A powerful plan to catch the sunshine

Age
Saturday 30/5/2009 Page: 14

The State Government is getting serious about solar energy, pledging $100 million towards the development of a solar energy plant, writes Lain Gillespie.

The State Government has called for expressions of interest in developing a huge solar energy station in Victoria, and has pledged a non-refundable $100 million towards the project.

The successful developer will have to build a solar energy station capable of generating 330GWh of electricity a year enough to power 50,000 homes. Alternatively, the plant would be capable of powering all Victorian Government departments and agencies, including public schools, police stations, VicRoads and even the Melbourne Zoo.

Expressions of interest from qualified tenderers close on September 25, and the government aims to have the plant up and running by 2015. Tender documents say that until now, solar electricity generation technologies in Australia have almost exclusively been flatplate photovoltaic arrays, which have not had sufficient capacity to influence the energy supply mix. "Such smaller arrays have also not been cost-effective against other renewable energy technologies or have lead to a significant domestic manufacturing presence," the documents say.

To be eligible for consideration, the solar generation project must gain financial support from both the Australian Government and private sectors equal to, or greater than, the amount of financial support provided by Victoria. The Victorian Government does not intend to recover funds extended to the project (except in limited circumstances), acquire equity in the electricity generator or acquire ownership of any intellectual property associated with it.

The tender documents warn that the Federal Government's proposed carbon pollution reduction scheme "will largely favour entry to market of gas-fired assets, rather than renewable energy projects". "While this outcome is desirable for carbon mitigation purposes in the short term, the view of the Australian and Victorian Governments is that long-term emissions reductions will rely to a large extent on renewable energy," the documents say.

In announcing the project earlier this year, Premier John Brumby said large-scale solar was the most economical form of solar energy generation and was expected to drive investment and create jobs in regional Victoria. "We have fast-tracked this project so that companies can tap into the Federal Government's funding available under the Renewable Energy Demonstration Program," Mr Brumby said. "solar energy generation is expensive because the solar industry is still in its infancy.

The way to drive down the cost is to speed up development of solar plants, which is why the Victorian Government will provide funding for a new solar energy station." The government has also provided a $6 million grant for an organic solar research and development project, and $50 million for a 154MW large-scale solar plant near Mildura. "Our Victorian Renewable Energy Target has already attracted $2 billion in renewable energy investment and will create more than 2000 jobs, and we have invested $5 million to install solar energy infrastructure in 500 schools and community buildings," Mr Brumby said.

Additional information on the large-scale solar project can be found at www.dpi.vic.gov.au/largescalesolar/