Road to the Renewable Energy Target How Western Australia is tracking and opportunities on the journey to the 2020 target

Mark Williamson, Executive General Manager

Agenda

• Scheme overview

• Small-scale Renewable Energy Scheme

• Large-scale Renewable Energy Target

• Conclusion and Questions

Footer Details – presentation title and date 2

Our purpose: accelerating carbon abatement for Australia

WA Power and Gas – 2016 3

Scheme overview

WA Power and Gas - 2016 4

Renewable Energy Target

• encourages small-scale renewable energy system installations

• uncapped

• does not contribute to the 2020 target

Small-scale Large-scale

• encourages new investment in large-scale renewable energy

• 33 million megawatt hours of additional renewable electricity from renewable sources by 2020

WA Power and Gas – 2016 5

Supply and demand

WA Power and Gas – 2016 6

2015 supply and demand in WA

WA Power and Gas - 2016 7

Scheme Supply Demand

Small-scale 2.2 million 3.9 million

Large-scale 1.7 million 2.4 million

Small-scale Renewable Energy Scheme

Small-scale Renewable Energy Scheme

• Almost 2.5 million installations since 2011

• Average system size increasing

• Average system size for WA 4.63kW in 2015

• 2016 install data for WA shows strong start to the year

WA Power and Gas – 2016 9

4.9

4.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

2011 2012 2013 2014 2015 2016

Australia WA Avg kW capacity Australia Avg kW capacity WA

Small-scale Renewable Energy Scheme

• WA had the fourth highest proportion of installations in 2015, representing 15% of nation wide installs

• Currently second highest number of installations in 2016

WA Power and Gas – 2016 10

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2014 2015 2016

QLD WA

Small-scale Renewable Energy Scheme

• Around 8 900 GWh of electricity generated or displaced in 2015

» enough to power around 1.4 million homes

Australia-wide generation WA generation

• Around 1 100 GWh of electricity generated or displaced in 2015

» enough to power around 170 000 homes

Footer Details – presentation title and date 11

Small-scale Renewable Energy Scheme

WA Power and Gas – 2016 12

2,6622,913

5,789

6,834 6,864

390 231 362607 714

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 2012 2013 2014 2015

Solar PV installations with a capacity 10-100kW

Australia WA

Large-scale Renewable Energy Target

WA contribution to total generation under LRET

WA Power and Gas – 2016 14

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Elig

ible

ge

ne

rati

on

(M

Wh

)

Total

WA

Large-scale Renewable Energy Target

WA Power and Gas – 2016 15

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2015 2016 2017 2018 2019 2020

Existing generation Large-scale Renewable Energy Target Total demand

Future generation

LGC spot price 2015

WA Power and Gas – 2016 16

Renewable projects - WA

• Last utility scale power station accredited in WA was Mumbida Wind Farm – 55MW – accredited 13/5/2013

• No projects committed in WA

• There are 1 255 MW capacity of renewable projects that currently have planning approval in WA

» Of this, approximately 50MW of capacity is solar

» Approximately 1100 MW of capacity is wind

» Approximately 94 MW of capacity is waste/biomass

WA Power and Gas – 2016 17

Current installed capacity by fuel source in WA

WA Power and Gas – 2016 18

Fuel source Installed capacity (MW)

Wind 490Agriculture waste, food waste, waste from agriculture products 64*

Hydro 32

Landfill gas 24

Solar 13Sewage gas and biomass based components of sewage, municipal solid waste 2

Total 626* Includes one power of 63MW that has not created LGC since 2007

WA Power and Gas – 2016 19

ACT NSWNT

VIC

QLD

SA

TAS

WA

Per capita large-scale eligible generation

Conclusion

Small-scale

• WA currently in the mid-field for nationwide installs

• Installation data shows WA trending toward the lower end on commercial and industrial systems

Large-scale

• No activity in WA in utility scale power station under the LRET for many years

• Opportunity with a strong LGC price signal and 1,255 MW of projects with planning approval

Footer Details – presentation title and date 20

Questions?

Footer Details – presentation title and date 21

Installed capacity (MW) by state

WA Power and Gas – 2016 Date22

ACT, 26

NSW, 5414

NT, 12QLD, 1302SA, 1508

TAS, 2645

VIC, 2117

WA, 632