This document summarizes recent developments in commercializing solar thermal power in Australia. It discusses Australia's solar resource and electricity grid connectivity, the effect of the country's 20% renewable energy target, the Solar Flagships program and long-term cost reductions, and solar thermal developments in the region. It provides details on various solar thermal and solar PV projects that have been proposed or are under development through the Solar Flagships program. It also discusses the role of the Australian Solar Institute in funding solar thermal research and development projects.

1. Recent Developments in Commercialising
Solar Thermal Power in Australia
ENERGY TRANSFORMED FLAGSHIP
Dr Jim Smitham & Dr Alexander Wonhas
February 2011

2. Overview
Australia's Solar Resource and Grid Connectivity
Effect of 20% Renewable Energy Target
Solar Flagships Program and Long Term Cost
Solar Thermal Developments in the Region
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 2

3. Recent Developments in Commercialising Solar Thermal Power in Australia
Australia's Solar Resource and
Grid Connectivity
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 3

4. Recent Developments in Commercialising Solar Thermal Power in Australia Slide 4

5. Growth of Annual Electricity Consumption
GWh
300 000
250 000
200 000
150 000
GWh
100 000
50 000
0
1960-61
1962-63
1964-65
1966-67
1968-69
1970-71
1972-73
1974-75
1976-77
1978-79
1980-81
1982-83
1984-85
1986-87
1988-89
1990-91
1992-93
1994-95
1996-97
1998-99
2000-01
2002-03
2004-05
2006-07
Source: Australian Bureau of Agricultural and Resource Economics (ABARE), Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 5

6. Age of Infrastructure
Source: Electricity Gas Australia 2010, Energy Supply Association of Australia (esaa)
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 6

7. Growth in Peak Demand for Electricity
National Electricity Market Peak Demand
40
Summer peak demand growth (1999-2009): 3.6%
35
30
25
Summer
Gigawatts
20 Winter
Winter peak demand growth (1999-2009): 2.4%
15
10
5
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Electricity Gas Australia, various issues
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 7

8. Australia: Electricity Transmission Network
90%
Source: Energy network infrastructure and the climate change challenge report by Parsons Brinkerhoff to ENA (Energy Networks Australia), March 2009
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 8

9. Australia’s Solar Resource and
Electricity Transmission Networks
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 9

10. Recent Developments in Commercialising Solar Thermal Power in Australia Slide 10

11. Recent Developments in Commercialising Solar Thermal Power in Australia
Effect of 20% Renewable Energy
Target
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 11

12. Government Programs & Rebates Schemes
• Federal Government
• Renewable Energy Target
• Clean Energy Initiatives – $5 billion
• Solar Flagships Program – $1.35 billion
• Australian Centre for Renewable Energy – over $690 million
• Renewable Energy Future Fund - $100 million
• Australian Solar Institute - $150 million (2008-2012)
• Smart Grid, Smart City - up to $100 million
• Solar Cities - over $75 million
• National Solar Schools – over $51 million
• Multi Party Climate Change Committee – to price carbon from 2012
Source: Department of Climate Change, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 12

13. Enhanced Renewable Energy Target
• Original Renewable Energy Target commenced 1 January 2010 to
encourage additional generation of electricity from renewables to meet
commitment to achieving 20% of electricity from renewables by 2020
• Increased from 9,500 to 45,000 GWh by 2020 from 1 January 2011
• Legal liability on wholesalers to purchase
• Sets the frame for both the supply and demand of Renewable Energy
Certificates (REC)
• Extended from 2020 to 2030
• Split into two parts
• Large Scale Renewable Energy Target (LRET)
• large-scale renewable energy projects like wind farms, commercial solar and
geothermal, will deliver the majority of the 2020 target
• Small Scale Renewable Energy Scheme (SRES)
• households, small business and community groups
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 13

14. Legislated Annual Renewable Energy Targets
Source: Renewable Energy Regulator, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 14

15. Solar Innovation Chain
Recent Developments in Commercialising Solar Thermal Power in Australia Source: Australian Solar Institute Slide 15

16. Recent Developments in Commercialising Solar Thermal Power in Australia
Solar Flagships Program and Long
Term Cost
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 16

17. Solar Flagships Program
• The Government has committed $1.35 billion to support the
construction of up to four large scale, grid-connected solar
power stations in Australia, using solar thermal and photovoltaic
technologies
• The Solar Flagships program (SFP) is part of the Australian
Government’s $5 billion expanded Clean Energy Initiative (CEI)
• The primary objective of the Solar Flagships program is to
provide the foundation for large scale, grid-connected, solar
power to play a significant role in Australia’s electricity supply
and to operate within a competitive electricity market. The
Government’s aim is to establish up to 1,000 megawatts of
solar power generation capacity
• 32 submissions first round
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 17

18. Solar Flagship Project Descriptions Round 1 –
Solar Thermal Shortlisted Projects
• ACCIONA Solar Power
• ACCIONA Solar Power proposed to generate 200 MW using solar
thermal parabolic trough technology at a single site in Queensland.
The consortium comprises ACCIONA Solar Power and its
subsidiaries, Mitsubishi Corporation, ACCIONA Infrastructures,
Australia’s BMD Constructions and Australian engineering firm,
GHD. Project withdrawn
• Parsons Brinkerhoff
• Parsons Brinckerhoff leads the Solar Flair Alliance involving
Siemens Pty Ltd, John Holland and CS Energy to construct a
conventional 150MW solar thermal parabolic trough power station
next to the Kogan Creek Power Station in Queensland. The project
will use Siemens solar and power generation technology
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 18

19. Solar Flagship Project Descriptions Round 1 –
Solar Thermal Shortlisted Projects cont’d
• Transfield
• A consortium consisting of Transfield Holdings, Novatec (a
subsidiary of Transfield Holdings), Transfield Services and the
Transfield Services Infrastructure Fund plan to convert the existing
coal fired Collinsville power station in north Queensland to a 150
MW solar thermal station. Chosen technology is linear fresnel
• Wind Prospect CWP
• Wind Prospect CWP Pty Ltd has formed a consortium with CS
Energy Ltd, AREVA Solar and Mitsui & Co (Australia) Ltd to
develop, build and operate a stand alone, 250 MW solar thermal
power plant at Kogan Creek, near Chinchilla in Queensland.
Chosen technology is is Areva’s Compact Linear Fresnel Reflector
(CLFR)
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 19

20. Solar Flagship Project Descriptions Round 1 –
Solar PV Shortlisted Projects
• AGL
• In collaboration with First Solar and Bovis Lend Lease, is
developing up to five solar photovoltaic (PV) projects with a total
capacity of up to 200 MW AC in up to five different states and
territories
• BP Solar
• BP Solar is leading a consortium to develop, construct, own and
operate a 150 MW photovoltaic (PV) facility in the NSW Tablelands
• Infigen Suntech
• Infigen Energy have formed a consortium to build solar power
plants with a capacity of between 150 MW and 195 MW at up to
three sites in Victoria or NSW
• TRUenergy
• TRUenergy proposes to build a 180 MW solar power plant near
Mildura in Victoria
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 20

21. Locations of Solar Flagship Projects
Transfield, Collinsville
Acciona Solar Power, Emerald, QLD
Parsons Brinkerhoff &
Wind Prospect CWP, Kogan Creek
BP Solar & Infigen Suntech, Moree
Infigen Suntech, Nyngan
TRUenergy & Infigen Suntech, Manildra
Infigen Suntech, Mildura Infigen Suntech, Bungendore
Key: AGL, up to 5
Solar Thermal sites proposed
Solar PV for ACT, NSW,
Solar PV, multiple VIC, QLD & SA
sites for one project
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 21

22. Solar Thermal Energy at 10c/kWh
(USD)
Source: DOE/GO-12007-2400: Report to Congress on Assessment of Potential Impact of Concentrating Solar Power for Electricity Generation (EPACT 2005 – Section
934(c)) February 2007
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 22

23. Cost of CSP
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 23

24. Cost of CSP
Source: Department of Resources Tourism & Energy, Australian Government
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 24

25. Cost of CSP
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 25

26. Cost of CSP
Source: What’s Next for Alternative Energy? Boston Consulting Group Report 2010
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 26

27. Where Will the Savings Come From?
• Increased plant efficiency – peak temperature? Concentration
ratio, optical efficiency, receiver efficiency, cycle efficiency...
• Power block and heliostat economies of scale
• Technical maturity – component and ongoing costs
• Location, location, location!
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 27

28. Recent Developments in Commercialising Solar Thermal Power in Australia
Solar Thermal Developments in the
Region
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 28

29. Commercial Ventures in Australia
• Wizard Power
• The Whyalla Solar Oasis is a project developed by N.P Power and
Sustainable Power Partners in consortium with Wizard Power. The
project will develop a commercial scale 40MWe concentrating solar
thermal power plant in Whyalla, South Australia. Chosen
technology is ANU’s “Big Dish”
• Solar Systems (purchased by Silex 2010)
• Announced in 2006 a 154MW concentrating PV plant in Mildura,
Victoria to be developed in three stages (Stage 1: 2MW Pilot
Demonstration Facility in 2011; Stage 2: 102MW Solar Power
Station by 2013; Stage 3: 50MW Extension). Project rescope.
• CS Energy
• A 44 MW(peak) equivalent superheated steam solar boost to the
coal-fired turbines of the existing 750MW Kogan Creek Power
Station in Queensland. Expected to be operational in 2012.
Chosen technology is Areva’s Compact Linear Fresnal Reflector
(CLFR)
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 29

30. Commercial Ventures in Australia
• Lloyd Energy
• Announced 3MWe installation of a high concentration solar tower
in Cooma, New South Wales and a 16 tower solar array at Lake
Cargelligo in central New South Wales (end of grid)
• Announced 10MW plant using a heliostat field and a graphite block
receiver/steam generator at Cloncurry in Queensland (end of grid)
• Mid West Energy
• Proposed a 200MW linear Fresnel power plant located at Perenjori
300km north of Perth Western Australia. Chosen technology is
Areva’s Compact Linear Fresnal Reflector (CLFR)
• AREVA (purchased AUSRA 2010)
• Has developed and is expanding world’s first solar 3MWe thermal
power collector system for coal‐fired power augmentation using
Compact Linear Fresnal Reflector (CLFR) technology for supplying
solar‐generated steam to the 2,000MW Liddell Power Station in
New South Wales
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 30

31. Australian Solar Institute
• The Australian Solar Institute is a component of the Australian Government’s
Clean Energy Initiative. The ASI has a $150 million allocation for the period
2008-2012.
• Key objectives of the Australian Solar Institute include:
• advancing and accelerating innovation in solar thermal and solar photovoltaic
technologies in Australia
• driving research that will have a major impact on the efficiency and cost effectiveness
of solar technologies
• increasing the competitiveness of solar technologies
• retaining local and attracting international expertise in solar energy research to
Australia
• establishing Australia as a key player in the development of solar energy technologies
in the Asia-Pacific region
• $50 million US-Australia Solar Research Collaboration initiative to accelerate the
reduction in costs for solar energy technologies
• At May 2010 13 projects funded
• $44.5 million funding supporting 13 R&D projects with a total activity value of around
$131 million
Source: Australian Solar Institute
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 31

32. Solar Thermal Research
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 32

33. Solar Thermal Research
• CSIRO Demonstration of Solar-Enhanced Fuels for Electricity
and Transport Applications
• New “solarization” process to reform natural gas with steam
and CO2 to produce syngas, which can feed a gas turbine
• Develop new reactors and catalysts able to use CO2 as a
reactant, thus making use of the waste stream and minimizing
water use
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 33

34. Solar Thermal Research
• ASI
• CSIRO Foundation Project
• ASI fully funded $5 million project to construct a new solar tower and heliostats at
the CSIRO Energy Centre in Newcastle (1MWTH)
• Solar Brayton demonstraton
• CSIRO and the Australian National University: Development of Advanced
Solar Thermal Energy Storage Technologies for Integration with Energy
Intensive Industrial Processes and Electricity Generation
• University of Newcastle: Fabrication of Thermionic Devices Using
Directional Solidification / Sintering Processes for High Temperature
Concentrating Solar Thermal Applications
• CSIRO and the Australian National University: Advanced Steam Generating
Receivers for High Concentration Solar Collectors
• In CST innovation ASI sought proposals in Round 2 that will reduce the
levelised cost of solar energy by increasing the efficiency of CST energy
generation
• CSIRO target 10c/kWh
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 34

35. ASI CSIRO Foundation Project
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 35

36. Solar Brayton Systems
• Scalable from micro-turbines up to large gas turbines
• Distributed generation option for CSP
• Spinning mass reduces the impact of transient output
• Can be co-fired with supplementary energy
source such as natural gas providing high 4
availability
2
• Only inputs required are air and sun 1
3
• Large capacities can be met by
clustering individual units
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 36

37. PV Position in Australia
• Current position
• Total installed capacity in Australia 184 MW
• 87% grid connected
• Total of 79 MW installed in 2009, 360% increase on 2008
• 12 MW of cells were produced in Australia in 2009 from imported
wafers
• Government expenditure on research, development, demonstration
and market incentives totalled AUD526 million in 2009
Source: National Survey Report of PV Power Applications in Australia 2009, Australian PV Association
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 37

38. Summary
• Australia has a quality solar resource, constrained by network
access
• Opportunities for solar thermal off grid at many locations
• Government confusion over solar thermal power cost compared
with recent PV cost trend
• Stimulus programs – MRET, Solar Flagships, carbon price
setting will encourage further development
• Pathways to 10c/KWh will drive development
Recent Developments in Commercialising Solar Thermal Power in Australia Slide 38

39. Energy Transformed Flagship
Dr Jim Smitham & Dr Alexander Wonhas
Phone: +61 2 4960 6000
Email: jim.smitham@csiro.au
Web: www.csiro.au/org/EnergyTransformedFlagship
Thank you
Contact Us
Phone: 1300 363 400 or +61 3 9545 2176
Email: Enquiries@csiro.au Web: www.csiro.au

40. Recent Developments in Commercialising Solar Thermal Power in Australia