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In preparation for the event solar asset management australia we interviewed four of our keynote speakers about the trends in the australian market.
Can you briefly explain how you got started in solar?
I have always had a passion for the environment and in 2009 I was lucky to be involved in the planning of small scale wind farms, however at this time renewable energy was in its early days in Australia and not many long term opportunities were available, so I spent a few years in the public sector in water, liveability planning and natural resource and land management. In 2016 I saw a role as a Solar Asset Manager and jumped at the opportunity to get back into the renewable energy industry. I have loved being part of developing and managing utility solar assets and being part of the ever-growing renewable industry.
Which trends have been shaping the state of solar in Australia?
The continuing growth of rooftop solar and its impact daytime prices and what that means for utility scale solar, co-located/ standalone storage, the complexity of the connection process and current transition of the Australian electricity market system are all key trends at the moment.
What piece of advice would you give to new entrants?
My advice would be do your due diligence on the project/location and the partners/contractors you will work with to develop and manage the asset. Strong partnerships/relationships and a shared understanding of the risks for the particular project and how these will be managed are key to success.
Which sessions/topics on the conference agenda do you look forward to hearing more about, and why?
In particular I look forward to the sessions covering Grid stability and Regulatory updates, Storage forum and Market bidding as these for an asset owner are front of mind in optimising the performance and returns of our assets and are all quite dynamic at the moment.
What do you enjoy the most about working in/with the solar sector?
I enjoy the fast-paced evolution of the industry (relative to former sector in the oil and gas industry), where technology is evolving rapidly (inverters, panels, trackers), costs are improving, but the economics are getting more challenging.
Which trends have been shaping the state of solar in Australia?
In my view, the key trend in the past five years not just in Australia, but globally has been the CAPEX reduction of Utility PV. In 2015 CAPEX for a utility PV facility was ~2 USD/Wac and it is now ~0.9 USD/Wac. This has resulted in electricity generation from Utility PV becoming one of the cheapest forms of generation in many countries around the world, resulting in significant investment, particularly in the last 3 years. The key challenge for Australia has been impact of this investment energy prices, system strength and Marginal Loss Factors. Which thus negatively impacts this next investment.
How do you expect the market to develop in the next few years?
We expect the utility PV Market size to be in the order of 1 GWac per year, but with peak and trough years along the way. The key difference with previous years is the utility PV (>20 MWac) market will be made up of fewer, but larger projects than the boom years of 2017 and 2018. There are several key technologies and sectors to watch. The off-grid space has only just begun utilizing large-scale utility PV facilities and there is significant scope to increase this, mainly in North West Western Australia. key technologies to watch will be grid forming inverters to help alleviate system strength issues and lithium-ion battery costs.
Why do you think conferences such as Solar Asset Management are important for the industry?
It provides an opportunity to reflect on the real world asset performance and lessons learned to improve decision making for future assets/investments and optimisations and improvements for existing assets. It's also a great place to meet experts in the industry.
What do you enjoy the most about working in/with the solar sector?
Renewable energy still has an entrepreneurial edge to it. We all have the ability not only to shape our climate future but also to shape the renewable energy industry generally.
Which measure or activity would- in your opinion- be mission-critical to the success of solar in Australia?
Stability – in multiple senses: political stability, regulatory stability, EPC stability, grid stability.
What piece of advice would you give to new market entrants?
Learn from the successes of others and don’t repeat the mistakes of those who’ve come (and gone) before you.
Which audience can benefit most from your session?
I’d like to think an open discussion can benefit both existing players and new entrants.
What do you enjoy the most about working in/with the solar sector?
The ever-changing understanding of the asset and evolving nature of the technology.
Which measure or activity would- in your opinion- be mission-critical to the success of solar in Australia?
I think solar in Australia is already being extremely successful. I think in order to hit the potential heights that it can achieve, it will be how solar can interact or be complemented by storage and other technologies to deliver our great solar resource all day round.
What piece of advice would you give to new market entrants?
Despite Australia being a well developed OECD country we are a high-cost country in terms of regulatory costs, labour costs and most importantly risk capital costs.
Which audience can benefit most from your session?
A real on the ground understanding from an investor with an active asset management mindset on what can go right, what can go wrong, where the future lies and where the risks are.
