ACT has gripped the tiger by the tail and there is no more stepping back. This government agency tasked to develop alternative sources of energy has stepped up its efforts in making renewable energy a reality in Australia. It has unveiled its plan to double the incentives on its reverse-auction feed-in tariff for large scale renewable ACT solar projects from 210 MW to 550 MW by 2020.
The feed-in tariff has been widely accepted because of its benefits to suppliers of renewable energy in the country. It is the most cost-effective ACT solar power program of the government. This scheme is largely responsible for the development of 40 MW of large scale solar projects including the 20 KW Royalla Solar Farm.
This feed-in tariff is guaranteed for 20 years and would enable the ACT solar projects developers to have the confidence to build their solar farms. Simon Corbell, the Minister of Environment and Sustainable Development says that this scheme will allow ACT to meet its 90% renewable energy target. This scheme will also help to insulate the ACT solar power project developers against future fuel cost inflations and keep electricity rates low at the same time.
The first round of auctions will be concentrated on solar power and solar farms, while the next round will be focused on wind power. Wind farms of 50 MW to 100 MW sizes have already been approved but were hindered in their development primarily because of lack of financing.
One of the ACT solar projects is to be undertaken by a Spanish firm Fotowatio Renewable Ventures (FRV). This company is to build a 20 MW solar PV farm near Canberra. This will be the largest of the solar farms in Australia when it is completed in 2014.
There is another one currently being built near Geraldton. The size of this ACT solar power project is 10 MW and is being undertaken by First Solar. Both these projects, when completed and operational will have an impact on the prices of electricity.
Initially, there will be a corresponding cost to the community in order to achieve the 90% renewable energy target of ACT. It is estimated that the cost will peak in 2020 at around $4 per household per week. And then it will decline thereafter after the solar farm plants begin to take the load off the grid. But ACT says that this pass through cost is still lower than other planned projects because of the reduction in costs of renewable technologies.
But there is another benefit when this ACT target is achieved. The government will also be able to achieve its goal of reducing the carbon emission by about 40% when 2020 comes. By that time, another benefit will accrue to the territory because of the feed-in tariff provisions.
ACT believes that it will leverage significant investments in the territory and the surrounding region because of their leading research capacity in the field of photovoltaic and wind resource utilization.
