Australia, PV technology status and prospects - Contribution to the Annual report 2000

Australia
PV technology status and prospects
Dr Harry Schaap, Electricity Supply Association of Australia

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General Framework

Photo 1: A Pacific Solar 'Plug & Power TM' installation [Photo courtesy of Pacific Solar]

The manufacture and use of photovoltaic power systems (PV) in Australia have continued to increase, albeit more slowly than in previous years, throughout 2000. Australia's vast size and sparse population have made effective remote area telecommunications, power supplies, navigation aids and transport route signaling critical and expensive. PV continues to provide an important commercial alternative to diesel and central grid supplies for maintaining these links. Off-grid non-domestic applications still dominate Australia's cumulative installed capacity (about 65% by 2000, down from 75% four years earlier) with an annual growth rate of around 8%. Off-grid domestic applications have also enjoyed strong growth over the last decade and will benefit over the next few years from new government support programmes aimed at increasing the use of BIPV and replacing diesel use with renewables.

Grid-connected installations continue to increase, now approaching 10% of the total installed capacity compared with less than 1% three to four years ago. The national BIPV support programme (which commenced in 2000) and a renewable energy target for electricity retailers and major energy users (which will be implemented from 2001) will assist in keeping this market segment growing strongly. The Australian electricity industry is playing an increasing role in both remote area power supply and grid-connected PV markets, with interest being shown by both generating and retailing businesses. This has resulted from the industry being increasingly opened up to competition in a number of states (although there is also strong interest from other states and territories), the development of greenhouse gas reduction agreements or licence conditions and advancements in power conditioning and control system technologies, which have made the use of PV in hybrid systems more feasible.

The public continues to support the development and use of renewable energy, for example through participation in Green Power schemes, however the relatively low energy prices in Australia and the high capital cost of PV have made it difficult for PV to compete with other energy options at the customer level.
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National Programme

The Australian Government has initiated a number of measures to support renewable energy in general and, in some cases, PV in particular.

Mandatory renewable energy target - This target seeks to increase the contribution of renewable energy sources in Australia's electricity mix by 9 500 GWh per year by 2010. Under the measure, electricity retailers and large energy users (known as liable parties) will have to purchase increasing amounts of electricity from renewable sources from 1 April 2001. A trade in Renewable Energy Certificates and financial penalties for non-compliance are features of this scheme, which passed into legislation in the Federal Parliament late in 2000.
Supporting the use of renewable energy for remote power generation (RRPGP) - This programme commenced in 2000 and will make AUD 264 million available over four years for the conversion of remote area power supplies (including public generators and mini-grids) from diesel to renewable energy sources, and for new renewable installations that would otherwise have been fueled by diesel.
Supporting the use of solar photovoltaic electricity on residential and community buildings (PVRP) - This programme commenced on 1 January 2000 with AUD 31 million available as rebates to householders or community building owners who install grid-connected or stand-alone photovoltaic power systems.
Supporting renewable energy commercialization activities (RECP) - This is a five year AUD 55,6 million competitive grants scheme.

The Renewable Energy Equity Fund has been established to provide venture capital for commercializing renewable energy technologies, and specific renewable energy projects are supported through the Renewable Energy Showcase Fund.
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Research, Development and Demonstration

Photo 2: Titania Dye Sensitized Cell (DSC) Wall Panel (prototype). The panel utilizes STA's patented interconnect technology and was built at the world's first DSC manufacturing facilities at Queanbeyan, Australia [Photo courtesy of Sustainable Technology Australia]

Most of the R&D funding is from Australian governments, both Commonwealth and State (including electricity utilities) and is directed at PV device research carried out within universities. However private industry investment in PV R&D is increasing, notably the significant support now being provided to the Australian National University for its Epilift process, and private investment in concentrator cells and systems by Solar Systems. Over the years significantly less funding has been made available for systems R&D, and this mainly came from the systems industry itself.

Commonwealth Government funding for PV R&D, D was about AUD 5,6 million for 1999, including R&D and education funding for PV through the Australian Co-operative Research Centre for Renewable Energy (ACRE) and the UNSW Centre for PV Engineering, as well as funding provided through the RECP. Funding from the state governments for the same year was around AUD 2,6 million, mainly for demonstration and market stimulation. Funding from state government owned electricity utilities was significant with AUD 11 million provided to Pacific Solar for development of its thin film ac module.

Industry funded R&D, D remains focused on thin film PV, improvements in production processes, balance of system components and system design. Joint industry and research institution activities continue in standards development and associated component testing. Increasing emphasis is being placed on grid-connected systems, with R&D focusing on interconnection systems and building integration. For example, Pacific Solar has launched a "Plug & Power" ac module and Sustainable Technologies Australia has developed Titania Dye Sensitized Cell systems including a building product.

The increasing need for specialized PV training in all aspects of system design, installation and maintenance has led to the development of trade, undergraduate and professional courses in PV and renewable energy through a number of technical and further education colleges, universities and ACRE.
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Implementation

In 2000 the Australian Government offered funding through the RECP for a number of PV-related projects including a large-scale BIPV project on city market buildings, commercialization of a long life deep cycle lead acid battery, a 1 MW photovoltaic concentrator power station, a 200 kW photovoltaic concentrator system for an Aboriginal community, demonstration of peak demand lopping using PV in remote stand-alone diesel grid systems and development of a new Australian made photovoltaic solar roof tile.

Under the PVRP householders are eligible for a rebate of AUD 5 per watt (minimum capacity of 450 W) with the rebate capped at AUD 7 500 (or 1,5 kW). Extensions to an existing system can also attract a rebate. Community buildings attract the same rebate except it is capped at AUD 10 000 (or 2 kW). In the state of NSW the Sustainable Energy Development Authority boosts these householder rebates for new systems exceeding the cap, and provides support to other installations on buildings that may otherwise not be funded.

The RRPGP may provide up to 50% of the capital value of the replacement or new renewable generation for off-grid users of diesel-based power generation. This includes properties, communities and enterprises. A number of state governments also continue to provide financial support for off-grid renewables.

There has been a large increase in interest in grid-connected PV by some of the electricity businesses who have created a need for renewable energy through their Green Power schemes. Green Power sales from fifteen Green Power retailers rose to 104 GWh by the end of September 2000, an increase of 65% from the previous year. By mid 2000, over 70 000 consumers were signed up for some type of Green Power product, an increase of about 25% over the previous year. Although solar photovoltaic electricity represents a very small fraction of the total Green Power sold, the electricity businesses continued to install photovoltaic power systems throughout 2000. Some electricity businesses are also active in the RAPS market.
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Industry Status

Commercial PV production capacity was 11 MWp during 2000. The previous two major Australian manufacturers, BP Solar Australia and Solarex, were impacted by the international merger of BP and Amoco, and production facilities will be merged and expanded over the coming years. Australia's current production capacity and usage allows about 60% of PV product to be exported.

Other companies are heading towards production phase. These include Sustainable Technologies Australia (using titanium dioxide) and Pacific Solar (with plans for a 20 MW thin film Si manufacturing plant), mentioned previously.

Over 200 Australian PV system suppliers design and install off-grid and grid-connected systems, and the export market for PV systems, particularly to the Asia-Pacific region, is expanding. Locally produced support frames, array trackers, inverters, charge control regulators and maximum power point trackers are available with varying degrees of sophistication and built-in diagnostics.
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Market Development

Photo 3: The 70 kWp PV power system on the roof of the Sydney Superdome provides Green Power for energy retailer EnergyAustralia's 'Pure Energy' scheme [Photo courtesy of EnergyAustralia and Canon Australia]

Growth in the local market slowed slightly to 12% over 1999 and reached an installed capacity of 25 320 kWp by the start of 2000.

Off-grid applications are still the major Australian market, accounting for around 75% of capacity that was installed during 1999. This market is widespread across Australia, has been largely unsubsidized and comprises domestic, water pumping, telecommunications, cathodic protection, navigation aid and signaling systems.

The built environment PV market is growing rapidly at present and continues to attract the interest of a variety of parties. Recent installations include roof-mounted systems on schools, commercial buildings and residences, systems integrated into structures such as lighting towers, and ground-mounted systems of various capacities.
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Future Outlook

The near-term outlook for PV applications in Australia is quite healthy with the new initiatives being introduced for both off-grid and on-grid applications by the Australian Government. A number of state governments have developed energy policies which identify greenhouse gas reduction strategies as a priority. Also, local government greenhouse gas reduction initiatives are increasing and are resulting in supportive regulations and active PV procurement programmes.

Support for Green Power schemes continues to grow, however it remains to be seen how these schemes will be impacted by the now mandated requirement for electricity retailers to purchase renewable energy (which they can do at least cost).

Few PV installations to date have been for grid support or other distributed system benefits. It remains a challenge in Australia with its sparse population and extensive electricity distribution network to promote the real value of distributed generation sources such as PV through appropriate regulation and market mechanisms.
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