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New demand for renewable electricity from sectors such as green metals, transport, fuel production and data centres is expected to increase significantly as Australia moves towards net zero. Ultra low-cost solar photovoltaics (PV) is a critical, scalable source of cheap electricity to meet this demand and will be a crucial enabler of the energy transition.
ARENA is currently focused on supporting projects that unlock ultra low-cost solar (ULCS) to help decarbonise our electricity system and improve the competitiveness of potential future, clean industries such as renewable hydrogen and low emissions metals.
ARENA’s 30-30-30 ambition is to achieve the following in large-scale solar: 30 per cent module efficiency at an installed cost of 30 cents per watt by 2030. If delivered, we could reach a Levelised Cost of Electricity (LCOE) of <$20 per megawatt hour, which represents approximately one third of the cost of today’s solar PV. ARENA is also looking beyond 2030, through research and development activities that can drive further cost reductions through to 2040.
ULCS will also help us achieve our goal of accelerating deployment to reach 1 terawatt of installed solar PV in Australia by 2050.
Demonstrate solutions that can increase module efficiency to 30 per cent and beyond, including increased bifaciality, tandem cells and extended lifetimes.
Improve cell & module efficiency
R&D and commercialisation projects to improve the performance of various cell technologies such as silicon, perovskite and tandem cells. This may include increasing the efficiency of existing technologies or improving the performance of higher efficiency, earlier stage technologies (e.g. reducing degradation rates). Projects to improve module efficiency are also of interest.
Other cell & module innovations
Pilots and demonstrations of other innovations that can reduce cell and module costs or improve yield. For example, projects to improve bifaciality factor (e.g. novel ground covers to improve albedo) or improve the lifetime of cells and modules, reduce input costs and materials requirements, and improve module design for a circular economy.
Demonstrate solutions that can reduce installed costs towards 30 cents per watt such as simplified mounting, racking and tracking designs, prefabrication, improved installation methods (e.g. robotics, automation, advanced analytics and artificial intelligence) and other design innovations for Australian conditions.
Demonstrate solutions that reduce O&M costs, such as panel cleaning, vegetation management and fault detection.
Projects could include hardware or software solutions such as intelligent fault monitoring, detection and correction systems, automated vegetation clearing and automated solar panel cleaning.
Demonstrate other solutions that can reduce the LCOE of solar PV through levers such as longer asset lifetimes, end-of-life management and lower soft costs.
Improve end-of-life management
While a more limited focus, ARENA will consider innovative pilots and technology trials across any stage of the solar PV value chain that can ultimately improve materials recovery, lower input costs and reduce overall supply chain emissions.
Address other costs and barriers to deployment
While a more limited focus, ARENA will consider innovative solutions that could reduce other costs or address barriers to deployment. These might include reducing inverter costs, lowering soft costs (such as permitting, inspections and project financing) or helping to secure social licence for new projects.
Drive capex optimisation
ARENA is open to working on novel approaches to capex optimisation and innovation sandboxes. For example, we will seek to work with an ecosystem of partners to collectively test innovations across multiple projects, share risk, increase productivity and reduce deployment costs over time.
Funding is also available through Solar Sunshot, a Government Budget Measure program, where we are looking at supporting projects that increase the manufacturing capacity and commercialisation of Australian solar PV innovations and enhance resilience in the domestic solar PV supply chain.
ARENA commissioned NERA Economic Consulting and Energy Synapse to model the potential value of flexible demand in the electricity transition.
As Australia continues to grow its share of renewable electricity generation, ARENA is looking at innovative ways to maintain system security and reliability.
Demand flexibility shifts energy use to save money and reduce strain on the grid.
DR is the voluntary reduction or shift of electricity use by customers, which can help to keep a power grid stable by balancing its supply and demand of electricity.
Our Investment Plan has identified flexible demand as a key focus area under our strategic priority to optimise the transition to renewable electricity. To accelerate the opportunities offered by demand flexibility, we are seeking projects that can provide new flexible demand capacity.
We welcome proposals for projects that:
In Australia, we are rightly proud of our world-leading solar and wind resources, our abundance of land, our trusted trading relationships, and the huge capital reserves we have built up in our superannuation funds.
Given our wealth of natural resources, we have the potential to become a renewable energy superpower. But natural resources are not enough.
Australia’s clean energy transition has reached an important milestone.
Australia’s journey to net zero is complex, and renewable hydrogen has the potential to be a key decarbonisation solution for around 10% of Australia’s emissions, particularly in sectors where electrification is challenging.
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