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This was published 6 years ago
Fears Finkel review reliability obligations will slow-down renewable projects
By Georgina Connery
Energy experts have warned reliability requirements put forward in the Finkel Review will slow-down building of new renewables generation.
And after reading the document set to break the stalemate on national energy policy, the ACT government wants more detail about how reliability obligations might impact projects in the pipeline for Canberra.
To ensure renewable energy players can guarantee dispatchable generation around the clock, the recommendation would require new generators to create back-up power alliances with battery storage, open-cycle gas turbine or other providers able to deliver power at the request of the grid operator.
ANU Energy Change Institute's Dr Hugh Saddler said the reliability obligations were "messy" and would likely lead to protracted negotiations between companies that would otherwise be competing in the wholesale energy market.
Shane Rattenbury and Andrew Barr at Majura Solar Farm. Credit: Rohan Thomson
"Why I think it is such a bad process is because it's a dreadfully complicated contractual process of getting together a gaggle of completely different companies," he said.
"There is a great diverse array, with their headquarters in different countries building wind farms and solar. There's Spanish, French, Chinese, Indian...a whole group of them having to get together to negotiate, and then negotiate with a storage provider - a bloody nightmare."
The Canberra Times asked the ACT Climate Change Minister Shane Rattenbury whether he was concerned about the local impact of the proposed regulations, and which projects would be subject to them.
His office outlined Finkel's reliability obligations applied to new power stations and as such would not impact any of the renewable energy projects currently supplying the ACT, or those to be completed in the next 12 months.
The Williamsdale solar farm is expected to power more than 3600 homes. Credit: Ricky Fuller
"The ACT Government is now closely considering the recommendations outlined in the Finkel review, noting the forthcoming COAG Energy Council meeting on 13-14 July," a spokesman said.
It is possible future projects yet to be commissioned will be impacted, such as Crookwell 2 Wind Farm and Hornsdale Wind Farm Stage 3, but the directorate said the review's initial details meant that was still unclear.
Mr Rattenbury welcomed the Finkel Review and said represented the first genuine opportunity to achieve a nationally agreed strategy for our energy sector, reduce emission and tackle global warming.
He said ACT consumers had "been punished for the lack of coordination in the energy market" and recent ICRC announcements ACT electricity prices would rise by 18.95% from July 1 were a direct result of policy uncertainty.
"The ACT was a rare shining light for the renewable energy sector, supporting new renewable energy project during what otherwise would have been a complete investment drought," he said.
"The ACT will support a genuine national plan that supports the increased adoption of renewable energy, and overcoming the investment stalemate currently impacting on the energy sector. We hope that Energy Ministers across the other states, and political affiliations, can drawn upon the Finkel Review findings to agree on a National Plan for the energy sector."