ABC news is reporting that the Tasmanian Government are considering investing $5M into a community owned PV farm.
Tasmanian Minister for Climate Change Cassy O’Connor, said the Government is already in talks with local energy retailer Aurora and “US-based solar panel manufacturers”.
Community owned PV has gained a lot of momentum, particularly in the US, so it’s no surprise to hear US companies apparently are pushing for it.
We have also seen some examples of this type of model down under; two projects went up in 2011 through Central Victoria Solar City (CVSC), which owns and operates Ballarat and Bendigo solar farms. Interestingly, they are considering a share offering in 2013 through a proposed IPO.
The Sunshine State is into the model too, with Hervey Bay hosting a 396-kW community owned solar farm.
Alongside these projects there have been a number of proposal which didn’t eventuate – but potentially could. The challenge we have seen is always that with such a dynamic market and endless changes to policy, the economics are different every time. In Australia, a common denominator in these succesful projects is that they have had significant funding – either Federal or State – which bodes well in Tasmania’s case.
However, it raises a fundamental and important issue – which industry is having a healthy global debate on and it is this; is central PV better than residential PV because of its economies of scale OR is residential PV better than central PV because of the higher tariffs than can be achieved by selling (or offsetting) energy at retail, rather than wholesale rates?
Certainly, the current Moree Solar Flagships anguish might suggest the latter; it was the failure to secure a PPA that scuttled the first bid at the eleventh hour.
The answer is in reality that both have pro’s and con’s but that central PV only works when you have a highly progressive Utility involved and a big chunk of capital support, at least today.
I have said it before and I’ll say it again to any politician who will listen ; PV is going to happen whether you like it or not. The choice politicians have to make is are they going to encourage, facilitate and benefit from it, or are they going to ignore it, criticise it, underestimate it and in many cases, create barriers.
I look forward to seeing this Tasmanian project get up, the State Government supporting big solar, the community getting good bang for their buck and most of all – a Utility behaving progressively and in support of PV.
Now that would be refreshing.
The post Community owned PV for the apple Isle? appeared first on Solar Business Services.