With what started out as a small zephyr of an idea, wind power has propelled South Australia to the forefront of renewable energy generation in Australia.
With less than eight per cent of the nation’s population, South Australia now has more than 47 per cent of the country’s installed wind capacity. In fact, its world ranking is now second only to Denmark in the proportion of electricity generated by wind, according to the Essential Services Commission.
A German expert has backed the state’s renewable push. Dr Harry Lehmann, from Germany's Federal Environment Agency, has more than 25 years of experience in sustainable energy policy and believes SA powered by 100 per cent renewable energy is no fantasy.
Dr Lehmann helped convince his own government that a future powered by 100 per cent renewable energy was not only possible, but desirable, considering the rising cost of fossil fuels.
“It is clear energy will be more expensive in the future, whatever scenario you take,” says Dr Lehmann.
“If you take a fossil fuel (scenario) and you don't introduce any renewables, then you will have even higher energy costs.”
A combined power plant would link and control wind, solar, biomass and hydropower installations to balance out short-term fluctuations in supply and demand. The project is a clear demonstration of a mix of technologies that serves to silence critics who claim renewable energy is unreliable.
“It reminds me of the days when the people didn't believe that an aeroplane can fly,” he continues.
“As long as you don't see that it flies, you don't believe the science behind it. And that's the same with renewables.”
Renewables SA board member and key independent adviser to the State Government Monica Oliphant said she that invited Dr Lehmann to Adelaide because she was “sick of hearing solar and wind are intermittent and could never provide reliable power here.”
Dr Lehmann said it would be possible to achieve 100 per cent renewables by 2050 if planning started now.
Government support
SA Premier Mike Rann and Commissioner for Renewable Energy Tim O’Loughlin are aiming to exceed the national renewable energy production target of 20 per cent by 2020, with a 33 per cent target in their sights.
Mr O’Loughlin, who became SA’s first renewable energy commissioner in mid 2009, was given a $20 million budget by Mr Rann to boost investment in the sector.
“We have already committed $3 million for staffing and projects, but the real target requires results,” he said.
“I want to see people making investment commitments to SA renewables. It’s about the jobs that go with it. Not just those involved with renewable energy – if you have a clean energy slate, you’re going to be able to use that to lead investment from people who say clean products are important to their customer base. That’s becoming more and more important internationally.”
South Australia now has 12 fully-operational wind farms, three more under construction and 17 considered committed or advanced.
In addition to the State’s excellent set of wind resources, developers are also attracted to SA’s streamlined approval process.
Overcoming transmission barriers
Recently, a feasibility study was undertaken by a consortium led by Macquarie Capital to assess electricity transmission augmentation and asset investment needed to unlock the wind energy potential on the vast Eyre Peninsula on the State’s far west coast. The State Government contributed $1 million towards this study.
The report showed that the economics were potentially in place for SA to double its energy generation capacity through wind power expansion alone, and on-sell the excess power to the eastern states. It showed a simple Federal regulatory change could unlock substantial investment to expand capacity and deliver large volumes of green power to the eastern states.
The identified prospects for the Eyre Peninsula, combined with growth of the existing wind network, could give SA the capacity to deliver 30 per cent of the nation’s renewable target.
However, millions of investment dollars are required to produce the billions of revenue dollars.
The study showed transmitting power from wind farm sites near Elliston, Cleve and Port Lincoln on the Eyre Peninsula and the upper Spencer Gulf city of Port Augusta would require construction of a new power line connecting Elliston and Port Augusta at a cost of $613 million. A further $840 million would be needed to boost capacity of the existing line between Port Augusta and Heywood in Victoria.
Mr O’Loughlin says rate changes are required to allow the cost of these investments to be recovered from the consumers they serve.
“The study established that a major project on the Eyre Peninsula could offer a cost effective pathway for meeting a big slice of Australia’s renewable energy target,” he said.
The study predicted $4.5 billion in investment would be rolled out between 2015 and 2018, with $1.8 billion being spent in SA. It also predicted that this investment would result in 1,400 new construction jobs, 1,600 indirect jobs during construction and 266 ongoing jobs.
The study is supports the idea that renewable energy could become one of the State’s biggest industries, alongside defence and mining.
Diversified clean energy
SA also has 90 per cent of the nation’s geothermal investment and more solar rooftop installations on a per household basis than any other state.
The Climate Group’s latest electricity report showed SA produces the lowest amount of greenhouse gases for every unit of power of all mainland states. This is due to extensive use of gas-fired generation and continued growth in wind power. The state was down 4.5 per cent to 0.64 tonnes of greenhouse gases per megawatt hours of electricity, compared with Victoria’s 1.15 tonnes.
Mike Pilkington is a former deputy editor of the Sunday Mail in South Australia. He is currently working in the public relations industry and doing occasional freelance writing. In compiling this article he has worked in co-ordination with the South Australian Government's Renewable Energy Commission.
