PLEA Network

24 March 2017, Renew Economy, Fear and loathing about renewable grid in Coober Pedy. There is uproar in Coober Pedy, the iconic mining town deep in the South Australian desert that is known as the Opal Capital of the world. What should have been a positive story about a project to shift the town from diesel to a renewable-focused mini-grid based around wind and solar and storage is causing outrage among consumers and councillors, and embarrassment to the developer and the federal agency that backed it. Last year, as we reported at the time, the final plan for the Coober Pedy Renewable Diesel Hybrid project was unveiled, featuring 4MW of wind, 1MW of solar and a 1MW/250kWh battery to provide up to 70 per cent of the power needs of Coober Pedy. The idea was that it would dramatically reduce the amount of diesel consumed from the existing 3.9MW diesel power station, reduce costs, and provide a possible blueprint for the rest of Australia to follow. But what should have been a flagship project for the country – as ARENA CEO Ivor Frischknecht touted it at the time – looks like turning into a disaster for the town and an embarrassment for the renewable energy industry; and a legal dispute between the council and the developers. It has now emerged that the cost that will be charged to the council, which owns the local grid, and which will subsidised by the government, will be more than double other alternatives. Graham Davies, from Adelaide-based Resonant Solutions, who completed an assessment on behalf of council last year, says that the average cost of generating electricity, not including distribution but including rebates, will be 48c/kWh. The deal signed by council will translate to total cost of $192 million over 20 years, a saving of a dismal $5 million over the diesel only grid staying as is for 20 years – which would simply not happen. The company’s own presentation on the project, made last May, appears to confirm that there is little difference between the ongoing cost of diesel and the solar, wind and storage grid. (see graph below). Renewable energy experts say that is absurd. Read More here