EcoGeneration’s Rachel Purchase spoke with Mr Stocken, who is also a board member of the Clean Energy Council, about his views on developing an Australian solar photovoltaic (PV) manufacturing industry, and the announcement that the Federal Government is redirecting a portion of funds allocated for Solar Flagships to the flood levy. EcoGeneration also took the opportunity to ask Mr Stocken about the origin of BP Solar – a PV manufacture, distribution, installation, development and research branch of the British Petroleum energy empire.

BP began investing in solar technology just over 30 years ago. What was the motivation behind this venture?

In 1980 BP had a venture unit that aimed to identify future discoveries and commercialise them. The unit wasn't restricted to just energy areas, and, as well as a modest investment in solar PV, the unit was involved with flywheels, composite materials, pollution technology response and a host of other step-out opportunities. BP continued to invest in solar PV after this early stage with the aim of making solar a larger contributor to the energy mix of the 21st century.

Along with solar PV, does BP invest in the development of any other renewable energy technologies?

BP Solar fits within one of the four major divisions of BP Alternative Energy which invests in a number of other low-carbon technologies. These are wind – predominantly in the United States – biofuels, hydrogen and carbon capture and storage. Since 2005, BP Alternative Energy has invested over $US4 billion in these renewable technologies.

You have worked hard to develop a solar PV manufacturing industry in Asia – would you like to see the growth of such an industry in Australia?

Yes, however, local manufacturing only makes sense if international competitiveness and quality can be achieved, as solar PV has turned into a truly global industry that abides by global market forces. While over time solar cell and module manufacturing will develop here, it will require sufficient market scale, coupled with stable, long-term policy support for players to invest.

What has been a highlight in the local market over recent years has been the investment, by small to medium enterprises in particular, in installation equipment and services for residential solar PV. Here we are seeing economies of scale coming through as represented by ever-declining installation costs for individual households. Unfortunately, none of this is helped by the ‘boombust’ nature of complementary government support to the solar PV Industry.

How has BP Solar’s short-listed Solar Flagships project been affected by the recent funding cuts (to finance the flood levy)? Has the Government communicated to applicants specific budgetary revisions?

Our understanding is that the recent Government announcements will not materially affect Round 1 of Solar Flagships, or the program more broadly. We understand that it remains the Government's intention to announce the Round 1 outcome in mid-2011. Solar Flagships has been a really valuable learning curve for all stakeholders involved, in particular embracing the investment, financial and grid connection communities. The project consortium, comprising ourselves, Fotowatio FRV and Pacific Hydro, is very much continuing to develop the project in the New South Wales Tablelands and eagerly awaits the outcome.

What is your response to the revision of the New South Wales feed-in-tariff, and what would you like to see in the future in terms of feed-in-tariffs?

The most important thing is stability and certainty moving forward on the feed-in-tariff rate, whatever rate is finally agreed upon. There is certainly a value to solar PV-generated kilowatt hours, so a commensurate rate needs to be reasonably determined.

What is the current focus of your work as a board member of the Clean Energy Council?

The Clean Energy Council represents a broad parish, developing and growing very quickly. Representing renewable energy in a balanced way at government level at the right time (24/7) has been critical over the last few years, and never more so than now. BP Solar plays a part not only at board level but also at directorate level in the solar PV group. For me, it’s refreshing to get exposure to the wider lens of renewable energy and to play a small part in developing the industry in Australia.

What is your ideal vision for renewable energy infrastructure in Australia?

Australia is unique. It is blessed by an abundance of a whole range of renewable energy resources. As well as solar PV, concentrated solar thermal, wind, geothermal and wave energy – to name a few – have significant potential. There is no one winner here. Each, with its inherent advantages, has an increasingly important place in the renewable energy mix moving forward. Solar PV, for its part, has a real role to play in reducing daytime peaks due to its inherent predictability and reliability as a technology. Also, a so far untapped potential for solar PV is as large roof-top mounted distributed generation. This is an ideal fit for solar PV.

How can Australia best position itself in the international renewable energy market?

As Australia is the energy and resources provider to Asia, wouldn’t it be appropriate for Australia to position itself as the renewable energy supplier of choice to Asia over the next 20 years as the technologies develop and commercialise? The opportunity is immense if all stakeholders, government and industry, can just make a long-term plan.