROJECTPROPONENTCAPITAL(MW)Hamersley Hamersley Iron 0.03 2004Rockingham Verve Energy 0.02 2000A 2.3.6 SOLAR THERMAL INDUSTRYSolar thermal has fewer applications than solar PV,with a limited number of solar thermal power systemsin Australia. Solar thermal electricity has not yetreached commercialisation and small systems thatmay suit households are far more expensive thanits PV counterpart.The largest solar thermal power site is a demonstrationplant of around 1.5 MW at the Liddell Power station,which uses Ausra’s Compact Linear Fresnel Refl ector(CLFR) solar thermal technology. The CSIRO is alsoconstructing a 0.5 MW solar thermal power stationin Mayfi eld.A 2.3.7 GEOTHERMALIn January 2008, the Western Australian StateGovernment released the fi rst acreage for geothermalexploration covering the Perth Basin. The secondrelease of geothermal acreage, for the Perth andCarnarvon basins, took place in 2009.The fi rst study to evaluate the potential geothermalenergy resources in Western Australia was in 1980,which recognised the economic potential of the lowtemperature reservoirs at depths of 2-3.5km withinthe Perth Basin.The next study, in 2006, evaluated hot rock resources.From this study it was discovered that petroleum wellsin parts of the Canning, Carnarvon, and Perth basinsindicated two favourable factors for developinghorizontal geothermal reservoirs. The Carnarvon Basinhas the greatest number of wells with high temperaturegradients, followed by the Perth and Canning basins.START DATEKalbarri Verve Energy 0.02 1995

The WA Geothermal Centre of Excellence is focusingon direct heat use (e.g. geothermally powered airconditioning and desalination) in populated centreswhere there is shallow groundwater of moderatetemperature (discussed in more detail inGeothermal Case Study).Also in Western Australia, direct heat applicationsof geothermal are utilised to heat many municipalswimming pools, including Challenge Stadium,Christchurch Grammar School, Claremont Pool,Craigie Leisure Centre, and a number of spa resorts.Fish are also farmed through geothermal-drivenaquaculture facilities.A 2.3.8 WAVE ENERGYInterest is also being generated in Western Australiafor the development of wave energy technology.Carnegie Wave Energy Limited is developing a 5 MWpilot plant off Garden Island. Carnegie is discussedin more detail in a case study.OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 2.3.9 HYDRO ENERGYWestern Australia’s only commercial hydro-electricgenerator is the 30 MW power station at the Ord RiverDam on Lake Argyle, completed in April 1996.The project also involved the construction of 132kVtransmission lines, which provide power to Kununurra,Wyndham and the Argyle Diamond Mine.The Wellington Dam is situated near Collie in thesouth-west of WA. The hydro-electric power stationwas built in the 1950s and was recently put undercare and maintenance. It has an installed generatingcapacity of 2 MW using water from the dam.Verve Energy is in the process of donating the plantto the National Trust of WA.Energy companies are showing interest in promotingsmaller-scale hydro-energy schemes, particularly asproviding an economic alternative to conventionalenergy sources in areas remote from the electricitygrid. Hydro power schemes can begin generatingenergy very quickly and only need a small staff tooperate and maintain them.59RENEWABLE ENERGY IN WESTERN AUSTRALIA

60RENEWABLE ENERGY IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010energyrenewableA3

A 3.1 Useful ContactsOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201061OTHER RESOURCESORGANISATION PHONE WEB ADDRESSBureau of Meteorology (08) 9263 2222 www.bom.gov.auDepartment of Environment and Conservation (08) 6467 5000 www.dec.wa.gov.auDepartment of the Environment, Water, Heritage and theArts (Commonwealth)(02) 6274 1111 www.environment.gov.auDepartment of Indigenous Affairs (08) 9235 8000 www.dia.wa.gov.auDepartment of Transport (08) 9216 8000 www.transport.wa.gov.auDepartment of Agriculture and Food (WA) (08) 9368 3333 www.agric.wa.gov.auDepartment of Mines and Petroleum (08) 9222 3333 www.dmp.wa.gov.auDepartment of Planning (08) 9264 7777 www.planning.wa.gov.auDepartment of Regional Development and Lands (08) 9217 1400 www.rdl.wa.gov.auDepartment of Climate Change and Energy Effi ciency (02) 6159 7000 www.climatechange.gov.auDirector of Energy Safety (08) 9422 5200 www.energysafety.wa.gov.auEconomic Regulation Authority (08) 9213 1900 www.erawa.com.auEnvironmental Protection Authority (08) 6467 5000 www.epa.wa.gov.auForest Products Commission (08) 9475 8888 www.fpc.wa.gov.auIndependent Market Operator (08) 9254 4300 www.imowa.com.auNational Green Power Accreditation Program – www.greenpower.com.auOffi ce of Energy (08) 9420 5600 www.energy.wa.gov.auOffi ce of the Renewable Energy Regulator (02) 6159 7700 www.orer.gov.auWestern Australian Planning Commission (08) 9264 7777 www.wapc.wa.gov.auWestern Power Corporation – Networks (08) 9326 6647 www.wpcorp.com.au

62OTHER RESOURCESOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 3.2 Useful Links andPublicationsA 3.2 1 PLANNING·Western Australian Planning Commission(June 2003), Statement of Planning Policy No.2:Environmental and Natural Resources Policyavailable at: www.wapc.wa.gov.au/publications/134.aspxA 3.2.2 NATIONAL GOVERNMENT POLICYDepartment of Resources, Energy and Tourism·(2009) Energy White Paper Terms of Referencesand discussion papers available at:www.ret.gov.au/energy/facts/white_paper/pub/Pages/default.aspxDepartment of Climate Change and Energy·Effi ciency (2008) Carbon Pollution ReductionScheme: Australian’s Low Pollution FutureWhite Paper available at:www.climatechange.gov.au/publications/cprs/white-paper/cprs-whitepaper.aspxCommonwealth of Australia (2008) The Garnaut·Climate Change Review: Final Report available at:www.garnautreview.org.au·Commonwealth of Australia (2008) Australia’sLow Pollution Future: The Economics of ClimateChange Mitigation available at:www.treasury.gov.au/lowpollutionfuture/A 3.2.3 GENERAL ENERGY··Geoscience Australia and Australian Bureau ofAgriculture and Resource Economics (2010)The Australian Energy Resource Assessmentavailable at: www.ga.gov.au/products/servlet/controller?event=GEOCAT_DETAILS&catno=70142Department of Commerce, Renewable energy andclean technology directory of innovations andcapabilities in WA available at:www.commerce.wa.gov.au/ScienceInnovation/PDF/Publications/Science%20and%20Technology/SIB_RenewableEnergyD.pdf···Clean Energy Council (2009) Carbon andRenewable Energy Markets Report 2009 availableat: www.commerce.wa.gov.au/ScienceInnovation/PDF/Publications/Science%20and%20Technology/SIB_RenewableEnergyD.pdfAustralian Bureau of Agricultural and ResourcesEconomics (2009) Energy in Australia 2009available at: www.abareconomics.com/publications_html/energy/energy_09/auEnergy09.pdfRenewable Energy Policy Network for the21st Century (2009) Renewable Global StatusReport 2009 Update available at:www.ren21.net/pdf/RE_GSR_2009_Update.pdfA 3.2.4 WIND····Global Wind Energy Council (2008) Global Wind2008 Report available at: www.gwec.net/fileadmin/documents/Publications/Global%20Wind%202008%20Report.pdfWestern Australian Planning Commission (May 2004),Planning Bulletin No.67: Guidelines for Wind FarmDevelopment available at: www.wapc.wa.gov.au/publications/210.aspxAustralian Wind Energy Association (2006),Best Practice Guidelines for Implementation ofWind Energy Projects in Australia available at:cleanenergycouncil.org.au/cec/resourcecentre/reports/Past-Reports/mainColumnParagraphs/0/text_files/file21/bestpracguidelines06.pdfACNT/AusWEA (2005), Wind Farms and LandscapeValues: Stage 1 Report: identifying issuesavailable at: cec.peaktech.com.au/accreditation/windinfo/landscape.phpA 3.2.5 BIOMASS AND BIOENERGYClean Energy Council (2008) Australian Bioenergy·Roadmap: Setting the Direction for biomass instationary energy to 2020 and beyond available at:cleanenergycouncil.org.au/cec/resourcecentre/reports/mainColumnParagraphs/00/text_files/file4/biomass%20resource%20appraisal.pdfClean Energy Council (2008) Biomass Appraisal at:·cleanenergycouncil.org.au/cec/resourcecentre/reports/mainColumnParagraphs/00/text_files/file4/biomass%20resource%20appraisal.pdf

····BCSE (2005), Waste to Energy: A Guide for LocalAuthorities available at: www.bcse.org.au/cec/resourcecentre/reports/Past-Reports/mainColumnParagraphs/0/text_files/file13/WasteToEnergy%20Report.pdfGreen Power Accreditation Program (2009)Accreditation Program Rules Version 5.1 availableat: www.greenpower.gov.au/admin/file/content2/c7/National%20GreenPower%20Program%20Rules%20Version%205.1%20June%2020091249280528944.pdfBCSE (2005), Production of Energy fromWaste Industry – Code of Practice available at:www.wmaa.asn.au/director/divisions/energy_from_waste.cfmBCSE (2005), Project Development SustainabilityGuide for Energy from Waste Projects available at:www.wmaa.asn.au/director/divisions/energy_from_waste.cfmA 3.2.6 SOLARAustralian and New Zealand Solar Energy·Society (ANZSES) (2005), Reliable System Design,Regulation and Evaluation Tools for RenewableEnergy Equipment and Systems (Solar RadiationHandbook) available at: www.anzses.org.A 3.2.7 GEOTHERMAL –REGULATORY APPLICATION GUIDESDepartment of Mines and Petroleum (2009)·Application for grant of Geothermal ExplorationPermit available at: www.dmp.wa.gov.au/documents/appln_form_geothermal.pdfDepartment of Mines and Petroleum (2009)·Geothermal Permit Conditions and Administrationavailable at: www.dmp.wa.gov.au/documents/geothermal_permit_conditions_and_administration(2).pdfDepartment of Mines and Petroleum (2009)·Administration of Geothermal Titles inWestern Australia, available at: www.dmp.wa.gov.au/documents/administration_of_geothermal_titles_in_western_australia.pdfDepartment of Mines and Petroleum (2009)·Criteria for Assessment of Application for theAward of Geothermal Exploration Permits,available at: www.dmp.wa.gov.au/documents/criteria_for_assessment_of_exploration_permits.pdf··OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Department of Mines and Petroleum, Land AccessIntroduction available at: www.dmp.wa.gov.au/documents/LndAccssIntroGeoth04.pdfDepartment of Mines and Petroleum (2009)Environmental Requirements for GeothermalOperators, available at: www.dmp.wa.gov.au/documents/EnvReqGeoth09July_revised.pdfA 3.2.8 GEOTHERMAL –GENERAL PUBLICATIONS·····Department of Mines and Petroleum (2009)Explorers Guide to Petroleum and GeothermalEnergy Western Australia, available at:www.dmp.wa.gov.au/documents/000294.jemma.williams.pdfDepartment of Resources, Energy and Tourism (2008)Australian Geothermal Industry TechnologyRoadmap available at: www.ret.gov.au/energy/clean_energy_technologies/energy_technology_framework_and_roadmaps/hydrogen_technology_roadmap/Documents/GEOTHERMAL%20ROADMAP.pdfDepartment of Resources, Energy and Tourism (2008)Australian Geothermal Industry DevelopmentFramework available at: www.ret.gov.au/energy/clean_energy_technologies/energy_technology_framework_and_roadmaps/hydrogen_technology_roadmap/Documents/GEOTHERMAL%20FRAMEWORK.pdfPetroleum in Western Australia (2007) Searchfor Energy from Geothermal Resources inWestern Australia available at: www.dmp.wa.gov.au/documents/02_PWA_Sept_2007-2_Geothermal(1).pdfGhori, Khwaja A. Department of Industry andResources (2008) Geological Survey ofWestern Australia, 2008 AAPG Annual Convention& Exhibition; April 20 – 23, 2008; San Antonio, TX,Western Australia’s Geothermal Resourcesavailable at: www.dmp.wa.gov.au/documents/04_GhoriAAPG-408181(1).pdf63OTHER RESOURCES

64OTHER RESOURCESOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 3.2.9 ELECTRICITY NETWORKS AND THEWHOLESALE ELECTRICITY MARKETWestern Power – Generator and Transmission·connections available at:www.westernpower.com.au/retailersgenerators/Generator_and_transmission_connections.htmlWestern Power Network Access Prices available at:·www.westernpower.com.au/mainContent/workingWithPower/NetworkAccessServices/NetworkAccessPrices/NetworkAccessPrices.jspWestern Power – Generator Grid Connection Guide:·An Introduction to Power Systems and theConnection Process available at:www.westernpower.com.au/documents2010/reportspublications/GeneratorGridConnectionGuide.pdfOffi ce of Energy (2009) Overview of the Vesting·Arrangements. Government of Western Australiaavailable at: www.energy.wa.gov.au/cproot/1569/14784/Overview%20of%20the%20Vesting%20Arrangements%207Jul2009%20FINAL.pdfMcHugh, A (2008) Portfolio Short Run Marginal·Cost of Electricity Supply in Half Hour TradingIntervals Technical Paper. Economic RegulationAuthority available at: www.erawa.com.au/cproot/6317/2/20080111%20Short%20Run%20Marginal%20Cost%20-%20Technical%20Paper.pdfIndependent Market Operator (2006) Wholesale·Electricity Market Design Summary (IMOWA)available at: www.imowa.com.au/f214,89529/89529_MarketSummarySeptember2006.pdfIndependent Market Operator (2006) Opportunities·for Renewable Energy and Demand SideManagement to participate in the WholesaleEnergy Market, available at:www.imowa.com.au/f214,89534/89534_RenewableEnergyAndDSMAugust2006.pdfA 3.3 Legislation andRegulationsThe following list provides interested parties withlegislation that is pertinent when consideringrenewable energy projects. This is not an exhaustivelist of legislation applicable to all projects, as therelevant legislation depends on the specifi c projectcomponents. Therefore project developers areencouraged to seek professional advice from therelevant Government Department in the fi rst instance.Commonwealth of Australia legislation can beaccessed at: www.comlaw.gov.au while Statelegislation can be accessed from the State LawPublisher at www.slp.wa.gov.auA 3.3.1 STATE LEGISLATION····Aboriginal Heritage Act 1972;Electricity Act 1945 and Regulations including theElectricity (Supply Standards and System Safety)Regulations 2001, Electricity Regulations 1947and Electricity (Licensing) Regulations 1991;Electricity Corporation Act 1994 and ElectricityTransmission Regulations 1996 and ElectricityDistribution Regulations 1997;Electricity Industry Act 2004 and Regulationsincluding:The Electricity Industry (Independent Market·Operator) Regulations 2004;Electricity Industry (Wholesale Electricity·Market) Regulations 2004;·········Electricity Industry (Licence Fees)Regulations 2004;Wholesale Electricity Market Rules 2004;Electricity Networks Access Code 2004;Code of Conduct for the Supply of Electricityto Small Use Customers 2004; andCustomer Transfer Code 2004.Energy Coordination Act 1994;Energy Operators (Powers) Act 1979;Environmental Protection Act 1986 andRegulations;Occupational Safety and Health Act 1984and Occupational Safety and HealthRegulations 1996; andWildlife Conservation Act 1950.·

A 3.3.2 COMMONWEALTH LEGISLATIONAboriginal and Torres Strait Islander·Heritage Protection Act 1984;···Environmental Protection and BiodiversityConservation Act 1999;Native Title Act 1993;Renewable Energy (Electricity) Act 2000and Renewable Energy (Electricity)Regulations 2001; andRenewable Energy (Electricity) (Charge) Act 2000.·A 3.4 Useful WebsitesThis section provides useful websites, including thoseof organisations in addition to those provided atA4.1 Useful Contacts.A 3.4.1 ASSOCIATIONS AND ORGANISATIONSAlternative Technology Association (ATA):·www.ata.org.auAustralian and New Zealand Sustainable Energy·Society (ANZSES): www.anzses.org········Australian Institute of Energy (AIE):www.aie.org.auBiodiesel Association of Australia:www.biofuelsassociation.com.auBioenergy Australia: www.bioenergyaustralia.orgClean Energy Council:www.cleanenergycouncil.org.auHydrogen Australia: www.hydrogen.org.auWestern Australian Sustainable Energy Association:www.wasea.com.auWestern Power: www.westernpower.com.auRISE Research Institute for Sustainable Energy:www.rise.org.auOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 3.4.2 BIOENERGY····AgSTAR Handbook and Software (a comprehensivemanual developed to provide guidance ondeveloping biogas technology):http://www.epa.gov/agstar/resources/handbook.htmlBioenergy Feedstock Information Network:bioenergy.ornl.govWaste Management Board of Western Australia:www.wastewa.comWaste Management Association of Australia:www.wmaa.asn.auA 3.4.3 WINDWind Energy: The Facts:·www.wind-energy-the-facts.orgGlobal Wind Energy Council: www.gwec.net····European Wind Energy Association:www.ewea.orgCSIRO Wind Energy Research Unit:www.csiro.au/science/WERUCertifi ed Wind Farms Australia:http://cec.peaktech.com.au/accreditation/index.phpA 3.4.4 SOLAR···CSIRO National Solar Centre:www.csiro.au/science/Solarenergy.htmlInternational Solar Energy Society:www.ises.org/ises.nsf!OpenAustralian Solar Institute:www.australiansolarinstitute.com.au/news.htmA 3.4.5 GEOTHERMALAustralian Geothermal Energy Association Inc:·www.agea.org.auGeothermal Energy Association:·www.geo-energy.orgClean Energy Council:·www.cleanenergycouncil.org.au/cec/technologies/geothermalWestern Australian Geothermal Centre of·Excellence: www.geothermal.org.au·Licensing, approvals, acreage and usefulpublications, Department of Mines and Petroleum:www.dmp.wa.gov.auA 3.4.6 HYDRO ENERGYInternational Hydropower Association:·www.hydropower.org/65OTHER RESOURCES

66OTHER RESOURCESOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 3.4.7 RENEWABLE ENERGY ANDENERGY GENERALGesoscience Australia: www.ga.gov.au/············Map of Renewable Energy Generators in Australia:www.agso.gov.au/renewable/GREENTIE: www.greentie.orgREN21 Renewable Energy Virtual Library:www.ren21.net/virtuallibraryInternational Energy Agency: www.iea.orgResLab Renewable Energy Fact Sheets:www.rise.org.auRETScreen International Clean Energy DecisionSupport Centre (includes free project analysissoftware): www.retscreen.net/ang/menu.phpNational Renewable Energy Laboratory (USA):www.nrel.govWorld Energy Outlook:www.worldenergyoutlook.orgWorld Energy Council: www.worldenergy.orgBP Statistical Review of World Energy 2009:www.bp.com/productlanding.do?categoryId=6929&contentId=7044622Department of Commerce: Renewable Energy andClean Technology: www.commerce.wa.gov.au/ScienceInnovation/Content/Science_and_Technology/Energy_and_Environment/index.html

A 3.5 Geographic InformationSystem Datasets relevant to|arge scale Solar FacilitiesOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 201067OTHER RESOURCESThe datasets listed in the table below can besourced from:SLIP Enabler www2.landgate.wa.gov.au·· www.data.australia.gov.auGeoscience Australia webmap.ga.gov.au/imf-natural_·hazards/sites/natural_hazards/index.jsp··Bureau of Meteorology www.bom.gov.au/climate/data/index.shtmlDepartment of Mining and Petroleumwww.dmp.wa.gov.au/801.aspxPlease see Glossary at end of document for defi nitionof acronyms.A 3.5.1 POTENTIAL DATASETSDATASET OWNER DATA TYPE ACCESS POINTBOM Climate Maps BOM Website“Climate Data Online”DAFWA Intensive Land Use Zones SLIPSoil Landscape ZonesFlood RiskPhosphorous Export RiskSalinity RiskSubsurface Acidifi cationSurface CompactionWater ErosionWater RepellenceWind Erosion RiskSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIPDEC Clearing Regulations – Schedule One Areas SLIPForest Disease Risk AreasExisting CALM Managed Lands & WatersRamsar SitesRegional ParksAcid Sulfate SoilsSouth Coast Signifi cant WetlandsClearing Regulations –Environmentally Sensitive AreasSIER Spatial Index Environmental ReportsDeclared and Endangered FloraThreatened Ecological CommunitiesContaminated SitesSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIP

68OTHER RESOURCESOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010DATASET OWNER DATA TYPE ACCESS POINTDEWHA Australia, World Heritage Areas data.australia.gov.auCommonwealth Marine Protected AreasManaged by DEWHADIA Aboriginal Sites Register SLIPdata.australia.gov.auLocation of Aboriginal Communities in WASLIPDMP Mining Tenements SLIPMineral Drill HolesWA Petroleum Pipelines (WAPPIPE)Petroleum WellsPetroleum TenureMining TitlesDangerous Goods Storage SitesDangerous Goods ProductsGeothermal Energy PotentialSLIPSLIPSLIPSLIPSLIPSLIPSLIPContact DMPDoF Fishing Habitat Protection Areas SLIPDoW Public Drinking Water Source Areas SLIPRIWI Act, Surface Water Areas andIrrigation DistrictsGroundwater Salinity StatewideStatewide River Water Quality AssessmentSLIPSLIPSLIPDoP Bush Forever 2004 – Sites SLIPBush Forever 2004 – BoundariesHeritage Council Sites – WARegion Scheme – Zones and ReservationsRegion Scheme Water CatchmentsSLIPSLIPSLIPFESA Emergency Services Levy SLIP

OFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010DATASET OWNER DATA TYPE ACCESS POINTGeoscienceAustraliaAustralian Flood Studies DatabaseAustralian Earthquakes DatabaseGeoscience AustraliaGeoscience Australia69OTHER RESOURCESAustralian Landslide DatabaseNational Exposure Information System (NEXIS)Geoscience AustraliaGeoscience AustraliaAustralian Atlas of Mineral Resources,Mines and Processing CentresLandgate Native Title (NNTT) SLIPNative Title (Fed Court)SLIPData.australia.gov.auNative Title (Determination)Native Title (ILUA)Public Access WaysNOAA Fire Affected Areas 2007SurveyTitlesTenureRoadsSLIPSLIPSLIPSLIPSLIPSLIPSLIPSLIPMRWA Control of Access on State Roads SLIPWater Corporation Wastewater –WA Museum Maritime Archaeological Sites SLIPWestern Power Overhead Power Transmission Lines SLIPUnderground Power TransmissionSLIP

70OTHER RESOURCESOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 3.6 GlossaryTERMAlternative FuelsEXPLANATIONFuels which are less greenhouse intensive than petrolAnaerobicAnaerobic DigestionAvailability FactorBagasseBaselineBiodieselBioenergy and biomassBiofuelsBiogasBriquettingBuilding-IntegratedPhotovoltaicCapacity FactorCarbon DioxideEquivalentCo-fi ringCogenerationCoppicingDirect CombustionEnergy CropsFermentationFossil FuelsChemical reaction in the absence of oxygenThe anaerobic decomposition of bioenergyA measurement of the reliability of a wind turbine or other power plant.It refers to the percentage of time that a plant is ready to generate(i.e, not out of service for maintenance or repairs).The residue after juice is extracted from sugar cane in the milling processA representative level of generation which represents “normal” generationlevels in a “normal” year prior to the commencement of the MRETFuel made from canola or a range of other oil crops and fat wastesGeneration of energy/power from plant material or bioenergy.Fuels produced from bioenergyBy-product of anaerobic digestion of bioenergy. Fuel/gas composedof a mixture of methane and carbon dioxide formed by the decay oforganic waste matterThe process where coal or bioenergy is partly dried, warmed to expel excessmoisture and then compressed, usually without the use of a binding substancePhotovoltaic panels are partially or fully integrated into the roof and wallsof a buildingMeasures the productivity of a wind turbine or any other power productionfacility by comparing the plant's actual production over a given period oftime with the amount of power the plant would have produced if it had runat full capacity for the same amount of timeThe basis or units for comparing the warming potential of greenhousegases other than carbon dioxide. It is calculated by multiplying the quantityof greenhouse gas by its global warming potentialThe use of bioenergy material in conjunction with fossil fuels, usually coalThe complementary production of electricity and heat from a power plantsuch that a high effi ciency of conversion of fuel to usable energy is achievedThe formation of new stems from a harvested or damaged stump,an ability common in species native to dry and fi re-prone environments;also called sproutingBurning of material to create heat (for power generation)Crops grown specifi cally for their fuel value. These include food crops such ascorn and sugarcane, and nonfood crops such as poplar trees and switch grassThe anaerobic conversion of sugar to ethyl alcohol by yeastCoal, natural gas, liquefi ed petroleum gas and fuels derived from crude oil(including petrol and diesel)

TERMGasifi cationGasoholGreen PowerGreenhouse GasesGreen Power GeneratorGW.hHydro ElectricitykW.hKyoto ProtocolMW.hPhotovoltaicPyrolysisRenewable EnergyRenewable EnergyCertifi cateRetrofi ttingSolar EnergySpinning reserveSustainable DevelopmentSustainable energyindustryTransfesterifi cationWorks approvalEXPLANATIONThe thermal conversion of solid fuel to a gasMixture of gasoline and alcoholOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010Electricity generated from selected renewable sourcesGases that affect the temperature of the earth’s surface. They include watervapour, ozone, chlorofluorocarbons, carbon dioxide, methane and nitrous oxideAn electricity generator (approved by the National Green PowerAccreditation Program Project Manager) that results in greenhouse gasemission reduction and overall environmental benefi ts and is based ona renewable energy resourceOne GW.h is 1000 megawatt hours or one million kilowatt hoursThe generation of electricity by the use of moving water to turna turbine or generatorThe standard unit of electrical energy that represents the consumptionof one kilowatt over the period of one hourAn international agreement reached in 1997 in Kyoto, Japan, which extends thecommitment of the United Nations Framework convention on Climate Change.In particular, it sets targets for future emission by each developed countryOne MW.h is the consumption of one megawatt of electricity for one hourPertaining to the direct conversion of light into electricity. A method ofturning sunlight into electrical energyThe conversion of solid fuels to an oil and gas in an oxygen-free environmentEnergy generated from non-fossil-fuel-based resourcesCreated on the basis of accredited renewable energy generation thatdelivers renewable electricityThe application of conservation, effi ciency, or renewable energytechnologies to existing structuresThe radiant energy of the sun, which can be converted into other formsof energy, such as heat or electricitySpinning reserve is extra generation capacity that sits idling ready toquickly start up on request by the system operator. It is needed forstabilising frequency variations in the supply network and for quicklycompensating sudden changes in loadSustainable energy is about meeting current energy needs withoutcompromising the ability of future generations to meet their economic,social and environmental needsIncludes companies involved in the energy effi ciency and cogenerationsectors as well as those undertaking renewable energy activitiesThe process most commonly used to produce biodiesel, where naturallyoccurring fats and oils are chemically altered. An alcohol and catalyst mustbe mixed with the bioenergy feedstock for the reaction to proceedAuthorises work to be undertaken on prescribed premises71OTHER RESOURCES

72OTHER RESOURCESOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010A 3.7 List of Abbreviationsand AcronymsACMCAboriginal Cultural and Materials CommitteeAHA Act Aboriginal Heritage Act 1972BOMDAFWADIADECDMPDoPDoTDoFDoWEIAEPABureau of MeteorologyDepartment of Agriculture and Food Western AustraliaDepartment of Indigenous AffairsDepartment of Environment and ConservationDepartment of Mines and PetroleumDepartment of PlanningDepartment of TransportDepartment of FisheriesDepartment of WaterEnvironmental Impact AssessmentEnvironmental Protection AuthorityEPBC Act Environmental Protection and Biodiversity Conservation Act 1999EPSERAERMPESDFESAGWGW.hHDRIMOIPPkWkW.hMRETMRWAMSWMWMW.hEnvironmental Protection StatementEconomic Regulation AuthorityEnvironmental Review and Management ProgramEnvironmental Scoping DocumentFire and Emergency Services AuthorityGiga WattGiga Watt HourHot dry rockIndependent Market OperatorIndependent Power ProducerKilo WattKilo Watt HourMandatory Renewable Energy TargetMain Roads Western AustraliaMunicipal Solid WasteMega WattMega Watt Hour

Office of EnergyLevel 9Governor Stirling Tower197 St Georges TerracePERTH WA 6000Phone: (08) 9420 5600Fax: (08) 9420 5700Email: enquiries@energy.wa.gov.auwww.energy.wa.gov.auwww.creativepage.com.au