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Advancing Renewables Program

Australia: Good Funding for Solar Process Heat, but Little Trust by Industry

Submitted by Baerbel Epp on June 22, 2016
IRR rates for solar thermal in AustraliaAustralia’s energy policy has been in the international press mostly for its shift back toward coal under the former Prime Minister Tony Abbott. However, Jeremy Osborne, Director of Energy Analysis & Engineering, said in an interview with solarthermalworld.org that Australia did have a “supportive government despite all the news”.  Since July 2015, renewables for industrial processes has been one of the Australian Renewable Energy Agency’s (ARENA) investment priorities, which includes solar process heat. ARENA also published the report Renewable Energy Options for Australian Industrial Gas Users in September 2015, emphasising that lower-temperature process heat systems at around 100 °C are most “prospective at present” (see the attached document). Positive Internal Rates of Return (IRR) are achieved with gas prices above Australian Dollar (AUD) 5 per gigajoules (GJ). According to the report, the wholesale price for gas was between 6 and 8 AUD/GJ in 2014 and is expected to rise to between 9 and 12 AUD/GJ before the end of the decade. 
Chart: ARENA
 

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