15MW ac UTILITY SCALE SOLAR FARM Municipal Association of Victoria 12 th July 2016

THE PROJECT Sunshine Coast Council 100% Financing a 15MW ac PV build –Located within SCC boundary –Grid connected –Initially provide 30GWh power annually Exhaustive 4 year process Reached Financial Close EOI/Tender process for D&C and O&M Construction is underway

THE PLAN

THE DRIVERS Renewable Policy –Climate Change & Peak Oil Strategy –Energy Transition Plan –Rural Futures Strategy –Regional Economic Development Strategy Is Policy at all Cost? ‘Traditional’ Renewable Project delivery not financially viable –PPAs, commercial providers, Green Power etc Renewables Policy created an ‘Investment Problem’

FRAMING THE BACKDROP

Can enough be saved on energy usage to justify Investment?

THE ALTERNATIVE

LGAs – THE IDEAL RENWABLE INVESTOR Council is its own customer –Removes margin and credit risk making it cheaper Not a selective use of capital –One way or another electricity usage is going to cost ~$80million Low financing costs Council is not looking for excess returns Longer-term view Economic and Social benefits –No value to a commercial player

THE CHALLENGES Community concerns –Visual Amenity –Property Value Impact –“How can Council do this if a commercial player cannot’ Site location is a critical constraint –Grid connection is key & cheap land comes with it’s own issues Grant Funding General scepticism Managing the internal decision process

THE BENEFITS Exceeding Community endorsed Policy aims (with Savings!) SCC - 100% green power (~30GWh annually) Reinforcing Sustainable Regional Credentials –Drives local investment and growth Leverage natural Social & Environmental benefits –Budget for a learning/R&D centre with Education programs, school visits Near term/follow on Economic investment –Cleantech sector investment encouraged Strengthen Academic ties

CONTACT Gary Kelly Director – Resource Analytics Mobile: