hybrid solar thermal & geothermal system for contra

122 TOWER RD

PORTARLINGTON, VIC 3223

Hybrid Solar Thermal & Geothermal System

FOR

Contra Constructions

18 June 2019

File POR1598

PO Box 35 Mooroolbark VIC 3138 [email protected] www.geoflow.com.au 03 9739 5201, 0 452 213 882 ABN: 27 610 168 842 2/65

Issue Date Prepared Approved Status

A 18/04/2017 AK AK Draft

B 18/06/2019 FV, EW AK For Review

C 21/06/2019 FV AK For Review

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CONTENTS 1. Introduction to Hybrid Geothermal and Solar Heating .................................................................. 5

1.1. Contribution of energy sources in heating ............................................................................. 8

1.2. Heat gained (kWh) from different energy sources on the site ............................................... 9

2. Financial feasibility of proposed hybrid geothermal system ........................................................ 10

2.1. Capital cost ............................................................................................................................ 10

2.2. Operational cost and savings by geothermal system ........................................................... 11

2.3. Running cost graph for Gas and Hybrid Geothermal ............................................................ 12

2.4. Annual Cost saving ................................................................................................................ 13

2.5. Increase in Business Value .................................................................................................... 13

2.6. Load frequency and dual source heat pump selection ......................................................... 15

3. Geothermal Energy Source/Storage ............................................................................................. 16

4. Solar collector ............................................................................................................................... 17

4.1. Separation of solar collector rows ........................................................................................ 17

4.2. Hot water solar Control system ............................................................................................ 18

4.3. Pipework and flow rate ......................................................................................................... 18

5. Solar collector market - Comprehensive financial/technical assessment of ................................ 19

5.1. Savosolar (Finland) ................................................................................................................ 20

5.2. Five Star Solar (China) ........................................................................................................... 21

5.3. Viessmann (Germany) ........................................................................................................... 22

5.4. Wagner Solar (Germany) ...................................................................................................... 24

5.5. Wagner Large 13m2 collectors (Germany) ............................................................................ 25

5.6. Citrin Solar (Germany) .......................................................................................................... 25

5.7. Shenzen Beili New Energy Co. LTD (China_ .......................................................................... 26

5.8. Shipping and importing fees of Solar Collector .................................................................... 27

5.9. Ground mount option for solar collector installation ........................................................... 29

6. Dual Source Geothermal Heat Pump ............................................................................................ 30

6.1. Heat Pump installation foot print ......................................................................................... 31

7. Gas Current and Future Price ........................................................................................................ 32

8. Electricity Current and Future Price .............................................................................................. 33

9. Subsidies available from federal government to support renewable system installation ........... 35

9.1. Summary of definite Subsidy (STC) on solar hot water collectors ........................................ 35

9.2. STC for Solar Electricity smaller than 100kW ........................................................................ 35

9.3. STC for large scale solar collectors ........................................................................................ 35

9.4. Emissions Reduction Fund (ERF), .......................................................................................... 37




9.5. ARENA grant .......................................................................................................................... 38

9.6. Large Scale Energy Storage: An Investment In Jobs, Reliability And Affordability ............... 38

9.6.1. Energy Storage Initiative ............................................................................................... 39

9.7. Clean Energy Finance Corporation (CEFC) ............................................................................ 40

9.8. Sustainability Victoria ........................................................................................................... 41

9.9. Conclusion on funding and subsidy application.................................................................... 41

10. Heating and Cooling load calculation and assumptions ............................................................... 41

10.1. Summary of loads ............................................................................................................. 41

10.2. Pool and Spa ...................................................................................................................... 43

10.2.1. Target temperature....................................................................................................... 43

10.2.1. Hours of operation (spa/pool cover taken off) ............................................................. 43

10.2.2. Other parameters ......................................................................................................... 43

10.2.3. Importance of pool cover usage ................................................................................... 43

10.3. Villas .................................................................................................................................. 47

10.3.1. Simulation Details and Assumptions ............................................................................ 48

10.3.2. Occupancy and lighting schedule used for Residential buildings ................................. 49

10.3.3. Recommended values for infiltration (based on LEAD+ software) ............................... 50

10.3.4. Floor resistance ............................................................................................................. 50

10.3.5. Ventilation requirements .............................................................................................. 51

10.3.6. Villa modelling output ................................................................................................... 52

10.4. Hotel .................................................................................................................................. 53

10.5. Spa Centre ......................................................................................................................... 54

11. Appendices .................................................................................................................................... 55

11.1. Quotation for boiler .......................................................................................................... 56

11.2. Quotation for Carrier Chiller ............................................................................................. 58

11.3. Quotation for lake water titanium heat exchanger .......................................................... 59

12. Proposed Contract Model for Design and Installation Management ........................................... 61

13. System Designer Qualifications and Experience ........................................................................... 62

13.1. List of All Australian Certified Geothermal Designers ....................................................... 62

13.2. PhD Degree from University of Melbourne ...................................................................... 63

13.3. Accreditation from IGHSPA for geothermal system installation ...................................... 64

13.4. Certified Geothermal Designer ......................................................................................... 64

13.5. Accreditation for Energy Assessment ............................................................................... 65




1. Introduction to Hybrid Geothermal and Solar Heating This report presents the feasibility study for a hybrid geothermal system which allows heating spas,

swimming pools and heating/cooling the buildings at 122 Tower RD Portarlington. The proposed

system is 3.5 times cheaper to run and includes $1 million the subsidies from federal government.

The hybrid geothermal system pays back its initial capital cost in 3 years. The proposed system relies

on solar energy, heat pump system and electricity which are more secure source of energy in

compared to natural gas. The system schematic is shown in Figure 1.

Figure 1: Hybrid Geothermal System Schematic

District heating and cooling system is proposed for energy distribution to centralize the heating and

air conditioning equipment and to minimize the installation and maintenance costs (Figure 2). Note

that this report is based on the old site drawing/plans and a total review will be done after the

planning permit has been issued for the new site plans (Figure 3).

Two rings of buried insulated water circulation pipes are proposed. The ring closer to the lake will be

for hot water and heating and the ring on the outer side of the villas will be for cold water and

cooling.




Figure 2: Piping for district heating and cooling energy distribution from central plant room

Figure 3: proposed new site plan (Pending planning permit to be issued)




With geothermal system at the core, solar energy, the energy available in central lake and ambient

air are employed to assist in minimizing the operational costs and maximize the energy savings.

Hence this proposal is focused on four sources of free energy in nature; Geothermal (ground), large

scale solar hot water, Geothermal (Lake water), ambient air and small solar electricity to use all the

available resources on site effectively.

Geothermal system is the most efficient and cost effective system as declared by USA Environmental

Protection Agency (EPA) report 430-R93-004. Based on the initial drilling on site, it is known that the

site is lying on a bed rock with minor weathering, low permeability and high density. These are signs

of a bedrock with high thermal conductivity which is ideal for vertical borehole geothermal system.

This proposal uses 2,100m of drilling with double U pipe systems in each borehole for energy source

and storage. However, in compared to the load, this is not enough to cater for all heating

requirements of the site. The next feasible source of energy is solar hot water to deliver the high

demand of heating load for the spas and swimming pools on site.

Solar hot water is a free source of energy with low capital cost for installation and less space

requirements in compared to solar electricity panels. 4000m2 solar hot water collector/panels are

planned to be installed on the roof area of villas and the “Indoor Spa” building. Solar energy is

available during the day and summer when it is least needed and heating loads are minimum. Figure

4 shows the delay between solar heat and heat demand of the facilities at 122 Tower Rd over a

period of one year. Due to delay, storage facilities are required to store solar heat for night and

winter time. This proposal aims to use two thermal storage facilities to store energy in form of hot

water. First is the 2,100m geothermal borehole system for seasonal storage and a 300m3 hot water

tank for diurnal storage.

Figure 4: Delay between solar power and spa/pool demand during a year

The heat stored in the geothermal system will be fed to the hot water district heating ring when

stored temperature is 45C and higher and when temperature is degraded in the ground, ground

source heat pump will extract heat and deliver it at 45C for heating.

Lake water is the next efficient sources of energy on the site. Lake water can provide energy for

heating and most importantly for cooling. In cooling mode, it can replace the cooling tower and its

0%

20%

40%

60%

80%

100%

120%

1 2 3 4 5 6 7 8 9 10 11 12

Month

Heating energy demand

Typical Solar Energy Supply Pattern




high maintenance and tests costs. Lake water has lower temperature fluctuation in compared to the

ambient air and at similar temperature like air which makes it more efficient to use. Heat is also

transferred via water which has much higher thermal conductivity ion compared to air which makes

it superior for heat pump systems. However, due not having clear idea of the future central lake, this

is not included in this proposal. Note that the inclusion of lake will impose minimal increase on the

capital cost as the major infrastructure (the lake and heat pump system) is already there. A single

pump, pair of 30m 100mm Poly pipe and a filter is all required to include this efficient source to the

system.

Ambient air is the last source of energy for heating. It is proposed to use a specific type of heat

pump called dual source heat pump. It allows to combine two equipment into one and halve the

cost of heat pump required. Dual source heat pumps can generate hot water at 45°C by extracting

energy from geothermal borehole/lake water or from ambient air. Air mode will be used when solar

is not available and geothermal energy is limited. The dual source heat pump can also deliver

simultaneous heating and cooling. Based on heat load calculations, almost 65% cooling load for

hotel, and other buildings will be free while the system is generating heat for spas and swimming

pools.

Solar Electricity is also proposed here to use all the roof spaces and allow to marginally reduce

reliance on grid electricity. 100kW is selected so that upfront STC subsidies can be obtained and to

meet the limits of roof space on Hotel building. In the following sections each of these energy

sources are discussed in more detail.

1.1. Contribution of energy sources in heating

Figure 5 shows the percentage of contribution by different sources proposed for the project.

Solar/Geothermal has a large contribution and here is where the major savings are generated.

Figure 5: Contribution of different energy sources for heating requirements




1.2. Heat gained (kWh) from different energy sources on the site

All the proposed technologies for this project are well proven and secure for future. Figure 6

provides a comparison of heating energy gained with $1 spent on different energy systems. Solar is

free energy but available during the day and needs storage. Geothermal with solar storage delivers

the highest possible capacity all year round with 55.8kWh of heat per $1 dollar. Geothermal with no

solar storage relies on ground inherent constant temperature of 18C and delivers 43.7kWh per $1

Dollar spent on operation costs. Heat pump in air mode is next with 31.6kWh of heat and finally is

natural gas which with its current whole sale price only delivers 18.3 kWh per $1 in operation costs.

Gas performance is going to even get worse as the gas price is expected to increase with increasing

demand in Asia and globally and accordingly Australia’s LNG export.

The assumptions in this analogy is as follows:

Gas rate $9.8/GJ and billed at $12.4/GJ and 0.82 Efficiency

Electricity billed at average $0.108/kWh over a year

Circulation pump power is excluded in comparison (it can change results by less than 2%)

Figure 6: Comparison of heat delivered with $1 spent on different energy systems




2. Financial feasibility of proposed hybrid geothermal system In this section, the financial feasibility of proposed hybrid geothermal system is assessed. To assess

the benefits of the proposed system and calculate the payback period or return on investment (ROI),

the capital cost for the installation of the proposed system needs to be assessed. Next the savings on

the operation costs needs to be compared to initial capital cost to get return on investment. Note

that the proposed system is replacing a conventional system that would have been needed to heat

the site.

First the capital installation costs for the extra equipment that are proposed for hybrid geothermal

system are assessed in Section 2.1. Second, the proposed system is modelled and annual operation

costs are assessed and compared to operation costs of a conventional similar sized boiler/Chiller

system in Section 2.2. Finally payback period is calculated based on 5.5% interest on the finance to

pay for installation costs.

2.1. Capital cost

The extra capital cost for the installation of hybrid geothermal system is calculated in Table 1. The full

amount of installation cost is $2.6 million which includes 21% contingency and it is detailed in Table

2. The costs are detailed to the best knowledge of Geoflow Australia but 21% or roughly $400,000 is

allowed to pay for any hidden costs if they exist and apparently if contingency is not required, none

of figures that are proportionally related to contingency would exist.

There is about $1 million dollars in STC subsidies that are definitely payable for this large scale solar

hot water heating system. Different subsidies like Victorian Fund for storage, ARENA Fund, etc. are

further explained in Section9 and detailed calculations are presented.

The cheapest conventional system that the hybrid geothermal is proposed to replace would have had

a central boiler and a chiller for the whole project. The quotation for boiler price is presented in Section

11.1 and for Chiller is presented in Section 11.2.

Based on calculation in Table 1, the excess capital cost for the proposed hybrid geothermal system is

almost $902,000 which now needs to be compared with the savings in operation costs to assess the

payback period time. This is done the following sections.

Table 1: Extra cost for construction of hybrid geothermal system




Table 2: installation cost of hybrid geothermal system before subsidies and common costs with conventional system

2.2. Operational cost and savings by geothermal system

Based on energy rates for 2017 (Sections 7 & 8), the 2017 annual running cost for hybrid geothermal

system will be about $100,000 and running cost for a similar conventional system will be $345,000.




However, 2017 is assumed as the system installation year and further savings are calculated from

following years based on probable inflation rate that are also defined in Sections 7 & 8.

Detailed calculations of annual savings and investment status are presented in Table 3 for the next 10

years. Interest on finance is assumed to be 5.5% which is conservative assumption for the next 4 years.

Table 3: Operation cost comparison for conventional gas heating and hybrid geothermal heating and cooling

The current and future price of gas and electricity are discussed in detail in Sections 7 and8.

The hybrid geothermal system saves $276,919 in the first year of operation of which $43,791 is

deducted for interest on the loan/finance for the capital cost of $900,000. The net saving becomes

$233,128. Savings increases in the following years and in 3 years from system installation the system

will pay back for its initial extra capital cost (Figure 7). In year 5, net saving is $415,000.

Figure 7: Hybrid Geothermal System Payback ≈ 3 Years

2.3. Running cost graph for Gas and Hybrid Geothermal

Comparison of running cost with gas and hybrid geothermal is shown in Figure 8.

$(1,000,000)

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

1 2 3 4 5 6 7 8 9 10

Inve

stm

en

t

Year




Figure 8: running cost for Gas and Hybrid Geothermal

2.4. Annual Cost saving

Cost saving before considering interest on finance is shown in Figure 9.

Figure 9: Hybrid Geothermal Annual Cost saving

2.5. Increase in Business Value

It is assumed that the business is valued at 5x time the net income. As hybrid geothermal system

allows increasing business income by saving in the operation cost of heating and cooling system, it

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

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$800,000

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Gas Hybrid Geothermal

$2

76

,91

9

$3

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,74

9

$3

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,52

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$3

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,67

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$4

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,93

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,28

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,50

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$600,000

1 2 3 4 5 6 7 8 9 10

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will directly increase the business value by figures shown in Figure 10 which are 5 times the net

saving of the proposed heating and cooling system. It can increase the business value by about $2

million in year 5.

Figure 10: Increase in Business Value (Operation savings = Extra income x 5)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

1 2 3 4 5 6 7 8 9 10

Year




2.6. Load frequency and dual source heat pump selection

In order to assess size of required heat pump, graphs of frequency of operation are plotted which

shows at each load capacity how many hours of operation are expected (Figure 11). Based on this, 6

dual source heat pumps are selected to deliver heating and cooling loads.

Figure 11: Load frequency for heat pump selection

0

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1500

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3500

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4500

5000

0 500 1000 1500 2000 2500 3000 3500 4000

Ru

nn

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Net effective heating after balanced by sim. cooling

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Thermal load satisfied by Air mode of heat pump




3. Geothermal Energy Source/Storage Geothermal can be in form of closed loop and open loop. Open loop system option is cheaper to

install but it is not available in this site as the ground water table is deeper than 15m. The closed

loop system is employed here that requires almost no maintenance, Figure 12 shows the schematics

of typical closed loop system install for thermal storage. The actual ground loop system will be

installed with multiple headers and will be configured to allow storing higher temperature in the

middle of the borefield to minimize heat losses to ambient rock.

Figure 12: Geothermal borehole system used as source and energy storage

This proposal uses 30 boreholes drilled to 70m. Onsite driller will define the most cost effective

depth for drilling and number of boreholes will be adjusted accordingly.

Even if there is no heat available to store, the geothermal borehole system allows accessing ground

energy at constant temperature of 18C which is used as the source of energy with water to water

heat pump with high efficiencies.

At this stage, it is assumed that ground thermal conductivity is 3W/mK with volumetric heat capacity

of 2700kJ/m3K. These parameters will need to be further tested onsite with a TRT test to assess

actual ground thermal properties before design can be finalised. Based on these assumption and

with using a double ground u-pipe in graphite grout, it is assumed the Borehole thermal resistance is

0.0785 mK/W.




4. Solar collector Solar hot water collector is effectively a set of copper pipes manifolded on top and bottom to absorb

solar energy. It uses specific fins welded to copper risers that absorb almost all energy from sun

trapped inside the collector. They are available in 1m wide and 2-2.5m tall panels and bigger sizes. At

this stage, it is assumed the panels will be installed parallel to the roof of buildings, but the efficiency

of the panel can increase substantially if it is allowed to be installed at tilt angles as high as 45

degrees. 300 m3 water storage tank is to be used by solar collectors for daily thermal energy storage

at minimum 45°C from solar collectors.

4.1. Separation of solar collector rows

In case it is decided to install ground mount collectors, here the effect of separation on energy

delivery and shading loss is assessed. Figure 13 shows variation of shaded solar irradiation and

shading loss with change in separation of the solar collector rows. This is case study for 50 rows of

collectors with 30 collectors per row and solar collector is 2.0m tall.

Figure 13: Shading loss variation with change in collector row separation (2.0m tall solar collector)

More detail is presented in Table 4. With 3m separation loss is 11% and increasing separation to 4m,

loss drops by 5%. Further increases drops the loss by less than 2%. Hence 4m spacing is ideal for this

case. For 2.5m2 collector (2x1.25m), 4x1.25=5m2 land is required or for 1m2 collector, 2m2 land is

required.

Table 4: Shading loss of solar hot water collector with change in separation of rows

Row separation

Qirr shaded (2m panel) kWh/annum

Percentage of loss of solar irradiation

m kWh %

2 1212 23%

3 1398 11%

4 1480 6%

5 1512 4%

6 1526 3%

8 1542 2%

10 1550 2%

15 1560 1%

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loss

of

irra

dia

tio

n

kWh

/m2

/yea

r

Collector Row Separation

Percentage of loss of solarirradiation

Qirr shaded (2m panel)kWh/annum

Melbourne Irradiation @ 45Degree to North with No barrier




4.2. Hot water solar Control system

In winter it is better to keep minimum tank temp at 40C and in summer it is better to drop tank

temperature to 8C over night to minimize system temperature during the day. Note that STC

claiming requires delivering minimum 45C from solar collectors and regardless of tank temperature

this will be achieved via automatic temperature control VSD on solar circulation pumps.

4.3. Pipework and flow rate

For copper piping, the pipe sizes and flow rate used should ensure that the maximum velocity is 3 m/sec. Refer to ‘AS/NZS 3500’ for flow rates and performance charts for pipe sizing. Maximum benefit will be achieved in a low-flow system if the following load-matching principles are incorporated (Gordon, 2001): Flow in the collector loop in the range 0.2 to 0.4 L/(min ·m2 aperture area) or 0.0033 to 0.0066L/sm2 The lower margin is achieved to minimise heat loss in distribution pipes. Flow into the storage tank is controlled to minimise mixing We take the 14L/s as the design parameter for pipe sizing and design the pump for 20 L/s with VSD. Large Scale solar thermal design handbook by Sustainability Victoria, defines the minimum insulation for the solar hot water distribution pipes:

and thickness of insulation is defined as follows:

It is proposed that the flow and return line to be bundled to save on installation costs:




5. Solar collector market - Comprehensive financial/technical

assessment of Considering the size of proposed solar hot water collectors, it requires in deep research to find the

lowest price for installation. Australian market is too expensive and it is not cost effective to buy the

materials locally hence the only option is import it directly.

Heliocol (25 Havelock Road, Bayswater 3153) was contacted for price of flat plate solar collector and

they offered Australian made collector at $990 for 2m2 collector ($495/m2 collector). Rheem

(Solarhart) was also contacted and they didn’t proposed a price for this scale of installation.

A comprehensive research was done for getting price and collecting specifications from several solar

collector manufacturers from largest manufacturers in Germany and China. Germany is the biggest

manufacturer in Europe and by default should have the highest quality. China is the biggest

manufacturer in the world and should have the lowest price. Many manufacturers from these two

countries were contacted and here three German manufacturer and two manufacturers from China

are reported. For each product, using the efficiency parameters, the collector is modelled for one

year at Melbourne climate and for each minute, temperature and irradiation is calculated for the

collector to allow comparing different panels not only by their price but also by annual thermal

output for Melbourne. Note that the collectors have their close to their maximum output at latitude

angle of the location and increasing the tilt angle to as much as 45 degree will allow to generate heat

evenly during a year.

Panels are also compared in terms of corrosion reduction parameters, warranty condition, shipping

cost and complying standards. Note that in the following solar collector comparison below currency

conversion rates have been used:

AUD/USD= 0.770

AUD/EUR= 0.710




5.1. Savosolar (Finland)

Savosolar of Finland, manufactures the world’s most efficient solar thermal collectors (See figure

below), and has delivered major projects in seventeen countries across four continents. Geoflow

Australia has partnered with Savosolar and brought the latest solar thermal technology and expertise

into Australia and New Zealand.

The Savosolar solar thermal collectors use an innovative

and award-winning absorber that generates up to

1110kWh p.a. of heating energy per m2 of solar collector –

that’s more than five times (540%) the amount of energy

compared with an equivalently sized solar electricity (PV).

The Savosolar absorber is a uniquely designed nano-coated

aluminium multi-port channel section (see Figure below) that allows fluid in the solar panel to be in

direct contact with the sun’s energy across the entire solar heated surface! This design eliminates

the high thermal gradients and heat losses of conventional absorbers, and maximizes the thermal

efficiency of the solar thermal collector. Savosolar’s collectors are approximately 50% more efficient

than conventional flat plate collectors (with copper pipe and fin) and evacuated solar tubes, and come

with a 10-year manufacturer’s performance warranty.

For any application with high heating energy demand, like a large residential house with swimming

pool heating, the advantages of solar thermal systems compared with solar electricity systems are

outlined below:

Free Heating: Solar thermal provides free heating energy and is a largely maintenance free system.

It has no moving parts except for a small pump (flow rate of 0.005 L/s/m2 of collector area) to keep

water in circulation.

Free Cooling: Solar thermal, combined with an absorption chiller, will deliver free cooling. The overall

solar thermal cooling system capacity and efficiency are highest when the outdoor temperature is

warmest and there is more demand for cooling!

540% more thermal energy: In principle, Savosolar thermal collectors can deliver 1110 kWh per m2

p.a. of the collector, compared with just 200kWh per m2 p.a. of solar electricity panel! In other words,

Savosolar is generating 540% more energy for businesses when heating is their biggest energy cost.

Simple and Cheap Storage: Solar thermal systems generate energy in the form of hot water that is

stored in a large hot water tank. Hot water storage tanks can be used an unlimited number of times

within their expected minimum 25 years lifespan, whereas batteries only last around ten years under

very specific operating conditions. The solar hot water tank can pay back for itself in 5 years whereas

the electric battery dies well before paying back its initial capital cost.



http://savosolar.com/

https://geoflow.com.au/

https://geoflow.com.au/

https://geoflow.com.au/resources/#savosolar_vs_conventional

https://geoflow.com.au/resources/#Solar-PV-Solar-Electricity


Suitable for any land: Solar thermal collectors can be installed on the roof or can be mounted on the

ground.

Energy Independence: Solar thermal systems can bring real energy independence. If for any reason

in the future, Australia is in short supply of gas, this won’t affect business. Solar thermal systems can

also provide a huge price advantage as gas prices increase further.

Long Warranty Period & Life Expectancy: The performance of solar thermal collectors are guaranteed for 10 years, with a life expectancy beyond 25 years.

5.2. Five Star Solar (China)

Five star solar’s price for two of its most efficient collectors are as follows. 2.0m2 (2000x1000x95)

collector is $116USD and 2.5m2 (2000 x1250 x95) collector is 140.5 USD. The efficiency parameters

for 2.5m2 collector are as follows: per Gross and Tm @3L/min : ho = 0.753 %; k1 = 3.803 W/m²K; k2

= 0.0044 W/m²K² - Gets error with modelling second order, use first order efficiency parameters ho

= 0.754 %; k1 = 4.038 W/m²K; k2 = 0.000.

The efficiency of both collector models are the same and 44% of solar irradiation at 45 Degree tilt.

The manufacturer provides 10 year warranty on the product and they claim that they have been in

business for 27 years which needs to be double checked.

Considering that the site is close to ocean and corrosion is an important issue, it should be

considered in selection. The panels by this manufacturer have 0.6mm thick back sheet aluminium

and frame is also anodized aluminium. The price of these collectors inclusive of shipping becomes

$75AUD/m2 of gross area of collector.

One major advantage of this manufacturer is that they have obtained the standard AS2172 which is

required for applying for government subsidy. Figure 14 shows pictures of this collector.




Figure 14: Pictures of 5 Star Solar Collector

5.3. Viessmann (Germany)

This is the biggest German manufacturer according to production statistics in 2004.

For large scale project this manufacturer price for its most cost effective collectors is 183EUR for

2.5m2 (2380x1056x72) collector. The efficiency parameters are as follows: per gross area and Tm :

ho = 0.755 %; k1 = 4.468 W/m²K; k2 = 0.021 W/m²K².

The efficiency of collector is 40% of solar irradiation at 45 Degree tilt for Melbourne Climate.

The manufacturer provides 5 year warranty on the product with provision that the collector should

be installed by competent personnel (plumber), Oceanside frame corrosion voids the collector

warranty. The manufacturer claim that they have been in business since 1912 which needs to be

double checked.

Considering the capability of the panel for corrosion resistance, the panels by this manufacturer

have Aluzinc back sheet and frame is not anodized aluminium and hence more prone to corrosion in

compared to 5 star solar. The price of these collectors inclusive of shipping becomes

$110.54AUD/m2 of gross area of collector.

One major advantage of these collectors are specific colour on the fins that limits the maximum

temperature of the collector. This means in case of circulation pump failure or wrong maintenance,

if the heat generated inside the collector is not extracted, the high temperature is limited to 150C

and it won’t have a chance to adversely affect the collector and water piping.

Figure 15 shows pictures of this collector.




Figure 15: Pictures of Viessmann Solar Collector




5.4. Wagner Solar (Germany)

This is another major German manufacturer and for large scale project, this manufacturer price for

its EURO L42HTF collectors is $171.45EUR for 2.25m2 (1933x1163x80mm) collector. The efficiency

parameters are as follows: ho = 78.0 %; k1 = 3.95 W/m²K; k2 = 0.0139 W/m²K² Assumed per

aperture area.

The efficiency of collector is 44% of solar irradiation at 45 Degree tilt for Melbourne Climate.

The manufacturer provides 10 years warranty on the product. Considering the capability of the panel

for corrosion resistance, the panels by this manufacturer have non anodized aluminium frame it can

be for extra 8Euro per collector to get it anodized. The price of these collectors inclusive of shipping

becomes $115AUD/m2 of gross area of collector. Figure 16 shows pictures of this collector. One

major disadvantage of this product is that they are made to be installed in series and not in parallel

which is not the preferred method of installation. The major advantage of this manufacturer is their

easy to install Aluminium TRIC F frames that cost $35AUD per m2 of solar collector gross area. The

Chinese manufacturers were approached to provide a similar framing solution in thicker aluminium

anodized frame at a lower price rate.

Figure 16: Pictures of Wagnar Solar Collector




5.5. Wagner Large 13m2 collectors (Germany)

Wagnar also manufactures large scale solar collectors called 133AR model (Figure 17). These have

13.17m2 gross surface area (5920x2224x135) and they are priced at $159/m2 of surface area. The

efficiency of the collector is as follows: per aperture and Tm : ho = 0.857 %; k1 = 3.083 W/m²K; k2 =

0.013 W/m²K². The efficiency of collector is 58% of solar irradiation at 45 Degree tilt for Melbourne

Climate.

Figure 17: Typical project in Germany installed by Wagner large scale 133AR collector

Note that though this product might seems more efficient, it comes at a price which is twice the

2.0m2 collector and it needs crane for installation. Considering the efficiency, price and installation

issues, use of this product is not recommended. The collector frame is not anodized which makes it

prone to corrosion on the site condition.

5.6. Citrin Solar (Germany)

Citrin Solar is another major German manufacturer according to production statistics in 2004.

For large scale project this manufacturer price for its most cost effective collectors is $185Euro for

2.07m2 collector. The efficiency parameters are as follows: per aperture and Tm : ho = 0.748 %; k1 =

3.23 W/m²K; k2 = 0.011 W/m²K².

The efficiency of collector is 48% of solar irradiation at 45 Degree tilt for Melbourne Climate. The price

of these collectors inclusive of shipping becomes $126AUD/m2 of gross area of collector. Citrin offers

a material guarantee of 10 years for demonstrable defects of manufacture affecting collectors.

This CitrinSolar guarantee commitment is based on the following assumptions:

• All system components must be from the CitrinSolar GmbH product range.

• The collector system must only be operated with our solar heat transfer fluid.

• The collectors must be stored, transported, installed and maintained in accordance with our

Installation and operating instructions.

• Modifications to collectors and accessories always require the written approval of CitrinSolar

GmbH.

• Loss or damage that is attributable to force majeure (e.g. breakage of glass, etc.) is not

covered by the manufacturer’s guarantee.




Notice of loss or damage must be provided in writing to CitrinSolar GmbH as soon as the loss

or damage occurs, together with the commissioning and maintenance logs and proof of

purchase.

• Solar accessories are subject to the statutory warranty.

Figure 19 shows pictures of this collector.

Figure 18: Pictures of Citrinsolar Collector

One major disadvantage of this product is that similar to Wagner collector it can only be installed in

series configuration which is not preferred for due to its decreasing effect on efficiency.

5.7. Shenzen Beili New Energy Co. LTD (China_

Shenzen Beili New Energy Co. LTD offers three solar collectors as shown in Figure 19. A sample

collector was obtained from this manufacturer for initial quality assessment. Based on energy model

developed for this analysis C series of this manufacturer is the most cost effective collector in their

range.




Figure 19: Specification of Shenzen Solar collector

For Melbourne climate and with collector at tilt angle of 45 degrees, the efficiency is 49%. This

manufacturer also provides 10 year warranty but since company has been running for only 10 years,

they cannot be yet trusted to fulfil their warranty commitments.

The frame is anodized aluminium and the back sheet is thin layer of aluminium and phenolic foam

insulation. Price inclusive of shipping is $78AUD/m2.

5.8. Shipping and importing fees of Solar Collector

Shipping fee for 40HQ container from China is $850-$950USD that covers 350 collectors in case of

Shenzen collectors and 219 collectors from 5 star.

Australian customs clearance and delivery fee to the site are $1533 AUD per container (Figure

20).The collectors are duty free as per CHAFTA conditions and 10% GST applies.

Shipping fee for Viessmann collector as per the manufacturer quotation is 14 Euro per 2.5m2

collector to deliver collectors in Melbourne Port. Other German manufacturers provided shipping

cost of 2500-3500AUD per 40HQ container. Each 40HQ container can take 184 Viessman Collector,

220 Wagner/Citrin collectors and 30 Wagner large scale collectors. The customs fee on collectors

imported from Germany is yet being investigated.




Figure 20: Quotation from Australian Freight forwarder for importation fees




5.9. Ground mount option for solar collector installation

This option can also be considered to install collectors at higher tilt angle if they cannot be installed

on roof areas for aesthetics reasons. Figure 21 shows the frame at 45 degree and the proposed

method for installing them a trench full of low grade concrete.

As discussed, the major advantage of installing collectors at higher tilt angle is that it decreases

thermal storage capacity by generating more heat in winter and less in summer. Figure 22 shows

this effect and as it can be seen solar irradiation on inclined surfaces in Melbourne reduces in

summer and increases in winter as the tilt angle increases.

Figure 21: installation of solar collectors on a ground mount frame

Figure 22: Solar irradiation on inclined surfaces in Melbourne




6. Dual Source Geothermal Heat Pump Carrier and Mammoth are the two heat pump manufacturers that were contacted for dual source

heat pump system. The normal products by both manufacturers are declaring similar comparable

efficiency.

We are still waiting for Carrier to offer their price for dual source heat pump. For comparison we can

consider a simple heat pump for 600kW that Carrier sells for $215,000

Mammoth Heat pump is confirmed that can be used as dual source and the price for a 400kW heat

pump is $53000 USD (FOB). GEFCO (Australian freight forwarder) confirms that two heat pump can

be imported in one 40HQ container. There will be still room in the container and more solar

collector can be carried with the same container. If refrigerant is not charged in the heat pump there

is no dangerous goods inspection required and the importation cost is exactly similar to Solar

collector under CHAFTA agreement (Figure 23).

Figure 23: Duty fee for heat pump is nil

Considering the importation costs for the Mammoth heat pump, a 400kW heat pump delivered on

site will cost $70,215 AUD. Comparing this with Carrier normal heat pump (proportionally $140,000

AUD for 400 kW) shows that the price of Mammoth heat pump is 2-2.5 times less than Carrier heat

pump while offering similar efficiency.

This comparison will be further investigated as Carrier returns with final price. Carrier refused to

manufacture a dual source heat pump which means two separate heat pumps need to be

purchased. Hence it is not considered for hybrid geothermal option. The price for Carrier chiller is

presented in Section 11.2 which is one of the cheapest in the market and it is used with for pricing

the conventional cooling system.




6.1. Heat Pump installation foot print

Depending on number of dual source heat pumps, the required land to install heat pumps will vary.

Figure 24 shows the worst case scenario for 10 heat pumps (4000kW) with 330m2 Land

requirement.

Figure 24: Are required for installation of dual source geothermal heat pumps




7. Gas Current and Future Price Australia is a large exporter of natural gas and one of the few with almost no export limitations on

Coal Seam Gas (CSG) which is purified to produce natural gas. Energy hungry countries such as Japan

and China are demanding more and more gas, and with this, the price goes up. Since these countries

are willing to pay more, natural gas generators are exporting more gas, and leaving less within

Australia. This pushes supply down and forces the price up.

Gas shortages are becoming a very real concern. Former Energy Minister Ian Macfarlane said in 2015

that “NSW is facing a situation now where it will run short of gas” (Canstar Dec 2015). Figure 25

shows the wholesale gas price comparison by country (Gas Union 2016) and rate of LNG export

increase (Bureau of Resources and Energy Economics).

Figure 25: Gas price in Australia compared to other countries in Asia pacific region

Figure 26 shows the historic and current gas price from different references. Historic price is

extracted from data published by Department of Industry, Innovation and Science 2015 and it is

shown in blue dotted line.

Energy rate in $/GJ for typical wholesale is shown in green line and Orange line shows the billed

amounts based on data provided by Energy Intelligence Pty Ltd. The billed amount for year 2017 is

shown in violet and it is extrapolated based on base rate and billed rate in year 2016. For Year 2017

gas rate is assumed to be $9.8/GJ and Billed rate to be 12.4 $/GJ.




Figure 26: Gas price history and current state for commercial clients

Future inflation of natural gas is assumed to be 10.5% in the next 4 years based on data from

Reserve Bank Australia (RBA 2015) bulletin (Figure 27). Worst case scenario (high case) shows

increase of 60% from year 2016 to 2021. 60% is equivalent to annual 10.5% gas price inflation.

For the years after 2021, RBA does not comment and here it is estimated that it will increase by

5.5%.

Figure 27: Source for estimating future gas price inflation

8. Electricity Current and Future Price Electricity price dropped by 5% from 2015 to 2016.




Table below shows the monthly Electricity price for 2015 and 2016. The electricity demand and price

increases in summer time due to more use of air conditioning system and decreases in winter due to

less load on the grid. This is a major benefit to the proposed hybrid geothermal system as it allows

more saving.

Electricity also has peak and off-peak tariffs where off peak can be as low as 50% of the peak tariff.

The automation can be configured to run components of system which require no or less electricity

like solar and geothermal during peak hours and run air mode of heat pump during off peak when

the electricity consumption is higher and tariffs are lower.

Electricity Rate ( ¢/kWh) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average

2014-15 12.6 12.5 12.4 9.9 10.0 10.1 10.3 10.4 10.8 10.7 13.3 12.6 11.30

2015-16 12.6 12.5 12.6 9.7 9.7 9.6 9.5 9.6 9.7 9.7 11.8 12.0 10.75

For future forecasting of electricity price, data published by Australian Energy Market Operator

(AEMO, June 2016) are used. Figure 28 shows the past and future of electricity in Victoria (light blue

line). Electricity price are forecasted with minimal changes until 2021 and then increase by 2.5% per

annum until 2027. Here we assume 5% inflation for the next 10 years on the prices of 2015-16.

Figure 28: Past and future of electricity in Victoria (light blue line




9. Subsidies available from federal government to support renewable

system installation 9.1. Summary of definite Subsidy (STC) on solar hot water collectors

STC (Small-scale Technology Certificate) is for brand new systems and is paid on solar hot water

heaters and calculated on the following basis: Based on current modelling, 4,000m2 solar collectors

will generate 2632MWh of energy annually which otherwise should have been generated by basic

system that is electric heater. Each 1MWh of electricity replaced by solar energy is called 1 STC and

based on current pricing of STC (http://www.green-bank.com.au/stc-trading/daily-prices/) each STC

is worth of $38.5 per year. For Solar Hot water heaters, STC is payable for 10 years and it is paid up

front. STC claimable for Solar Collector is calculated as: 2632 (STC)x$38.5 x 10 (years) = $1.0 million.

While the above subsidy is definitely payable for the system, it is not the only one and there are

many more that has been researched and will be applied to cover most of the installation costs.

In the following all subsidies that have been researched are presented in more details.

Three schemes are available: ERF, STC for less than 100kW solar electricity and STC for large scale

solar hot water systems. Other include grants from ARENA, Energy storage initiative and loans from

CEFC.

9.2. STC for Solar Electricity smaller than 100kW

Small-scale Technology Certificate (STC) is administrated under Renewable Energy Target (RET) -

Small-scale Renewable Energy Scheme, which supports solar photovoltaic panels, wind turbines or

hydro systems at or under 100kW, solar water heaters and air source heat pump water heaters.

The Small-scale Renewable Energy Scheme creates a financial incentive for individuals and

businesses to install eligible renewable energy systems such as small-scale solar photovoltaic

systems, small-scale wind systems, small-scale hydro systems, solar water heaters and air source

heat pump water heaters.

Small-scale technology certificates (STCs) shall be created up to 12 months following the installation

of an eligible system, and are calculated by the amount of electricity a system produces or displaces.

STC eligibility is calculated to end in the year 2030. The number of STCs that can be created per

system is based on its geographical location, installation date, and the amount of electricity in

megawatt hours (MWh) that is generated by the small-scale solar panel, wind or hydro system over

the course of its lifetime of up to 14 years

9.3. STC for large scale solar collectors

STCs shall be created up to 12 months following the installation of an eligible system, and are

calculated by the amount of electricity a system produces or displaces. STC eligibility is calculated to

end in the year 2030. The number of STCs that can be created per system is based on its

geographical location, installation date, and the amount of electricity in megawatt hours (MWh) that

is displaced by the solar water heater over the course of its lifetime of up to 10 years.

For a system to be eligible, it must be on the Register of solar water heaters. To register a system on

the Register of solar water heaters, you must meet the requirements as set out in section 3A of the




Renewable Energy (Electricity) Regulations 2001. Product registration requires a range of product

testing requirements and performance simulations to be eligible.

While the Regulations for the Small Renewable Energy Scheme impose a cap on the size of solar PV

(100 kW) and caps other technologies, there is no similar cap for solar water heaters. Rather large

solar water heaters must comply with specified standards and Clean Energy Regulator issued

requirements that are set out in Schedule 4 to the Renewable Energy (Electricity) Regulations 2001

and the Renewable Energy (Method for Solar Water Heaters) Determination 2016.

The Standards referenced do not have any obvious size constraints but they do include many

technical requirements that could influence the eligibility of an industrial system depending on how

the system was designed/constructed.

The Australia Standards listed in Schedule 4 of the Regulations that underpin the Renewable Energy

(Method for Solar Water Heaters) Determination 2016 include the following:

• AS/NZS 2712:2007 means Australian/New Zealand Standard AS/NZS 2712:2007 ‘Solar and

heat pump water heaters – Design and construction’. (5 Star Solar has already obtained this)

• AS/NZS 4234:2008 means Australian/New Zealand Standard AS/NZS 4234:2008 ‘Heated

water systems – Calculation of energy consumption.

• AS/NZS 2535.1:2007 means Australian/New Zealand Standard AS/NZS 2535.1:2007 ‘Test

methods for solar collectors — Part 1: Thermal performance of glazed liquid heating

collectors including pressure drop’.

• AS 3498-2009 means Australian Standard AS 3498-2009 ‘Authorization requirements for

plumbing products—Water heaters and hot-water storage tanks’.

The current STC pricing is $39.5AUD (Excl GST) for registered systems. Energy modelling for STC

calculation shall be done with a specific software called TRNSYS according to Federal Legislation

F2017L00028 (https://www.legislation.gov.au/Details/F2017L00028).

Geoflow Australia had a 40 minute conference call with 3 of the final decision makers in Clean Energy

Regulator on STC application process.

They are happy and supportive of the project from view point of minimizing CO2 emission. However, they

mentioned some regulatory limitations that has to be met in order to receive government subsidy like:

Legislation (Renewable electricity regulation section 19, 2.3.2 solar water heater installation) requires to be

finish installation in 60 days. this includes land preparation, I asked if we can install our large system in

stages and they said it should be fine.

Energy modelling with TRNSYS is compulsory and needs to be attached to application for them to

consider.

Solar Collectors needs to achieve standard AS 2712. "5 Star Solar" (Chinese one) has already obtained

this. Viessmann (best German manufacturer) needs to apply and get it.

There are 3 rounds of applications each year. Round 2 opens on July 5th.



https://www.legislation.gov.au/Details/F2017L00028


Air source water heater also get subsidy if their tank size is less than 425 Liters. Told CER we need more

storage space and they said they cannot assist with more clarification at this stage. One of them asked me

to put it in writing so they can discuss in their organization and override the regulation in favour of

environment. Still can consider this option for hot water provision if required.

9.4. Emissions Reduction Fund (ERF),

ERF provides a mechanism to credit emission reductions and the ability to on-sell the generated

credits to the government through a competitive reverse auction process. It is important to note

that the ERF excludes projects from receiving both carbon credits and support from the RET for the

same abatement; i.e. if an activity is receiving support under the RET, then that activity is not eligible

to generate carbon credits under the ERF. This does not apply to separate activities or separate

projects or projects that a co-located at a site.

The ERF is not a grants program, rather it is an industry support program that incentivises businesses

to reduce their emissions and generate Australian Carbon Credit Units (ACCUs) which may be sold to

the government through a competitive reverse auction or in the secondary market. Many businesses

already reduce their emissions when they make changes to lower their operating costs. The ERF

gives businesses an extra incentive to reduce emissions further. Any business that makes additional

reductions may be eligible to participate.

Participation in the ERF requires the proposed emissions reduction project to be compliant with an

approved methodology determination (framework that details the calculation of abatement and

project requirements). Generally, energy efficiency projects work on a baseline crediting principle,

with a crediting period of seven years. Reported abatement is required to be audited by an

independent auditor at various times in the crediting period to provide assurance to the ACCUs

claimed.

One ACCU is equivalent to one tonne of CO2-e. A few useful webinars on introduction to the ERF,

auctions and contracts can be found here. The PDF slide provides a useful overview of the fund.

Important concepts to keep in mind are ‘newness’ and ‘regulatory additionality’. These

requirements must be met in order to register an ERF project. Undertaking trials, feasibility studies

and planning does not breach the newness requirement.

The methodology that is most likely to be applicable to your solar thermal projects is the Industrial

Electricity and Fuel Efficiency method. Further information on this method, including method guide

is available on the linked page.

Based on phone calls and emails with Richard Lue (), this stream is not applicable and even if it was

applicable, it would have provided less abatement than STC stream.




ERF (Energy Reduction Fund) - Pays carbon credit for 7 years based on the lowest bid. They have two

sets of auction per year. Project is defined and carbon reduction per year by switching from fossil

fuel to renewable is calculated. Last year Auction paid $10.5/ton CO2e. This amount was $24 with

Carbon tax.

Victoria is on national grid and for 1MWh of electricity 0.86 t CO2e is generated.

For pipe replacement that definitely doesn’t fall under STC, we will apply for ERF. There will be 4

times more subsidy if the savings in energy reduction is compared to electricity and not gas. Dr Huw

Morgan from legislation office at Department of the Environment and Energy will be contacted for

assessing this request.

ERF only pays for existing energy consuming CO2 emitters not proposed new facilities. ERF requires

at least 3 audits in 5 year period. ERF installs a metering and logging system to actually measure

reduction in emissions.

ERF can be claimed for heat dissipation pipes inside the shed.

9.5. ARENA grant

Australian renewable energy agency provides grants for innovative energy storage and large scale

innovative systems. Based on phone call with Ashley Seton (Transactions & Business Development

Australian Renewable Energy Agency (ARENA)) they are interested and can pay minimum grant of

$100,000 – $500K is a single stage online application. More than this becomes 2 stage and takes

more time to confirm.

9.6. Large Scale Energy Storage: An Investment In Jobs, Reliability And

Affordability

This grant is from Victorian government and has been issued on 14th Mar 2017. Expression of

interest has been submitted for this fund and Geoflow will provide updates of the application. In the

application, funds has been asked for covering the costs of installing energy storage facility

(geothermal borehole system). The fund is described as below in government website:

The Andrews Labor Government will invest an additional $20 million to support large-scale energy storage initiatives across Victoria, creating jobs, protecting affordability and maintaining the reliability of our energy grid.

Premier Daniel Andrews and Minister for Energy and Environment Lily D'Ambrosio made the announcement, which takes the Government’s total investment in energy storage to $25 million, during a tour of Tesla's Melbourne headquarters.

This new funding will support energy storage companies that specialise in technologies including batteries, pumped hydro or solar thermal, partner with network businesses to boost energy storage capacity in Victoria up to 100MW by the end of 2018.

For example, a 20MW battery could power a town the size of Bendigo or Ballarat for up to four hours during a peak demand period and avoid outages.

Storage of this size is a first for Victoria and will drive innovation in our electricity sector and modernise the network - it means more investment and more jobs.




Energy storage, micro-grids and internet-enabled technologies, coupled with renewable energy sources, can also be used to better manage energy demand, especially in peak periods.

Alongside this investment, the Government is also setting up an Energy Taskforce of Cabinet to ensure Victoria remains one of the most affordable and reliable energy systems in the world. It will hold its first meeting today.

Expressions of interest for the second round of tenders are being sought by April 15 2017 and should be sent to [email protected]

For further details visit: www.delwp.vic.gov.au/energy

Quotes attributable to Premier Daniel Andrews

“Victoria will remain a net exporter of energy, but investments like this will ensure our state stays as one of the most reliable energy producers in the world.”

"Our focus is on keeping Victoria's diverse energy system as affordable, resilient and secure as possible, particularly during peak periods and extreme weather events."

Quotes attributable to Minister for Energy, Environment and Climate Change Lily D’Ambrosio

"This investment is about using all the technology available to us to ensure the security and reliability of our energy supply, while creating jobs."

“Given Malcolm Turnbull's new found interest in energy storage initiatives and the fact that Victoria has so far received only 4 per cent of ARENA’s total national funding, we call on Mr Turnbull to match our state's investment in energy storage.”

9.6.1. Energy Storage Initiative

From http://www.delwp.vic.gov.au/energy/energy-storage:

The Victorian government is now calling on leading utility-scale energy storage companies and network businesses to partner together in putting forward expressions of interest to deploy an additional 80MW of energy storage across Victoria's electricity network.

This announcement complements and builds on the Government's recent call to deploy 20MW of battery storage in western Victoria.

The Victorian Government seeks proposals that include a range of storage options including

• batteries • pumped hydro • compressed air • flywheel, and • solar thermal

This new announcement takes the Victorian Government's overall commitment to energy storage up to $25 million, and up to 100MW deployed by the end of 2018.

The Victorian Government will work with ARENA to leverage further support and co-investment.




http://email.campaign.premier.vic.gov.au/c/eJy1U02PmzAQ_TXhgkDYhkIOHNJttmrVXrpSr8jggbjyB7JNUP59DSHblbPanCpZYjx-8-bZ8-hqhEkmcMTqqshYnke8xhkqM4IIxnmJqnTvAVmKcEmqtCiPJcrK4y7POipHygeVjgYkB5OeeZcO-pzSKTrVjCKyRz1Q0iJUkgL3raf_BC2pWJZVfSTqk3Pjjhx2-NmveZ5TBmIe39D4NCgwwyUyNWWSK991AN0LPaedlksjV99kJASTnETyknSTdVomjDpa7zDelZ93xZMPNp2NgtkKcA7MNb9ouGEsKPYvuwZo2-OnDTK1f6BzAeoHNQPELx0VEB9X0fGL04YO4CHxQcXf1Bmsk6CcD-PvurWeMf4FgtOWC-4uHsTiQ99rw7ZM0Lg3WjaKSgha_-ad78Spir_qMxi19vgJjNOFHqgF-x4TSMpFQKW0gVFc_DvfDzXgWMsbB3IU1IWS8Ltg252ATSIEo3z5Xhd-zsjb3WLFONt7bB5yCm6dDaiudkmoYokBqyfT-bt_aFVPB-rMjV6fLekEl_46SXeiyo_uUemWfIAL_OMt1oxT6_WfHliN22ZBczUEQGcmCLCOS2iso8bBnYPzap_nBcqK7aD88lp20_1asv5Gr8ejtq5x3N0N7T_6fVGH_wKLZlwt


Timelines for delivery

14 March Call for expressions of Interest sought

April Proposals sought by

June Sign contracts

July to November Commence Installation

Summer 2017/18 Deployment of 30MW

Summer 2018/19 Deployment of 50MW

Expressions of Interest

To submit your Expression of Interest please ensure that you have provided the following information by return email:

1. Timeliness of deployment

Delivery of at least 30MW by Summer 2017/18 and additional 50MW by Summer 2018/19

2. The purpose of the project

Benefits to Victoria's electricity grid including proposals for example proposals that enhance energy system stability and reliability (including delivering power in high-demand peak periods and providing FCAS services into the NEM)

3. Capability and capacity of the applicant and participants

Track record in demonstrating the necessary experience and capability of the proponent and key personnel to deliver the project and meet its objectives.

4. The Project

Merit, validity and readiness of the Project.

Detail on technology choice and design, including connection studies (scoping and planning)

Project location

Appropriateness of the proposed budget, amount of funding sought from Government and its leverage compared to other sources of Project funding

Demonstration of fast frequency response, synthetic inertia, avoided network costs

Path to replication and future cost reductions

Expressions of interest are being sought by 15 April 2017 and are to be provided to DELWP at [email protected].

The request for proposal will be detailed publically in early April, seeking applications for grants.

- See more at: http://www.delwp.vic.gov.au/energy/energy-storage#sthash.5CqYfeNu.dpuf

9.7. Clean Energy Finance Corporation (CEFC)

CEFC may pay finance for less than 10 million but the rates are more like any finance provider as

Ashley Seton described. It is worthwhile to contact them in future and get their finance rate.




9.8. Sustainability Victoria

Part of Victoria government that provides small funds for supporting improving energy efficiency in

businesses. Will contact them in future.

9.9. Conclusion on funding and subsidy application The deadline to meet for STC application is 5/07/2017. This is the first available date to apply and assess

the amount of subsidy that can be claimed under STC legislation. Application generally takes 6 weeks to

get confirmation.

STC is much better than ERF if available. STC pays subsidy 5 times more than ERF. All activities that

can be defined and justified under STC is to be claimed through STC stream for subsidy.

STC on Solar panels, Pays carbon credit for 10 years

Possible STC on collectors based on STC on geothermal heat pump

STC requires solar water heater installation to finish in 60 days. Installation in Stages is fine. Solar Collectors needs to achieve standard AS 2712. "5 Star Solar" (Chinese one) has already obtained this. Viessmann (best German manufacturer) needs to apply and get it. There are 3 rounds of applications each year. Round 2 opens on July 5th. Air source water heater also get subsidy if their tank size is less than 425 Liters. Told them we need more and they said they cannot assist with more clarification at this stage. One of them asked me to put it in writing so they can discuss in their organization and override the regulation in favour of environment.

There is high potential to get funding from Victorian government 20 million energy storage scheme. Need to

submit the proposal by end of April 2017.

10. Heating and Cooling load calculation and assumptions 10.1. Summary of loads

Table 6 shows the summary of heating and cooling loads, R-values and other heat load calculation

parameters. Based on the final plans and areas and construction materials, this will be updated and

finalized.



Table 5: Summary of heating and cooling loads, R-values and other heat load calculation parameters

10.2. Pool and Spa The pool heating load is the total heat loss by the three mechanisms described below, less any heat gain from

incident solar radiation:

Q = A p (qe + qr + qc - qs)

where

Q = net heat loss rate for the pool (MJ/d)

Ap = pool/spa water surface area (m2)

qe = rate of heat loss by evaporation (MJ/ m2.d)

qr = rate of heat loss by long wave radiation (MJ/ m2.d)

qc = rate of heat loss by conduction (MJ/ m2.d)

qs = rate of heat gain from solar radiation (MJ/ m2.d)

Each of these parameters were assessed individually and for every hour of full year analysed to

assess the annual heat loss and gains. Based on measurements, total spa surface area is 1254m2 and

pool surface area is 806m2. It is assumed that average depth of water for Spas and swimming pools

1.2m. This is used to define the total water volume to be maintained at set point temperature.

10.2.1. Target temperature

Table 6 shows typical Natatorium Design conditions from ASHREA-2011, HVAC Applications. For pool

minimum set point temperature of 24C was selected and for Spa minimum 36C was selected.

Table 6: Typical Natatorium Design conditions (ASHREA-2011, HVAC Applications)

10.2.1. Hours of operation (spa/pool cover taken off)

It is assumed that the default hours of operation for all outdoor pools and spas is 6AM to 7PM and

after this period the water surface area will be covered with bubble cover that has emissivity of 0.4.

10.2.2. Other parameters

Other parameters to calculate the heating load of spas and swimming pools are: Air temperature,

Wet Bulb Temp, mean effective sky temperature, ratio of water vapour pressure to saturated water

vapour pressure, and wind velocity normalized to 10 m above clear ground (m/s) that are obtained

from recorded standard climatic data (TMY2 data). Calculation methods specified in AS 3634-1989

are used to calculate the heat loss and heat gain for pools and spas.

10.2.3. Importance of pool cover usage

Heat losses from swimming pools occur mainly from the water surface and various types of cover

are available to reduce these losses in both indoor and outdoor pools. Solar pool covers should be

regarded as a useful energy conservation measure with any type of pool and most will enable pools


to function more efficiently as natural collectors of solar radiation, provided evaporation from the

surface is minimized.

Various types of floating pool cover can be used including the following types:

• Double-skin plastics film with encapsulated air bubbles.

• Single-skin plastics film.

• Closed-cell plastics foam, laminated to a reinforcing sheet of film or fabric.

Covers are moved on and off the pool many times each season. Any pool cover should be sufficiently

tough to allow necessary handling. Materials used for covers for open air pools should be adequately

resistant to both ultraviolet radiation and to chemicals normally present in swimming pools.

The main function of a cover is to reduce or eliminate evaporation from the surface of the pool.

Floating covers of the types mentioned above are effective in this respect since they form a vapour

barrier across the top surface of the pool. Any water lying on the top of the cover will reduce its

effectiveness. The thermal benefits of using a floating cover may be significantly reduced during

periods of high rainfall. With covers that are suspended above the water it is important to ensure

that the edges are reasonably airtight since otherwise water vapour will escape.

Another function of the cover is to reduce heat loss by convection. Sunlight that passes through the

cover is largely absorbed by the pool water itself. The water can thus be heated naturally in the

same way as with an uncovered pool but with the great advantage that the heat losses from the top

surface are substantially reduced. It has generally been found that the use of a translucent pool

cover is a cost effective option for an outdoor pool either in its own right or in conjunction with a

solar pool heating system.

There are some other benefits of covers also worthy of note, namely reduced chemical consumption

on all pools, reduced fouling by leaves, etc on outdoor pools and reduced condensation and odour

problems on indoor pools. Safety is an important consideration as pool covers generally cannot

support the weight of a child or pet animal. Due to the risk of drowning, no one should swim

beneath a cover. This is particularly important with floating covers.

Calculation monthly heat loss from different mechanisms are presented in Figure 29 together with

solar heat gain. As it can be seen in this picture heat solar heat gain is a major source of energy for

the pool. Daily new heat losses are presented and Figure 30.




Figure 29: Monthly heat loss/gain from different mechanisms for total Spa surface area

Figure 31 shows the frequency of heat loss values which is used for peak load selection and sizing

heat source to math 99% of the loads requirement.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

0 2 4 6 8 10 12 14

kWh

day

Qeva

Q conv

Qradiation

Qsolar gain

Qnet loss




Figure 30: Daily variation heat loss from Spa

Figure 31: Frequency of heating loads for spas, peak load of 1500kW is selected

0

5,000

10,000

15,000

20,000

25,000

30,000

0 100 200 300 400

kWh

day

Qnet loss

-

500

1,000

1,500

2,000

2,500

3,000

0 500 1000 1500 2000 2500

Ho

urs

of

op

erat

ion

Heating Load (kW)




10.3. Villas

Figure 32 shows the plan view for single and double bedroom Villas that are used for energy

modelling.

Figure 32: provided floor plan for single and double bedroom Villas

In the following, the simulation assumptions and modelling results for annual heating and cooling

loads are presented.




10.3.1. Simulation Details and Assumptions

Details about building fabric, equipment and services used, including assumptions made, are

provided in Table 1 below.

Item NCC 2013 Reference Building Proposed Building

Climate Data Melbourne Test Reference Year (TRY) Melbourne Test Reference Year (TRY)

Operating Conditions

Heating 20.5o

C in conditioned areas in accordance with V2.6.2.2 requirement As per reference case.

Heating 26.5o

C in conditioned areas in accordance with V2.6.2.2 requirement As per reference case.

Plant Operating Profile

Operation schedule as per V2.6.2.2 requirement – Explanatory information 1. On between 8am and 5pm - 7days/week.

As per reference case.

Internal Gains People

Total Number of people in the residence assumed to be equal to number of beds and people are distributed in the building with at least 1 person per room: Sensible heat gain : 75 W/person, Latent heat gain : 55 W/person Operation schedule as per Table 2a NCC 2013 – Volume One for Class 3 building.


Lighting Maximum illumination power density for lighting as per Clause 3.12.5.5 (a) of the NCC 2013:

5 W/m² for dwellings Operation schedule as per Table 2a NCC 2016 – Volume One for Class 3 building.


Equipment Internal sensible heat gain rate:

2.5 W/m² (averaged for 24 hours per day, 7 days per week, continuous operation)


Infiltration values Average of 0.5 air change per hour. Average of 0.5 air

change per hour.

Roof/Ceiling As per Deemed-to Satisfy requirements. R5.1 and solar absorptance of 0.7


External walls As per Deemed-to Satisfy requirements.

R2.8 and solar absorptance of 0.6


Internal walls As per deemed-to Satisfy requirements. As per reference

case.

Floor As per deemed-to Satisfy requirements.

Suspended floor above carpark/outside: R2.25

Slab on Ground: no insulation U= 1.18


External shading Shading from other buildings and shading devices have been incorporated into the analysis. As per reference case.

Glazing Glazing area as per proposed design. Refer to standard Windows labeling Use PVC-003-01W uPVC frame, U-Value: 3.0 - SHGC: 0.48 Default internal shade: Roller shade (Holland Blinds) white

Acceptable windows shall have U-Value and the SHGC within +/- 10% of the specified

(Frame and Glass)

Infiltration Recommended 0.25 ACH for typical new wooden homes

Refer to other recommended values in Appendix 3

Ventilation For residential use no ventilation

For others, if required, use based on ASHRAE




10.3.2. Occupancy and lighting schedule used for Residential

buildings




10.3.3. Recommended values for infiltration (based on LEAD+

software)

Building ACH Well sheltered

Moderately sheltered

Unsheltered

Tightly sealed home 0.07 0.90 0.10

Well sealed home 0.14 0.17 0.20

new wood frame construction 0.18 0.21 0.25

old home with leaks sealed 0.25 0.30 0.35

Old home with poor insulation 0.49 0.60 0.70

10.3.4. Floor resistance

Indoor air film 0.16

150mm concrete slab : 0.104

Ground thermal resistance 0.58

R-value 0.844 m2K/W

U-value 1.184834 W/m2K




10.3.5. Ventilation requirements




10.3.6. Villa modelling output

Villas have been defined as 5 types and 5 energy modelling was performed to factor in different

orientation of these buildings. Here the daily and monthly results are presented for a 2 bedroom

villa. These Figures are the in detail presentation of figures used in summary of loads (Table 5).

Figure 33: Distribution of daily loads for typical 2 bed room Villa

Figure 34: Monthly heating loads, cooling loads and internal gains for typical 2 bed room Villa

-5

0

5

10

15

20

25

30

35

40

45

0

20

40

60

80

100

120

140

160

0 50 100 150 200 250 300 350 400

TEM

PER

ATU

RE

(DEG

REE

S)

HEA

TIN

G/C

OO

LIN

G L

OA

D (

KW

)

DAY

Cooling kW Heating kW Dry-Bulb Wet-Bulb

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ener

gy (

kWh

)

Cooling kW Heating kW Fan kWh Lighting kWh Equipment kWh




10.4. Hotel

Hotel is modelled with similar assumptions for the Villas for building envelope and internal heat

gains and schedules are used from ASHRAE 90.1 for Hotel buildings. Building is divided between 7

major zones for air conditioning. In average, Lighting is assumed to be 10.76 W/m2, electrical

equipment are assumed to be 8061 W/m2 and occupancy as 19m2/person. Here the daily and

monthly results are presented for Hotel. These Figures are the in detail presentation of figures used

in summary of loads (Table 5).

Figure 35: Distribution of daily loads for Hotel Building

Figure 36: Monthly heating loads, cooling loads and internal gains for Hotel Building

0 50 100 150 200 250 300 350 400-5

0

5

10

15

20

25

30

35

40

45

0

50

100

150

200

250

300

350

0 50 100 150 200 250 300 350 400

TEM

PER

ATU

RE

(DEG

REE

S)

HEA

TIN

G/C

OO

LIN

G L

OA

D (

KW

)

DAY

Cooling kW Heating kW Dry-Bulb Wet-Bulb

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000


Ener

gy (

kWh

)

Cooling kW Heating kW Fan kWh

Lighting kWh Equipment kWh




10.5. Spa Centre

Spa centre is modelled as one zone. Internal heat gains and schedules are used from ASHRAE 90.1

for a Health centre. In average, Lighting is assumed to be 10W/m2, electrical equipment are

assumed to be 18.3 W/m2 and occupancy as 19m2/person. 0.3 hourly air change is assumed for the

infiltration. Here the daily and monthly results are presented for the Spa Centre.

Figure 37: Distribution of daily loads for Spa Centre

Figure 38: Monthly heating loads, cooling loads and internal gains for Spa Centre

0 50 100 150 200 250 300 350 400-5

0

5

10

15

20

25

30

35

40

45

0

20

40

60

80

100

120

140

160

0 50 100 150 200 250 300 350 400

Tem

pe

ratu

re (

De

gre

es)

He

atin

g/C

oo

ling

load

(kW

)

DayCooling kW Heating kW Dry-Bulb Wet-Bulb

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


ENER

GY

(KW

H)

Cooling kW Heating kWFan kWh Lighting kWhEquipment kWh




11. Appendices




11.1. Quotation for boiler

Based on below cost, each 1000kW boiler is $108,000. Assumed price in costing is $108/kW capacity

of boiler.




11.2. Quotation for Carrier Chiller

Note that this Chiller is slightly oversized and due to time constraints it is used for this project.




11.3. Quotation for lake water titanium heat exchanger




12. Proposed Contract Model for Design and Installation

Management Geoflow Australia has the role for the design and management of procurement and installation.

Design fee is 8.5% of total installation cost. It includes full design of the proposed system, Energy

Rating Assessments (HERS) and Commercial Energy Rating Assessments (Section J) that are required

for building permit application. Design fee can be paid as the design is getting finalized.

The Geoflow Australia’s Procurement role and management of Installation will allow to deliver most

cost effective installation solution to allow the project developer to save on installation costs. This

includes:

• Importing most of the materials directly from China to save on procurement costs.

• Using normal labour force rather than specialized HVAC/plumbing contractor to eliminate

their margin and contingency. Geoflow Australia will not receive any financial benefit from

anyone in this project other that the Developer. Normal labour at rate of $25/hr can be

employed under Amir’s technical supervision to properly install and commission the system.

Hourly rate for installation management is as the current agreement at $110 plus GST that to be paid

fortnightly.




13. System Designer Qualifications and Experience Dr Amir Kivi, at GeoFlow Australia has a PhD from The University of Melbourne on geothermal and

sustainable heating and cooling systems. He is one of only 2 certified geothermal designers in

Australia1 accredited by the Association of Energy Engineers2 and the only one active in the business.

He has also been accredited as geothermal installer by IGSHPA, the peak international organization

responsible for the standards and manuals for geothermal systems1. He has also been involved in

the design and installation of more than 45 high efficiency geothermal heating/cooling solutions in

Australia.

Dr Kivi is also accredited NatHERS energy assessor (Accreditation number: 101063) and he is

providing Energy Rating Assessments (HERS), Commercial Energy Rating Assessments (Section J) and

energy efficiency assessments for the purpose of Building Code of Australia, Deemed to Satisfy (DTS)

assessments.

In the following the degrees and certificates mentioned above are presented.

13.1. List of All Australian Certified Geothermal Designers

Source: International Ground Source Heat Pump Association – IGSHPA 27/02/2017

1 http://www.igshpa.okstate.edu/directory/directory.asp 2 http://www.aeecenter.org/i4a/pages/index.cfm?pageid=1




13.2. PhD Degree from University of Melbourne




13.3. Accreditation from IGHSPA for geothermal system installation

13.4. Certified Geothermal Designer




13.5. Accreditation for Energy Assessment



hybrid solar thermal & geothermal system for contra

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