ENERGY. Official Journal of the Australian institute of Energy

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1 ENERGY Official Journal of the Australian institute of Energy NEWS Volume 32 No 2 APRIL 2014 Coal Seam Gas in NSW: the new frontier? p.12 The 2014 outlook: minefield's ahead, p.2 How the Western Treatment Plant powers itself, p. 16 PLUS Accelerate your career, p. 32

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3 ISSN (International Standard Serial Number allocated by the National Library of Australia) Energy News Journal Correspondence Madeleine Brennan 1 Armstrong Street Reservoir, VIC editor@aie.org.au Advertising Members (and non-members) may place advertisements in EnergyNews on behalf of themselves or their organisations. If you wish to use this opportunity contact: Madeleine Brennan 1 Armstrong Street Reservoir VIC editor@aie.org.au Advertisements can include products, services, consulting, and positions vacant and required. Discounts are available for members and for all advertisements repeated in two or more issues. Subscription Information EnergyNews is published by the Australian Institute of Energy and is provided to all members as part of the membership subscription. Non-members may obtain copies of this journal by contacting either the Secretariat or the Editor. Contributions Welcome Articles on energy matters, letters to the editor, personal notes and photographs of those involved in the energy sector are most welcome. Published By The Australian Institute of Energy ABN Registered Office Level 1/613 Canterbury Road, Surrey Hills VIC 3127 Postal Address PO Box 193 Surrey Hills VIC 3127 Telephone Toll Free: Facsimile: (03) aie@aie.org.au Web Address Print Post Approved No. PP 32604/00001 Disclaimer Although publication of articles submitted is at the sole and absolute discretion of the Australian Institute of Energy, statements made in this journal do not necessarily reflect the views of the Institute. Electricity PricING CONTENTS The 2014 energy outlook: minefield's ahead 2 Carbon pricing: Are consumers bearing the load? 4 How will cost reflectivity effect small customers? 5 WA announces electricity market review 7 Oil and Gas GE s $100m Jandakot centre primed for resources growth 9 Coal seam gas in NSW: The new frontier? 10 Biogas How the Western Treatment Plant powers itself 14 Energy Storage Pumped hydro energy storage: Opportunities for Australia 16 Solar Wins hard-fought in model solar vehicle challenge 18 Electric vehicles Electric beats Supercars in Clipsal Energy Efficiency Energy efficiency in commercial buildings 20 Membership Matters Around the Branches 26 Young Energy Professionals 26 Accelerate your career in energy 28 Picture (cover): One of AGL s NSW coal seam gas projects is located near Stratford, approximately 100 km north of Newcastle. Courtesy of AGL energy LTD.

4 PRICING The 2014 energy outlook: minefield's AhEAD This is a summary of the presentation delivered to South Australian Branch members on 13 March, 2014 By Tony Wood, Energy Program Director, Grattan Institute, Melbourne. Across Australia, electricity prices have been rising at a rate outstripping average incomes. At the same time, we have seen an unprecedented and consistent fall in consumption. Traditional generators are financially stressed and there is great uncertainty about the future of renewable energy and carbon pricing. South Australia is not immune, with a relatively high reliance on gas, high penetration of wind power and solar PV, high peak demand and the introduction of retail price deregulation. How these forces are likely to play out and what governments can do to deliver the best outcomes for homes and businesses are big energy policy issues for Across Australia, as shown in Figure 1, rising electricity bills have been regular front-page news for several years, outstripping the cost of living and growth in average incomes. Since 2006, the average household power bill has risen more than 85%: from $890 to $1660 a year. But in that period, the average household has reduced power use by more than 7%. South Australian households have been on the same path (Figure 2). This means that Australians are funding billions of dollars of infrastructure that falling consumption has made redundant. Network pricing is determined by the Australian Energy Regulator, and there is some optimism that recent new regulatory rules and increased funding will reduce these pressures in the near future. But just when there might be good news on that front, we are witnessing a global revolution in unconventional gas supply that is creating real and imagined challenges and opportunities across the world - Australia is not immune. A $60 billion investment in liquefied natural gas (LNG) facilities in Queensland will begin to generate export income from the end of great news for our balance of trade. A direct consequence has been the opening of the Australian domestic gas market to the global market, and Asian buyers particularly the Japanese without their nuclear power plants are prepared to pay high prices. A flow-through to domestic gas prices will hit hard, as shown in Figure 3. Not surprisingly, such significant price increases have raised widespread alarm and led to calls for some form of Australians are funding billions of dollars of infrastructure that falling consumption has made redundant. Tony Wood, Grattan Institute Figure 1 protection for business and households. So far, governments, with the exception of Western Australia, have resisted any return to protectionist policies, but the pressure is strong. A positive element of these pressures has been to highlight our failure to complete the national reform agenda that began with the 1993 Hilmer Review into national competition policy. Reform fatigue set in after the turn of the century and we are seeing the result with regulated competition in the retail sector, inefficient government ownership and poor regulatory outcomes. A rejuvenation of this reform agenda, extended to the fundamental national structure that governs the sector, is a high priority. The fourth big energy policy issue is climate change. At a federal level, we have apparent bipartisan support for a target to reduce greenhouse gas emissions by 5% below 2000 levels by 2020 and commitment to an international objective to constrain global temperature increases to no more than two degrees. Beyond that, things get very messy. The agenda for 2014 in this area is overwhelmingly focused on the 2020 target. 2 Energy News

5 We are likely to see repeal of the carbon tax and associated entities (Climate Change Commission, Climate Change Authority and Clean Energy Finance Corporation), introduction of Direct Action as the alternative policy and a review of the Renewable Energy Target. There is much active debate about the relative merits of the policy alternatives. However, there is no doubt that unpredictable and changing climate change policy is poisonous to investor confidence. The absence of a bipartisan, long-term climate change policy framework is the biggest threat to investment across the energy sector. So, how should Australian governments respond to these pressures? The first thing is to recognise that change and adjustment to change are permanent features of the energy landscape, and calls for governments to do something are frequent and loud. Effective governments will resist most of these calls and focus on those areas where policy intervention can be effective and efficient. At the top of the list should be three priorities. First, we need to reinvigorate the national reform agenda to ensure lower power prices. Second, governments should acknowledge and protect the primacy of markets and free trade and resist calls to march in the opposite direction, no matter how they might be disguised. Third, and most critically, we need a credible, long-dated climate change policy response with bi-partisan support. Figure 2 Figure 3 Energy News 3

6 carbon pricing: are consumers bearing the load? By Dr Marjan Nazifi, Associate Lecturer for Macquarie University s Faculty of Business and Economics. The coincidence of increases in power prices with the implementation of the Carbon Pricing Mechanism (CPM) in Australia has raised the question as to whether electricity generators have already passed through the costs of carbon on to wholesale electricity prices. Seeking an answer to this question can help to reveal the effectiveness of the CPM policy in encouraging the substitution of current methods of power generation with low-carbonintensive technologies. Research conducted by Macquarie University set out to statistically investigate the interaction between a carbon price signal and wholesale electricity prices within the Australian National Electricity Market (NEM). This study undertakes one of the first evaluations of the CPM and fills a vital research gap around design issues in environmental markets in Australia. The research discovered several factors can impact the extent to which the increase in electricity prices can be attributed to the pass-through of the costs of carbon on to consumers Emission reduction might only be achieved (if at all) through consumer decisions to reduce power demand Dr Marjan Nazifi, Macquarie University through higher wholesale prices (the so-called carbon costs pass-through rate (CPTR)). More specifically, it found the CPTR has been influenced by a range of factors, such as electricity supply and demand elasticities; market structure; the emissions intensity of existing capital stocks; availability of low carbon-emissions substitutes and technologies; changes in the merit order; availability of international credits; and the extent of government assistance. The analysis also suggests there is a significant rate of carbon costs passthrough to electricity prices indicating consumers, rather than generators, are bearing the incidence of the carbon tax within the NEM. More interesting, there is empirical evidence that illustrates, in some states, the increase in electricity prices has exceeded the carbon costs, which could be interpreted as a potential for double dipping by generators. The extent of the pass-through rates estimated here also demonstrates that carbon costs would be unlikely to be internally absorbed to a significant extent by generators, suggesting firms benefit from the implementation of the CPM due to increased market prices. This means the goal of greenhouse gas emissions reduction might only be achieved (if at all) through consumer decisions to reduce power demand in response to carbon induced increases in electricity prices. The findings undermine the government financial assistance to power generators as compensation for the introduction of a carbon price. Such financial supports to emissionsintensive power stations could lead to substantial windfall profits for generators, the report finds. 4 Energy News

7 How will cost reflective tariffs effect small customers? By Bill Nixey, Director, Ellipson. With the rules governing how electricity network charges are set currently being reformed, there is a likelihood that the proposed changes will see distribution network tariffs become more cost reflective. To examine what the likely impacts for small customers would be as a result of more cost reflective tariffs, a research project was commissioned by the Total Environment Centre. The research was undertaken by the energy consulting firm Ellipson Pty Ltd and made possible via a grant from the Consumer Advocacy Panel. The research examined the impact to 686 residential customers in NSW and Victoria of moving to five different cost reflective pricing structures. The customer data used in the research was provided by four electricity networks: CitiPower, Powercor, Ausgrid, and Endeavour Energy. Figure 1 summarises the electricity usage patterns of the sampled customers. Small customers were defined in this study as those using less than 5 MWh per annum in NSW and 3.5 MWh in Victoria. The pricing structures examined in the study were fixed charges, demand charges, time of use (TOU) energy charges, seasonal TOU, and a critical peak price structure. Each of these structures was included in the Australian Energy Market Commission s 2012 Power of choice review as a potential cost reflective tariff. A seasonal TOU tariff charges peak energy rates only during certain months of the year, for example during summer months. A critical peak price charges customers a significantly higher price but for a limited number of hours each year (coinciding with peak demand on the network). The cost impacts for the sampled customers were compared to a base case to determine if they would be better or worse off under a move to each cost reflective price structure. The base case consisted of a single variable energy rate plus a standing charge equal to the applicable rate in the local network area. The base case and each scenario structure were compared on a revenue neutral basis. Figure 2 (see p. 6) shows the results in terms of the average percentage customer impacts compared to annual consumption. It is clear that a move to a greater use of fixed standing charges or demand charges would on average impact small customers adversely. Small customers receive a degree of protection under their At a glance: Research examined the likely impacts of more cost reflective tariffs on small (use) customers. A greater use of fixed standing charges or demand charges would on average impact small customers adversely. The time of use (TOU), critical peak, and seasonal TOU structures were found to provide a compromise between minimising consumer cost impacts and moving towards cost reflectivity. The critical peak price is the most cost reflective structure tested as it provides a price specific to only a few peak network demand events in a year, however it could raise customer equity issues. Figure 1 existing variable energy rate pricing, particularly where a small customer has a low load factor (a ratio of energy use to peak demand). An analysis of small customer load factors indicated that they are lower on average compared to large customers. It is important to note that without segmenting the sampled small customers further it is not clear how load factors differ between vulnerable customers and other customers in the small customer group. This is because the customer data available for this study did not include income or demographic information. Note that the customer impacts graph (see p. 6) shows the average impacts for a given level of annual consumption, and not the distribution or range of these impacts. Figure 3 (see p. 6) shows a histogram for the percentage impacts. The demand and fixed charge results have a much wider range of customer impacts compared to the other structures tested in the study. Energy News 5

8 The TOU, critical peak, and seasonal TOU structures were found to provide a compromise between minimising consumer cost impacts and moving towards cost reflectivity. The seasonal TOU structure can be considered as more cost reflective than standard TOU, as it narrows the definition of peak times to only the months when network peaks are most likely to occur. It also uses a price signal that is blunter yet easier to understand and avoids circumstances where a small customer may be unaware of critical price events and/or unable to respond by shifting consumption. The critical peak price can be considered as the most cost reflective structure tested as it provides a price specific to only a few peak network demand events in a year. Such a structure is likely to be beneficial to households with rooftop PV but not those with air conditioning. Note that a critical peak price structure does raise customer equity issues if a customer is unable to reduce or manage consumption during the critical periods. Three further considerations need to be mentioned with these results. The first is that no customer demand response is taken into account in the analysis. This means that the sample customer meter data was not adjusted to take into account the ability (or not) of a customer to manage its electricity consumption. This business as usual approach assumed that the sample customers used the same amount of electricity (and load profile) in all scenarios. Only a live customer trial could capture any reductions to electricity consumption as a result of a move to these cost reflective price structures. The second consideration is that any changes to network tariff components will only be seen by a small customer if its retailer passes through the pricing structure. Small customer electricity prices are bundled tariffs, which means that the retailer combines its own costs (wholesale electricity, LRET, SRES, metering and market charges) with the network component. If a retailer adds its costs in different proportions to the underlying network tariff then the intended cost reflective network price signal may not be preserved. Finally, only NSW and Victoria were tested for cost reflective price structures. If the analysis was run on data from other states there may be some variations in these results, due to a variety of reasons. The magnitude of customer network charges varies across states as well as the percentage share that they make up of customer invoices. These differences will have an influence on the annual dollar impacts calculated in each analysis. Each state has different weather considerations and corresponding electricity load profiles. For example, Queensland has only summer demand peaks while NSW has summer and winter network peaks. Other network areas have different time of use periods and different relative values between their peak and off-peak rates. To download the full report visit Figure 2 Figure 3 in brief Incentives to reduce peak demand New research by Climateworks has identified a large opportunity for industrial companies to reduce their own energy bills while also helping respond to peak demand pressures on the national electricity grid. The research found more direct financial incentives to industry could reduce spikes in peak demand and place downward pressure on electricity prices. It estimated up to 3.8 GW of grid electricity could potentially be saved at peak demand times (summer weekdays between 2.00pm and 7.00pm) by key industries reducing their electricity use or shifting it to off-peak times about five to 10 times a year. This would be the equivalent of about 42% of total demand these industries are expected to draw from the grid at peak times and 10.5% of Australia s total peak demand, including industrial, commercial and residential use. To read the full report visit 6 Energy News

9 PRICING WA Government announces terms of reference for Electricity Market Review AIE Perth Branch Event: 6 March Speaker: Dr Mike Nahan MLA, WA Minister for Energy and Finance. Around 250 energy industry professionals and government representatives gathered to hear the Minister for Energy and Finance Dr Mike Nahan MLA, present the terms of reference for the Western Australian Electricity Market Review. At the event, hosted by the Perth Branch of the AIE on 6 March, Dr Nahan was keen to highlight the key reason for the review that would begin to transform the WA electricity market. When you head home tonight and switch on the light or adjust your air conditioning, you ll remember that the state covers nearly a third of the true cost of supply, Dr Nahan told the audience. The sheer size of the growing subsidy to Synergy should trouble us all: $2.2 billion over $500 million a year. Dr Nahan said it would be irresponsible of the government to subsidise the electricity market to the current extent and that the previous government s reform program - which included the disaggregation of the former Western Power Corporation and the establishment of the Wholesale Electricity Market - was a dismal failure. Labor said that disaggregation would establish a competitive market where the private sector would help shoulder the investment and risk burden previously assumed by the state. It did not, Dr Nahan said. It failed to deliver innovation and efficient outcomes. It failed to deliver lower electricity prices as promised. Dr Nahan said household electricity prices had risen by around 86% since then, and yet householders still play 30% below the cost. Labor said that disaggregation would establish a competitive market where the private sector would help shoulder the investment and risk burden previously assumed by the state. It did not. - Minister for Energy, Dr Mike Nahan (pictured) I believe that the huge increase in costs indicates a market failure. Or rather, a failed mechanism intended to mimic the conditions of a real market, he said. Dr Nahan said consultation with industry had identified some of the issues that were contributing to higher prices. One of them is, of course, the oversupply of capacity in the Wholesale Electricity Market and unrealised demand forecasts, he said. Other issues raised with me range Objectives of the review: Reduce costs of production and supply of electricity without compromising safe and reliable supply Reduce government exposure to energy market risks, with particular focus on having future generation built by the private sector Attract private sector participants that are of a scale and capitalisation sufficient to facilitate long-term stability and investment Phase 1 will assess the strengths and weaknesses of the current industry structure, market institutions and regulatory arrangements. It will also examine options for reforms to better achieve the Electricity Market Review Objectives. (Completed 31 October 2014) Phase 2 will deliver detailed design and implementation arrangements. from the security of fuel supply to the level of competition in the retail sector (and) that current network access arrangements may constitute a barrier to market entry; that it is time to review the contestability threshold and retail pricing policy. All these matters warrant detailed examination and are evidence that existing arrangements may not be working as they were intended, he said. Dr Nahan said one of the issues that concerned him most was the underwriting of the vast majority of Energy News 7

10 investments in the WA electricity market. It is true, on face value, the number of organisations licensed to participate in the electricity market has increased substantially, he said. However, the State Government, via Water Corporation and Synergy, underwrite approximately 81% of all investment in generation capacity. He said it was time to encourage private sector investment to take a bigger share of the mercantile risk in the electricity industry, but the right policy settings were not currently there. The review will identify the next steps in improving the efficiency of the electricity market, following on from the restructures at Horizon Power and Western Power, and the merger of Verve Energy and Synergy. We need to have regard to the structures of the generation, wholesale and retail sectors and the consequent incentives for industry participants to make efficient investments and minimise costs he said. For this reason, the review will consider the broader electricity market operating in the South West Interconnected System, rather than be narrowly confined to the institutional structures and rules of the Wholesale Electricity Market. It is critical that options for reform are identified to improve efficiency, cost competitiveness and transparency, he said. Dr Nahan announced that the review would be governed by a Steering Committee, chaired by Mr Paul Breslin. For more information visit The review will examine six key areas: Industry Structure: will develop options for a competitive and commercially-viable generation and retail industry structure Primary Fuels Market: will identify opportunities and options for the reform of coal and gas markets Wholesale Electricity Market Design: will develop options for reform of the fundamental design of the Wholesale Electricity Market. This will include considering whether the Electricity Market Review Objectives might best be achieved by a capacity-plus-energy market or an energy-only market Network Access: will develop options for reforms to the regulatory arrangements for network access, including consideration of constrained and unconstrained models of network access for generators, and the potential benefits of greater alignment of the WA access regime with the NEM Retail Electricity Market: will be responsible for developing options for reforms to the retail electricity market, addressing retail contestability thresholds; mechanisms for regulation of retail electricity prices; arrangements and mechanisms for concessions and subsidies; and the regulatory framework applying to the electricity retail market Institutional Arrangements: will develop options for reforms to the institutional and regulatory structures that govern the electricity sector in the South West Interconnected System. This will include consideration of the roles, functions and organisation arrangements of the Independent Market Operator; System Management; the Economic Regulation Authority; and the Public Utilities Office. AIE Energy Study Scholarship 2014 The AlE Energy Study Scholarship assists a young AlE member to further his/her knowledge in an energy-related discipline through study and/or visits to relevant industries and facilities. Applicants must be 35 years or younger and an AlE financial member in any grade for at least 12 months. More information, guidelines, and application forms are available on the AIE website under 'About Us / AlE Youth Scholarship'. Applications close 31 July Energy News

11 GE s $100m Jandakot centre primed for resources growth AIE Perth Branch Event: Site Tour. 19 March By David Bradley, AIE Perth Branch Committee Member. Members of AIE s Perth Branch enjoyed a guided tour of GE s marque facilities in Australia the new GE Jandakot Training and Service Centre. This impressive facility was opened in November 2012 by then Prime Minister Julia Gillard and reported to have cost in excess of $100 million. Just 10 minutes south of the Perth CBD, the GE centre includes a world class skills development centre, an oil and gas service centre specialising in drilling services, subsea systems, and turbine testing and servicing. GE s Jandakot centre is the largest complex of its kind in Australia and a cornerstone of GE s commitment to support the growth of the country s resources industry, including the rapidly growing liquefied natural gas (LNG) sector. The AIE tour began with an introductory presentation from GE specialists in a gold class auditorium. The presentation included a dazzling summary of GE s accomplishments, starting with the founder Thomas Edison, on through the following century. Our presentation then turned to the most recent decade of growth by acquisition and innovation such as GE s magnetic bearings, which are revolutionising turbines and engines. The presentation concluded with illustrations of current GE technology, which is at the forefront of the aviation, transportation, power, renewable energy, and oil and gas industries. GE staff also provided illustrations on one of their latest offerings GE s LNG in a Box. We then visited the GE Training and Development Centre, which was designed to provide training across a range of sectors in which GE works, including oil and gas, healthcare, power generation, mining and transportation. It featured state-of-the-art classrooms and an experimental workshop that provides students with a hands-on learning environment. We learned that the training centre was the result of collaboration among industry associations, government and leading businesses to create a Community of Technical Best Practice for the oil and gas industry. Companies involved included Chevron, Woodside, Conoco Phillips and Navitas. Our tour continued into the oil and gas facilities, which included a subsea section where AIE members were able to see a number of the Gorgon and Janz subsea wellheads being prepared for deployment. These subsea wellhead assemblies were impressive each weighing over 80 tonnes. GE technicians explained the international coordination required to manufacture and integrate these complex yet robust components, which must operate flawlessly at depths greater than 1.4 km (for the Janz wells). Rigorous testing of these components could be undertaken within GE s underwater testing facilities, also on location. Our tour then migrated into GE s industrial turbine service centre, including a walk through GE s turbine service workshop where GE s wide range of turbines are tested and repaired. The tour concluded with WA s AIE Branch Chair Murray Meaton giving his thanks to our GE host Brian Van Bueren. The entire tour was very impressive. So much so, a few AIE members followed up the tour with a cleansing ale at the nearby Bulls Creek Tavern, commiserating why we had not bought GE stock 20 years ago! GE's 6FA gas turbine. Photo courtesy of GE Power & Water. The industrial turbine service centre. Photo courtesy of GE Power & Water. Energy News 9

12 CSG IN NSW: the new frontier? The potential for a gas shortage in NSW and the role for Coal Seam Gas (CSG) to fill the gap - continues to play out in the public sphere. The State Government has again tightened restrictions on CSG development, despite some warning signs from the industry that stalled development could affect the state s manufacturing sector by Following on from a half-day symposium held in Sydney in June last year, EnergyNews again explores the issue from a range of perspectives, with a forum held in October in Newcastle about the role of CSG in the Hunter Valley. Convenor Jim Kelty, of AIE Newcastle Branch, introduced the four key speakers to discuss various aspects of CSG development in NSW and Qld on 23 October 2013, at the University of Newcastle. Summary by David L Hawley, FAIE, MD, Geoplan Services, and past Sydney Branch Committee Member. Speaker 1: CSG in Australia an introduction and overview Dr Peter Stone, CSIRO, Director, Gas Industry Social and Research Alliance, Brisbane. Currently 90% of Australian coal seam gas (methane) resources are in Qld, whilst 10% are in NSW. CSG in the Surat Basin in Qld will be contributing to the export of 50 Mt of gas as LNG through the port of Gladstone by This volume will also include large unconventional shale gas volumes from the Cooper-Eromanga Basins in northeast SA and southwest Qld, connected by west-east pipelines to Gladstone and Brisbane. Facilities to cool and compress the gas to LNG for export are being constructed at Gladstone and many local and international companies have been involved in establishing and developing the resource over the past ten years (costing $1.5 billion). By stark comparison, NSW, which developed the first CSG in 1987, now only produces about 4% of its gas demand, all from CSG at Camden and to a lesser extent at Narrabri. The rest is imported from SA and Vic via the existing Moomba-Sydney Pipeline and the Eastern Gas Pipeline. Contracts for gas supplied via these pipelines will be renewed at higher gas prices from Future gas prices will be linked to the export LNG parity price, which may be 30-40% higher than current prices. NSW CSG reserves will be depleted in 20 years, without new land access, exploration and development. CSG currently supplies 26% of Qld s power generation and this will increase. Power generation will be the main use of CSG locally and for exported LNG. Gas has higher thermal efficiency and lower greenhouse gas impacts than coal fired generation. A CSIRO survey of farms in the Surat Basin with CSG resources found that there were significant concerns about the negotiation process and property value estimations for compensation, and concluded that the negotiation strategy needs to be improved if the industry is to expand. Dr Peter Stone, CSIRO At a glance: NSW depends on other states for 95% of its gas needs Existing long-term contracts from imported gas from SA and Vic come to an end in 2016 Domestic demand is increasingly competing with LNG exports Prices are expected to increase by at least 20% (estimates range anywhere from 20% (APPEA) to 300% (EUAA) 85% of current 2P reserves are from coal seam gas however, community concerns and regulatory uncertainty are halting development NSW CSG reserves will be depleted in 20 years, without new land access, exploration and development The potential for CSG to reduce greenhouse gas emissions depends on containing fugitive gas emissions at the well head, in processing and along distribution chain. Fracking - hydraulic fracturing by injecting water, sand and 1-3% additives into the seams under pressure - can increase gas flow from the coal seams, but is only applied to about 8% of wells in Qld at present (although this could increase to 10-40% over time). The additives used in Australia are believed to present low risk by dilution, degradation, separation and removal. A CSIRO survey of farms in the Surat Basin with CSG resources found that there were significant concerns about the negotiation process and property value estimations for compensation, and concluded that the negotiation strategy needs to be improved if the industry is to expand. Other concerns related to potential ground water contamination, and disturbance from traffic and strangers on their properties. Broader community concerns related to the development of another fossil fuel resource with greenhouse gas impacts, the use of fracking additives and food security. A reasonable degree of technical certainty is provided in terms of geology, geophysics, gas horizon depth, 10 Energy News

13 The increased demand for LNG in Asia will put pressure on domestic gas prices. and location of infrastructure, for regional approval of CSG developments. However, the impacts of these developments are felt by people, mainly at a local level, for whom there is less certainty. Speaker 2: The looming NSW gas crisis in supply, demand and price Mr Paul Ashby, AGL GM Commercial Development, Sydney. A gas shortage is looming in NSW, and the potential severity of the shortage will increase as NSW s traditional gas supply from the Cooper Basin is redirected to LNG exports in Qld, and NSW s gas reserves are tied up in government regulation. In the longer term, more NSW gas supply will be available from Vic via expanded interstate pipelines however, gas prices will be influenced by the export LNG netback price through links to Gladstone s LNG export facilities. The wholesale gas price at the Qld border is expected by market commentators to rise to between $7-9/GJ from 2014, when the Qld LNG exports commence. NSW homes and businesses, particularly the manufacturing industries, are highly reliant on gas, although 95% of gas used in NSW is imported from Vic, SA and Qld. Nearly four million eastern Australia households and businesses use gas, 1.2 million of these are in NSW. There are significant CSG reserves in NSW that could be used to replace SA and Qld supplies, which will be committed to export. However, state government policies and exclusion zones have restricted further exploration and development of NSW CSG. AGL s CSG developments in the Hunter, at Gloucester and Camden North, could have supplied 30-40% of NSW s gas demand, but exclusion zones will probably reduce this to 15-20% from Gloucester only. Santos is reported to be targeting capacity to supply 25% of NSW demand from its Narrabri project, and other smaller producers have pulled back from or cancelled gas exploration activities. AGL s Hunter Valley CSG reserves are estimated at 500 PJ. However, further development of these reserves is restricted by the government s policy of exclusion zones near residential and certain rural development areas. The larger Gloucester CSG reserves development is being held up by delayed government approval of exploration activities and the passing of new legislation. Commercially, as gas prices rise, consumption in eastern Australia may fall 15-20% to between PJ/year. The sterilised NSW gas resources, if released in the future by new legislation, would have helped NSW s security of supply and future consumer price. As gas supply tightens by 2020, jobs and opportunities for the expansion of the local industry may be lost. Speaker 3: Government responses to CSG in relation to energy security, economics and environmental issues Dr Alan Broadfoot, Director, University of Newcastle Institute of Energy Resources (NIER). Quoting from the NSW Government's Energy Security Summit Communique (September 2013), Dr Broadfoot summarised the NSW energy market as having 3.2 million electricity users, of which 1.2 million households rely on gas; and 50% of the state s gas consumption is by industry. NSW only produces 4% of its domestic gas needs, the rest is imported from Vic, SA and Qld. An economic challenge Energy News 11

14 for the NSW Government is to provide forward energy security via exploration, development and connection of new infrastructure, including pipelines to deliver gas to consumers. The development of known CSG resources in the Hunter could provide a solution to the looming NSW gas supply shortage, however, this is not progressing due to a stalled new planning policy. New major projects have either been put on hold or companies are moving interstate, particularly to Qld, with its vast CSG resource, lower exploration/ development costs, and established pipelines to LNG export ports and domestic CSG use. Dr Broadfoot cited as economic imperatives that: A domestic supply of NSW gas be developed in a timely manner while meeting strong environmental standards set by government Regulatory assessments of new domestic production projects, which could feasibly be operational in NSW by 2016 or 2017, should be prioritised (noting that in the medium term, the development of increased production and supply competition will create greater competition and more affordable gas supply) Consideration be given to identifying and developing alternative sources of gas using innovative technologies, such as capturing flared or vented gas from coal mines and utilising waste gas The NSW Government needs to plan for the medium term and develop pipeline strategies, plus support administration pathways and capacities for gas development. Environmental, health and safety concerns with the new CSG industry also need to be addressed by: Undertaking a comprehensive study of industry compliance, including site visits and well inspections Identifying and assessing any gaps in the identification and management of potential impacts arising from CSG exploration, assessment and production Inspecting and monitoring drilling activities including water extraction, hydraulic fracturing and aquifer protection techniques. NIER recommends that NSW and Commonwealth governments coordinate the collection of data, including groundwater and aquifer geometry and broad basin geology research (similar to what CSIRO has done with the Surat Basin in Qld) to develop a more responsive climate for investment in the gas industry. Speaker 4: Unconventional gas - environmental issues Professor Damien Barrett, CSIRO, Water for a Healthy Country Flagship, and University of Queensland. Unconventional gas provides many opportunities, including the development of infrastructure such as pipelines and roads; potential taxation and royalty income; and economic development. In Queensland, drilling for unconventional onshore shale gas in the Cooper and the overlying Eromanga Basin will provide many such opportunities. "Water issues, such de-pressurisation of coal seams and hydraulic fracturing to stimulate gas production, can be managed with industry best practice, monitoring and the use of intrinsically low toxicity fracking additives. Research is reducing uncertainty on the impacts associated with these risks. Professor Damien Barrett, CSIRO However, the development of unconventional gas also poses challenges: environmental protection; heritage issues (Native Title); aquifer alluvium conductivity, drawdown, and subsidence; and the impact of hydraulic fracking chemical additives. These challenges, distributed across landscapes and through time, need to be minimised. Unconventional gas from shale and CSG fracking in Australia does not have the uncertainty of impacts associated with projects overseas. In Queensland, fracture fluid contains 90% water, 9% quartz sand, 1-3% fracking fluid additives of benign calcium salts to assist gas flow at depth. Professor Barrett emphasised that the more toxic North American fracking chemical fluids are banned for CSG production in all Australian states, so that aquifer contamination by toxic chemicals is not an issue. Two major areas of environmental concern were highlighted: Firstly, the use of gas in place of coal can reduce the impact of greenhouse gas emissions by up to 60%. However, in the case of CSG and shale gas, this advantage can be eroded by fugitive gas emissions from exploration, production, processing and distribution, because leaking methane has a much higher greenhouse gas impact than carbon dioxide from coal or gas combustion. The second area of concern is water related issues, such as the effect of dewatering for CSG production on groundwater; the effect of well construction and hydraulic fracturing on groundwater; and the treatment of CSG water and brine management. US shale gas experience has shown that the highest risk areas are surface transport and waste water disposal and the lowest risks are fracking, well casing leaks and underground connectivity. In summary, CSG provides opportunities to meet energy demands but there are environmental and social challenges to be met. The potential for CSG to reduce greenhouse gas emissions depends on containing fugitive gas emissions at the well head, in processing and along distribution chain. Water issues, such de-pressurisation of coal seams and hydraulic fracturing to stimulate gas production, can be managed with industry best practice, monitoring and the use of intrinsically low toxicity fracking additives. Research is reducing uncertainty on the impacts associated with these risks. 12 Energy News

15 the joint energy model 2.0 Championing collaboration in the Australian oil and gas industry. By Gertjan Leideman, Managing Director, Strategy, Accenture. Parallels are emerging between the issues facing the Australian oil and gas sector, and the drivers that led to the development of the joint industry model in the North Sea Basin during the early 1990s. During this period, the North Sea Basin oil and gas industry developed a highly successful strategic alliance, to help deal with the challenging economic climate they were faced with. This strategic alliance relied on collaboration throughout the entire supply chain, and a united mission to tackle the challenges collectively; putting the goals of the region ahead of individual success. With similar challenges facing the Australian oil and gas sector today cost pressures, supply issues and skills shortages if a similar collaborative approach is not taken, Australia runs the risk of having to deal with increased economic duress, leading to higher costs, smaller profits and less capital injection. If history has taught us something, it s that decisive and comprehensive intervention to streamline and improve the efficiency of LNG production will deliver remarkable opportunities. By integrating new technologies and pushing for the standardisation of processes, services, contracting and equipment, Australia s oil and gas industry has an opportunity to not just survive, but thrive. CRINE, a case study The significant downward trend in oil prices during the 1980s-1990s critically threatened the sustainability of the North Sea Basin s oil and gas sector, an important contributor to the British economy. The North Sea producers struggled to remain competitive as oil prices slumped, capital and operational costs became an increasingly important factor in the cost of oil production, and new regions abroad showed more economic promise. In response, key industry players came together in an unprecedented collaborative effort to review opportunities to cut costs and create economies of scale, successfully launching the Cost Reduction Initiative for the New Era (CRINE), led by a steering committee of senior executives from the government, as well as local oil and gas producers, suppliers and contractors. Designed to reduce costs not through engineering solutions but by improving business practices and fostering intra-industry collaboration, CRINE was the impetus for standardisation of process, services, contracting and equipment that led to a 30% reduction in the costs of development and to the continued operation of the North Sea oil and gas extraction long beyond what many believed to be possible. A New Operating Model In 1995, Mike Curtis, BP Exploration Operating Company Limited Chairman, CRINE Steering Committee, presented his findings on the challenges and opportunities the North Sea providers faced, and the success achieved. Twenty years later, what he documented still holds true today. In The Vision and Management of CRINE whitepaper he stated: The CRINE message is stark: unless capital costs are reduced by 30% and operating costs cut by half, then there is a question mark over the North Sea venture. The time limit: the next three years. Essentially, these main objectives have to be achieved by simplifying much of what is done and purchased. They mean simplified maintenance and an inherently safer working environment. They mean a more flexible approach to contractual obligations so that risk and reward can be shared. (Mike Curtis, 1995) 1 The challenges of skilled labour shortages, supply issues and fluctuating market prices for oil and gas commodities continue today, and there s again a heightened emphasis on the cost management part of the equation. By implementing standardisation, complemented by advanced logistics, and supported by regional industry collaboration, Australian oil and gas companies can obtain competitive efficiencies. Beyond CRINE s wise example, advanced logistics can help expand collaboration in a more digitally connected world. Advanced Logistics Logistic systems, broadly defined as the management of material and people flows throughout an organisation, allow companies and their networks to create efficiencies through improved planning and resource management and therefore: Manage costs in the face of rapid growth Sharpen agility to respond to market changes Standardise capabilities to take advantage of efficiencies Improve production speed and well profitability. A fragmented supply chain and procurement process can be mitigated by introducing streamlined pre-qualification procedures, and standardised contracts, featuring logistics technologies. By working with partners to introduce a supply chain code of practice that includes standardised pre-qualification procedures, forward planning, common contractual terms and conditions, and the pooling of some offshore services like helicopters, all parties benefit from time and cost savings. Whilst the CRINE initiative is revolutionary in concept, it has shown that industry wide change can be achieved. 1. Mike Curtis. (1995). BP Exploration Operating Company Limited Chairman, CRINE Steering Committee. Houston, Texas: Offshore Technology Conference. Energy News 13

16 Waste not, want not: How the Western Treatment Plant powers itself AIE Melbourne Branch Event. Site Visit, Melbourne Water's Western Treatment Plant, Werribee. 20 February By Jenny Sharwood FAIE, MACE Imagine a rural wetlands area where you can find as many bird species as are found in Kakadu, but concentrated in much smaller area just 10,500 hectares, which is about the size of Phillip Island. Thirty of the species of shore birds migrate there from Siberia! And imagine how much wastewater, including sewage, must be produced every day by half of Melbourne s population about 1.6 million people! This water flows through the site, and as it is treated, the biogas produced is collected and used to power the site. Participants in the recent AIE site tour of the Western Treatment Plant in Werribee, just a half hour s drive from Melbourne, found it both fascinating and awe-inspiring. When we arrived at the Visitors Centre, we were welcomed and given a very good overview of the plant by their professional team. And when we started our bus tour of the site, the first thing we noticed was that there was so little odour, unlike earlier years when the area was renowned for its foul smells. How was this extraordinary improvement accomplished? Sewage treatment Sewage is pumped towards the Western Treatment Plant via two large pumping stations, which have giant macerating pumps to break down solids into smaller pieces. It enters the plant via the Western Trunk Sewer, which is covered to ensure that the malodorous gases that have been generated by organisms acting on the sewage (and other wastes) are not released into the air. About 500 ML of sewage is received into the plant every day. At the plant, the foul air from the sewage is treated at an odour control facility. Here a biological scrubber removes such gases as rotten egg gas, hydrogen sulfide. The raw sewage flows from there along channels to two main treatment lagoons, which consist of a series of ten ponds. 14 Energy News

17 In the first stage, solids settle in the deep section of the pond where anaerobic bacteria break down the sewage and produce biogas. This section is covered by vast sheets of plastic (HDPE) to collect the biogas and reduce odour emissions. The biogas is trapped and pumped at 42 kpa and ambient temperature, to the onsite AGL biogas generation facility located near the treatment lagoons. This can be seen in the bottom left corner of the picture left, as well as in Figure 1. On average, about cubic metres of biogas is produced per day, of which about 87% is utilised. In summer, more biogas is produced than in the colder months. In those hot months, the amount of biogas produced is greater than the capacity of the generation plant to consume. The excess is flared off and not just released into the air, since methane is a far more potent greenhouse gas than the carbon dioxide that is produced when it is burnt. From the covered anaerobic section, the sewage then passes into a huge but shallow pond into which vast amounts of air are continually pumped by surface aerators. This reduces the odour. The aerators can be seen in action in the picture of the treatment plant's 55E lagoon. (Photo courtesy of Melbourne Water.) An activated sludge plant removes nitrogen from the water through a combination of aeration, mixing and recirculation. Further disinfection occurs in downstream ponds using UV light from the sun. Overall, the sewage takes about 35 days to pass through the lagoon system. The treated water is then sent off in two streams. One stream of treated water is used in the onsite horticultural business, or further treated and supplied to water retailers for their customers. In all, almost 40 billion litres of recycled water is produced every year. The other stream is discharged into Port Philip Bay. Its composition and the monitoring regimes that are undertaken comply with strict EPA regulations. It should be noted that in addition to the treatment lagoons, Melbourne Water also manages 59 ponds for conservation. These provide extremely important environments, not only for waterfowl and shore birds but also for frog populations and other wildlife, including rare and endangered and threatened native plants and animals. This is an especially crucial site when there is a drought. The AGL Biogas Generation Facility At the AGL Biogas Generation Facility, the biogas is first scrubbed to remove any hydrogen sulfide present. In this process, the gas pressure is also reduced to a suitable level for the nine engines that are used to generate electricity. The methane content of the gas, after scrubbing, is about 80%. The engines are multiple reciprocating engines, two of which are 1.25 MW Deutz engines and rest of which are 1.01 MW Jenbacher engines. Figure 1. The AGL Biogas Generation Facility. Photo courtesy of AGL Energy Ltd. The advantage of this plant design is that one of the engines can readily be taken offline for maintenance without reducing the overall power station production. Under normal plant operating conditions, about 95% of the plant s energy needs are provided by this facility. However, there are times when the plant s energy demand is sufficiently low for some electricity to be exported. The other very important advantage of having this facility onsite is that at full capacity, the facility produces about 70 GWh of low emission electricity per annum. The reduction of greenhouse emissions is equivalent to planting more than a million trees. The site s sheer scale; the effective, environmentallysustainable treatment of vast amounts of waste waters; the unique wetlands environment; the abundance of birds; the valuable research and new projects that are being undertaken; the helpful and knowledgeable staff; and the visionary future plans, all make it a very worthwhile place to visit. We strongly recommend that other AIE members arrange group tours of the Western Treatment Plant or visit it on its annual Open Day. Further information can be found at: melbournewater.com.au/wtptours. Acknowledgement: We particularly appreciate the valuable information, assistance and advice provided by staff at the Western Treatment Plant in writing this article, especially Robyn Brown. Energy News 15

18 Pumped hydroelectricity energy storage: Opportunities for Australia This is an edited extract of new research published by the University of Melbourne s Energy Institute and ARUP Engineering. Pumped hydroelectricity energy storage (PHES) is by far the most significant form of large-scale energy storage in use around the world today, with approximately 130 GW of generation capacity installed. PHES facility construction is resurging globally as evolving electricity supply systems place greater value on stored energy. Australia has approximately 1.5 GW of PHES capacity; however, no large-scale facilities have been installed in the last 30 years. The paper Opportunities for Pumped Hydro Energy Storage in Australia, launched on 27 February by the University of Melbourne Energy Institute (MEI), examines opportunities for the construction of additional large-scale PHES facilities in Australia. The study sought to deepen Australian-specific PHES knowledge by: Reviewing the technological and economic state of PHES deployment globally Developing high-level cost estimating and mapping tools that can be used to quickly identify potential PHES sites Analysing the economics of new PHES facilities at specific Australian locations operating within Australian electricity markets. Further Australian PHES deployment, beyond the capacity already in place, has not received adequate attention. This is because of the perceived lack of economic need and also because suitable PHES development sites are thought to be rare. The MEI study found that as an alternative to using natural valleys, there is potential in Australia to construct artificial reservoirs, known as turkey-nest type dams, for PHES service. Turkey-nest type dams are already widely used around the world as a component of PHES facilities. Further, the study finds that coastal seawater PHES, which uses the ocean as the lower reservoir, may have economic application in Australia. The combination of coastal seawater PHES and a turkeynest type storage reservoir exists at only one place in the world. It has been operating successfully since 1999 (14 years) at Yanbaru on the island of Okinawa, Japan (Figure 1). Elsewhere in the world, coastal seawater PHES is being examined for Sonoma County California, and has also been studied for Hawaii, Ireland, and Latvia. What is Pumped Hydro Energy Storage (PHES)? Energy is stored by pumping water from a lower reservoir to a second reservoir at a higher elevation This stored potential energy is later converted to electricity by passing the stored water through an electricity-generating turbine and returning the water to the lower reservoir The reservoirs can either be largely natural or completely man-made, with various types of dams and construction techniques employed globally No water is necessarily consumed or lost in the process of storing and generating energy other than the water that evaporates or leaks from the reservoirs and connecting pipes, tunnels and channels. Nevertheless, often PHES is integrated with a conventional hydroelectric supply PHES uses similar equipment to conventional hydro, the main difference being the use of either reversible turbines or separate additional pumps Used overseas since the 1890s and in Australia since 1973, PHES has in recent decades been used to balance times of low and high electricity demand in grids that employ constantly-loaded nuclear or coalfired electricity generation Today, PHES can be used to balance times of low and high electricity supply from variable energy sources such as wind and solar-photovoltaic PHES can also assist grid frequency regulation and voltage support PHES makes up more than 99% of all electrical energy storage capacity installed globally (127 GW) Tumut-3, in the Snowy Mountains, is Australia s largest PHES facility with 600 MW electricity generation capacity. It is integrated with conventional hydro with a combined capacity of 1500 MW. 16 Energy News

19 MEI s scoping-level capital cost estimates for seawater turkey-nest type PHES facilities are within the range of PHES capital costs found in the literature, and could be as low as A$100,000/MWh to A$200,000/MWh. The study focused on regions in South Australia and western Victoria because these regions are home to the greatest concentration of wind farms in Australia. Also, these regions are located on the far western end of the sometimes-constrained eastern states electricity grid. Finally, the topography in these regions in South Australia and Victoria features elevated sites located close to the coast that could be useful for seawater PHES. Some results of MEI s terrain and cost mapping for the Spencer Gulf region of South Australia are shown in Figure 2 (see p. 18). The white and red contours depict potential seawater turkey-nest type PHES sites located along the coasts of the Eyre and Yorke Peninsulas. (The high-level site analysis considers parameters such as site elevation, distance from the coast, and construction costs, while ignoring parameters such as seawater quality, conservation values, and competing land-use and ownership constraints). The report also describes the results of MEI s economic analysis that explored the value new PHES facilities may have in today s Australian electricity markets. MEI s energy arbitrage analysis looked back over the last nine financial years. Amongst all states in the National Electricity Market, the highest value was found in South Australia during the financial years and Arbitrage value has declined in more recent years possibly due to the lower incidence of heat waves that result in high electricity-price excursions. MEI calculated simple payback periods for new PHES facilities (excluding tax considerations). Payback periods ranged from as low as eight years to over 25 years, Figure 1: The only combination seawater PHES and turkey-nest type storage is situated at Yanbaru on the island of Okinawa, Japan. depending on assumed costs and arbitrage value (see Figure 3, p. 18). Further, MEI investigated the benefits of co-locating new PHES and wind generation in situations where there exists a fixed-capacity electricity transmission connection. No significant co-location benefits were found. Rather, limited electricity transmission capacity may be best used solely by wind generation at sites where the wind resource is good, and solely by PHES at sites suited for that technology. MEI s findings and the PHES costings documented in the report might also lead to different results in any future electricity system-wide modelling A recent study by the Australian Energy Market Operator (AEMO 2013) found that it is technically feasible to supply 100% of the eastern states electricity with renewable energy technologies and resources. In the scenarios modelled by AEMO for the 2030 and 2050 target years, different mixes of renewable electricity generation technologies were employed. In AEMO s modelled cases, stored energy equivalent to 100 Suggested future work required to progress the deployment of PHES in Australia and elsewhere includes: Consultation with key government, electricity industry, and energy consuming stakeholders Assessment of legal and regulatory barriers to pumped hydro and other energy storage technologies Assessment of pumped hydro energy storage (PHES) arbitrage value in Australian electricity markets Assessment of the impact of different scales of PHES deployment on wholesale energy prices, including price spikes caused by heat waves and other events Investigation of current and future-expected electricity transmission and grid-operation constraints (with growth in renewables) in regions near potential PHES sites Assessment of how PHES can provide grid-operation benefits and complement the expansion of renewable energy while obviating investment in electricity transmission and grid management infrastructure Assessment of seawater turkey nest -type PHES technology and the potential for modernisation, including further communication with J-Power Application of MEI s terrain and cost-based mapping to identify specific sites for PHES in Australia, also considering current land ownership, competing land-uses, sea water supply, geotechnical Development of more accurate PHES cost estimates, with input from local and overseas engineering, construction, and equipment-supply firms Economic analysis of PHES versus other competing energy storage technologies Commercial project economic analysis. Energy News 17

20 to 200 GWh of electricity was required in order to maintain reliable supply during periods of low wind and/or sun. This need for stored energy was met by combinations of: existing conventional hydroelectricity generation existing pumped hydroelectricity generation biomass and biogas solar thermal storage. Due to the high PHES costs input to the modelling (ROAM 2012) relative to other technologies, no new PHES was selected for AEMO s final modelled solutions. MEI s findings suggest one hundred GWh of stored energy could be supplied by, for example, twenty 5,000 MWh PHES reservoirs (500 MW generation capacity each) that are approximately 30 metres deep and one kilometre wide, with 100 metres of net head. Assuming a unit capital cost of A$ 200,000/MWh, one such PHES facility would cost A$1billion. To view the full report visit opportunities-pumped-hydro-energy-storage-australia With thanks to Roger Dargaville and Tim Forcey. Figure 2: Potential PHES sites shown by red and white contour lines for the Spencer Gulf Region of Australia (Source: MEI). Figure 3: Simple payback period for the PHES using actual electricity prices for the two-year period 2008 to 2009 and for the period 2010 to 2011 (Source: MEI). Wins hard-fought in model solar vehicle challenge By Paul Wellington, Chair, Australian-International Model Solar Challenge. Is it possible to have too much sun at a solar vehicle competition? At least 12 of 32 car entrants would probably think so, after the demolition derby which was the 21st Australian- International Model Solar Challenge held at Melbourne s Scienceworks museum, on Sunday, 24 November, With sun levels varying between approximately 300 and 1250 watts per square metre, there was a huge challenge in having a car which could climb the hill on the figure eight track in low sun and yet stay on the track at its brightest. While the cars were busy on and off the track, the junior and advanced boats were enjoying the sunshine and setting times not much over five seconds from one end to the other in the 10 metre pool. In the end, Turbo by Rawlinson Primary School from WA took out the car challenge, in a close duel. The third race in the best of five final saw Strathfiled South High School s UberSpeed II win by about 1 second, requiring a fourth to be run. It looked like UberSpeed II would force a fifth and deciding race, but Turbo came through at the end to gain first place by 0.16 seconds. Pictured (l to r): Ha Le, Engineers Australia, two winners from Rawlinson Primary School, WA, Anuja Rao, Engineers Australia and Clare Anderson, Australian Institute of Energy. In the advanced boat category, Surf Coast Secondary College (VIC) won the day with Tri Hard. Sea Angles from Birmingham Primary School won the junior boats category. AIE were proud sponsors of the event. 18 Energy News

21 Electric beats Supercars in Clipsal 500 Rev heads got an electric shock last month when an all-electric vehicle (EV) raced a V6 and V8 and won. In an Australian first, Nissan s V8 Supercar champion Rick Kelly won in an 80kw Nissan Nismo LEAF, beating a Nissan GTR V6 engine by three hundredths of a second. The V8 Altima came in third (about 4 seconds behind.) Handicaps were determined in two pre-race trials to ensure fairness to all vehicles, with the LEAF starting 7 seconds ahead of the 406kw GTR, and 26 seconds ahead of the 485kw Altima. Showcased as part of round one of the V8 Supercar Championship Series - the Clipsal 500 in Adelaide the EV surprised the cynics with its speed. There are a lot of myths about the speed and power of electric vehicles generally," Origin s Executive General Manager Corporate Affairs Phil Craig said. "I think a lot of people were surprised about how the all-electric Nissan Nismo LEAF RC performed. Origin and Nissan have partnered Pictured: V8 Supercar champion Rick Kelly gets ready to race the all-electric Nissan Nismo LEAF RC, powered by lithium-ion battery technology. Picture courtesy of Origin Energy. together to establish a viable and sustainable electric vehicle market in Australia. The race highlighted the advances being made in EV technology. Origin has introduced more than 110 charging points around the country and has also developed a fuel cost calculator for consumers to calculate potential savings. "The reality of these advances means we are slowly but surely on a path where the electric vehicle and charging points will become more commonplace on Australia s roads, Mr Craig said. The race can be viewed on YouTube, look for Clipsal 500 LEAF. DRAFT STANDARDS for ELECTRIC VEHICLES RELEASED Nine Australian Standards relating to electric vehicles have been released for public comment, Standards Australia announced on 15 April. These standards are fundamental to the development of the electric vehicle industry in Australia, said Adrian O Connell, General Manager Operations, Standards Australia. Mr O Connell said the standards cover matters relating to vocabulary, occupant safety, and recharging infrastructure. Standards Australia initiated a significant consultation process with the electric vehicle industry in As a result, the Standards Australia technical committee EM-001 prioritised standards development based on focus areas including vocabulary, occupant safety, and recharging infrastructure. The draft standards are direct text adoptions of standards from the International Electrotechnical Commission (IEC) and the International Organisation for Standardization (ISO). These standards are the product of a concerted effort by Standards Australia and its stakeholders to ensure that electric vehicles in Australia benefit from international best practice, Mr O Connell said. These new standards break new ground for an industry which is still, in this country at least, very much in its infancy. Stakeholders can provide public comment via SAI Global: until May 12. Energy News 19

22 HIGH PERFORMANCE: ENERGY EFFICIENCY in commercial BUILDINGS AIE Newcastle Branch Event: 2 April By James W. Giblin MAIE. On 2 April, AIE Newcastle Branch hosted an event highlighting the importance of building design on the energy industry. The evening consisted of two presentations and a tour of Umwelt s award winning Newcastle Office at York St, Teralba. Attendees firstly heard from Andrew Bagnall, Leader Building Engineer at GHD. Andrew gave an overview of a number of GHD green building projects over the past seven years. Project Zero This (pictured above) was a hypothetical design project conducted in It was a designer s dream - without the restraints of time and money how sustainable can you make a commercial building? The design aimed to be net zero external energy consumption. This was achieved with a high performance building envelope, energy efficient HVAC design, mixed mode operation, solar hot water, micro wind and photovoltaic cells. It was clearly a worthwhile exercise, as what was seen as possible in 2007 is now standard in many GHD designs. United Nations Green One UN House In 2011, GHD was involved in the design of the Green One UN House in Hanoi, Vietnam (pictured, p. 22). The building features 114kW of solar PV and was the pilot for the LOTUS Rating scheme for commercial buildings (5 Star equivalent). Junee Library The Junee Library in regional NSW was an opportunity for energy efficiency at low cost. The library is 700m 2 and was constructed in GHD utilised the natural climate of the region (large temperature differentials between day and night) and designed innovative night sky cooling. The systems utilise the heat sink effect of a clear night sky. It cools water by spraying the roof surface at night and can be coupled to an in-slab hydronic system to provide thermal storage. Caroline Chisholm Centre The Caroline Chisholm Centre is a 700m 2 community Centre in Mount Druitt, NSW which was constructed in The centre features solar PV and thermal panels as well as Earth Pipe Cooling system. The Earth Pipe Cooling system relies on the stable ground temperatures of C. 100% outside air is delivered via 20 Energy News

23 300mm diameter stormwater pipes buried 2 metres underground with a tempering effect on incoming air. Air delivered is via floor grills in polished concrete slab. Monitoring has shown the system is reducing the outside air by 10 C on days with an outside temperature of over 30 C. Yarra Valley Water HQ The extension of the Yarra Valley Water HQ in Mitcham, Victoria was constructed in 2011 and covered 200m 2. With the goal of the highest Green Star rating possible, the form of the extension was determined by the depth of the building to allow maximum natural light penetration and air flow. With the depth as the primary parameter, the building length was adjusted to fit the programme scope. The skin of the building was designed to provide a thermal break to ensure internal thermal mass was not compromised. The result was a 5 star Green Star rating and a 5 star NABERS energy in operation rating. Andrew then discussed some of the government financing program currently available. NSW Energy Saving Certificates (ESCs) Subsidised energy audits on offer by the NSW OEH 50% subsidised when undertaken by accredited energy auditors Additional $8000 available for implementing audit recommendations 100% subsidy on measurement & verification M&V works 100% subsidy available on a limited number of targeted gas investigations ESCs can be created and sold to help payback. Environmental Upgrade Agreements (EUAs) Finance mechanism for energy, water and waste efficiency upgrades Provides 100% finance via low interest no deposit loan Up to 20 year terms and fixed interest for the duration Loan administered through council and repaid via council rates Figure 1: Yarra Valley Water HQ Figure 2: Umwelt's award winning office. Features of the Umwelt office: High Thermal Mass 300 mm to 400 mm thick concrete required for earthquake loading so use it Double roof insulation, and vented ridge Low E Comfort Glass to minimise heat loss 1.5 metre wide eaves to shade windows and sun shades Reception building roof garden 40 tonnes of soil and plants over a drainage layer to provide insulation in winter and shading and cooling through latent heat of evaporation in summer Passive ventilation - air movement aided ridge windows, louvre windows, doors and central stairway 25kw of solar PV. It has been calculated that the solar is delivering a 40% heat gain reduction from the roof. A second stage of solar installed is planned 100 kwh of battery capacity provides server/communication approximately 10 to 20 hours of UPS Building heating and cooling controlled by: o two reverse cycle chiller units (one for server room) o 1200 m condenser loop 3 metres below car park o 4000 m of hydronic pipes in bottom of thick concrete slabs to heat and cool building o 100 m of chilled beams to offset roof heat on upper floors o three evacuated vacuum solar hot water units to assist in heating building o BMS system that monitors room temps and regulates o heating/cooling system internet accessible o Additional heat load - reverse cycle air conditioners The Building Management System (BMS) is available online and can be controlled remotely, in many cases manual control (such as windows) were chosen due the lower maintenance costs 60% of energy use of similar buildings in peak seasons Won Sustainable Business Practice category at Lake Macquarie Business Excellence Awards 2013 Won Heritage Building and Sustainable Building categories of Lower Hunter Urban Design Industry Awards Energy News 21

24 Tenant energy savings can be passed on to help service the loan Building can be sold with EUA in place as it is tied to the land, not the owner Currently available in Newcastle, Lake Macquarie, Sydney, North Sydney & Parramatta local government areas. Peter Jamieson, Director, Umwelt, then discussed the design features of the Umwelt office. Umwelt office Umwelt s journey started with the need for larger office space. Site selection was important with Teralba near the shores of Lake Macquarie chosen due to its sustainable transport infrastructure including train station and cycle paths (some staff even kayak to work!). The site had a heritage listed building which needed to be incorporated into the new building. As an environmental consultancy, the most important criteria of the design brief was for staff to be connected to the outside environment. A quote for a $100k new substation for a business-as-usual build became a strong economic driver for a more energy efficient passive design. The increase capital cost of a more innovative approach was offset by the saving from not needing the substation. The design has also delivered low utility and low maintenance costs. Lessons Peter highlighted some of the lessons learned from the project which included: Chilled beams need a dehumidifier (otherwise it can start raining!) Design can be compromised by inexperienced contractors and poor communication between contractor and sub-contractors. Issues with delivery need to be monitored closely. Some issues can be fixed afterward but some issues will be set in concrete (literally). Staff engagement and communication is important. Commissioning will always be a longer process with new technology but is necessary if you want to achieve the highest performance. Peter s presentation was followed by a tour of the building to see the technologies and features first hand. I was impressed by the real life examples in delivery by experts from Newcastle. A strong marriage between design and construction is vital for performance outcomes to be met. Green buildings are high performance machines where commissioning of technologies is an important step in the process. Or as Peter put it, I needed to learn how drive the building. You can follow James on The_Big_Gibbo 22 Energy News

25 Membership matters Our Vision Leadership in Energy OUR MISSION TO PROMOTE A BETTER UNDERSTANDING AND AWARENESS OF ENERGY ISSUES AS A CONTRIBUTION TO THE IMPROVED USE OF ENERGY TECHNOLOGY AND THE DEVELOPMENT OF RESPONSIBLE ENERGY POLICIES president's message AIE: Promoting informed debate Following intense developments over recent years, 2014 looks set to reshape the Australian energy sector: the repeal of the carbon tax; a new Energy White Paper is to be prepared (within 18 months of the last;) coal is re-emerging as a preferred fuel source for electricity generation; coal seam gas is creating new political pressures; and nuclear energy for Australia lingers in the background. This reshaping means there is a greater need for energy sector participants to be informed, to debate, and to have an ongoing dialogue on Australia s energy future. This is where the Australian Institute of Energy (AIE) plays a significant role. Australia is energy rich with abundant fossil fuels, renewable energy and uranium reserves. The Australian energy industry is a fast growing sector. Hence, there is a need for those in the industry to keep pace with the technical, economic and social impacts that drive energy developments and policy. It is the AIE s charter to advance interest and inquiry in energy disciplines and all related areas of knowledge and practice (AIE Constitution). It is through well-established local Branch Committees and a national Board that the AIE organises lectures, luncheon meetings, technical discussions, biennial conventions, quarterly publication of the EnergyNews, the monthly AIE e-newsletter and an active website, as well as offering professional networking opportunities. The AIE s Young Energy Professionals (YEPs) is an example of how the AIE has actively and successfully provided a knowledge platform and networking opportunities for young professionals across all disciplines in the energy sector. The AIE is a unique industry organisation. It is open to all in the energy sector - individuals, organisations, students, universities, professionals, retirees, and corporations. Providing accessibility to such a wide range of participants, across all energy and related disciplines, is a valuable resource for the energy sector. So I invite you to make your contribution and to help promote ongoing dialogue on all aspects of Australia s energy knowledge pool and Australia s energy future. Acknowledgements and Notices "The reshaping of our sector means there is a greater need for informed debate." - Mike Cochran, President, AIE David Allardice FAIE I would like to take this opportunity to acknowledge one of the AIE s longest serving members, David Allardice FAIE. David is a foundation member of the AIE, was a Director for 33 years and has served, more recently, as Executive Officer. David has now retired from active involvement in the AIE at Board level. On behalf of the AIE community, the Branch Committees, and the Board, I say David, thank you for your dedication and service over three and a half decades. We offer our very best wishes to you and your family. Joy Claridge FAIE I would also like to acknowledge Joy, our long standing Editor of EnergyNews, who has retired after 12 years in the role. She has progressively raised the standards of the journal, which is always rated as a major benefit of AIE membership. She can be very proud of her achievements. Joy also served on the National Board between 2003 and 2007 and recently stepped down from the Melbourne Branch Committee after serving 12 years. To Joy as well, we all say thank you and offer you our very best wishes. Energy News 23

26 Madeleine Brennan: New Editor The AIE warmly welcomes Madeleine Brennan, our new Editor of the EnergyNews. Based in Melbourne, Madeleine is a well-credentialed and experienced freelance editor, who brings good ideas and enthusiasm to the role. She has also previously worked with government and notfor-profit organisations. Preparing EnergyNews can be very challenging for the Editor, so I ask members to offer Madeleine (editor@aie.org.au) all the support you can to help keep the EnergyNews a premium industry journal. Welcome Madeleine. AIE National Conference The AIE 2014 National Conference is to be held in Perth on 27 and 28 August, As with the last two conferences (Sydney 2012, Adelaide 2010) the biennial 2014 Perth AIE Conference promises to be a significant and popular event for the industry. Please mark these dates in your diary. Details will soon appear on the AIE website. Energy Institute (EI), UK, affiliation The AIE is in the process of finalising its affiliation with the Energy Institute (EI) in the UK. The affiliation extends a home from home to visiting members from either organisation on a reciprocal basis, by providing access to membership benefits. Details will appear on the AIE website in due course. Mike Cochran, President, AIE president@aie.org.au NEW MEMBERS NEW INDIVIDUAL MEMBERS name grade branch Mr Timothy Hoban Student Melbourne Mr Samuel Poustie Student Melbourne Mr Daniel Wotherspoon Student Melbourne Mr Daniel Stoimenov Student Melbourne Ms Bailee Walker Member Sydney Mr Benjamin Harris Student Melbourne Mr Christopher Bird Member Melbourne Mr Joseph Gulay Student Melbourne Mr Illia Lyamin Student Melbourne Mr Scott Monagle Student Melbourne Mr Luke Dewar Student Melbourne Mr Darrell Pugh Student Melbourne Miss Joa Tsun Tan Student Melbourne Mr Jake King Student Melbourne Ms Karen Chandra Student Melbourne Mr Paul Anderson Member Brisbane Mr Kern Kapoor Student Melbourne Mr Kris Ketuneni Student Melbourne Miss Andrea Egger Student Melbourne Mr Timothy Goodson Student Melbourne Miss Kara Brussen Student Melbourne Mr Robin Dawson Student Brisbane Dr Ghulam Amur Member Sydney Miss Hannah Sloane Graduate Perth NEW CORPORATE MEMBERS name grade branch Mr Chanlong Wang Student Melbourne Mr Owen Sharpe Student South Australia Mr Jezac Crowe Associate South Australia Mr John Dixon Member Perth Mr Andrew Price Member Sydney Ms Elizabeth Tomc Student Sydney Mr David Green Fellow Melbourne Mr Warwick Stapleton Member Melbourne Ms Wei Sue Member Melbourne Mr Alen Talic Student Brisbane Sara Richardson Graduate Brisbane Mr Erwin Boermans Member Melbourne Mr Michael Grace Associate Melbourne Mr Killian Collins Student Brisbane Mr Martin Smith Member South Australia Mr Robert Bethune Member Melbourne Mr Tristan Ledgerd Student Brisbane Mr Andrew McDowell Graduate Perth Ms Burcu Subasi Member South Australia Mr Hermann Lion Student Melbourne Mr Peter Hawken Member Perth Mr Peter Connor Member Perth Mr Andrew Jefferies Member Perth COMPANY name representatives branch Norton Rose Mr Wilfred Finn Sydney Ms Christine Nebel Sydney Suntix Pty Ltd Mr Geoff Fussell South Australia Mrs Jenny Pardiso South Australia Progressive Green Pty Ltd Mr David Evans Melbourne Mr Luke Murnane Melbourne 24 Energy News

27 SA SENIOR AUSTRALIAN OF THE YEAR Dr Barbara Hardy FAIE, AO named SA Senior Australian of the Year AIE Fellow and environmental advocate Dr Barbara Hardy was named South Australian Senior Australian of the Year (and national finalist) in this year s Australia Day honours. A leader in science education, environmental advocacy and charity activities, Dr Hardy (pictured right) has led an exemplary public life almost all of it undertaken on a voluntary basis. After becoming one of the University of Adelaide s first female science graduates in 1947, her early career was with the CSIRO. She has worked as a lobbyist and supported many organisations such as the Australian Heritage Commission, Landcare and the Nature Foundation SA. She was also a prime mover in the creation of the hands-on Investigator Science and Technology Centre in Adelaide. Dr Hardy has initiated many changes to public policy, practice and even the way people think about science and the environment, and today she is patron of the University of South Australia's Barbara Hardy Institute which champions a more sustainable Australia. Dr Hardy said she her interest in the environment, which began on family camping trips, has always included energy and its use. I ve been a member of the AIE for a very long time, Dr Hardy said. In fact, I still have the original piece of paper confirming my membership (July 1978). It s almost falling to pieces. She said energy was like any other natural resource that needed to be carefully managed. I ve always been very interested in encouraging people to use more renewable energy rather than fossil fuels, which are finite. We will run out of them eventually. Dr Hardy said she prefers renewable energy because it is benign and doesn t emit greenhouse gas. I live near the sea and I find the prospect of wave energy fascinating, she said. She is also a user of solar, running both hot water and PV. I try to manage my house efficiently. I pull blinds down and only use energy in the room I m in. Dr Hardy said whilst she doesn t go to as many AIE functions and events as she used to ( I m not getting any younger ), she was still passionate about the environment. Our economy depends on the health of our natural resources. Too many people still believe it s economy first and environment second. But Dr Hardy said she was glad there had been a huge increase in the use of household solar, and hoped the Renewable Energy Target was maintained. I think it would be a very bad thing if it were scrapped. Dr Hardy travelled to Canberra with her son (she has four) and met Tony Abbott and Quentin Bryce as part of the Australia Day honour celebrations. She said it was a fantastic opportunity to be meet some amazing people. I m always happy to talk about things I ve done, so that other s might think If she can do it, why can t I? Have you got some important news to share with fellow members? editor@aie.org.au AIE Board 2014 Board Members PRESIDENT Mike Cochran (South Australia Branch) president@aie.org.au VICE-PRESIDENT Brian Truman (Perth Branch) HON. SECRETARY Paul McGregor (Sydney Branch) secretary@aie.org.au HON. TREASURER Peter Gorton* (Canberra Branch) treasurer@aie.org.au OTHER DIRECTORS Clare Anderson (Melbourne Branch) John Blik (Sydney Branch) Murray Meaton (Perth Branch) Paul Riordan (South Australia Branch) Albert Thompson (South Australia Branch) Peter Halyburton* (Newcastle Branch) *Branch Representative Directors Officers SECRETARIAT Chris Carr aie@aie.org.au Tel: Fax: (03) MEMBERSHIP aie@aie.org.au EDITOR Madeleine Brennan editor@aie.org.au Energy News 25

28 Around the Branches Canberra Todd Eagles, Manager, Energy Efficiency & Solar Operations, ActewAGL and Ric Butt, Director at Strine Environments presented Residential Energy Efficiency on 2 April Melbourne AIE Melbourne Branch organised a site visit to Melbourne Water s Western Treatment Plant and Biogas Power Generation on 20 February Young Energy Professionals hosted a panel discussion Accelerate and pivot your energy career with purpose on 27 March Speakers included: Sarah Clarke, Consultant at Hay Group; Mark Kealy, Manager R&D Incentives at KPMG; Alexie Seller, National Manager Business Development and Operations at Pollinate Energy; and Tom Shantz, Managing Consultant at Market Pathways. Newcastle Peter Stone, CSIRO; Paul Ashby, AGL; Damian Barrett, CSIRO; presented CSG in the Hunter: A Solution to the Looming Gas Supply Shortage on 23 October Andrew Bagnall, Service Group Manager, Buildings and Energy, GHD presented Energy Efficiency in Commercial Buildings on 2 April Perth Bill Grace, Urban Sustainability Advisor, presented The death spiral the looming risks facing energy networks to the AIE Young Energy Professionals on 4 March Dr Mike Nahan, Western Australian Minister for Energy, presented Western Australian Electricity Industry Review on 6 March AIE Perth Branch organised a site visit to GE s oil and gas training and service centre at Jandakot on 19 March South Australia Martin Hamilton-Smith MP presented SA Energy Policy Issues and Liberal Party Perspectives on 5 February 2014 Tony Wood, Energy Program Director, Grattan Institute, presented Challenges for South Australian Electricity Pricing on 13 March Sydney Prof. Mary O Kane, NSW Government Chief Scientist & Engineer, presented The Future of Power Generation in NSW to the Annual Meeting of Four Societies on 27 February Hugh Saddler, Principal Consultant Energy Strategies, Pitt & Sherry presented Why is electricity consumption decreasing? on 7 April MELBOURNE YEPs Career on the agenda The Melbourne YEPs have had a successful start to 2014, kicking off the year with Accelerate and pivot your career with purpose - an event with guest speakers focusing on careers in (see article on page 28); Pictured are Alexie Seller, Pollinate Energy, sharing her lessons in career transitions with Mark Kealy, KPMG, centre, and Tom Shantz, Market Pathways. The International YEPs dinner, coinciding with the International Low Rank Coal Industry Symposium hosted by the Victorian State Government, is the next event on the YEP s calendar. Places for this event are strictly limited so get in early to secure a ticket. The Committee is looking forward to hosting additional events in Melbourne including working with the Young Pipeliners Forum (YPF) to host a mentoring program for students wanting to build a career in the energy industry. More details on upcoming events will become available as venues and dates are scheduled. To stay up to date join our LinkedIn group - Young Energy Professionals Melbourne (look for the AIE logo) or join the mailing list at Student Ambassadors Melbourne YEPs are extending their reach to universities by creating student ambassador roles. Kara Brussen of Monash University is the first of these ambassadors actively promoting AIE YEP events and the AIE. This has led to an influx of memberships from students seeking to work in the energy sector in the coming years. The YEP Committee is looking to add to the student ambassador roles and have undergraduate representatives from other Melbourne based universities. If you or someone you know would be interested in this role please contact yepmelb@aie.org.au 26 Energy News

29 Brisbane YEPs Helping to shape tomorrow s energy leaders The Brisbane Young Energy Professionals (YEP) group, in conjunction with the Young Pipeliners Forum, has developed Queensland s first Ready for Work mentoring program. The program aims to assist university students in the last two years of their undergraduate studies by providing practical advice to help in their transition into the professional workforce. The inaugural Queensland Ready for Work mentoring program began in August 2013 and matched over 30 students from various fields of study with YEP mentors from professional backgrounds. The feedback from mentors and mentees has been extremely positive and we believe we have developed a program which provides a unique learning opportunity for both students and young professionals, Brisbane YEP Chair Conor O Brien said. In addition to the mentoring activities, a number of events were held, including a keynote address from Wyatt Roy, Australia s youngest elected member to the House of Representatives. These events provided an opportunity for participants to Brisbane YEP Committee Members (l to r): Anton Legh, Liam Davis, Conor O Brien, Sara Richardson, Sarah Bairstow and Alex Walker. interact with other individuals across different professional and educational skill sets. The Queensland program builds on the success of the Perth and Melbourne YEPs who have run similar programs. Given the positive experiences of participants, we re sure the program has a bright future, Conor said. The program couldn t have happened without the support of our sponsors and partners. We would like to thank our major sponsor Origin Energy as well as APA Group and PipEd for their support. We would also like to thank our partner the Young Pipeliners Forum, he said. sydney YEPs Introducing the Sydney AIE YEP Working Group for 2014 This year the Sydney AIE YEP Working Group has a team of 11 with a diverse range of backgrounds from energy economics, trading and operations to environment, sustainability, construction and public affairs within industry. The team is planning to hold 5-6 events on topics such as the effectiveness of demand side participation in the wholesale market, progress in the LNG market and energy in the built environment. The team is also looking forward to hosting a wind farm site visit. The team includes (in the photo from left to right): 1. Neil Raffan - Risk & Sustainability Manager - Australia, Infigen Energy 2. Katherine Averine - Analyst, Energeia 3. Jade Fennell - Operations Control Centre, Infigen Energy 4. Alan Mitchell - Energy Trading Analyst, Origin 5. Marnix Schrijner - Senior Consultant, Energy Advisory, DNV GL 6. Matt Kronborg - Senior Advisor - Environment and Community Strategy, Government and Corporate Affairs/Qantas Foundation, Qantas Airways Limited 7. Claire Hashman - Lawyer, Construction Projects & Infrastructure, Sparke Helmore Lawyers Other YEP Working Group members, who could not make the photo are: 8. Kenji Ball, Manager Pricing and Wholesale, Cozero 9. Matt Stevens, Government Relations and Public Affairs Consultant 10. Daniel Green, Energy Trader, Origin 11. Kerry Burke - Energy Trader, Westpac. If you would like to receive notification/event updates via our list, please contact Claire Hashman at yepsyd@aie.org.au Energy News 27

30 accelerate YOUR CAREER IN ENERGY This is an article summarising key points at YEP Melbourne s career forum By Sarah Clarke, Hay Group and YEP Melbourne Branch Committee Member. Have you ever wondered How can I secure my dream job? or What can I do to accelerate my career? On 27 March, the Melbourne Young Energy Professionals (YEP) hosted an event that helped individuals answer these questions. Through an interactive panel, participants heard from six experienced professionals about opportunities and tactics to achieve one s aspirations. Whether you are just starting, or you have several years of experience, the following key lessons from the event are useful in helping you advance your career: 1. Understand what is important to you and set your career direction By understanding what drives you and what is important to you, you can then set career goals and work in a direction that will get you closer to a role that you find engaging. As time passes you can reflect on the work that has been done, as well as re-evaluate whether or not your goal has changed. Remember that it is important to be open to new experiences while they may not be on your career path, different roles, such as horizontal moves, can help broaden your perspective and skills, and build credibility within your professional network. As Aruna Seneviratne from Origin Energy, stated: If you want something, don't give up on it and see how your next move can be a stepping stone... If you don't impress your colleagues at the mundane jobs, they'll never ask you to do the challenging ones that you aspire to. 2. Create and practice your elevator pitch When hunting for a new role, one of the first tasks on your to-do list should be crafting a compelling elevator pitch i.e. a 30-second summary of you are, your unique qualities and skills and why you d be a perfect candidate. You should be able to confidentially communicate your elevator pitch at any time, from a job interview to a conversation with a stranger in a carpark as you will never know when you will bump into someone that could help you land your next role. 3. Build and leverage your network In today s labour market, it is tough to secure a job through traditional application processes. The sheer amount of competition makes it hard to stand out of the application pile. One panellist applied and was rejected for over forty roles, so realised that she needed to make herself more visible. By contacting decision makers in HR departments and networking, she stood out and was offered a number of fantastic opportunities. Leverage your network to spot opportunities have conversations with mentors, clients, colleagues, recruiters and friends. The AIE and YEPs are also recognised as providing a great network to help individuals identify roles. 4. Play to your strengths Strengths can include technical skills and behavioural competencies such as influencing, collaborating and service orientation. By being aware of your strengths and comparing them against the key requirements of roles, you can make informed choices about which roles best suit you and what your developmental opportunities are. In summary, in order to have a successful and engaging career in energy it is important to be proactive and understand what drives you, so If you want something don't give up on it and see how your next move can be a stepping stone. - Aruna Seneviratne, Origin Energy that you can identify roles that align with your motivations and values. Once you know where you want to head, be open to different experiences and ensure that you effectively leverage your network to help you spot opportunities and promote your unique strengths. YEP Melbourne would like to thank PowerShop for sponsoring the event. PowerShop is an online energy retailer that helps you save money by letting you take control of your electricity usage and bills. Interested in what else the Young Energy Professionals have to offer? Please refer to page join our free mailing list au/aie/branches/yep_mailing_ List_Signup.aspx or follow us on LinkedIn to keep up to date with events and energy related news. 28 Energy News

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