A Cleaner, Secure & Affordable Energy

Future

Townsville’s Role?

Subheading

Ian McLeod2nd November 2016

Creating Ideas To Achieve What?

• Where does Australia want to go? • What is the Vision that will unite us?• Where are the opportunities to create value?• What are we good at and how do we leverage that?• How do we fund our ideas or should they be self

funding?

We need to agree a balanced set of objectives. My own industry is a case in point……

Energy Supply - From Chaos

Chaos

Source: AER- State Of The Energy Market 2015

• Cost Of Capital• Increased

redundancy• Carbon Tax• Renewable Energy

Target• Premium Feed In

Tariffs • Increase demand• Mining boom• Smart Meters (Vic)

….Poor Policy & Consequences• Queensland Premium Feed In Tariffs

liability $4.4B to 2028• $831.2M included in Ergon’s

revenue for 2015-20 or $1,123 per ave per customer

Ergon Rooftop Solar

.... & More Chaos

....Tassie constrained & SA went black

On The Positive• Australia expected to surpass its 2020 abatement

target by 78Mt CO2e• Well placed to achieve 64 to 65% decrease in

emissions per $ of GDP; &• 50 to 52% per capita between 2005 & 2030

Source: Australian Government, Department of the Environment: Fact Sheet

Energy Productivity Is Critical But Late to The Party

Ergon Residential Customers reduced their annual consumption by 22% between 2009/10 & 2015/16

“A Cleaner, Secure & Affordable Energy Future”

This should be our shared goal

Significant Opportunities In Energy• Carbon Reduction Target: 26-28% by 2030• Renewable Target: 33,000GWh by 2020• Energy Productivity Target: 40% improvement by 2030• Emissions Reduction Fund & ARENA • Queensland Renewable Target: 3000MW of solar or 1

million rooftops by 2020 & 50% renewable by 2030• The North Australia Plan including funding source• The Asian Century & Energy Poor• Could be the nations leader in Large Scale Renewable • The $542M Community Service Obligation• Disaster Resilience & Recovery Funding

Townsville Well Positioned• Located in the Tropics• Head Office of Australia’s largest utility• Hosted award winning & transformational projects like

Solar Cities & Townsville Energy Sense Community• Ergon leadership in disruptive technologies –

Distributed Energy Resources, Demand Management & Spatial Intelligence

• JCU University• Engaged Council• Overseas companies wanting to use Oz as a sandpit

But ground is now being lost to other states

Opportunity: Energy Innovation Hub

• Demonstration Precinct• District Cooling

• Micro Grid• Renewables & Storage

Opportunity: Innovation Hub forEnergy in the Tropics

Energy Efficiency

Energy Security

Demand Management

Renewables

Energy Storage

Smart Grids

Micro Grids

Electric Transport

Industry

Universities/Schools

Govt/ARENA/CEFC

Developers/

Contractors

Technology Partners

International COE

Consumers/Community

ProducersTechnology

Colla

bora

tion

InnovationHub for

Energy in the Tropics

Opportunities: The Asian Century

There are 120M people in the ASEAN region without power and 276M people using biomass for cooking.

Only 30% of PNG’s population have electricity

Getting More Out Of Existing Resources

• Powerlink has capacity for another Townsville.

• Ergon has around 700MW under control

• Develop Load following supply to optimise grid & Solar

• Tariffs have been restructured

• Co-generationIllustration Source: Ergon Energy 2015/16 Annual Report

Some Other Ideas• Establish Townsville as a Centre Of Excellence for

energy in the tropics• Townsville City Council & Govt set net neutral carbon

goals and an orderly pathway – Look at South Australia• Establish community wide Energy Productivity Targets• Aggregate efficiency programs & bid to the Emission

Reduction Fund.• Develop policies to support micro grids• Smart street lighting• Promote and educate on new smart tariffs• Leader in Disaster Resilience Planning• Develop local capability and scale to Asia

Join the conversation:#ideas_tsv