Australia, PV technology status and prospects - Contribution to the Annual report 2001

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

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Fig. 1 - One of Pacific Solar's Plug & Power rooftop installations [photo courtesy of Pacific Solar]

General Framework

The use of photovoltaic power systems (PV) in Australia has continued to increase, albeit with shifts in the performance of different market segments. Off-grid non-domestic applications still dominate Australia's cumulative installed capacity (about 58% by 2001, down from about 75% in the mid 1990's) but with a declining annual growth rate, now around 4%. Off-grid domestic applications have enjoyed strong growth over the last decade and are now benefiting from the government support programmes aimed at increasing the use of BIPV and replacing diesel use with renewables. These applications accounted for 31% of the cumulative installed capacity by 2001, up from 27% the previous year.

Grid-connected installations continue to increase, now exceeding 10% of the total installed capacity compared with less than 1% four to five years ago. The national BIPV support programme (which commenced in 2000) and the renewable energy target for electricity retailers and major energy users (implemented in 2001) will assist in keeping this market segment growing strongly. The Australian electricity industry continues to play a role in both remote area power supply and grid-connected PV markets with interest being shown by both generating and retailing businesses, although the degree of interest varies between organizations. Interest has resulted from the industry being increasingly opened up to competition in a number of states (with contestability set to extend to residential customers in 2002), the operation 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 show an interest in and provide some support for the development and use of 'solar energy', for example through participation in Green Power schemes and installations on homes. However the relatively low energy prices, the lack of knowledge (and interest) amongst key parties in the energy market and the continuing high capital cost of PV have made it difficult for solar photovoltaic electricity to make a significant impact in Australia.
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Fig. 2 - The first 100 square metres of solar panels manufactured by Sustainable Technologies International at the world's first Dye Sensitized Solar Cell manufacturing facility. (photo courtesy of Sustainable Technologies International)

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. From 1 April 2001 electricity retailers and large energy users (known as liable parties) must purchase increasing amounts of electricity from renewable sources. A trade in Renewable Energy Certificates and financial penalties for non-compliance are features of this scheme.
Supporting the use of renewable energy for remote power generation (RRPGP) – this programme commenced in 2000 and will make 264 million Australian dollars 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 fuelled by diesel. 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 remote rural properties, communities and enterprises. A number of state governments also continue to provide financial support for off-grid renewables.
Supporting the use of solar photovoltaic electricity on residential and community buildings (PVRP) – this programme commenced on 1 January 2000 with 31 million Australian dollars available as rebates to householders or community building owners, who install grid-connected or stand-alone photovoltaic power systems. Under the PVRP householders are eligible for a rebate of 5 AUD/W (minimum capacity of 450 W), capped at 7 500 AUD (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 10 000 AUD (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.
Supporting renewable energy commercialization activities (RECP) – This is a five-year 55,6 million Australian dollars 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

Commonwealth Government annual funding for PV R&D, D had increased to about 24,6 million Australian dollars by 2001 (compared to 5,6 million Australian dollars for the previous year), including the new market incentives. Funding from the state governments for the same period was around 1,9 million Australian dollars, slightly less than for the previous year.

Private sector funding was over 15 million Australian dollars for product development, demonstration and marketing. Industry funded R&D, D remains focused on thin film PV, improvements in production processes, and development of concentrator systems. Joint industry and research institution activities continue in standards development and associated component testing. Grid-connected systems R&D is focusing on interconnection systems and building integration (particularly innovative mounting structures).

Australia now has a degree course specifically in PV Engineering at the University of NSW, as well as one in Renewable Energy Engineering at Murdoch University, which includes PV topics. Trade level courses are also being provided through the national Technical and Further Education sector. Short courses, diplomas and other post-graduate education are also offered, many of which are supported by the Australian Cooperative Research Centre for Renewable Energy. Students from around the world avail themselves of these courses.
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Fig. 3 - The first grid-connected PV system in the state of Tasmania attracted wide local media coverage that has raised awareness about PV and the potential for grid-connection of systems in that state. (photo courtesy of Aurora Energy)

Implementation

In 2001 the Australian Government offered funding through the RECP for a number of PV projects including first deployment of Pacific Solar’s thin-film technology developed in Australia, a pilot plant to be established by energy retailer Origin Energy to commercialize low-cost PV cells and modules developed at the Australian National University, and a commercial solar concentrator system for both electricity and hot water developed by the Australian National University and Solahart Industries.

By late 2001, about 20 million Australian dollars had been committed under the PVRP, with most applications for off-grid systems and all states and territories being represented.

RRPGP sub-programmes have been approved in a number of states and territories, including South Australia, Queensland’s Working Property Rebate Scheme, and the Northern Territory's Renewable Energy Rebate Programme.

Green Power sales from fifteen Green Power retailers rose to 470 GWh by mid 2001, an increase of 50% from mid 2000. One third of the sales are from energy retailer EnergyAustralia’s Pure Energy product. By mid 2001, about 60 000 consumers were signed up for some type of Green Power product (close to 1 % of residential customers nationwide). 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 2001. Currently 70% of Green Power must be sourced from new generators, and this will rise to 80% in 2002.

Throughout Australia interest in grid-connected PV continues to grow amongst electricity businesses, with some interest created by the need for renewable energy driven by Green Power schemes and some interest in response to customers’ preferences. Although some utilities offer net metering, there is no uniform Australia wide approach. Some utilities still require detailed and complicated contracts, as well as interconnection requirements in addition to the Australian Standards.

In 2001 Australia's most southern utility, Aurora Energy in Tasmania, won an environmental excellence award for promotion of grid-connected PV through its net metering offer, simplified connection agreement, free of charge two-way electronic meter and waiver of application costs and other fees. A number of electricity businesses are also active in the RAPS market.
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Industry Status

PV cell and module production levels fell slightly during 2000, reflecting a decrease of production capacity to 7 MWp due to the disruption caused by the merger and factory relocations of BP Solar and Solarex. This contributed to an increase in imports of cells and modules. However production of multi and single crystalline PV cells and modules from the new BP Solar plant will increase significantly, initially doubling to 15 MWp capacity and then increasing to 40 MWp in coming years.

A pilot production line for Sustainable Technologies International Titania dye sensitized solar cells began operation in 2001. Meanwhile, Pacific Solar has acquired another major shareholder Eurosolare and continues the development of its thin film polycrystalline silicon product, with pilot production underway and full-scale production scheduled for 2004.

There are several Australian manufacturers of inverters, typically supplying product in the range 500 W to 3 000 W for off-grid applications. Some are combined inverter/chargers, others offer energy management options. The grid-connected PV market is growing slowly and some manufacturers also provide grid interactive inverters. Pacific Solar has developed the world's first two-wire module inverter, which is being used in its Plug&Power' ac modules. The current trend is to imported inverters. This appears to be for reasons of price as well as features available. The small Australian market has made it difficult for local manufacturers to compete with the rapid developments in the international marketplace.

Several PV batteries have been manufactured in Australia, however, as with inverters, the trend is to imported products. In particular, there is a trend to the use of sealed batteries for health & safety reasons. This has been to the detriment of local manufacturers.

Although not appearing in the Australian usage figures, there has also been an increase in imports of PV modules, which are subsequently re-exported in complete systems. Approximately 50% of local module production is exported.
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Market Development

Growth in the local market accelerated slightly to 15% (compared with 12% the previous year) and a total installed capacity of 29 210 kWp was reached by the start of 2001.

Australia's vast size and sparse population have made effective remote area telecommunications, power supplies, water pumping, navigation aids and transport route signaling critical and expensive. PV continues to provide an important commercial alternative to diesel and central grid supplies for such applications. However, the telecommunications market has been disrupted by an outsourcing of off-grid power supply installations and maintenance and also by some saturation of that market sector.

While these non-domestic off-grid applications have traditionally been the major Australian market for PV, a large proportion (more than 80 %) of the new installed capacity (3 890 kWp) was on residential, commercial and educational buildings reflecting the impact of the Government rebate programme. 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 remains healthy with the continuation of the initiatives introduced for both off-grid and grid-connected applications by the Australian Government.

A number of state governments have developed energy policies that identify greenhouse gas reduction strategies as a priority. Also, local government greenhouse gas reduction initiatives are increasing and are resulting in greater knowledge about PV and its potential in the built environment.

Support for Green Power schemes continues to grow, however it still remains to be seen how these schemes will be impacted by the 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 and 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. Few investigations are underway into the use or value of PV for peak load reduction or grid support. In addition, access to the main electricity distribution networks continues to be difficult for small, distributed generation systems and procedures can be complex, non-uniform, slow and costly.

Further, some State electricity businesses apply additional charges, insurance and interconnection requirements, while some local governments require building development applications and fees for rooftop PV installations. Hence the installation of PV systems is still not a straightforward and accepted practice in Australia and considerable work is still needed to develop uniform installation guidelines, straightforward contracts and financial arrangements that would encourage PV use.
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