Page 284 - Week 01 - Thursday, 15 December 2016
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generating capacity of 200 kilowatts. The act, originally passed in December 2011, has four objectives: to promote the establishment of large-scale renewable electricity generators from a range of sources in the Australian capital region and elsewhere; to promote the development of the renewable electricity generation industry in the ACT and Australia; to reduce the ACT’s greenhouse gas emissions and assist in reaching its emission reduction targets; and to reduce the ACT’s reliance on non-renewable electricity sources while minimising the cost to electricity consumers.
Wind auction II opened for proposals on 10 August 2015 and closed on 14 October 2015. Fifteen proposals were received from 14 proponents. The total capacity of all the proposals was 1,158 megawatts, around six times the capacity for which feed-in tariff entitlements could be granted.
On 21 December 2015 the former government announced the 100 megawatt project from stage 2 of the Hornsdale wind farm as the first successful wind auction II proposal. The Hornsdale wind farm stage 2, located south-east of Port Augusta in South Australia, is the second stage of the Hornsdale wind farm stage 1 that was a winner in the first wind auction conducted by the ACT government in 2014. When announced, its feed-in tariff price of $77 per megawatt hour was the lowest publicly known wind support price in Australia.
The 100 megawatt Sapphire wind farm project was the second successful proposal in wind auction II, also announced on 21 December 2015. The Sapphire wind farm, located near Glen Innes in north-eastern New South Wales, delivered exceptional local investment benefits for the ACT that included establishment of a new Asia-Pacific microgrid export facility in Canberra and the relocation of the asset and operations management centre of CWP Renewables to the territory.
Both proposals represented exceptional value for money for the ACT government as assessed through the competitive auction process. This has been supported by the review’s findings. I am also pleased to report that both projects are making excellent progress, with the Sapphire wind farm on track to reach financial close this month and begin construction shortly after, and stage 2 of the Hornsdale wind farm currently under construction.
The act requires that a review of each capacity release be undertaken within six months of its last grant of feed-in tariff entitlement. The act also requires that the responsible minister present a copy of the review to the Assembly no later than six months after the end of the period in which the review is undertaken.
On 21 March 2015 the Environment, Planning and Sustainable Development Directorate engaged AECOM Australia to undertake the review. Its final report was delivered to the directorate on 27 May 2016, within six months of the last grant of feed-in tariff entitlement under the capacity release which was made on 16 February 2016.
The review included wide consultation with both successful and unsuccessful auction proponents, members of the wind auction II advisory panel, renewable electricity industry participants and members of the government. The review includes a number of key findings and highlights the overall success of wind auction II.
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