ARENA & Ocean Energy Clean Energy Week 2014 Louise Vickery General Manager, Renewable Futures ARENA 23 July 2014

2 ARENA investment in Ocean Energy to date ARENA has invested in a variety of projects ($21.3million) o RESEARCH AND DEVELOPMENT o Resource characterisation o Environmental impact studies o DEMONSTRATION PROJECTS o Varying technology types o Grid connection Research and Development Deployment (Small Scale) Deployment (Large Scale) CSIRO Wave Atlas Resource characterisation Others Array modelling and environmental impact studies Biowave (oscillating wave surge converter) 1 unit, 250kW, grid connected Carnegie CETO 5 (point absorber) 3 units, 2MW, DoD grid Oceanlinx (oscillating water column) 1 unit, 1MW, grid connected Carnegie CETO 6 (point absorber) 3 units, 3MW, DoD grid Victorian Wave Partners (point absorber) Multiple units, up to 19MW, grid connected

3 Why do we invest in ocean energy ? Potential of ocean Energy o Australia has great ocean energy resource o Potential forecasting longer range than wind or solar o 24/7 potential o Diversify Australia’s clean energy future ocean energy is a nascent industry o wide variety of device types, few demonstrated at scale o Australian companies/ingenuity combined with ARENA projects will add to the pool of global knowledge Australia’s Wave Resources: CSIRO, Ocean Renewable Energy

4 ARENA’s ocean energy investment strategy Our projects will provide data on o ECONOMIC CASE o where the best sites are for ocean energy investments o understanding of performance and project cost o skills and infrastructure needed to support wave energy projects o ENVIRONMENTAL IMPACT o impact of wave arrays on ocean environments o Managing risk issues o INTEGRATING WAVE POWER INTO THE GRID o better understanding of how ocean energy fits with demand ARENA’s portfolio and % of committed funds

5 Lessons Learnt to date WAVE PROJECTS ARE COMPLEX o Overcome harsh environment – the power of the ocean o Permitting/environmental impact o Logistics REQUIRE TECHNOLOGY SPECIFIC SOLUTIONS o Undersea connections and cabling o Transportation to site o Decommissioning FOUNDATIONS LAID FOR COMMERCIALISATION o Financing o Industry skills and capability o Customer base ARENA CRUCIAL TO REDUCING FUTURE PROJECT RISK o Multiple possible points of failure o Exceptional project logistics and ocean engineering ingenuity and experience o Risk management capability required Carnegie Wave Energy Buoy

6 The way ahead – ARENA and ocean energy strategy Government stated intentions o Maximise existing project benefits and the $1billion committed to date o Existing contracts meeting milestones unaffected o Legislation required to pass Parliament o ARENA business as usual Looking forward o ocean energy sector review o Consult with our existing portfolio, industry and related ocean bodies o Examine our projects in light of global trends and the commercialisation pathway o Continue to gather and share lessons learnt with the industry Tidal resources in King Sound, WA: CSIRO, Ocean Renewable Energy

arena.gov.au Thank you