AUSTRALIAN CENTRE FOR
RENEWABLE ENERGY (ACRE)
BOARD ANNUAL REPORT 2011–12
ISSN 1838-6296
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CONTENTS
Letter of transmittal
3
Message from the Arena Chair
4
ACRE highlights 2011–12
5
Key activities for 2011–12
6
Functions of the ACRE Board
8
ACRE programs
15
Case study
17
Budget report
18
2
LETTER OF TRANSMITTAL
OFFICE OF THE CHAIR
29 November 2012
The Hon Martin Ferguson AM MP
Minister for Resources and Energy
PO Box 6022
Parliament House
CANBERRA ACT 2600
Dear Minister
On behalf of the Australian Renewable Energy Agency, I am pleased to present to you the
2011-12 Annual Report for the Australian Centre for Renewable Energy (ACRE). This is the
final ACRE annual report.
The report has been prepared in accordance with the requirements of Section 26 of the
Australian Renewable Energy Agency (Consequential Amendments and Transitional
Provisions) Act 2011.
Yours sincerely
Greg Bourne
Chair
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MESSAGE FROM THE ARENA CHAIR
This annual report is prepared in accordance with the requirements of Section 26 of the
Australian Renewable Energy Agency (Consequential Amendments and Transitional
Provisions) Act 2011, which requires the Australian Renewable Energy Agency (ARENA) Board
to prepare the final Australian Centre for Renewable Energy (ACRE) Annual Report.
I am pleased to present the ACRE Board Annual Report for 2011-12, the final Annual Report for
the ACRE Board.
ACRE’s final year of operation was a busy one. During 2011-12, ACRE launched the Emerging
Renewables program and finalised the selection process for the fund manager under the
Renewable Energy Venture Capital Fund program. ACRE also commissioned a number of
reports on various renewable energy technologies within the framework of Strategic Directions,
with a particular focus on opportunities for renewable energy in regional and remote areas.
In undertaking this work, the ACRE Board drew on its broad ranging knowledge of the
renewable energy sector in Australia and how best to assist proponents in the future. ACRE
also continued to build on the relationships established in 2010-11 with the state and territory
governments and industry.
Following the Australian Government’s announcement on 10 July 2011 that it would establish
ARENA on 1 July 2012 as part of the Clean Energy Future Plan, a significant portion of ACRE’s
work during the 2011-12 year comprised preparation of programs and projects for potential
transfer to ARENA. Some programs, including the Emerging Renewables program and the
Renewable Energy Venture Capital Fund program and a significant number of projects were
transferred to ARENA.
A key aspect of the ACRE Board’s work during 2011-12 was to consider the lessons learned
from the administration of a large number of very different government programs directed at
funding renewable energy technologies.
I would like to congratulate the Chair of the ACRE Board, Professor Mary O’Kane, and her
colleagues on the ACRE Board for their excellent work in program design and implementation.
Their insights into renewable energy technology development and the role of public funding
have been invaluable to the ARENA Board.
My goal is that the ARENA Board and staff build on the work of ACRE, recognising the
challenges and opportunities of renewable energy technologies to continue the development of
these technologies to underpin Australia’s commitment to reduce greenhouse gas emissions
from our energy sector.
Greg Bourne
Chair, ARENA Board
29 November 2012
4
ACRE HIGHLIGHTS 2011-12
Date
Event
8 August 2011
Launch of ACRE Emerging Renewables program, at the Australian
National University by the Hon. Martin Ferguson AM MP, Minister for
Resources, Energy and Tourism
17 August 2011
State and territory government network meeting on collaboration on
renewable energy
1 October 2011
ACRE’s Western Australia Regional Renewable Assessment Report
released
5 December 2011
State and Territory government network meeting on engagement with
the Emerging Renewables program and to share information relating
to ARENA establishment
15 December 2011
Southern Cross Venture Partners (SXVP) announced as manager of
fund under the Renewable Energy Venture Capital (REVC) Fund
program
1 January 2012
Southern Cross Renewable Energy Fund commences under REVC
Fund program
24 February 2012
Launch of the $15 million Advanced Biofuels Investment Readiness
(ABIR) Program
8 March 2012
Funding agreement signed for the $60 million SolarOasis 40 MW
Whyalla Big Dish project
8 March 2012
The first Emerging Renewables program grant, to National ICT
Australia, is announced by Minister Ferguson
13 April 2012
Emerging Renewables program grant to Qantas Airways is
announced by Minister Ferguson
1 May 2012
Emerging Renewables program grants to Carnegie Wave Energy Ltd
and Waratah Power Pty Ltd are announced by Minister Ferguson
20 June 2012
Emerging Renewables program grant to University of Melbourne is
announced by Minister Ferguson
June 2012
Funding agreements commenced for Emerging Renewables program
grants to Oceanlinx Ltd, Bluescope Steel Ltd, Almond Board of
Australia Incorporated, BioPower Systems Pty Ltd and Australian
Solar Thermal Energy Association Ltd (announced by Minister
Ferguson in July 2012)
June 2012
Wave Directions Report provided to Minister Ferguson
5
KEY ACTIVITIES FOR 2011-12
In 2011–12, the ACRE Board held 16 Board meetings, including 5 teleconferences and 11 faceto-face meetings. The Board discussed a range of matters, including how to build on Strategic
Directions, the challenges of the renewable energy industry, the establishment of and transition
towards ARENA and collaboration mechanisms. A key focus of the meetings was the delivery of
funding for renewable energy technology development and in particular the assessment of
Emerging Renewables program expressions of interest and full project applications.
Collaboration
Developing strong partnerships has been an effective way for ACRE to maximise the value of
the Australian Government’s investment in renewable energy.
ACRE continued its engagement with agencies such as the Australian Solar Institute,
universities, CSIRO, Geoscience Australia, US Department of Energy, the US Advanced
Research Project Agency – Energy (ARPA-E), the Rural Industries Research and Development
Corporation (RIRDC), Austrade and Commercialisation Australia, as well as industry
representative bodies such as the Clean Energy Council and the Australian Geothermal Energy
Association.
The ACRE Board hosted two meetings, in August and December 2011, with state and territory
government representatives from agencies with portfolio interests in renewable energy
technologies. These meetings included discussion on renewable energy policies and programs
managed by the Australian Government and each state and territory government, with specific
focus on the Emerging Renewables program, input on developing ACRE technology
documents, facilitating information exchange between jurisdictions and the transition process to
ARENA.
FUNDING
The majority of ACRE Board meetings included consideration of applications received under the
Emerging Renewables program. These formal meetings were supported by consultations with
relevant industry and financial experts. All shortlisted applicants under the Emerging
Renewables program were provided an opportunity to present to the Board. A range of
initiatives was recommended and approved for funding, with the first grant announced on 8
March 2012. By the end of June 2012, ten Projects and Measures were approved for funding
totalling almost $26 million across a range of renewable energy technologies.
Technology Insights
Wave Directions
In 2012, the ACRE Board developed Wave Directions to look at the opportunities and
challenges facing marine energy technologies in Australia. Advice was received from a group
of international experts, chaired by Professor Frank Larkins (Chief Scientist Energy, Victoria)
with Dr John Huckerby (IEA) and Mr Eoin Sweeney (Ocean Energy Development Ireland) as
members. The ACRE Board’s advice was provided to the Minister in June 2012 in the form of a
letter together with a copy of the expert group’s advice to the ACRE Board.
The report found that the wave energy sector faces a number of challenges in Australia, from
resource assessment to operational deployment, but that wave energy has potential as a future
clean energy source, as Australian technology developers are well connected to, and are often
at the forefront of, global developments. The recommendations to the ACRE Board noted that
continuity from ACRE to ARENA will be vital, and given the wave resource locations,
6
consultation with state and territory governments will be paramount in developing any financial
and non-financial policy solutions for ocean energy. Wave Directions can be accessed at
www.acre.gov.au
Geothermal Directions
In early 2011, ACRE commissioned The Allen Consulting Group to undertake a study to assist
ACRE in identifying the key issues facing the geothermal industry in Australia, and outline a
possible pathway for the development of the sector. Overseeing the development of the report,
Australia’s geothermal industry: pathways for development, was a Geothermal Expert Group
chaired by Professor Robin Batterham AO FREng FAA FTSE, President and Chair of the
Australian Academy of Technological Sciences and Engineering, with representatives from
industry, government and research bodies.
Building on the analysis from these reports and consultation with state and territory
governments, the ACRE Board released its Geothermal Directions in July 2011, to expand on
its strategy for the geothermal sector outlined in the ACRE Board’s Strategic Directions.
Towards the end of 2011-12, the ACRE Board further considered the approach that may need
to be taken for geothermal energy to realise its potential.
Lessons Learned
The ACRE Board developed some Lessons Learned as part of its handover to ARENA, which
included that:

an underlying strategy to guide the development of policy, the assessment of
projects, funding and any resulting recommendations is fundamental; and

there is much that can be done to assist the renewable energy sector with a
portfolio approach which manages risk.
Much of the work that the ACRE Board has undertaken will stand ARENA in good stead when
supporting projects across the innovation chain, including consultation early and often with
project proponents. The ACRE Board also concluded that off-grid developments, particularly for
remote areas, offer significant opportunity for the deployment of renewable energy.
7
FUNCTIONS OF THE ACRE BOARD
The ACRE Act set out the scope of advice the ACRE Board may have been requested to
provide. The advice provided by the ACRE Board was strategically aligned with the Australian
Government policy framework to meet energy security and climate
change obligations.
As outlined in Section 5 of the ACRE Act (which was repealed on 1 July 2012), the functions of
the ACRE Board were:
(1) to provide advice to the Minister in relation to renewable energy technologies, including
advice in relation to the following:
(i) strategies to fund and promote the development, commercialisation and use of
renewable energy technologies;
(ii) the funding of renewable energy technology projects and measures;
(iii) the management of renewable energy technology programs;
(iv) improving existing program delivery;
(v) the provision of venture capital funding;
(vi) priority areas for government support;
(vii) establishing links with state and territory government agencies and the private sector
with a view to developing strategies for stimulating investment in renewable energy
technologies; and
(2) to assess renewable energy technology projects and measures for the purposes of providing
advice under subparagraph (1)(ii); and
(3) any other functions that the Minister, by writing, directs the Board to perform.
The Government set a number of objectives for ACRE, which were outlined in the Minister’s
Second Reading Speech of 18 November 2009, when introducing the Australian Centre for
Renewable Energy Bill 2009 into the House of Representatives. These were:
(i) developing and implementing a funding strategy capable of supporting projects along
the innovation chain;
(ii) encouraging additional investments, including investments from the private sector and
state and territory governments;
(iii) managing the cost-effective delivery of Government-funded renewable energy and
enabling technology programs;
(iv) providing support and advice to governments, industry and the community on
renewable energy and enabling technologies, strategies and related issues when
requested;
(v) fostering collaboration between governments, industry and the research community on
renewable energy projects;
(vi) supporting growth in skills and capacity in renewable technologies for the domestic
and international markets; and
(vii) any other activities that it is directed to undertake by the Government to support
renewable energy and enabling technologies.
8
MEMBERSHIP OF THE BOARD
Professor
Mary O’Kane
Executive Chairman, and
NSW Chief Scientist and
Engineer
Mary O’Kane and
Associates P/L
Mr
Steven MacDonald
Chief Executive, Marketing
and Investments
Transfield Services
Ms
Amanda Heyworth
CEO
Playford Capital P/L
Dr
Brian Spalding
Commissioner
Australian Energy Market
Commission
Dr
Beverley Ronalds
Group Executive
CSIRO (see note below)
Mr
Richard Bolt
Secretary
Department of Primary
Industries and Energy,
Victorian Government (see
note below)
Mr
Bruce Godfrey
Principal
Wyld Group
Ms
Margaret Sewell
CEO and Head of Clean
Energy Division
ACRE, and Department of
Resources, Energy and
Tourism
Dr Beverly Ronalds retired from the ACRE Board on 30 March 2012 and Mr Richard Bolt
resigned from the ACRE Board on 16 August 2011, as he took up a new position as Secretary
of the Victorian Department of Education and Early Childhood Development. These Directors
were not replaced.
9
KEY ACHIEVEMENTS FOR 2011-12
REMOTE AND REGIONAL RENEWABLE ENERGY
ACRE engaged Evans and Peck and Worley Parsons to investigate the opportunities in the
Pilbara and the mid-West regions of Western Australia. These studies sought to identify and
assess the potential for renewable energy projects and systems to provide sustainable and
secure energy supply in these regions. The reports were released by Minister Ferguson on 26
October 2011. ACRE received considerable interest in response to these reports from
companies considering renewable energy opportunities in the region.
The reports concluded that while renewable energy can compete on cost, and that large-scale
renewable energy deployment can be increased, there are large barriers to deploying
renewable energy, including limited opportunities in the mid-West, although wind generation
would offer the most attractive option for increasing renewable energy penetration in this area.
The key barriers identified in the reports were that there is no one clear renewable energy
solution to apply to the Pilbara or mid-West markets, given that both areas have a mixture of
islanded off-grid systems which have their own issues, sizes and characteristics. There is also
a perception that renewable energy is an expensive option, compared with conventional
technologies. The reports also found that there are a limited number of technologies that would
be viable in these areas in the near to mid-term. The reports made a number of key
recommendations, including increasing the available public knowledge base; providing
incentives for benchmark plants to operate; and increasing renewable energy knowledge and
visibility within energy users in these markets through targeted workshops and/or conferences.
THE EMERGING RENEWABLES PROGRAM
The $126 million Emerging Renewables program was launched on 8 August 2011 to provide
support for the development of renewable energy and enabling technologies in Australia across
the innovation chain and fulfilling the recommendations for flexibility in program design made in
ACRE Board’s Strategic Directions.
A key characteristic of the program is its support of emerging renewable energy technologies in
two funding categories:

ACRE Projects are grants for the development of renewable energy and enabling
technologies and products as they move through the technology innovation chain;
and

ACRE Measures are grants for renewable energy industry capacity building and
development activities and for preparatory activities for a Project.
The Emerging Renewables program encouraged ACRE Project Expressions of Interest (EOI)
and ACRE Measure Applications to be submitted on a continuous basis. In assessing
applications for the Emerging Renewables program, the ACRE Board prioritised funds on a
‘best value’ basis, consistent with the ACRE technology priorities and strategic objectives
described in Strategic Directions and the Emerging Renewables Program Information Guide.
By the end of June 2012, the ACRE Board had assessed 78 eligible submissions, including 52
EOIs and 18 Measure Applications. Subsequent to assessment of the EOIs, ten Project
Funding Applications were invited and eight of these assessed, with the other two referred to
ARENA. The greatest number of proposals received was in relation to bioenergy technologies
(22), followed by geothermal (13) and solar (9).
10
Funding Agreements have been signed with the following 10 organisations to provide funding
totalling almost $26 million:

National ICT Australia – $1.902 million to develop software to improve the process
of exploration, discovery and characterisation of geothermal targets;

Qantas Airways Ltd – $0.500 million for a feasibility study to look at the conditions
under which the sustainable manufacture of alternative aviation fuel can be
achieved in Australia;

Carnegie Wave Energy Ltd – $9.939 million to the Perth Wave Energy Project at
Garden Island (WA) that will provide the demonstration and verification of a pilot
scale 2MW grid connected CETO wave energy facility with initial power supplied
to the grid in 2013;

Waratah Power Pty Ltd – $0.613 million for a study that aims to provide Australian
developers of small-scale hydropower technologies and projects with a more
detailed understanding of the impacts from turbines on Australian native fish
species;

University of Melbourne – $0.931 million for a study into achieving cost efficient
abatement from Australian electricity generation, which includes the development
of software for modelling the operation and performance of the National Electricity
Market under different renewable energy penetrations;

Oceanlinx Ltd – $3.970 million to the 1MW commercial wave energy
demonstration project at Port MacDonnell (SA) that aims to demonstrate
Oceanlinx’s shallow water technology, greenWAVE;

BlueScope Steel Ltd – $2.285 million to develop low cost building integrated
photovoltaic (BIPV) and BIPV-thermal systems for mass deployment on Australian
residential and commercial/industrial rooftops;

Almond Board of Australia Inc – $0.032 million for a study to assess the technical
and economic feasibility for bioenergy generation from almond waste;

BioPower Systems Pty Ltd – $5.600 million to the bioWAVE Ocean Pilot at Port
Fairy (Vic) that aims to demonstrate a 250kW bioWAVE unit, including a two year
operational testing period; and

Australian Solar Thermal Energy Association Ltd – $0.085 million for a
collaborative research activity to quantify the economic benefits from
concentrating solar thermal electricity generation in the National Electricity Market.
To provide continuity in support for innovation in the renewable energy sector, ACRE has
transitioned the Emerging Renewables program to ARENA.
THE RENEWABLE ENERGY VENTURE CAPITAL FUND PROGRAM
Another key highlight of 2011-12 for ACRE was the establishment of a $200 million venture
capital fund under the Renewable Energy Venture Capital (REVC) Fund program. The $100
million REVC Fund program was launched in 2010-2011 with applications for fund managers
closing on 22 June 2011. The selection of venture fund managers was undertaken through a
competitive process, with applications assessed by a panel, which included members of the
ACRE Board.
On 15 December 2011, Minister Ferguson announced that Southern Cross Venture Partners
Pty Ltd (SXVP) had been appointed as the fund manager under the program. SXVP brought to
11
the table a co-investor, Softbank China Venture Capital, which will co-invest $100 million into
the new $200 million Southern Cross Renewable Energy Fund (the Fund).
The Fund commenced on 1 January 2012 and is Australia’s largest renewable energy venture
capital fund. SXVP is based in Sydney, and Palo Alto, California, United States, with linkages to
Asia through SBCVC’s offices in Shanghai, China.
The Fund provides capital and management expertise to Australian renewable energy
companies to assist them to commercialise their technologies in both domestic and overseas
markets. The investment will help renewable energy companies overcome capital constraints,
develop technologies, increase skills and forge international links. The Fund is a 13-year coinvestment arrangement. SBCVC will also have a management role in the Fund.
SXVP has received strong interest from potential investee companies and is evaluating a
number of potential investments. The Fund made its first investment in September 2012, in
Queensland-based Brisbane Materials, an antireflective coating company.
The REVC Fund program will continue to be managed by ARENA.
SUPPORT FOR ADVANCED BIOFUELS
In September 2010, the Government announced that $20 million of ACRE funding would be
provided to establish an Australian Biofuels Research Institute.
The Minister subsequently appointed an independent advisory council to provide
recommendations on how to best utilise the funds. The council provided its final
recommendations to the Minister in November 2011.
It was agreed that the Australian Biofuels Research Institute would be a virtual institute,
comprising two initiatives that supported advanced biofuels: a $5 million foundation grant to
James Cook University in Townsville, Queensland, and a $15 million advanced biofuels grants
program.
On 24 February 2012, Minister Ferguson announced that the $5 million grant to James Cook
University would be for the High Energy Algal Fuels Project. The project will include the
research, development and demonstration of biofuels from macroalgal feedstock. Minister
Ferguson also launched the $15 million Advanced Biofuels Investment Readiness program. The
competitive, merit-based program will support the development of advanced biofuels
technologies by seeking to progress the deployment of pre-commercial demonstration projects
for the production of high energy, drop-in advanced biofuels in Australia. The call for
applications to the Advanced Biofuels Investment Readiness program closed on 30 April 2012,
with the eligibility and assessment process commencing in June 2012.
To assist in the assessment process, and provide ongoing advice on the implementation and
administration of the Advanced Biofuels Investment Readiness program, the Minister
appointed a Biofuels Advisory Committee. The Committee comprises Mr Martin Hoffman,
Deputy Secretary in the Department of Resources, Energy and Tourism, Dr Bruce Godfrey,
ACRE Board member and Dr Susan Pond AM, a Board Member of Commercialisation
Australia.
Additionally, on 14 December 2011, Minister Ferguson released the Advanced Biofuels Study.
The study identifies the potential for the development of a competitive and sustainable biofuels
industry in Australia and prospective technology pathways to get there.
This program will continue to be managed by ARENA.
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THE SECOND GENERATION BIOFUELS RESEARCH AND DEVELOPMENT (GEN 2)
PROGRAM
The Gen 2 Program is a competitive grant program that supported the research, development
and demonstration of new biofuel technologies and feedstocks that address the sustainable
development of a biofuels industry in Australia.
The Gen 2 Program committed $12.6 million to six projects involving a broad range of second
generation biofuels technologies and feedstocks. The final stages of the projects occurred
during 2011-12.
TRANSITION TO ARENA
Much of the work during 2011-12 involved the ACRE Board assisting with the transition to
ARENA. A Steering Committee was formed which included Professor O’Kane, Dr Godfrey and
Ms Sewell to design and inform the new agency. The ACRE Board recommended that ARENA
continue to invest time early in strategy and development and undertake widespread
consultation prior to implementing new programs.
Some key lessons learned by the ACRE Board were that:

Government support needs to recognise the risks associated with technology
development. Funding should be provided in a portfolio approach, to better
manage risk, and recognising that there will be failures as well as successes.

The successful implementation of renewable energy projects at the demonstration
stage is far more difficult and takes much longer than both proponents and
governments had initially anticipated. As a project moves to demonstration, the
higher is the risk of failure; in terms of attracting the large amounts of investment
required and the technical issues associated with scale-up. The challenge for
government will be in structuring support for renewable energy technologies that
can accommodate this higher level of risk.

Appropriate leveraging of renewable energy technologies along the innovation
chain is not linear. This means that support programs need to include a range of
forms (for example, research grants, venture capital, project grants, challenge
prizes) and flexibility in design to ensure appropriate leveraging can be achieved
on a project by project basis. It is also important that funding be targeted at
moving technologies incrementally along the innovation chain before moving to
larger scale demonstration projects.

In delivering programs and projects, it is beneficial to work with applicants during
the preparation of their funding proposals.

For a project to be considered suitable for funding, project proponents need to be
able to demonstrate they have the right skills, knowledge, project management
experience, engineering capability and the ability to secure financial backing.

It is important to assess correctly where a particular renewable energy technology
sits on the innovation chain and provide appropriate support to move the
technology to the next stage. Providing large grants to leap-frog stages increases
a project’s risk of failure.

Future applicants for public funding should think about projects in terms of
Technology Readiness Levels (TRLs) and to seek funding for a realistic proposal
that will move a technology to the next stage of the innovation chain or TRL.
13

Once a project or company is approved for government funding, contract
negotiation should be completed swiftly and all contracts should include clauses
that will maximise knowledge sharing.

The support of state and territory governments is critical to the success of
renewable energy projects. Continued strong engagement with the states and
territories will be important to accelerate the deployment of renewable energy.

Governments will need to play a greater role in de-risking renewable energy
technologies in order to attract capital investment, this may require more generous
funding arrangements than have typically been agreed to in the past. This is the
case even with carbon price and Renewable Energy Certificates.

There are significant emerging opportunities for off-grid developments, particularly
in remote areas that support heavy industry such as mining.
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ACRE PROGRAMS
In addition to the programs above, ACRE managed a number of renewable energy programs
during 2011-12, including:
The Renewable Energy Demonstration Program (REDP)
REDP is a competitive grants program that provides funding for renewable energy
demonstration projects to accelerate the commercialisation and deployment of new renewable
energy technologies for power generation. Four projects have been selected and funding deeds
executed to the value of $235 million. Of these, two projects—the Geodynamics Limited Cooper
Basin geothermal project and the Hydro Tasmania King Island integration project—have
commenced work. The MNGI Pty Ltd Paralana geothermal project and the Victorian Wave
Partners Portland ocean energy project are still to complete their final conditions precedent for
funding to commence.
The following key milestones were delivered during 2011-12:

agreement of a new two-year work program with Geodynamics for the Cooper
Basin geothermal demonstration project—five of the milestones for the new
schedule have already been met;

a new Electrochemical Energy Storage (EES) solution was approved for the Hydro
Tasmania’s King Island Renewable Energy Integration demonstration project as
an alternative to the Vanadium Redox battery upgrade and carbon block system
originally proposed for the project. The new EES solution can be implemented at a
reduced capital and ongoing maintenance cost, and will provide enhanced
operational capability; and
Victorian Wave Partners welcomed Lockheed Martin as a Joint venture partner on the Portland
Ocean Energy project.
REDP projects transferred to ARENA.
The Geothermal Drilling Program (GDP)
The objective of the GDP is to prove the concept of geothermal energy production by assisting
companies with the cost of drilling deep geothermal wells. In supporting such projects, the
program aims to demonstrate new and innovative geothermal technologies, encourage
investment and contribute to the development of a sustainable geothermal industry by
accelerating electricity production and other industrial uses of geothermal energy.
During 2011-12, four of the five GDP round two funding agreements were terminated by mutual
agreement as the recipients (Green Rock Energy, Greenearth Energy, Hot Rock Limited and
Torrens Energy) were unable to meet funding requirements for the projects. The remaining
$26.6 million of this funding was reallocated to the Emerging Renewables program to support
the geothermal industry. Two projects remain in the program: Petratherm’s Paralana project in
South Australia, and Geodynamics’ project at Bulga in the Hunter Valley.
GDP projects transferred to ARENA.
ACRE Solar Projects
In 2011-12, ACRE supported two innovative concentrated solar thermal projects which are
designed to demonstrate that this technology is commercially viable and can be deployed at
scale. These two projects have been awarded $94.9 million.
15
Construction work on the CS Energy Kogan Creek 44 MW Solar Boost project continued during
2011-12 and made significant progress despite some minor delays to procurement. Over the
past 12 months, bulk earth works have been completed, including all levelling, terracing,
drainage, construction of access roads and bore pipelines. 2011-12 also saw the erection of the
first supporting towers for the solar steam generators. Construction is currently scheduled for
completion by mid 2013. When complete, this project will boost the 750 MW Kogan Creek
Power Station with an additional 44 MW of concentrated solar generated power.
The funding agreement for the SolarOasis Whyalla Big Dish project was signed in March 2012.
This project intends to demonstrate the ‘Big Dish’ technology via a 300 dish solar field
generating 40 megawatts of power. On current planning, construction will commence in 2013.
ACRE Solar projects transferred to ARENA.
The Advanced Electricity Storage Technologies (AEST) Program
This program aimed to reduce barriers to the uptake of renewable energy technologies by
supporting the development and demonstration of electricity storage technologies for use with
variable renewable generation sources such as wind and solar. Technologies funded included
battery and solar thermal storage technologies. Funding of $18 million was allocated to five
projects. During 2011-12, all projects were completed or otherwise concluded. The program has
now ended.
The Renewable Energy Equity Fund (REEF)
ACRE had policy responsibility for the REEF venture capital program since late 2009, when a
number of Australian Government renewable energy technology programs were consolidated
into ACRE. Under the program, the fund manager, CVC REEF Ltd, provided capital and
management support to assist companies with the commercialisation of renewable energy
technologies. The Australian Government committed $17.7 million to the fund on a 2:1 ratio with
private sector capital, creating a fund of $26.6 million.
A total of 13 companies were supported under the program. The program has now closed with
the final distribution of $2.75 million being received by ACRE in June 2012. This funding will be
transferred into the Australian Renewable Energy Agency from 1 July 2012, consistent with the
provisions in the Australian Renewable Energy Agency (Consequential Amendments and
Transitional Provisions) Act 2011. The overall total return to investors from the fund was $16.20
million, of which the Australian Government’s share was $10.80 million.
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CASE STUDY
Smart Storage Pty Ltd trading as Ecoult
The Advanced Electricity Storage Technologies (AEST) program provided a $1.82 million grant
to Smart Storage Pty Ltd trading as Ecoult to demonstrate the viability of the CSIRO-developed
UltraBattery in maximising energy from wind systems used in both grid-connected and remotearea or end-of-grid applications.
The project aimed to improve the integration of wind energy by applying energy storage to
smooth the output of electricity, and in particular, control the rate of change power output from a
wind turbine. The project also furthered the commercial development of the CSIRO UltraBattery –
a super capacitor integrated within a lead-acid battery. Ecoult’s storage technology was
mentioned in the internationally respected “Electricity Energy Storage Technology Options”
Electric Power Research Institute (EPRI)1 white paper (December 2010).
The project has successfully demonstrated the smoothing of energy produced by wind turbines
for use on the grid.
Following the grant of its AEST project, Ecoult also received support from the NSW State
Government for an extension to the project. Subsequently, the company was acquired by East
Penn Manufacturing, a key manufacturing partner in the project.
Ecoult’s AEST project helped it receive two US Department of Energy (DoE) grants for storage
demonstration projects in the US. In October 2011, it announced the completion of a project for
the smoothing of output energy from a 500kW solar PV farm on the Public Service Company of
New Mexico PNM network in New Mexico. In June 2012, Ecoult announced completion of the
second DOE project for the provision of 3MW of electricity regulation services directly on the
Pennsylvania-New Jersey-Maryland Interconnection (PJM) in Pennsylvania.
1
Electricity Energy Storage Technology
Options, A White Paper Primer n Applications, Costs and Benefits; Final Report, December
2010 Author EPRI Project Manager, D. Rastler – ELECTRIC POWER RESEARCH INSTITUTE,
3420 Hillview Avenue, Palo Alto, California, USA
17
BUDGET REPORT
The Remuneration Tribunal set ACRE Board remuneration. The Department of Resources,
Energy and Tourism funded the remuneration of the ACRE Board and its operating costs. The
ACRE Board employed no staff and did not own or lease any physical assets.
ACRE BOARD EXPENDITURE 2011-12
Expenditure Item
$ amount
Remuneration
244.982
Travel and accommodation
62.451
Other (e.g. venue hire, catering and office supplies)
7.794
Total
315.227
ACRE PROGRAM AND MAJOR REPORT EXPENDITURE ($MILLION)
Renewable Energy
Demonstration Program
11.600
12.500
234.507
Geothermal Drilling Program
0.000
12.600
22.400
Advanced Electricity Storage
Technologies program
0.045
17.210
18.427
ACRE Solar
6.456
13.436
94.900
Gen 2 Program
1.956
8.977
12.617
Emerging Renewables
program
0.118
0.118
25.858
Renewable Energy Venture
Capital Fund program
0.883
0.883
100.000
Evans and Peck WA Off-Grid
Study
0.194
0.194
0.200
LEK report
1.407
1.407
1.407
Total
22.659
67.325
510.316
Note: expenditure is GST exclusive.
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