Energy Developments Coober Pedy Renewable Hybrid Project Africa Australia Technology and Infrastructure Conference Coober Pedy Adelaide Keith Barker EDL Technology Leaders in Remote and Clean Energy
EDL – Market Leaders in Distributed Generation 933MW of distributed generation Pine Creek • Remote Energy 355MW • Waste Coal Mine Gas 269MW Djarindjin Ardyaloon Beagle Bay Warmun McArthur River Derby • Landfill Gas 279MW Broome Halls Creek Bidyadanga Fitzroy Crossing • Windfarm 30MW Looma Karratha Australia Cannington Moranbah North 747MW Greece Oaky Creek German Creek 12MW Yulara Ano Liossia Gascoyne Junction Roghan Road Brisbane Brown Plains Coober Pedy United Kingdom LFG (50% owned) Darlot Hill 50 Jacks Gully Red Hill Laverton 71MW Hill 60 Tamala Park Sunrise Dam Eastern Creek Belrose, Grange Ave Menzies Leonara Tahmoor Perth Lucas Heights Sidegate Lane Ryton, Waverley Wood Kalamunda Glennies Creek Teralba Bellhouse, Brazier Beloconnen Appin, Tower Milton Keynes Wingfield Mugga Lane Pitsea, Rainham Cullerin Mucking, Barling Poole Broadmeadows � Scale Brooklyn Berwick Clayton Corio Springvale � Diversified United States � Long life assets Lorain County, OH 103MW Zion, IL � Long dated contracts Carbon Limestone, OH Ottawa County, OH � Blue chip counterparties Iris Glen, TN Nashville, TN � Capability Sand Valley, AL KEY: Waste Coal Mine Gas Taylor County, GA � Continuing growth Pecan Row, GA Remote Energy LNG / CNG Covel Gardens, � Well capitalised Landfill Gas Tessman Road, TX (x2) Windfarm Office 2
EDL and Renewable Generation Remote Hybrids • Australia’s largest independent remote energy producer (>350MW) • Owns and operates 29 projects in remote Australia - 27 years’ experience • Fuel and technology agnostic with demonstrated record of adapting technology to meet customers’ requirements • CPRH will demonstrate the application of renewables and EDL capability to our remote customers’ requirements: SAFE; RELIABLE; COST COMPETITIVE POWER ‒ • The combination of: ‒ Reductions in technology unit cost, including storage Increase in utilisation of technology units ‒ ‒ Higher fossil fuel costs Increased incentives to RE; imposts on fossil fuel ‒ will result in COMPETITIVE renewable hybrids Broader Interest • In parallel EDL recently purchased the 30MW Cullerin Range wind farm • Significant strategic initiative, extending our distributed generation portfolio and leveraging EDL capability • We have complementary pipeline and network capability through our DUET sister companies • We have strong appetite for further growth in mid scale grid connected solar and wind � We can manage offtake as part of our wider generation portfolio � No third party PPA required � EDL can finance, using existing corporate debt facilities (investment grade) and our balance sheet Existing operating assets and shovel ready development projects � � Majority equity ownership (up to 100%) � EDL involvement positive for ARENA/ CEFC/ concessional finance 3
DUET Group of Companies • DUET Group (ASX:DUE), owner of energy utilities in Australia with market capitalisation of ~$6.5b (Aug-16) • DUET owns DBP, owner and operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) • DBP Development Group (DDG) is established as a vehicle for development of unregulated gas pipelines and associated infrastructure • DDG and DBP share common resources, policies and procedures under Support Service Agreements (SSAs) • DUET acquired EDL in October 2015 and further acquired Cullerin Range Wind Farm in July 2016 • Raised $1.92b in equity and over $2.4b of debt for asset acquisition and operation in the FY15/16 4
Coober Pedy Renewable Hybrid – CPRH Overview & Project History • EDL has owned and operated the existing diesel power station at Coober Pedy since 2004 • CPRH is a MW scale; High penetration renewable fully integrated with existing diesel fuelled thermal generation. • Part funded under ARENA IRAR programme • 5MW solar/wind plus enabling technologies to achieve ~ 70% diesel displacement over the year Planning and Approval June 13 to March 16 • Concept to customer June 13 � ARENA EOI � Feasibility � ARENA Application May 2014 • EDL- ARENA Funding Agreement executed– July 14 • Development Consent; ILUA; Key Supply contracts tendered; Land Tenure secured • New PPA EDL – DCCP; FID April 16 Construction Phase – UNDERWAY • Detailed designs being finalised • Site Works commence Aug/Sept 2016 • Construction complete April 2017 • Commissioning complete July 2017 • Ongoing performance testing and refinement July 2017+ Operations Phase - 2017-2037 5
CPRH – Benefits and Demonstration Value Benefits to the Coober Pedy community • Lower cost of power to the expected diesel only case, over the long term • Substantial stability in future power cost – approx. 70% fixed cost enables long term planning • Reduction in greenhouse emissions – 130000t over project life • Community contributions to opal community and Traditional Owners • Local jobs and services during construction EDL believes CPRH will establish world benchmarks in large scale, remote, renewable penetration It will expand the boundaries established by King Island (KIREIP) • Larger Scale - twice the renewable generation capacity and larger load demonstrating scalability • Diversity of renewables - quality of solar resource and diurnal diversity sees larger % of solar • Diesel Off - Diversity enables > time diesel off (estimated to be 50% of year) with smaller battery • Scalable modular enablers - more rapid deployment, less call on remote resources reducing the remote cost premium. • Complex commercial structure - IPP; Local & State Govt; ARENA; 5 key supply contracts 6
Lessons Learned CPRH Component Locations Renewables are land hungry cf thermal generation • Even in remote areas land tenure is multi layered • At very least this involves process - TIME Hybrids involve substituting capital for operating cost • Requires common view on future costs of fuel including green incentives and penalties. • Capital investment very significant in context of local budget of remote communities and most mines Why now? • RE cost expectations encourage deferral of investment • ARENA IRAR addresses this today but in the future? Oil Price since ARENA Funding Agreement Local politics are more volatile than Federal • !!!!!! 7
Coober Pedy Resource and load characteristics Wind Characteris2cs • 20 years of resource data - wind direction is very consistent • The wind in Coober Pedy is stronger at night, complementing the solar resource • Data from the wind mast installed in May 2014 has confirmed the modelled wind speeds Modelled Integrated Supply – Feasibility Stage
Coober Pedy Renewable Hybrid Existing Status: Customer: District Council of Coober Pedy (DCCP) Load: Contract Max. 3.4MW Recent Peak 3MW Average 1.4MW Equipment: 8* 490kW diesel engines Project Plan Renewables fully integrated with existing diesel plant under single PPA. 70% reduction in diesel usage No change to existing diesel plant Cost: $39M (incl. pre FID costs, contingencies). ARENA funding $18.4M. Component Description EPC Guarantee Wind Turbine 2*2MW Senvion MM92 Senvion Availability; Power Curve Solar PV 1MW First Solar fixed tilt UGL PV system output, PR Test BESS 1MW/500MWh Lithium Ion Toshiba / UGL Specific performance over state of charge range and 80% at end of warranty Integration 2*850kVA Hitzinger DUPS } 6 month performance test demonstrating 3MW Dynamic Resistor; } Hydro Tasmania achievement of designed diesel displacement Integration Control System } BOP Power line wind & solar � existing UGL power station site; switchboard CPRH PPA Parties: EDL & DCCP Term: 20Years from project completion (expected July 2017) EDL Obligations: Renewable Energy Guarantee Annual Actual vs Target Renewable % based on 10minute model with actual load; solar and wind inputs. Bonus / Penalty applies Power Supply Reliability No material change to existing PPA for outages No change to existing PPA Voltage Frequency etc. Power Quality Penalties apply 9
Coober Pedy Power Generation Key Performance Factors Component Load & renewable Annual Load: 11,800 MWh contribution Total renewable generation: 16,500 MWh Renewable “spilled”: 6,500 MWh – 42% of RE generation - opportunity for storage System losses: 1,400 MWh – 11 % of total generation Net renewable contribution: 70% Wind Average wind speed : 7.3 m/s Capacity Factor: ~ 41% Gross Annual Generation: 14,400 MWh Solar PV Capacity Factor AC: 24.5% Gross Annual Generation: 2,150 MWh BESS Annual Discharge: 142 MWh Note: Battery used for intermittency control not storage Changes From original Scope At Feasibility: At FID: Diesel penetration very similar whether 4/1 or 3 /2 combination. Wind 3 MW 4 MW Following tender relative cost of wind and solar favoured additional wind (limited wind turbine sizes). Solar 2 MW 1 MW Battery 1MW / 250kWh 1MW / 500kWh Specification modified to ensure required performance will be 1.5 MW peak 1.5 MW peak achieved at end of life (extended long warranty) 10
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