About Solar Flagships

The Solar Flagships program was set up by the Federal Government to select and fund large-scale grid-connected solar projects that could ultimately produce a combined capacity of 1,000 megawatts (MW) of energy.

52 funding applications were submitted during round one of the program and only eight will be progressing to stage two.

During round two, applicants will receive feasibility funding – a collective sum of $15 million – to develop more extensive applications for their projects. The subsequent applications are to include details of final site selection, community consultation and site approvals, engineering and project financing.

Two winning projects will be selected for funding and development support at the end of round two – one project that focuses on solar photovoltaic (PV) technology and another that focuses on solar thermal technology. The two winning applicants are expected to be announced in the first half of 2011.

ACCIONA Energy

Capricorn Solar and Frontier Solar

What technology will be used for the Solar Flagships project? Is it well-established technology or a recent innovation? The technology proposed for the Solar Flagships Program is parabolic trough, a commercially-proven and reliable technology at an installed scale that can meet the requirements of the Solar Flagship Program. The technology has also been financed by international banking groups which is another important element that supports its commercial application.

What is the expected capacity and electricity production from the plant? ACCIONA Energy proposes to generate 200 MW using solar thermal parabolic trough technology at a single site in either Queensland or South Australia.

Where are the proposed sites? The proposed Queensland site – Capricorn Solar – is situated in the Lilyvale region, north-east of Emerald in central Queensland. The proposed South Australian site – Frontier Solar – is located in the region of Roxby Downs and the Olympic Dam mine.

Does ACCIONA have any other solar thermal projects in development? ACCIONA Energy operates 114 MW of solar thermal parabolic trough technology in Spain and the US with a further 150 MW in the advanced stages of construction in Spain and an extensive ongoing pipeline of developments. We have been delivering this technology for many years and our design and operational experience is extensive from the early forms to the technology to the modern scale.

Why is the Solar Flagships program important? Australia must transition to a low-carbon economy. To achieve this, a diverse range of renewable energy technologies are required. At present, wind represents the lowest cost renewable technology while also offering scalability and rapid deployment. Solar energy generation, although substantially more capital intensive, offers huge potential as a key building block in a diversified energy system. Of all the countries in the world, Australia should be a showpiece for solar energy generation, given our natural advantages of favourable climate and expansive land mass. Solar energy generation complements wind and other renewable technologies.

The Solar Flagships Program is important for Australia for two key reasons. Firstly, it will provide an opportunity to demonstrate that the application of solar technologies is feasible at large scales and will help inform future policy development on solar energy. Secondly, it will be a key building block in the process of developing Australian capacity and capability in solar. Importantly Solar Flagships will deliver economic benefits to rural and regional areas together with clean, green energy.

Will the proposed project proceed without federal funding? Although there is great potential in the long term to bring down the cost of parabolic trough technology through innovations in design, the market mechanisms established by the Government do not support energy market pricing that enables this technology to be delivered. Landmark projects such as Capricorn Solar or Frontier Solar would not proceed in today’s market environment without the direct financial support of the Federal and state governments or without wholesale and retail energy customers being willing to pay for the environmental benefit that is delivered by renewables such as wind and solar.

Parsons Brinkerhoff

The Solar Flair Project

(Supported by The Solar Flair Alliance incorporating Parsons Brinkerhoff, CS Energy, Siemens, John Holland, Infrastructure Capital Group, the Queensland University of Technology and Curtin University

What technology will be used for the Solar Flagships project? Is it well-established technology or a recent innovation? The Solar Flair Project is based on Parabolic Trough Collector (PTC) solar thermal technology. Parabolic trough systems are the most proven solar thermal technology with over 600 MW of operating plant and approximately 2,000 MW under construction globally. 354 MW of PTC plant has been operating continuously for over 20 years. Only the parabolic trough technology has a proven commercial scale operating record. It is also worth noting that because the parabolic trough technology achieves temperatures of around 400° Celsius, it will be the most efficient technology of the Solar Flagship proponents. Based on the proven operational record of these plants, their efficiency, predictability, and reliability and acceptance by developers, financiers and operators, the Solar Flair Alliance believes that PTC is the best option for the first stand-alone utility-scale project in Australia.

What is the expected capacity and electricity production from the plant? The plant is expected to generate 150 MW however, the Solar Flair Alliance is currently investigating provisions to expand the plant.

What is the proposed site? The project is expected to be located close to the existing Kogan Creek Power Station, owned and operated by CS Energy, near Chinchilla in South West Queensland. A site selection and feasibility study is currently underway to find the most suitable piece of land. Benefits of the proposed site include:

• Sufficient land area has been identified for the 150 MW proposed size with room to expand to 250 MW including thermal energy storage if viable. It is expected that much of the research infrastructure funded by the Educational Investment Fund will be collocated at the selected site.
• Road access to Kogan Creek Power Station is capable of transporting heavy loads as required and only minor road upgrades may be necessary to extend suitable road access to the proposed site.
• The proposed site is in close proximity to the existing electricity grid, minimising connection costs.
• The location is also in close proximity to the existing coal seam gas industry meaning access to water and gas for the plant’s operational requirements.

Does Parsons Brinkerhoff have any other solar thermal projects in development? The Solar Flair Alliance members are involved in numerous solar developments around the world. Some examples are:

• CS Energy has been offered Renewable Energy Demonstration Program (REDP) funding for the Kogan Creek Solar Boost Project
• Siemens are involved in numerous projects around the world including the Lebrija solar power plant in Andalusia, Spain, that uses a solar field and turbine-generator, and the Nevada Solar One project in the USA that uses receiver tubes and a turbine-generator
• Parsons Brinckerhoff is providing feasibility assistance to a variety of clients looking at developing solar plants in Australia and New Zealand.

Why is the Solar Flagships program important? The Australian Government's commitment to large-scale solar projects not only means a commitment to cleaner, greener energy generation; but it will also support the growth of Australia's research and development capacity. The program will encourage continued investment in solar research infrastructure and allow for further development of our intellectual property in solar power generation. This will help position Australia as a leader in solar power technology. The key to the growth of solar will be how long it takes before the energy generated by solar is equivalent in cost to the energy generated by other sources. In Europe this crossover, or grid parity, is expected to occur sometime in the period 2015–2017. In Australia, with our lower energy prices, the crossover will conceivably occur sometime later. The actual timing will be determined by how quickly the fossil energy price rises, and by how quickly we can make developments to reduce the cost of the solar technology. Once grid parity is reached, we will see a rapid growth in solar power generation, especially in solar thermal because of its inherent ability to store energy for generation even when the sun is not shining.

Transfield

The Collinsville Power Station

(Supported by the Transfield Consortium, incorporating Transfield Holdings, Novatec-Biosol (Novatec), Transfield Services and the Transfield Services Infrastructure Fund)

What technology will be used for the Solar Flagships project? Is it well-established technology or a recent innovation? The project will be based on a Linear Fresnel Concentrated Solar Power system. This advanced modular system uses proprietary solar field technology developed by Novatec, a company majority owned by Transfield Holdings. The Novatec solar technology has wide application, suitable in gas and coal fired power plants as a fuel saver, in stand alone power stations and in industrial facilities and other applications requiring process heat. When compared to existing technologies per unit of energy generated, Novatec’s technology uses:

• Much less material – mirror-glass and steel and is therefore lower cost
• Less land
• A small fraction of the water conventional systems require for cleaning.

What is the expected capacity and electricity production from the plant? The plant will produce 185MW.

Where is the proposed site? The Transfield consortium proposal is to convert the existing coal-fired Collinsville Power Station in Queensland to a solar power station. A key advantage to the Transfield consortium is its unique knowledge of this facility after owning and operating the station since 1996 and having managed its refurbishment in 1998.

Why is the Solar Flagships program important? This program is important for four main reasons. Firstly, the program demonstrates a significant commitment by Australian governments to use solar energy to meet the growing electricity demand. Secondly, it has the capacity to capitalise on a unique Australian asset – some of the best solar radiation in the world. Combined with appropriate investment and incentives, this can help Australia become a world leader in solar energy generation and technology development. Thirdly, it encourages greater private investment in renewable energy. Lastly, it supports the growth of Australia's research and development capacity through project research partners CSIRO, Queensland University of Technology, University of Southern Queensland and Australian National University.

Will the proposed project proceed without federal funding? The project would not proceed without some level of government funding. The initial capital investment associated with establishing renewable energy infrastructure is substantial, and cannot be financed in the absence of a system to price carbon emissions. As the technology is established and scales up it will become more cost-efficient. In the longer term, when carbon emissions are priced, renewable energy technologies will have to compete with each other. Transfield believes that concentrated solar power will be competitive and feature strongly in the mix of renewable energy technologies Australia needs to renew our existing fossil fuel fired generation assets.

Wind Prospect CWP

Kogan Creek Power Plant

Wind Prospect CWP has formed a consortium with CS Energy, AREVA Solar and Mitsui & Co (Australia) to develop, build and operate a stand alone, 250 MW solar thermal power plant at Kogan Creek, near Chinchilla in Queensland. The power plant will incorporate AREVA Solar's Compact Linear Fresnel Reflector (CLFR) technology, originally developed in Australia by Ausra. Mitsui will have a lead role in the design, procurement and delivery of the electricity generation part of the Plant, as well as providing significant input to achieve commercial and financial structure for delivery of the consortium's bid. CS Energy’s contribution to the consortium will include operating and maintaining the project in the long term. The University of Queensland will be the Education Investment Fund research partner in the project.