Leaders in Remote and Clean Energy

Energy Developments

Coober Pedy Renewable Hybrid Project

Remote Area Power Supply Conference

Sydney 21 March 2017

Keith Barker

EGM Technology

Introductions

Introduction: Keith Barker, Executive General Manager Technology

Roghan RoadBrisbane

Brown Plains

Oaky Creek German Creek

Moranbah North

Belrose, Grange AveEastern Creek

Lucas Heights

BeloconnenMugga Lane

Glennies Creek

Appin, Tower

Broadmeadows

Berwick

Teralba

Brooklyn

Corio

Wingfield

SpringvaleClayton

Tahmoor

Pine Creek

McArthur River

Cannington

Coober Pedy

Yulara

Leonara

LavertonSunrise Dam

Perth

Gascoyne Junction

Karratha

Warmun

Halls CreekBidyadanga

DjarindjinBeagle Bay

Broome

Ardyaloon

Derby

Fitzroy CrossingLooma

Hill 50 Darlot

Hill 60

Menzies

EDL – Market Leaders in Distributed Generation933MW of distributed generation

• Remote Energy 355MW

• Waste Coal Mine Gas 269MW

• Landfill Gas 279MW

• Wind farm 30MW

Scale

Diversified

Long life assets

Long dated contracts

Blue chip counterparties

Capability

Continuing growth

Well capitalised

LFG (50% owned)

Greece

12MWAno Liossia

United States

103MW

Covel Gardens,

Tessman Road, TX (x2)

Taylor County, GA

Nashville, TN

Lorain County, OHCarbon Limestone, OH

Ottawa County, OH

Zion, IL

Sand Valley, AL

KEY: Waste Coal Mine Gas

Remote Energy

LNG / CNG

Landfill Gas

Wind farm

Office

Australia

747MW

United Kingdom

71MW

Poole

Ryton, Waverley Wood Sidegate Lane

Milton KeynesBellhouse, Brazier

Pitsea, Rainham

Mucking, Barling

Jacks GullyTamala Park

Red Hill

Kalamunda

Pecan Row, GA

Iris Glen, TN

Cullerin Range

• EDL - Australia’s largest independent remote energy producer

(>350MW)

• Owns and operates 29 projects in remote Australia - 27 years’

experience

• Fuel and technology agnostic with demonstrated record of

adapting technology to meet customers’ requirements

• CPRH is expected to reduce Coober Pedy diesel consumption by ~ 70%

• CPRH will demonstrate the application of renewables and EDL capability to meet our remote customers’ requirements:

‒ SAFE; RELIABLE; COST COMPETITIVE POWER

• ARENA grant will make it competitive

• EDL expects the combination of:

‒ Reductions in technology unit cost, including storage

‒ More efficient use of enabling units

‒ Higher fossil fuel costs

‒ Increased incentives to RE; imposts on fossil fuel

‒ Will result in COMPETITIVE renewable hybrids

EDL and Remote Generation

Remote Energy Experience

Remote Hybrids – the next step

Maitland LNG Plant, Western Australia

Remote Hybrid Technology Source: HydroTasmania

• EDL has owned and operated the existing diesel power station at Coober Pedy since 2004

• CPRH is a MW scale; High penetration renewable generation fully integrated with existing diesel fuelled thermal

generation

• Part funded under the ARENA IRAR programme

• 5MW solar / wind plus enabling technologies to achieve ~ 70% diesel displacement over the year

Coober Pedy Renewable Hybrid Project (CPRH)

Overview & Project History

Existing Coober Pedy Power Station Wind monitoring mast

Installed May 2014Existing wind turbine owned by DCCP

CPRH – Project Timeline

Execute ARENA

Funding

Agreement

July 2014

Development Phase Delivery Phase Operation

Execute Power

Purchase Agreement

with DCCP

March 2016

Operations

commence

July 2017

Initial concept

study

Early 2013

Site works

commence

Sept 2016

We are at

this point

Delivery Phase

Solar equipment

on site

Nov 2016

Wind turbines

on site

Jan 2017

All remaining

equipment on

site

March 2017

Project delivery

commences

April 2016

Commissioning

complete

July 2017

Current PPA

for renewal

July 2037

Solar power

into CP system

March 2017

CPRH – Project Details

Existing Status: Customer: District Council of Coober Pedy (DCCP)

Load: Contract Max. 3.4MW Recent Peak 3MW Average 1.4MW

Equipment: 8* 490kW diesel engines

Project Plan Renewables fully integrated with existing diesel plant under single PPA. 70% reduction in diesel usage

No change to existing diesel plant

Cost: $39M (incl. pre FID costs, contingencies) ARENA funding $18.4M

Component Description EPC Guarantee

Wind Turbine 2*2MW Senvion MM92 Senvion Availability; Power Curve

Solar PV 1MW First Solar fixed tilt UGL PV system output; PR Test

BESS1MW/500MWh Lithium Ion Toshiba / UGL

Specific performance over state of charge

range and 80% at end of warranty

Integration 2*850kVA Hitzinger DUPS

3MW Dynamic Resistor;

Integration Control System

Hydro Tasmania6 month performance test demonstrating

achievement of designed diesel displacement

BOP Power line wind & solar existing

power station site; switchboardUGL

CPRH PPA Parties: EDL & DCCP

Term: 20 Years from project completion (expected July 2017)

EDL Obligations: Renewable Energy Guarantee Annual Actual vs Target Renewable % based on 10minute model

with actual load; solar and wind inputs. Bonus / Penalty applies

Power Supply Reliability &

Power Quality

} No material change to existing PPA for outages

} No change to existing PPA Voltage; Frequency

etc. } Penalties apply

CPRH – Power Generation Key Performance Factors

Component

Load & renewable

contribution

Annual Load: 11,800 MWh

Total renewable generation: 16,500 MWh

Renewable “spilled”: 6,500 MWh – 42% of RE generation - opportunity for storage

System losses: 1,400 MWh – 11 % of total generation

Net renewable contribution: 70%

Wind Average wind speed : 7.3 m/s

Capacity Factor: ~ 41%

Gross Annual Generation: 14,400 MWh

Solar PV Capacity Factor AC: 24.5%

Gross Annual Generation: 2,150 MWh

BESS Annual Discharge: 142 MWh Note: Battery used for intermittency control not storage

Changes From

Original Scope

At Feasibility: At FID:

Diesel penetration very similar whether 4/1 or 3 /2 combination

Following tender relative cost of wind and solar favoured

additional wind (limited wind turbine sizes)

Wind 3 MW 4 MW

Solar 2 MW 1 MW

Battery1MW / 250kWh

1.5 MW peak

1MW / 500kWh

1.5 MW peak

Specification modified to ensure required performance will be

achieved at end of life (extended long warranty)

CPRH – Project Layout

CPRH Component Locations

CPRH – Fully Integrated with Existing Diesel Power Station

Diesel

Engines

Resistors

Control

New

Switchboard

Control

Room

1MW

BESS

2*850kW

DUPS

3MW Dynamic

Resistors

• EDL intends to demonstrate what is technically feasible through operating of CPRH.

• Potential to increase penetration further through installation of storage – capturing spill for later use. Stage 2

• Until demonstration projects like CPRH and designers; operators and suppliers have reduced cost / increased

performance, high penetration hybrids are not competitive.

• EDL will look to introduce low penetration renewables across its portfolio and take the learnings from CPRH to

introduce additional generation and required enablers as and when they are competitive

• Ultimately renewables will become just another fuel choice to add to the current options. EDL is fuel and technology

agnostic – looking to provide bespoke solutions to suit the task.

Contractual Complexity

• At time of project conception an EPC wrap with integration guarantee was not available. EDL provides the wrap.

– 5 EPC contracts with 4 suppliers each with specific performance guarantees contributing to wrap guarantee.

– 4 stakeholders in PPA related matters – direct DCCP+EDL; Indirect SA Govt. -town subsidy + ARENA – Grant

Funds

• Substituting long term capital for long term operating costs (fuel) changes PPA risk profile cf thermal PPA

– Risks: Renewable resource (fuel); conversion; integration; load; LT competitive position.

EDL model

• EDL as a supplier of safe and reliable power through BOO structure

• Will add hybrids to its range of fuel and technology offerings

CPRH – Demonstration Value

Demonstration Value – 70% reduction in diesel consumption

EDL Intends to Build on CPRH – This is not a Once off

Intended Learnings

• Coober Pedy is remote from the grid, EDL supply is the sole source of power to DCCP distribution network

• EDL aiming to achieve at least 70% penetration and operate on 100% renewables for 50% of the time

• Requires substantial investment in enabling technology -

‒ Resistors; DUPS; BESS; Control system they contribute negative generation – parasitic load

‒ Represent at least 40% of the project cost

Coober Pedy - A microcosm of the NEM ?

• Small geographic spread exaggerates intermittency of renewables

• Single thermal plant versus NEM connection

Lower CostsHybrids cannot just rely on lower unit technology cost. Proponents need to push the envelope on mix and number of enablers

• Does system need inertia? Can battery / inverter systems substitute?

• How far can penetration be pushed before enablers; control and curtailment are required?

Energy Policy Objectives CPRH

Reliable System designed to be at least as reliable as thermal - to be demonstrated

Affordable Requires 40-50% grant plus a green credits to be competitive

Reduced Emissions Yes 70%

Wind Turbines & Solar Array Completed

CPRH – All Components now in Place

Dynamic Resistors

DUPS Unit

Community Contact: Todd Gordon, Commercial Manager

Email: cprhp@edl.com.au

Phone: +08 9365 4961

Website: www.energydevelopments.com

Post: PO Box 4046 Eight Mile Plains QLD 4113

Further Information