Renewable Energy

Northern Territory Energy Industry

Figure 1. NT power system, NT Roadmap to Renewables 2017 The Northern Territory has globally significant onshore and offshore energy reserves and a long history as a supplier of oil, gas and uranium worldwide. It is also committed to providing secure, reliable, and affordable power to all Territorians to ensure economic and job development.

The Territory relies on conventional offshore and onshore gas as well as diesel as its primary source of energy input for electricity generation. It currently uses a mix of approximately 96% gas and diesel and 4% of renewable energy supplied primarily by solar energy.

Community attitudes and expectations towards cleaner, sustainable sources of energy and rapid improvements in renewable energy technology is causing disruption in the way energy is generated, distributed and consumed in the Territory. Industries such as mining, agriculture and transport are integrating renewables into their business models at a rapid pace to cut costs and create efficiencies.

Reliability is an issue that needs to be overcome for all renewables. Solar is one of the more popular renewables for the Territory due to climate, but it is affected by changes in weather patterns that occur in the wet season. Changes in supply and demand currently hinges on other types of energy like oil and gas providing the critical back-up required for Territorians using solar. Currently not connected to the National Electricity Market (NEM), the Territory does not share the critical secondary source of power some of the other states have, but this creates opportunity for the Territory to be innovative in tapping into evolving renewable technologies like battery storage to supply back-up power at crucial periods.

The Northern Territory Government is focusing on establishing a regulatory environment supporting investment in energy sources balanced with environmental considerations, community values and economic growth by:

Setting a target of 50 percent electricity from renewable sources by 2030 and reducing greenhouse gas emissions
Planning, building and maintaining safe, cost efficient and reliable local electricity infrastructure for provision of services
Managing the purchase, transport and sale of gas to electricity generators and other major gas users, and
Future proofing the NT by planning for and building electricity infrastructure to meet future supply and demand.

Australia has a substantial renewable energy resource potentially capable of providing 500 times the electricity currently used in Australia. It has been estimated that growth in renewables worldwide would see a corresponding growth in Australia’s economy of 1.7 percent above ‘business as usual’, even when factoring in a decline in coal exports.

NT Roadmap to Renewables Report, NT Government, 2017

NT Renewable Energy Industry

The Northern Territory Government has a target of 50 percent of electricity coming from renewable sources by 2030. Renewable energy is energy produced using natural resources that are constantly replaced and never run out and include solar, wind, and wave power.

In 2017, the Government commissioned an independent expert panel to advise and report on viable options to reach its renewable energy target taking into consideration technical, financial, operational and economic issues. The NT Roadmap to Renewables Report 2017 provides 11 recommendations to guide Government to achieve the target including how current infrastructure could be used to support a change-over to more renewable energy sources. The report highlights the numerous attributes that the Territory possesses, including:

Considerable knowledge, capability and expertise in renewable energy technology, particularly in the Alice Springs region
Ideal location for large-scale solar PV plants due to land and sunlight
The impact the Government could achieve towards the target by explicitly encouraging the installation of solar PV on its own buildings; if consumption by rental households and government were combined, some 50 to 60 percent of facilities could potentially benefit from renewable energy, enabling the Territory to reach half of its target for 2030; and
Opportunity for renewable energy to replace gas generation assets as they retire or to extend gas generation asset life, by reducing its working load, maintaining the system’s security and reliability.

The report also highlighted that two principal barriers typically attributed to renewable energy investment in the Territory were becoming less relevant i.e high capital cost (offset to some extent by the lower cost of operation, generation and maintenance) and reliability:

High capital cost - The cost of producing renewable energy electricity has declined significantly over recent years and is still on a rapid downward trajectory. The average investment cost of both wind and solar power has decreased by more than 50 per cent since 1990. It is anticipated the cost of renewable energy will decline even further as markets mature and companies increasingly take advantage of economies of scale.
Reliability - Given the very high levels of solar radiation in the Northern Territory, it is the most widely used renewable energy source locally, well suited to the climate and geography. As solar energy is intermittent and only produced when the sun is shining, cloud cover can rapidly reduce energy capture. New enabling technologies like battery-storage, supply prediction and smart grid technologies help to manage renewable energy so it can be produced day and night while strengthening the electricity grid.

The report notes that back up energy storage will likely play an important role in the Northern Territory progressing towards the Government commitment to producing 50 percent renewable energy by 2030 for electricity supplied to Territory households and businesses, while at the same time ensuring secure and reliable electricity at minimal cost to consumers and taxpayers.

Clean Energy Australia Report

Bureau of Meteorology

NT SETuP (Solar Energy Transformation Program) is a co-funded project by ARENA and Power Water Corporation valued at $59 million. Ultimately, the four-year program will provide 10 megawatts (mw) of solar photovoltaic power into the energy mix of 25 Northern Territory communities. The program is changing the energy supply portfolio of Power Water Corporation, making solar energy an established part of future power station design and will create fuel savings of at least 15 per cent across the 25 communities.

Introduction to ARENA’s Remote and Regional Projects Report, ARENA, 2017 & PowerWater Indigenous Essential Services Annual Report 2016-2017

Types of Renewable Energy

Hybrid diesel-solar power stations – In many remote locations of the Northern Territory, hybrid diesel-solar power plants are being established. Containing solar photovoltaic (PV) panels, they convert solar energy into electricity reducing the reliance on diesel for energy production. When insufficient solar is available, the diesel generator is used to provide a reliable supply of energy for the local community.
Rooftop PV systems – A solar PV power system converts energy from sunlight into electricity. Currently, Territory residents with rooftop PV systems are connected to the power grid. Any excess energy produced is returned to the grid for other users to benefit from. Where solar energy is insufficient due to cloud cover or weather conditions, these residents can source their energy from the grid system, which is supported by conventional energy sources (primarily gas).
Wind turbines – Wind turbines are devices that convert the wind’s kinetic energy into electricity. These large-scale systems generate energy which is injected into the grid system for the benefit of all users. The Northern Territory climate is such that wind turbines are less effective, and therefore less commercially viable, than they are in southern jurisdictions.
Landfill gas – Methane gas is continuously generated in landfill sites such as the Shoal Bay site in Darwin as a by-product of waste. This gas can be used as an energy source to generate electricity. The small population of the Northern Territory is such that there isn’t enough waste to support large generation of methane gas from landfill, however this may prove a valuable and environmentally-beneficial source of electricity for small scale operations / production.
Hydropower – Flowing water creates energy that can be captured and turned into electricity. The most common type of hydroelectric power plant uses a dam on a river to store water in a reservoir. Water released from the reservoir flows through a turbine, spinning it, which in turn activates a generator to produce electricity. There is also tidal power which uses tides and waves in a similar way.
Geothermal – Generated by the natural decay over millions of years of radiogenic elements including uranium, thorium and potassium. Geothermal energy can be drawn from the hot water circulating among rocks below the earth’s surface, or by pumping cold water into the hot rocks and returning the heated water to the surface. This drives steam turbines to produce electricity.
Bioenergy – Derived from organic matter of recently living plant or animal material. Research is being done in the Northern Territory to determine its feasibility as a back up storage solution to solar.

The Northern Territory Government has a target of 50 percent of electricity coming from renewable sources by 2030. Given the Territory’s natural advantages, solar energy is the most promising way to achieve this…Renewable energy could improve the competitive position of a broad range of businesses if it could be harnessed to deliver lower cost electricity than alternative fuel sources. The sector provides an opportunity for Territory businesses to integrate best-practice technologies in solar power generation, storage and management, and this expertise could be sold by Territory firms to earn income from outside the Northern Territory.

NT Economic Development Framework, NT Government, 2017

The Northern Territory Energy Grid

Regulated systems - The Northern Territory is currently made up of scale regulated electricity grid networks: Darwin–Katherine, Tennant Creek and Alice Springs. Ninety-six per cent of the fuel used for these networks is natural gas, allowing the Northern Territory to achieve relatively low wholesale electricity prices. There are also minor grid systems at Yulara, Timber Creek, Borroloola, Nhulunbuy and Ti Tree, which are primarily powered by gas, diesel or a mixture of the two.
Unregulated systems - Other areas of the Northern Territory are categorised as unregulated systems, where generation is generally provided by diesel or gas fired generators. Increasing portions of renewable energy are being injected throughout the Northern Territory, including within outstations and remote communities. These smaller communities offer significant opportunity for high penetration solar and battery systems as the renewable energy replaces expensive diesel fuel.

Many Territorians have installed solar PV on the roofs of their homes and businesses to save on their electricity bills, reduce the consumption of fossil fuels, and to reduce greenhouse gas emissions.

Northern Territory Energy Service Providers

Three Government Owned Corporations operate the Northern Territory electricity system and provide the majority of services.

Territory Generation - (Generator) – TGen operates and maintains a fleet of gas powered generation assets. Supplying the NT with most of its electricity, these assets also provide the necessary support and back-up services to recover quickly from sudden equipment outages.
Power and Water Corporation (PWC) - (Regulator/Generator) – PWC manages the reliability of the system by ensuring the right support services are always available where required. PWC also generates electricity in some minor centres and communities serviced by Indigenous Essential Services Pty.
Jacana Energy - (Retailer) – The dominant electricity retailer across both the regulated residential and small business customer market and the commercial and industrial customer market. Jacana is one of six licenced electricity retailers in the NT.

Clean Energy Council accreditation: for a small-scale solar PV wind or hydro system to be installed in a Territorian’s home and be eligible for Government rebates, it must be signed off by an individual who is accredited by the CEC. To be accredited, installers must complete a VET or university related qualification and undertake additional relevant training units. They must also regularly participate in continuous professional development (CPD) to maintain their accreditation. CEC also provides training and endorsements in skills such as Storage. The CEC also maintains a list of approved solar modules and inverters that meet Australian standards for use in the design and installation of solar PV systems.

Industry Skills Advisory Council NT (ISACNT)

Latest Industry Intelligence

ISACNT interviewed and conducted workshops (Darwin and Alice Springs) with approximately 22 key stakeholders representing the NT Roadmap to Renewables Industry Expert Panel, large energy generators, small to medium solar providers and installers, industry association representatives, RTOs and local government.

The information collected along with desktop research of key reports has informed this report.

ISACNT would like to thank everyone who took time out to participate in the research and provide their insights and experiences.

The Northern Territory is the nation's stronghold for solar hot water, with
42.3 %
of households having a system installed
(ABS 2014)

Western Australia is next in line with
19.2%
(ABS 2014)

Alice Springs is the top solar postcode for the Northern Territory
1672 installations and
8598 KW Capacity
(Figure Clean Energy Australia Council Report 2018)

NT SMALL GENERATION UNIT-SOLAR

NT SOLAR WATER HEATER AND AIR SOURCES HEAT PUMP

Solar water heaters

Current State

Strengths

Geo-political and economic

The NT’s proximity to Asian markets is strategically important to energy supply worldwide, to Australia and the NT
NT Government has set a 50% renewable energy target by 2030 and corresponding roadmap and recommendations have been produced
Renewables are becoming increasingly inexpensive and reliable
The NT has a long history of innovation with renewable energy systems
The NT is a prime location for large-scale solar PV plants
Territorians have a robust uptake of owner occupier solar PV
Renewables add value to the property market
The NT has expertise integrating renewables with existing diesel and natural gas generation
NT has signed up to the Australian Regulator but not the rules, giving room for flexibility and negotiation
NT is not connected to the NEM providing opportunity for innovation
Local SMEs are knowledgeable in NT specific installation and compliance guidelines and regulations unique to the Territory

Workforce and capability

Local SMEs formed Smart Energy NT, advocating Buy Local, funding locally based training, enabling community education programs, and advocating market led investment
CEC indicates 58 accredited solar design and installers in the Top End and 15 in Central Australia
SMEs say they have the skills for business now, but not for projected growth

Training and skills

The NT has robust electrical apprenticeship enrolments which are meeting entry level skill demand
Many trade qualifications have transferable skills to renewables
Renewable energy industry provides career pathway opportunities for VET and university graduates

Challenges

Geo-political and economic

A detailed implementation plan based on the roadmap will be required to ensure the 50/50 target is met by 2030
The NT’s lack of a formal energy policy
Isolated networks, stand-alone systems and remoteness make economies of scale challenging
NT weather and geography makes some renewables unviable
High proportion of NT rental property and government owned buildings without renewable energy
Ensuring local consumers are educated in NT specific installation and compliance guidelines and regulations
Low SME participation in large scale installations and farms
Local SMEs challenged to compete on price with interstate competitors due to higher costs of doing business remotely
Noncompliance of regulation and guidelines may affect property prices
SMEs identify red tape issues:
- Final connection of commercial installation to grid can be delayed reducing economic benefits
- Building permit requirement creates additional economic costs
- NT grant scheme reimbursements may create installation delays

Workforce and capability

CEC accreditation sits with an individual, rather than a company creating challenges for SMEs
Small-scale solar energy contributes majority of employment among NT renewable energy activity, but the real impact will come from large scale renewables
In-house structural engineers with renewable energy experience create a cost savings to NT businesses but those with experience are difficult to recruit
SMEs use qualified electricians to provide majority of work when significant proportion is manual labour (70% labour, 20% Electrical, 10% Other)

Training and skills

Completion rates continue to be an issue for Electrical apprentices
National qualifications covering renewable energy are inadequate for current industry needs and have not kept up with technology changes
Inadequate CEC accreditation training or professional development offered in the NT
No RTO is currently offering face-to-face renewable energy training in the NT

Case Study

As a passionate business owner in the renewable energy industry, community education is key to the NT meeting its 2030 target. Customers can be blindsided by NT specific building requirements and suburb covenants i.e. restrictions on property use set by developers.

Designing and installing Solar PV that meets appropriate requirements, regulations and guidelines is far more complex than customers think.

It is crucial for customers to educate themselves to avoid common pitfalls that can result in an unsalable property, expensive fixes and/or complex legal issues.

Simple steps and guidelines that we recommend to our customers include:

Understand your energy consumption
Look local first and make sure installer licenses and accreditations are in place
Review Power Water Corporation's website for additional information
Check that the installer quote is all-inclusive
Book a site visit with the installer and a follow up consultation on monitoring the system
Ensure you receive your certificate of occupancy and a copy of the building permit
Ensure you understand the terms and conditions of solar system warrantees and you have received all relevant paperwork

Jeremy Hunt, Managing Director, Country Solar NT

Future State

Opportunities

Geo-political and economic

Developing an energy market design framework that capitalises on local SME expertise, incorporates the unique qualities of the NT energy grid and links policy, funding and training
Establishing an independent NT implementation agency advising Government on policy, ensuring targets are met
Developing and implementing an educational consumer campaign addressing the benefits and NT specific requirements for solar installation
Developing the NT as a low-cost gas and renewable energy hub, creating local jobs and business growth
Exporting opportunities exist for NT businesses throughout the Asia corridor, especially the Indonesian Archipelago islands with a similar tropical climate
Establishing renewable hubs to share knowledge and expertise
Prioritising the installation of solar PV on NT Government owned properties and creating incentives for property owners
Ensuring the Roadmap and Buy Local policy supports growth of NT based businesses

Workforce and capability

SMEs partnering with civil construction companies to deliver medium to large scale solar projects
SMEs developing innovative practices and Intellectual Property (IP) that capture their unique skills and knowledge for operating in challenging geographic and weather conditions, with export potential
Large scale operator suggests reskilling of current workforce will be required
Skilling local people to deliver renewable services in their communities can increase participation and engagement at the local level, bringing with it significant economic and social benefits
Developing new occupations and career pathways such as Energy System Engineers (whole house and business design), post installation and maintenance of PV systems, and the ability to technically assess and report on the performance of renewable systems
Develop expertise in leadership, project management skills, quality assurance (QA), WHS and digital/IT systems for NT renewables industry

Training and skills development

Incentivising support to undergraduate electrical and structural engineers to undertake work experience to gain skills in renewables
Upskilling current workforce in areas such as civil construction, systems management, smart integration systems and electrical and battery design and storage
Encouraging local RTOs to deliver CEC units and regular PD sessions in the NT so electricians don’t need to fly to other jurisdictions to upskill
Broader delivery of Certificate II in Electrotechnology to targeted groups such as students from remote communities
Incentivising local RTOs to include solar-related units and skill sets into relevant qualifications
Encouraging RTOs to invest in current renewables technology and trainers with up-to-date industry experience

Threats

Geo-political and economic

Energy market structure design and policy will need to consider and address unique vulnerability and low inertia of NT grid
Historic monopoly of few energy providers in the NT is a threat to local SMEs participating in medium to large scale projects
Isolated micro-grids and stand-alone systems make economies of scale challenging in the NT
NT weather and geography makes some renewables less viable

Workforce and capability

CEC accreditation is due for expiration in 2030 with some pressure to expire in 2020
2016/17 (ABS) saw renewable production increased by one-third, creating an additional 14,820 positions in other states and territories; competition for skilled workers is increasing

Training and skills development

Few VET qualifications related to energy, electricity and renewables currently meet the needs of the NT renewable industry due to factors such as:
- Rapid advancements in technology
- Little room in Certificate III in Electrotechnology qualification for additional renewable units
- Some qualifications still have technology that is no longer used but must be delivered and assessed
While there are suppliers offering training, it is usually based on one issue/system and it is not subsidised or nationally recognised
Not addressing current industry needs for accredited/non-accredited storage (battery) training

The Northern Territory Government is committing $5 million in funding over three years for a Centre of Excellence in Renewable Energy, which will be based in Alice Springs. The Centre will be named the Intyalheme Centre for Future Energy. Desert Knowledge Australia (DKA) has been granted permission to use the Arrernte word meaning ‘a fire starting up again’. The Centre will prioritise knowledge sharing, community education and engagement, industry partnerships, and commercialisation as its core functions. It will build on the existing infrastructure, knowledge and expertise within the Alice Springs community, by concentrating resources and capability as well as by promoting collaboration and knowledge sharing. The Centre will leverage resources through significant co-investment from other parties over time, including research organisations, industry and other Government partners.

Roadmap to Renewables Report, NT Government, 2017

Skills in Demand

Entry Level Skills
in Demand

Working at heights
White Card
Elevated work platform
Power tools use
Equipment/supplies handling

Industry Skills
in Demand

Professional trade skills, knowledge, currency and work experience, including Roof Plumbers
Project management skills
Mechanical or electronic skills
Numeracy and literacy proficiency
Technical problem-solving skills
Documentation and record keeping
Reliability and responsibility
Safety awareness
Effective communication skills

Specialised Skills
in Demand

Battery installation/design
Quality management systems
Building management systems
Smart devices
Smart integration systems
Electrical design
ISO accreditation

Clean Energy Council Accreditation

Clean Energy Council Solar Accreditation is a qualification that demonstrates competence in the design and/or installation of solar power systems.

Occupations in Demand and Career Pathways

Occupations in demand and qualifications pathways have been identified. These occupations may require additional licences, accreditations, certifications and specialised training.

NT Apprenticeship / Traineeship

Training Delivered in the NT

NO NT Appreticeship / Traineeship

NO Training Delivered in the NT

Electrician (General)

ANZSCO # 341111 Installs, tests, connects, commissions, maintains and modifies electrical equipment, wiring and control systems. Registration or licensing is required. Skill Level: 3

Certificate II in Electrotechnology Electrician
Certificate III in Electrotechnology Electrician
Skill Sets post Certificate III: Installer of Grid Connected Photovoltaic Systems Designer-Installer ofGrid Connected Photovoltaic Systems Sustainable - Energy Efficiency Auditor Specialised units of competencies Install, maintain and fault find battery storage systems for grid-connected photovoltaic systems Design battery storage systems for grid-connected photovoltaic systems
Certificate IV in Electrical - Photovoltaic Systems
Skill Sets: Energy assessment of residential, office and retail premises Energy assessment of commercial facilities Energy Assessment of industrial properties and enterprises
Diploma of Electrical Engineering
or
Diploma of Renewable Energy Engineering
Skill Sets: Energy Efficiency Systems Designer Identify Energy Efficiency Strategies Energy Efficiency Systems Developer Energy Efficiency Systems Integration
Advanced Diploma of Renewable Energy Engineering
or
Advanced Diploma of Electrical - Engineering

Electrical or Telecommunications Trades Assistant

Alternative titles: Trades Assistant or Labourer

ANZSCO # 899914 Assists Electrotechnology and Telecommunications Trades Workers to install and maintain electrical and telecommunications systems. Skill Level: 5

Certificate II in Electrotechnology
or
Certificate II in Construction

Management and Professional Occupations

Management and professional occupations in demand in the NT are listed below. Renewable Energy Industry career pathways have been identified. These occupations may require trade qualifications, additional licences, accreditations, registration, certifications and specialised training. Identified engineers require university degrees.

NT Apprenticeship / Traineeship

Training Delivered in the NT

NO NT Appreticeship / Traineeship

NO Training Delivered in the NT

Engineers

Electrical Engineer

ANZSCO # 233311 Designs, develops and supervises the manufacture, installation, operation and maintenance of equipment, machines and systems for the generation, distribution, utilisation and control of electric power. Registration or licensing may be required. Skill Level: 1

Civil Engineer

ANZSCO # 233211 Plans, designs, organises and oversees the construction and operation of dams, bridges, pipelines, gas and water supply schemes, sewerage systems, airports and other civil engineering projects. Registration or licensing may be required. Skill Level: 1

Structural Engineer

ANZSCO # 233214 Analyses the statistical properties of all types of structures, tests the behaviour and durability of materials used in their construction, and designs and supervises the construction of all types of structures. Registration or licensing may be required. Skill Level: 1

Bachelor of Engineering Science
(Civil and Structural, Electrical and Electronics)

Construction Estimator

Alternative Title: Building Estimator

ANZSCO # 312114 Prepares and delivers estimates and cost plans for construction projects up to the tender settlement stage. Skill Level: 2

Certificate IV Building and Construction (Estimating)
or
Certificate IV Project Management

Project Manager

ANZSCO # 133211 Plans, organises, directs, controls and coordinates the engineering and technical operations of an organisation. Skill Level: 1

Certificate IV Project Management Practice
Certificate IV in Leadership and Management
Diploma in Project management

Qualifications and Training

Electrotechnology - Enrolments and Completions

Qualification Name	2014		2015		2016
	Enrolments	Completions	Enrolments	Completions	Enrolments	Completions (Preliminary)
Certificate II in Electrotechnology (Career Start)	16	0	73	3	22	14
Certificate III in Electrotechnology Electrician	791	77	513	86	518	93
Certificate IV in Electrical - Photovoltaic systems	2	0	0	0	3	0
Diploma of Electrical Engineering	0	0	0	0	1	2
Diploma of Renewable Energy Engineering	3	0	0	0	2	0

Source: NCVER VOCSTATS Years 2014, 2015, 2016
State/Territory of residence of Student: Northern Territory

Construction, Plumbing and Services, and Business Services
Enrolments and Completions

Qualification Name	2014		2015		2016
	Enrolments	Completions	Enrolments	Completions	Enrolments	Completions (Preliminary)
Certificate IV in Project Management Practice	140	46	133	51	217	59
Diploma of Project Management	170	59	197	23	213	30
Certificate II in Construction Pathways	181	45	279	31	160	42
Certificate II in Construction	259	95	289	90	310	97
Certificate IV in Building and Construction (Estimating)	0	0	3	0	0	0