Tackling climate change in a practical way 18 May 2016

A history of transformation Brunswick Electricity Supply Dept SECV Privatisation >> How we operate >> How we generate >> How we use Energy services 1951

Recent history Brunswick Electricity Supply Dept SECV Privatisation st Solar Energy as a community service - Environment as a community value MEFLZCE

Scenarios: 1.Set & forget 2.Rise of the prosumer 3.Leaving the grid 4.Renewables thrive Common features: 1.Customer-centric 2.Carbon-constrained 3.Smarts 4.Disruption

Our Structure

MEFL Operating Environment ZCE PCConsultingAdvocacy

1. Data analysis

Models and mechanisms Social Enterprise Co-operatives Sourcing finance Funding mechanisms

Niche and supported ExperimentalDemonstration Fully independent “Valley of Death” Idea Mainstream acceptance Innovator push Market pull Cost/”unit”Market expansion Government program and regulatory intervention Business and financial sector investment Innovation Framework”

Company Structures Nightingale & Westwyck Innovation risk Financing Approvals

NSW OEH Toolkit

Social Enterprise Positive Charge Business orientation versus grant-based culture

Positive Charge Solar bulk buys: refining model

Funding mechanisms Darebin Solar $aver, EAGA project Administrative complexity Financing Innovation risk

Moreland Community Solar

Co-operative Moreland Community Solar Regulatory barriers

Bendigo Model

Ownership R & DDemonstrationSupported Commercial Commercial- niche Commercial Mainstream Direct Ownership & Control Beaufort Bioenergy Project Moreland Civic Centre Design, Build & Maintain Community owned and Cooperative Yorke Biomass Project Lismore Community Solar Hepburn Wind PPPAlkimos Beach development Joint VentureMagnetic Island Solar City LeasingKenjarhy ESCO & EPCYarra Council EPC PPAMelbourne Energy Purchase ACT Reverse Auction CompanyVast Solar CSP plant

Case studies Moreland Council Civic Centre Direct ownership and control

Case studies Alkimos Beach solar and battery storage Public Private Partnership An Australia-first trial of large-scale battery storage for households with solar panels

Case studies Woking Borough Council and Thameswey Ltd. Energy Services Company This project is the first sustainable community energy system operating in a competitive energy market of its type in the world.

Case studies Yarra Council and Ecosave Energy Performance Contract These measures will guarantee that Council reduces emissions by 44% from base line levels, saving over $300,000 a year in operational and maintenance costs.

Case studies Kenjarhy Leasing A 100% Indigenous owned and operated company, and one of a minority of companies who design and construct medium and large-scale solar projects throughout NSW.

Case studies Magnetic Island Solar Suburb Joint Venture This project trialed a new, sustainable model for electricity supply to avoid network augmentation.

Case studies Melbourne Renewable Energy Project Power Purchase Agreement First collaborative energy purchase of its kind in Australia, providing a replicable and scalable model.

Case studies ACT Reverse Auction Power Purchase Agreement The reverse auction feed-in tariff mechanism is the first of its kind in Australia and ensures that the government accesses proven technology at the lowest possible cost.

Case studies Hepburn Wind Community-owned asset Australia’s first community-owned wind farm; with the ‘Hepburn Model’ inspiring similar projects to explore the community enterprise model for renewable energy projects.

Case studies Lismore Community Solar Community-owned / Leasing Australia’s first Council operated, community funded solar farm.

Case studies Yorke Peninsula Biomass project Cooperative Australia’s first straw-fuelled power company, owned and operated in a cooperative style business model.

Case studies Vast Solar CSP project Company This project will demonstrate the reliable and safe operation of Vast Solar’s low-cost, high-performance Concentrating Solar Thermal (CST) power system.

Crowd-sourcing, donation, soft-loans Good for testing Potential to scale? Legal limits Transaction costs high

Barriers –Information barriers –Opportunity costs –Split incentives –Institutional barriers –Innovation challenges –Lack of expertise –Technology barriers –Policy and regulation Niche and supported ExperimentalDemonstration Fully independent “Valley of Death” Idea Mainstream acceptance Innovator push Market pull Cost/”unit” Market expansion Government program and regulatory intervention Business and financial sector investment

MEFL’s model of change NSW OEH Toolkit Page 47

Opportunities –Celebrating innovation –Collaboration –Local best practice –Public awareness –Co-opting skills into sector –Policy alignment –Standards –Treating climate change as a central risk

NSW OEH Toolkit Page 49