Solar Power Plant Feasibility Study

The announcement today of a joint-funded feasibility study into a Solar Power Plant in the ACT is exciting news for the Territory.

ActewAGL and the ACT Government will explore options for a large-scale reduction in our greenhouse emissions through the building of a facility capable of supplying power to thousands of ACT homes.

The terms of reference for the feasibility study will include (but not be limited to):

• Assess options for suitable location/s for such a facility, having regard to land availability, grid connectivity, environmental considerations and access for students and visitors;
• Determine the optimum size of the solar facility in terms of initial capacity and the potential for future expansion, and identify the environmental benefits flowing from the proposed solar facility in terms of emissions reductions;
• Assess current solar technologies and determine the optimum proven technology for large-scale generation, having regard to cost efficiency and the environmental impact of proven technology, and the ability to expand output using emerging new technology;
• Determine the cost of constructing and operating the solar facility and the level of indirect or direct subsidy, if any, that might be required to make the investment commercially viable, with consideration to regulatory and electricity pricing implications;
• Undertake a full cost-benefit analysis of the solar facility proposal, having regard to net environmental impact, cost efficiency, social equity, public safety and Federal and ACT Government greenhouse gas policy;
• Compare the cost efficiency of the proposed solar facility withy mainstream electricity generation and any other local green energy generation alternatives that might be viable;
• Identify and consider all planning and statutory requirements relating to the proposal; and
• Provide a report to the joint parties by 1 July 2008.

Slow Train Coming…

Yesterday, the Canberra Business Council put a high speed rail link to Canberra back on the agenda.

Personally I’m highly supportive of the idea. It has the potential to deliver huge benefits to the Canberra region. However, there are a range of issues that immediately spring to mind. For instance:

Where’s the funding coming from?

One of the key reasons the idea fell over a number of years ago was that the Howard Government imposed a “no net cost to government” condition on the project. I believe that if the private sector considered this project to be commercially viable on its own merit, and without assistance from Government, it would already be under construction.

If we are to undertake such a nation building task, we need to know up front, how much money the Federal, ACT and NSW (and potentially Victorian) Governments will put on the table. This would give commercial partners certainty, and minimise the risk of dragging the Governments into a deeper commitment than either they are prepared for or that is acceptable. If Government can’t afford to contribute to the project, it simply won’t get off the ground.

What should the proposed Study consider?

There are a number of important considerations for any Study into the high speed rail project, including:

• The government budgets to support high speed rail versus the savings in road maintenance and upgrades
• The potential costs of increased rail freight against road transport freight and the associated savings in road safety
• Considering Canberra as a second airport with a high speed rail link, versus building a second Sydney airport (or upgrading Kingsford-Smith); when that might be required and how long a high speed rail link would delay the need for a 2nd or upgraded Sydney airport
• The effect on greenhouse emissions targets
• The impact on door to door travelling time between plane and train, and the economic impacts for business travel
• The effect on ticket prices for Sydney – Canberra travel for consumers.
• The benefits to the ACT economy by having commuters from further afield travelling into Canberra for work

I completely agree with Canberra Business Council CEO Chris Faulks when she says: “We’re not talking pie in the sky technology here – we are talking about technology that has proved itself over the last ten years in countries such as Japan, France and Germany, and is being built or developed in Spain, Vietnam, Turkey, Morocco and Saudi Arabia”.

The key issue is not the feasibility of the project, but how we can develop a funding model that allows both private sector and government infrastructure investment to get the project off the ground, quickly and with minimal risk.