ROBERT SAUNDERS

MARCH 2018

GOLD COAST _ LASA

AN INTRODUCTION

Renewable Energy in the Aged Care Sector

SLIDE 2SLIDE 2

• Why Renewables ?

••

SLIDE 3SLIDE 3

4 x Pillars RESPONSIBILITY

Energy & Energy Cost Security

Environmental Benefits (Footprint)

Future Generations

Jobs and the Economy

My photo “Earthrise” points out the beauty of

Earth – and its fragility. That little atmospheric

thing you and I are enjoying now is nothing

more than the skin on an apple around the

core.”

Bill Anders (Apollo 8)

“You develop an instant global consciousness, a

people orientation, an intense dissatisfaction with

the state of the world, and a compulsion to do

something about it”

Edgar Mitchell (Apollo 14)

)Earthrise – Apollo 8 (1968)

SLIDE 4• AEMO – Electricity Price Forecast

AUS STATE ELECTRICITY PRICES

SLIDE 5• ACCC Report

Appeared on Aged Care Guide Website November 2017

Rodd Simms – Chairman ACCC

“It’s no great secret that Australia has an electricity affordability

problem,”

“Consumers have been faced with increasing pressure to their

household budgets as electricity prices have skyrocketed in recent

years – residential prices have increased by 63 percent on top of

inflation since 2007-08.”

SLIDE 6• Future generations & Footprint

“While many other countries now are reducing their emissions, ours still are going up, I think it's a dreadful outcome," . Professor Will Steffen - Climate Council (December 2016)

“Making Electricity is our single biggest source of pollution” – Alan Finkel June 2017

“87% of electricity comes from fossil fuels” – Alan Finkel June 2017

76% Coal

10% Gas

14% Renewables (Government Target 50% by 2030)

NZ – 75% Renewables

Sweden – 55% Renewables

Source: AER State of the Energy Market May 2017

Emissions (CO2-e)

We are shockingly bad on

emissions

“Making electricity our biggest

source of pollution” – Alan

Finkel June 2017

Source: World Resource Institute – August 2015

SLIDE 8• Paris Agreement – Our Obligations

Australia’s target - Australia will reduce emissions to 26-28 per

cent on 2005 levels by 2030

This target represents a 50-52 per cent reduction in emissions per

capita.

SLIDE 9• Brand Credibility

Meet Sustainability Policies (do you have one?)

Marketing Benefits – Green Environments

Demonstrate environmental stewardship in the community

Your future client(s)

“Today’s youth feel protecting the environment is more important than economic gain and see education and social awareness as key enablers to sustainable development” - according to a new survey by the Masdar Gen Z Global Sustainability Survey (Nov-16)

They questioned about 5,000 people, aged between 18 and 25, worldwide (20 countries) to understand what challenges they saw in the future.

“The findings of the research are very clear: youth demand a sustainable future and believe more investment in renewables from public and private sectors is critical to achieving this,” said Mohammed Al Ramahi, chief executive of Masdar.

Your Future Staff

Can we afford not too?

Annual Spend?

471 Aged Care Facilities in QLD

(source : Aged Care Guide)

Mean of 886MW hours per site

417,306 MW hours (471 sites)

At a levelised cost of energy at

$0.24 /kW/hr

$212K per site, or

$100m per annum

Four different climate zones across Eastern States (15 facilities)

• 40 – 180 Bed Facilities

• 56 – 100% Occupancy

• 2 x High Care, 4 x Low Care, 9 x Mixed Care Sites

• 2 – 30 Years of Age

Annual Electricity Consumption 886 MW hours per annum (average)

per site

761,191,714 miles (1.23 billion km) driven by a passenger car of

Carbon Emissions

Source: Environment agency

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• Photovoltaics (Solar)

SLIDE 12• Solar Irradiance

••

SLIDE 13SLIDE 13

Suitability DAY TIME LOAD

Day time load

• Air Conditioning

• Heating

• Lighting

• Laundry

• Kitchen Equipment

• General Power

• Machinery

Long term view

• Owner operator

• Return on Investments

• Long Term View

• Typically Large Roof Spaces

• Savings go back into care provision

Standard Panels

Monocrystalline vs polycrystalline vs thin film

amorphous

Wattage

Physical Size

Panel Efficiency (%)

Temperature Coefficient (%/°C)

Warranties (yrs) / Performance guarantees

Price ($/Watt)

Weight (kg/m2)

Structure, brackets, frames etc.

Thin Film

SLIDE 15• Flexible Solar

SLIDE 16• Shading

Solar Glass (BMW Melbourne 2013)

Solar Glass (Scotch College, Melbourne 2017)

Scotch College Shade Structure Apartment Block Glass Balustrading

SLIDE 19• Car Park Solar Shade Structures (2017)

USQ Toowoomba

3042 panels ≈ 1.095MW

Car Park Solar Shade Structure

SLIDE 21• Solar Tiles (Bond University, Wacol Office)

SLIDE 22• Smart Flower (Australian market entry 2019)

SLIDE 23• Solar Lighting (Victorian Councils)

Reduce electrical infrastructure costs

Reduce operational costs

Now at a quality to be considered

SLIDE 24• Solar Lighting

Battery Storage

PRICES TUMBLING

TECHNOLOGY SHIFTING

Price is rapidly dropping

Sit and Wait Attitude

Technology improving

SLIDE 26• ABB React – Suitable for ILUs – Integral battery

5kW System with 10kW battery storage

Around $12 – 15K installed

Around 5-6 Years ROI Inverter and Batteries in one box

••

SLIDE 27SLIDE 27

Rebate Reduction

• Small-scale Technology Certificates

(STC) financial incentives for solar

power systems will not be quite as

generous in the future

• They will start to gradually reduce in

January 2017 until they drop out

altogether after 2030

CURRENT POLICY

0

20

40

60

80

100

120

ST

Cs

Rebate Reduction (approx. 6.5% per annum) under 100kW

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• Case Studies

SLIDE 29• Photovoltaic Study – QLD 2017

SLIDE 30• Mary Damian and Coolock Systems Overview

Parameter Details

Indicative system size for metered zone 91 kW

Mounting Type Flush to Colorbond roof

Network Protection Yes

Levelised Cost of Energy (LCOE) (estimated) $0.25/kWh^

Panel type Tier 1 Crystalline

Estimated annual generated output 139,503 kWh

Estimated capital cost (Tier 1 National Installer) after rebate (as

at 13/12/2017)

$136,500

Estimated Return on Investment 3.91 years

Estimated Energy Cost Savings $34,875.75^

Estimated annual carbon emission reduction 110 tonnes CO2-e

SLIDE 31• Installed Systems in the Aged Care Sector

$1.1M of investment 459.8 tonnes of GHG saved - Executive

Manager Business and Development Peter Lamberth

Carinity Aged Care – Shalom in Rockhampton,

Carinity Aged Care – Kepnock Grove in Bundaberg

Carinity Aged Care – Clifford in Brisbane

1460 panels - 528.50 MWh peak capacity

SLIDE 32• Aged Care Sector Examples

Warrigal, NSW - 425kW combined, June 2017

“There are now cases where households that

install rooftop PV are able to produce their

own electricity for around 6 cents per kWh”

Uniting Care Australia National Director Ms

Hatfield-Dodds, May 2016

Graham Francis – CEO, SwanCare Group,

May 2016

Kingia Care Facility - 100kW, 2015

Tandara and Waminda Care Facilities -

three year ROI

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• Geothermal Cooling

Heating and Cooling

Heating and Cooling

44% of all Electricity Usage

Source : Environment NSW

SLIDE 35• Geothermal vs Traditional

Typical Air Conditioning Units

These use “AIR” as a means to reject internal heat (heating and cooling)

SLIDE 37• Geothermal vs Traditional

SLIDE 38• Geothermal Cooling Efficiency Explained

Coefficient of Performance

Energy Efficiency Ratio

SLIDE 39SLIDE 39

• Case Studies

SLIDE 40• Geothermal Air Conditioning Systems

Living Gems Club houses at three

locations:

Pacific Paradise

Toowoomba

Caboolture

Geothermal air conditioning system used for common areas

Infinit8 Care Toowoomba and Cornubia (both in construction):

Geothermal Air Conditioning used for air conditioning of common areas only(approximately 420kW)

Waste heat from geothermal system used to passively heat potable hot water – generating free hot water when the system is operating

SLIDE 41• Key Benefits for Facility with Geothermal Air-Con

Significantly reduced energy consumption of HVAC plant

Waste heat from system can be used for production of potable hot water

Reduced plant removes costs associated with plant platforms and enclosures

System operates at 51db, removing acoustic challenges associated with a mechanical plant. This is of particular benefit with ILU’s and other semi-detached dwellings where acoustics of a traditional air conditioning plant present design challenges

SLIDE 42• Fairwater Sydney (1000 homes)

SLIDE 43• Fairwater - Sydney

SLIDE 44• Churches of Christ - Brisbane

Brisbane HQ

500kW Cooling

COP : 7 to 1

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•Clean Energy Funding and Rebates

SLIDE 46• Clean Energy Funding

There are multiple financial institutions offering Clean Energy Funding allowing

you to amortise capital cost over time. Generally the funders offer:

Long-term, low-cost asset finance at inexpensive rates.

No upfront capital outlay.

Energy cost savings typically exceed the monthly finance payment, meaning that over

the life of the lease agreement, the equipment pays for itself.

Finance with very limited security required due to the funders deep understanding of

solar and energy efficiency.

Capital is cheap

Energy is expensive

Ducks line up (at the moment)

Big 4 are now offering CEF

SLIDE 47• Clean Energy Funding

System Bethesda & Allambe Mary Damian Centre & Coolock Emmaus

System Size 97kW 91kW 90kW

Equipment Cost $145,500 $136,500 $135,000

Finance Term 7 years (84 months) 7 years (84 months) 7 years (84 months)

Monthly Payment $2,408.76 $2,259.76 $2,234.93

Yearly Finance Cost $26,277 $24,652 $24,381

Annual Energy Savings $37,175 $34,876 $34,492

Year 1 Cash flow $10,398 $10,224 $10,111

Mercy Study Clean Energy Funding Summary

The equipment pays for itself over the

life of the lease agreement as the

estimated energy cost savings exceed

the cost lease of the solar system.

The benefit of the energy cost savings

will continue to increase with predicted

increases in electricity prices

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• Questions?