Like all renewable energy projects, the purpose of Jindera Solar Farm is to transition energy production from fossil fuel-based sources to sustainable sources.
Broad benefits
Broad benefits that would be associated with the operation of the proposal include:
- Reduced GHG emissions, assisting the transition towards cleaner electricity generation.
- Provision of a renewable energy supply that would assist the Australian and NSW
- Governments to reach Australia’s LRET and other energy and carbon mitigation goals.
- Embed electricity generation supply into the Australian grid, closer to identified consumption centres.
- Diversification of land use and economic activity in regional NSW.
Specifically, the proposal would:
- Generate approximately 275,000 MWh of renewable electricity per year.
- Supply enough power each year to service approximately 65,000 households (assuming average household consumption of 4,215 kWh p.a.).
- Save around 92,000 tonnes of carbon dioxide (CO2) per year, assuming generation would otherwise use brown coal with a carbon factor of 0.33372 tonnes per MWh
- A solar energy facility that displaces 92,000 tonnes of CO2 per annum is the equivalent of taking about 40,500 cars off the road each year, based on an average car in NSW travelling 14,000 km per year with CO2 emissions of 162 g/km
Electricity reliability and security benefits
The Proposal would enhance electricity reliability and security.
While most of Australia’s electricity is currently provided by coal-fired power stations, as many as threequarters of these plants are operating beyond their original design life. Nine coal-fired power stations have closed since 2011-2012, representing around 3,600MW of installed capacity.
Even with demand-management initiatives, the retirement of old power stations would require the development of new, reliable and low-emissions energy supply. Given the high levels of solar irradiance in NSW, the strong transmission network in the region and the declining cost of solar power over the last decade, the proposal is an important source of new power generation.
The transition to renewable energy sources based on variable wind and solar PV generators has implications for reliability and security; these sources lack usable inertia to support power system security. The NEM grid is long and linear, with much less network meshing than many international systems. Geographic and technological diversity in the network can improve security and smooth out the impacts of variability.
While grid‐supplied electricity consumption is expected to remain stable, the proposal would benefit network reliability and security by providing embedded electricity generation closer to local consumption centres, contributing to a more diverse mix of energy sources and potentially regulating inputs (including improving the security of supply).
Downward pressure on electricity prices
Household electricity bills increased 61% between 2008-09 and 2012-13, due mainly to network expenditure. Australian households would pay $510 million more for power in 2020 without renewable growth through the RET and up to $1.4 billion more per year beyond 2020. Renewables increase diversity and competition in the wholesale energy market – and as in any market, more competition means lower prices.
Variable renewable energy generation such as PV solar operates with no fuel costs and can, with the right policy framework and technological development to manage variability, be used to reduce overall wholesale prices of electricity.
Several studies on the impacts of increased large-scale renewable energy generation under the RET have indicated that this is likely to put downward pressure on electricity prices.