Canberra Times
Wednesday 3/9/2008 Page: 1
Canberra is a step closer to getting a $141 million solar energy station capable of generating enough electricity for more than 10,000 homes. It will be at least 120 ha in size, and probably significantly larger than that, and a new study warns the plant would be a "prominent visual feature" unless it is well shielded. ACT Chief Minister Jon Stanhope, if re-elected, will call for expressions of interest from the private sector for the solar energy station after issuing a pre-feasibility study last night that "gave the project the nod".
The study, commissioned by the ACT Government and ActewAGL, looked at a 22MW-capacity plant using solar thermal trough technology, and suggests a gas-fired generator be added as an auxiliary system. It estimated that it would cost $141 million to build and about $2 million a year to run, while powering 10,000 homes with 80GWh a year. It could be operational by 2012.
The project will require a substantial level of subsidy from the ACT and federal governments. The report suggests tip to 57 per cent - or $80 million - would have to come from taxpayers to snake the project viable. ActewAGL chief executive Michael Costello indicated his company was interested, but said it would have to make economic sense. This would likely mean a larger plant.
Mr Costello said doubling the size of the plant would snake it 27 per cent cheaper, relatively. "And even that is not a particularly big one. So what we are going to look at is a number of models which could be more effective financially than a 22MW one," he said. The 22MW plant discussed in the study would require 120 ha of land and Mr Costello said a 44MW plant would be "much bigger".
The central basin of Lake Burley Griffin - between Commonwealth and Kings Avenue bridges - is 103 ha, and 120 ha is about the same size as the University of Canberra campus or almost four times the footprint of Parliament House. The study said the plant would "combine the physical features of the large solar field with a small thermal power station, possibly with a gas boiler or small gas turbine for back-tip.
"While the solar technology itself is considered to be relatively benign, it is likely to require consideration [of] environmental issues that are similar to those raised by a small gas-fired power station with the additional issues raised by the large land area and visual amenity." The report mentions three possible sites - two to the west of the Stromlo Treatment plant and one to the east of Tharwa.
But neither Mr Stanhope nor Mr Costello would say where the solar energy plant could be built. Mr Costello said there were two or three options, "but I am not going to speculate on it at the moment because it will just get everyone alarmed". He said, "Given its size, it is not going to be close to heavily settled areas like Tuggeranong and Belconnen or somewhere like that.
To the extent that the ACT has more remote regions, it will be in a more remote region." Mr Stanhope said there would be consultation on potential sites after the tender process. The study identifies a number of constraints, as well as the size of the land required, meaning options would be limited.
The site would have to be cleared, be away from hills or anything else that could cast shade, and be as close as possible to the power network and gas and water supplies. The study also foreshadows environmental, planning and community issues as highly probable and identifies them as posing a high risk to the project.
The Government and ActewAGL are also embroiled in controversy over a proposal to build a $1 billion gas-fired power station and data centre in Tuggeranong near the Mugga Lane tip. Residents are concerned about the potential health effects of the project, which they say will be built 600m from the nearest home.
ACT Opposition environment spokeswoman Vicki Dunne was unsure the Government would be able to make the solar energy station happen. "Given their track record in building power stations, I don't have any confidence that they will be able to pull this off if they are a major investor," she said.
Mr Stanhope said "a number of firms" were interested in the solar energy project but details on them were unavailable last night. The study said support from the ACT Government was not clearly defined, and Mr Stanhope's office said it would depend on the business cases presented by the private sector. The study said solar thermal generation systems collected solar energy as heat to power steam turbines.
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