NSW Resources and Energy Investment Conference 28 July 2015

1. 1
Funding commercial solar
Ian Kay (CFO)
NSW Resources and Energy Investment Conference
28 July 2015

2. 2
ARENA supports all solar
technologies incl. storage
To date, ARENA has committed almost $700m to solar PV and thermal,
from R&D focused rounds to large scale deployment
# $m % # $m % # $m %
R&D 94 99.2 14.2% 34 78.7 11.3% 128 177.8 25.5%
Demonstration 10 81.6 11.7% 4 80.2 11.5% 14 161.9 23.2%
Deployment 5 358.8 51.4% - - 0.0% 5 358.8 51.4%
Total 109 539.6 77.3% 38 158.9 22.7% 147 698.5 100.0%
TotalStage Solar PV Solar Thermal
RenewEconomy
Australia’s Largest Solar Plant
Achieves Full Generation
Australia’s largest solar farm, the AGL Energy-owned 102MW
Nyngan Solar Plant in western New South Wales is set to
become fully operational in a matter of weeks after
achieving the milestone of full generation
The Daily Telegraph
Miner to build $40m solar power
station
Sandfire Resources says the $40 million project at the
DeGrussa copper mine 900km northeast of Perth will be the
largest integrated off-grid solar and battery storage facility in
Australia.
The project… is getting up to $15 million in funding from the
CEFC and $20.9 million from the ARENA

3. 3
This includes a broad range of
commercial solar projects
Large scale grid connected deployment
Off-grid mining load support
Fringe-of-grid commercial
Off-grid community
New commercial technology
Nyngan Solar
Plant
(Utility scale)
BrokenHill
Solar Plant
(Utility scale)
MoreeSolar
Farm
(Utility scale)
BluescopeSteel
(Built in PV)
DegrussaSolar
Plant
(Off-grid mining)
Weipa Solar PV
Project
(Off-grid mining)
YularaTourism
PV
(Fringe-of-grid
commercial)
Laing O’Rourke
(Redeployable solar)
Doomadgee
Solar Project
(Off-grid community)
FlindersIsland
HybridEnergy
(Off-grid Community)
CooberPedy
Hybrid
(Off-grid Community)

4. 4
Growth expected in behind the
meter generation
• Significant growth is expected in behind the meter commercial and
industrial solar in the future, coupled with storage capacity growth
• Policy frameworks remain uncertain
• Let’s not forget market risk
-
500
1,000
1,500
2,000
0
1,000
2,000
3,000
4,000
5,000
6,000
CumulativeStorageCapacity
(MWh)
CumulativeGeneration
Capacity(GW)
Cumulative new PV + Storage capacity - Commercial and Industrial
Commercial - Generation Industrial - Generation Storage - Capacity
Source: Bloomberg New Energy Finance

5. 5
Solar is now competitive with
diesel in off-grid locations
• In the off-grid market, solar is competing with diesel today
Existing diesel
New build diesel
100
150
200
250
300
350
400
2015
2015
2015
2016
2016
2016
2016
2017
2017
2017
2017
2018
2018
2018
2018
2019
2019
2019
2019
2020
2020
2020
2020
2021
2021
2021
2021
2022
2022
2022
2022
PriceperMWh
Off-Grid Energy Costs (Diesel, Gas and Solar)
Source: Energetics; BNEF; ARENA Analysis
10 year solar
20 year solar

6. 6
Solar is now competitive with
diesel in off-grid locations
• In the off-grid market, solar is competing with diesel and gas today
Existing LNG
New build LNG
100
150
200
250
300
350
400
2015
2015
2015
2016
2016
2016
2016
2017
2017
2017
2017
2018
2018
2018
2018
2019
2019
2019
2019
2020
2020
2020
2020
2021
2021
2021
2021
2022
2022
2022
2022
PriceperMWh
Off-Grid Energy Costs (Diesel, Gas and Solar)
Source: Energetics; BNEF; ARENA Analysis
10 year solar
20 year solar

7. 7
Solar is now competitive with
diesel in off-grid locations
• In the off-grid market, solar is competing with diesel and gas today
• The off-take period is a big driver of the commerciality of any project
• We recently reached financial close at the Degrussa mine in WA
10 year solar
20 year solar100
150
200
250
300
350
400
2015
2015
2015
2016
2016
2016
2016
2017
2017
2017
2017
2018
2018
2018
2018
2019
2019
2019
2019
2020
2020
2020
2020
2021
2021
2021
2021
2022
2022
2022
2022
PriceperMWh
Off-Grid Energy Costs (Diesel, Gas and Solar)
Source: Energetics; BNEF; ARENA Analysis
LNG
Diesel

8. 8
Large scale grid connected is
closing in fast
We are bridging the gap to wind
40
60
80
100
120
140
160
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Utility Scale Solar PV (Global Average) Onshore Wind (Global Average) New Build Coal Australia
Utility scale
solar PV
(global) (1)
$87 (FRV, Brazil) (3) New build coal
(Australia) (2)
Onshore
wind
(global) (1)
Current LCOE of Utility scale
solar PV in Australia (4)
LCOE(USD$/MWh)
Source:
(1) Large scale solar PV and onshore wind projections are global averages (inc US, EU, China and India regions) from BNEF, New Energy Outlook Global 2015
(2) Coal projections are from Australian Bureau of Resources and Energy Economics, 2012 Australian Energy Technology Assessment model – they do not include a carbon price.
(3) Bloomberg New Energy Finance News, Solar energy makes landfall in Brazil at record-setting low price, 4 November 2014
(4) Assumes average exchange rate USD:AUD (0.8:1)
The gap is
closing, but
could be faster

9. 9
Case Study – Degrussa Solar
10MW Solar
with 6MW
Battery
Integrated with
19MW Diesel
gen-set
Displacing 25%
of annual diesel
consumption
Up to 95% of
peak load
penetration
Financed by
ARENA, CEFC
and Neoen
Direct hedge of diesel costs on a fixed take-or-pay
Or 50,000 tanks
of fuel in the
standard 4WD

10. 10
ARENA’s new open programme
is ready for applications
We have recently launched an “Advancing Renewables Programme”
which will open for applications from 1 August

11. 11
Strategic priorities focused on 5
key areas
Within ARENA’s investment focus areas, our 5 priorities for new
investment are:
Integrating
renewables and grids
Renewables for
industrial processes
Fringe-of-grid and
network-constrained
Increase the penetration
and use of renewable
energy generation and
distributed energy eg.
providingcustomer-
focused solutions,
facilitating greater
renewables uptake in
low-voltage networks, or
addressing knowledge
gaps.
Off-grid areas
Large-scale solar
photovoltaics
Application and economic
benefits of using
renewable energy within
industrial processes, eg.
displacing fossil fuels, or
reduction of technical and
commercial risks.
How distributed
renewable energy
systems can alleviate the
need for network
augmentation or provide
other benefits,
particularly at the fringes
of grids or where there
are network constraints.
Activities that integrate
renewable energy with
existing electricity supply
to power industrial
processesand
communities in remote
off-grid areas.
Through the large-scale
solar PV competitive
round,pre-commercial
deployment activities that
show a clear path to
commercial
competitiveness for large-
scale solar PV.

12. 12
Large scale solar PV Priority
ARENA has begun consultation for a large scale solar competitive
round to continue push the cost curve is the right direction
What? How much?
Program size ca. 200 MW (DC)
Individual project size 10 MW – 50MW (DC)
Budget $80m - $100m
Launch Timing Consultation to late July, launch in Aug/Sep
Financial Close and Construction December 2016 target Financial Close
December 2017 construction complete
LCOE Metric $130/MWh as minimum benchmark
Competitive metric ARENA grant per MWh (calculated over 20 year life)
For more information, go to:
arena.gov.au/large-scale-solar-pv

13. 13
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