Australia, PV technology status and prospects - Contribution to the Annual report 2002

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

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General Framework

Fig. 1 - Plug & Power TM on Campbell High School in Australia’s capital,Canberra, with the Australian War Memorial in the background. This is the first completely modular PV system to be installed on an Australian school and allows progressive expansion module-by-module in the years ahead.

The use of photovoltaic power systems (PV) in Australia has continued to increase, with a number of programmes influencing the different market segments. Although not largely targeted by such programmes, off-grid non-domestic applications continue to dominate Australia’s cumulative installed capacity (about 57 % by 2002, down from about 75 % in the mid 1990’s), with an annual growth rate that increased significantly during 2001 to around 12 %. 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 33 % of the cumulative installed capacity by 2002, almost the same as the previous year.

Grid-connected installations have remained steady at about 10 % of the total installed capacity compared with less than 1 % five to six 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), discussed later in this report, are seen by many as important factors in keeping this market segment growing strongly. The Australian electricity industry – mainly the retailing businesses - continues to play a role in both remote area power supply and grid-connected PV although the degree of interest varies between businesses. This interest is largely stimulated by customer contestability and the operation of greenhouse gas reduction agreements or license conditions in a number of states.

The public is generally supportive of PV and interested in its use, if affordable. This is clearly evidenced by the large number of grant applications received for government programmes. Even with the grants, PV is still an expensive option for grid-connected households.
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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 (MRET) – 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 (RECs) 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 until 2010 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. 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 pastoral properties, indigenous and other small communities and enterprises such as tourist facilities and mining operations. The programme is administered by state governments and a number of states also provide additional financial support for off-grid renewables.
Supporting the Use of Solar Photovoltaic Electricity on Residential and Community Buildings, the PV Rebate Program (PVRP) – this four year programme commenced at the beginning of 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. In the state of Queensland, the Environment Protection Authority contributes 7 700 AUD per system under its “Cool Schools Programme”.

2002 saw the finish of significant five-year Australian Government support programmes for renewable energy that were initiated in 1997, most notably the Supporting Renewable Energy Commercialization Activities, the Renewable Energy Commercialization Program (RECP) competitive grants scheme.
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Research, Development and Demonstration

Australian Government annual funding for PV R&D, D had decreased to about 16,7 million Australian dollars by 2002 (compared to 24,6 million Australian dollars for the previous year), including market incentives. Funding from the state governments for the same period was around 0,9 million Australian dollars, also significantly less than for the previous year.

PV research is undertaken at several universities across Australia, funded by state and federal governments, as well as by private investors, and by all PV companies. Public funding in 2001 was around one million AUD. Industry funding for university research and for in-house R&D was around 10 million AUD, largely for new production processes and new products. R&D includes Centre for PV Engineering, University of NSW, research into improved crystalline and thin-film silicon cell efficiencies, as well as theoretical research into so-called “third generation photovoltaics”; Centre for Sustainable Energy Systems, Australian National University, in conjunction with energy utility Origin Energy, development of a new thin film PV technology, using the epi-lift process; Murdoch University development of methods to produce low cost silicon from a number of new sources for both wafer based and thin-film silicon solar cells.

Australia 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 were supported by the Australian Cooperative Research Centre for Renewable Energy (ACRE). However, the Government has decided not to continue ACRE funding after the middle of 2003.
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Implementation

Installed PV capacity in Australia rose by 4 370 kWp in the year up to the beginning of 2002. Installations continue to be dominated by the off-grid market for agricultural/industrial use and private dwellings. Important industrial uses include telecommunications systems, shipping, rail and road signaling, water pumping, cathodic protection, billboards and electric fences.

Fig. 2 - 148 kW installation on an inner city commercial and residential development in Sydney. [photo courtesy of Energy Australia] By the end of October 2002, some 3 749 kW of PV had been installed on households / community buildings Australia-wide – largely as a result of almost three years of operation of the PVRP. However, only 1 152 kW were grid-connected; the remaining 2 597 kW were off-grid.

Looking in more detail at the figures for one state, NSW, a total of 1 130 kW were installed by end of October 2002 – 229 kW grid-connected and 901 kW off-grid (up from 19 kW and 50 kW respectively pre-PVRP).

RRPGP sub-programmes have been approved and are being funded in most states and territories, including Western Australia’s Remote Area Power Supply and Renewable Energy Water Pumping Programmes, Northern Territory’s Renewable Energy Rebate Programme, Queensland’s Working Property Rebate and Renewable Energy Diesel Replacement Schemes, Indigenous Renewable Energy Services Project (Bushlight) and programmes in NSW and South Australia.

Green Power sales from thirteen Green Power retailers were recorded at a little more than 106 GWh in the third quarter of 2002, up on the figure for the same period in 2001 and with about 10 % more customers than 2001. However, only half the retailers include PV electricity in their Green Power offering, with PV electricity accounting for only 0,1 % of total green electricity purchased by the retailers. One third of the Green Power sales are from energy retailer EnergyAustralia’s PureEnergy product (which contains 0,67 % PV electricity). About 67 000 customers are signed up for some type of Green Power product (close to 1 % of residential customers nationwide). Currently 80 % of Green Power must be sourced from new generators (up from 70 % in 2001).

Although maintaining a general interest in PV, only a small number of electricity retailers are currently installing PV systems. Some retailers own and operate systems installed during the 1990’s. The current biggest utility programme is the Northern Territory Power and Water Authority programme aimed at installing 225 kWp and 55 kWp systems for peak load reduction in its diesel power stations. If successful, more such systems are planned.
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Industry Status

PV cell and module production levels rose during 2001, following the disruption experienced in 2000 by the merger and factory relocations of BP Solar and Solarex. In 2001 PV cell production in Australia rose 82 % to 10 MWp, bringing Australia’s production share up to 2,8 % of the international market (compared to Australia’s GDP share of about 1 %). Cell production capacity rose to 10,5 MW.

Module production also rose slightly to 6 MW with a capacity of 6,5 MW. Production of multi and single crystalline PV cells and modules from the new BP Solar plant is increasing significantly, to 20 MWp capacity in 2002 and then increasing to 40 MWp in coming years.

About two-thirds of Australia’s cell production is crystalline silicon, with the remainder being multi-crystalline silicon. While there remains a strong market for special purpose small modules in the agricultural / industrial market, production trends are towards larger modules. Over 60 % of Australian product is exported.

Sustainable Technologies International is manufacturing Titania Dye Sensitized products (first phase capacity of 500 kWp) with in-house manufacturing of all the key materials for DSC technology: titania paste, dye, electrolytes, catalytic paste, interconnecting material and internal sealants. The manufacturing process includes laser isolation of the conductive glass, screen printing of working electrode and counter electrode, deposition of sealants and interconnection on the substrates, bonding the substrates and filling with a proprietary electrolyte. External sealing finalizes manufacture of tiles, which are then interconnected and laminated into Solar Wall Panels to suit end-user requirements, primarily for façade integration.

Fig. 3 - Power And Water Corporation’s Bulman Solar Power Station. 56 kW of amorphous Silicon PV is displacing diesel fuel at this remote community in Arnhem Land, Northern Territory. The installation was commissioned in November 2002 with the aid of the Northern Territory Centre for Energy Research. [photo courtesy of Wolfgang Meike, NT Centre for Energy Research] Meanwhile, Pacific Solar continues the development of its thin-film CSG product. Pilot production is already underway and construction of a full-scale production facility is scheduled to begin in 2003. It continues to develop and market its Plug&Power™ ac module system for grid-connected rooftop applications and now has nationwide sales and distribution.

Solar Systems is continuing to expand the installation of its successful CS500 solar concentrator PV dishes in remote communities. These parabolic solar tracking dishes consist of 112 mirrors concentrating to the equivalent of 500 suns onto 24 kW water-cooled upgradeable receiving modules. All up cost, including all remote infrastructure costs, is less than 10 AUD per watt. Some 960 kW of dishes are being progressively installed producing more than 2 000 MWh per year. Solar Systems expects to contract a further 2 500 kW in 2003.

A number of Australian inverter manufacturers continue to supply inverters for both the grid and off-grid markets. These include Advanced Energy Systems, Enertec, Latronic Sunpower, Plasmatronics, Powercor Australia, Power Solutions Australia and Selectronics. Typical sizes are in the 1 – 10 kW range, although larger systems are also made. Some of these companies, as well as a number of others, also manufacture charge controllers and regulators for PV systems. Pacific Solar has developed its own module inverter, the IPC-1, for use in its Plug&Power ac module systems. It is now commercially produced in Sydney, with 1 000 units manufactured in 2001, its first year of full production.
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Market Development

Growth in the local market remained constant at 15 % and a total installed capacity of 33 580 kWp was reached by the start of 2002.

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. While the telecommunications market has been stable for the last few years, major new projects are now beginning to come on stream, which will see this market sector remaining strong over coming years. The water pumping market has been boosted by recent government grants and is now taking off strongly, even where grants are no longer available. Increased activity is also evident in the medium sized centralized system market for off-grid communities and commercial enterprises. Installations include flat plate and concentrator systems for aboriginal communities and for tourist facilities.

While non-domestic off-grid applications have traditionally been the major Australian market for PV, the previous year saw more than 80 % of the new installed capacity on buildings (Government support for rooftop PV systems has seen an increase in building integrated installations for homes, schools and other community buildings, both grid-connected and off-grid). However, over the year until end 2001, the figure for buildings dropped to close to 50 %. With its relatively low electricity tariffs, PV remains an expensive option for grid applications in Australia and with government grants for grid-connected systems set to cease within the coming year or so, there is concern that this market sector may well stall.

With respect to promoting grid-connected PV, it is worth noting that before the PVRP commenced, NSW saw about 500 kW of PV installed by one utility, EnergyAustralia, as part of its then newly-developed Green Power scheme (PureEnergy) and a further 630 kW of PV were installed in one project, the Newington Solar Village in Sydney. These figures provide an interesting background when considering the merits of the PVRP in NSW.

As anticipated, the “lowest cost” approach to renewable energy implementation under the MRET has done little to stimulate the PV market, and may even have had a negative impact through the change in attitude to Green Power displayed by some businesses. MRET will be reviewed by the Government in 2003 and some issues pertinent to PV have already been flagged for discussion, for example a portfolio approach which could create a separate tranche for PV, allowing PV to earn more RECs per MWh generated compared to other technologies, and allowing PV electricity to be sold as Green Power plus earning RECs.
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Fig. 4 - Welford power system in Queensland. Design & main structures by Ergon Energy stationpower. 6,3 kW PV array. Battery 120 V/1400 Ah. Inverter - 2 x 5 kW units operating in parallel to ensure continued operation. Installed May 2002.

Future Outlook

The mid-term outlook for PV applications in Australia remains healthy. The near-term may be more problematic, depending on how current initiatives cease, are re-designed or continued, particularly for grid-connected applications.

Local government 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 modestly, however it still remains to be seen how these schemes will be impacted by other policy measures. There continues to be a lack of PV installations 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. However, investigations are now underway into the use or value of PV for peak load reduction or grid support.

The installation of PV systems is becoming more of a straightforward and accepted practice in Australia but work is still needed to develop uniform installation and connection guidelines, straightforward contracts and financial arrangements that more positively encourage PV use.
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