Category: Renewable Electricity
In-depth community research reveals the challenges of change to renewable energy.
3 June 2024.
A majority of Australians, particularly younger people, place the collective benefits of action on climate change and lower electricity prices ahead of their individual concerns about the impacts of development, as Australia’s transition to renewable energy gathers pace.
This and other first results of This is Transition, a 12-month study of community opinions, values and motivations impacting the country’s shift from coal and gas-fired electricity to renewable power have today been published. The study, conducted by highly regarded research firm, Essential Research, has been commissioned by Australia’s first 1.5°C energy company, ZEN Energy.
This is Transition has also identified warning signs that public support is at risk if communication to communities about the ability of renewable technologies to replace fossil fuel generation isn’t consistent or reinforced over time.
Key findings include:
- 57% of Australians believe the main benefits of the renewable energy transition will be meaningful action on climate change, lower energy costs and new career opportunities. Only 17% do not believe there will be any economic benefits.
- 54% of Australians, and 61% of young Australians 18-34 years, believe meeting national commitments to cutting climate emissions and transitioning to renewable energy should be prioritised over local community concerns about project development. 52% of people aged 55 years and older believe local community concerns should be prioritised.
- The number one concern about new energy project development is impacts on the natural environment, including wildlife (61%), while the main concern for 27% of people is visual impacts of development and transmission lines.
- Australians believe there are two main reasons why the country’s energy transition is facing difficulties: that the technology isn’t advanced enough, and that governments haven’t provided enough leadership.
- 53% of Australians want renewable energy developers to collaborate with and involve them in decision-making, but only 10% of people support decision-making power being handed over to communities.
- In quantitative discussions, the majority of respondents said community consultation is often tokenistic and only a genuine partnership will result in a project being accepted by a local community.
ZEN Energy CEO Anthony Garnaut said the findings of This is Transition reinforces the challenges individual renewable projects are having and highlighted the need for consistent leadership from industry and government.
“This research demonstrates that people don’t view the transition in isolation or on a project-by-project basis. It reinforces ZEN’s focus on solutions that will secure a healthy, safe future for all.
“The findings show Australians have consultation fatigue and only genuine partnerships will earn a project a social licence. ZEN understands this is a transition that cannot afford to fail. We encourage all developers to engage early, involve people in decision-making and co-design of projects.”
Media contact: Paul Sheridan, paul.sheridan@zenenergy.com.au, 0410 516 656.
READ MORE
ZEN is proud to be part of the 2024 Vivid Sydney Festival!
We are excited and proud to have been selected to be part of the 2024 Vivid Sydney Festival!
May 2024
ZEN’s proposed 1GW Western Sydney Pumped Hydro project is one of 19 projects chosen as practical, tangible and scalable projects necessary to transform Sydney into a truly sustainable city.
A New Normal Sydney is an initiative to demonstrate how our cities can evolve from simply being a consumer of water and energy, that also create a lot of waste, to becoming a self-sufficient producer that sends zero waste to landfill. Leaving Sydney a city that will never runs out and keeps its own lights on.
A former coal industry site, an old coal washery at Nattai in south west Sydney, will be re-purposed for ZEN’s Western Sydney Pumped Hydro project (WSPH), included in the New Normal initiative as the example of large scale clean energy generation and storage possible in Sydney. Once operational, the project will supply 500,000 homes and businesses with on-demand power for up to eight continuous hours.
Together, these 19 projects will unlock a $120 billion transformation of Greater Sydney, create over 80,000 jobs, and help secure Sydney’s future as one able to withstand future shocks and emerge a climate resilient global city.
The exhibition will run until June 15 at The Harwood Building, Mary Ann St, Ultimo.
Principal Partner: NSW Environment Protection Authority.
READ MORE
Historical partnerships for a unique project.
May 2024
ZEN has recently announced the proposed project Western Sydney Pumped Hydro, transforming a cold old washery into a sustainable future.
WaterNSW has granted ZEN access to Lake Burragorang, Sydney’s largest water storage, to conduct numerous investigations to determine the viability of building a 1,000 megawatt pumped hydro project. To be allowed access, WaterNSW had to first be satisfied a pumped hydro project would not damage water quality.
Subject to planning and environmental approvals, as well as community support, we believe construction could commence in 2027. Western Sydney Pumped Hydro (WSPH) could then be supplying 500,000 homes and businesses with on-demand renewable electricity by 2031.
Large capacity renewable energy storage projects such as Western Sydney Pumped Hydro will significantly contribute to the security and reliability of Sydney’s and NSW’s energy supply, aligning with the NSW Electricity Infrastructure Roadmap.
An industry-leading $1 million per year Community Benefits Scheme will be created. Community consultation will also include co-design of aspects of the project.
Working together on a sustainable future.
Lake Burragorang, on Gundungarra Country, already serves Sydneysiders with clean drinking water, but soon could provide them with reliable clean energy as well.
Collaborations that have an impact
Ross Garnaut, a board member of ZEN, has championed pumped hydro technology as key to Australia’s renewable energy transition and identified the unique site for the proposed Western Sydney Pumped Hydro project. Few sites are better suited to such a project.
The former coal washery land at Nattai is large enough for an upper reservoir to be built, and is also cleared and rehabilitated land, minimising the environmental impacts of a pumped hydro project.
The project site sits 400m above Lake Burragorang on an escarpment of ancient sandstone, which makes the elevation ideal for an efficient project and provides confidence that necessary tunnelling to transfer water between reservoirs will occur in stable geology. And, Sydney’s electricity transmission system is close by – ZEN is seeking to connect to the grid through underground cables along existing road easements.
ZEN is partnering with WaterNSW, which has granted us access to the catchment area to conduct feasibility studies and with SADA Group, which has owned and rehabilitated the site.
It is early days for this proposed project, but with partnerships like these, we are laying the foundations for something special that everyone will benefit from.
Project’s Timeline
It’s very early days and an announcement about the project simply means the start of numerous studies, consultation, and design development.
All going well, ZEN expects construction could begin in 2027, subject to community and stakeholder support, investigations and approvals. The project could then come online in 2031.
We are committed to, and looking forward to, sharing the development process and shaping the project design and its benefits with locals, including Traditional Owners, Wollondilly Council, and other interested and important stakeholders.
READ MORE
Turning Western Sydney’s coal mining past into a clean energy future
11 April 2024
Sydney’s biggest water storage, Lake Burragorang, could soon help NSW take a big step toward achieving its transition to renewable energy and stabilise electricity supply at peak demand times.
ZEN Energy, Australia’s first 1.5°C energy company, is proposing to turn degraded coal industry land at Nattai on the escarpment above the lake into a clean energy powerhouse, delivering on-demand electricity to the equivalent of 500,000 homes and businesses.
At 1,000 megawatts (1GW), the Western Sydney Pumped Hydro project will be able to store and supply up to eight continuous hours of ‘firming’ energy, essential to stabilise the state’s electricity grid and power prices as it transitions to renewable energy generation.
Located 24km away from Warragamba Dam and drinking water treatment, the project will also be mostly underground: pumping water from Lake Burragorang through tunnels to a reservoir located on the former coal industry land. When demand is high, water is released to drive underground turbines and send renewable power into the electricity grid.
A $1 million per year Community Benefit Scheme will be created and the project will generate 1,500 jobs during construction and 80 operations jobs.
Coal was mined from the Burragorang Valley from 1930 to 1992 and the project site was used as a coal washery, operated by Burragorang Valley Coal, until 2001 and since then undergone rehabilitation. The Dunbier family, which owned the company, is now partnering with ZEN to turn the site’s fossil fuel past into being part of the state’s clean energy future.
Numerous studies, consultation and co-design with Traditional Owners, local residents and other stakeholders will now occur. If all approvals and a social licence are secured, construction could begin in 2027 and be operational by 2031.
Initial studies have established that the project would have no detrimental impact on water quality or cause any change to water levels in Lake Burragorang, including no flooding of the shoreline and surrounding natural environment. This was critical to securing WaterNSW’s approval for ZEN to progress the project.
“The vast water reserves of Lake Burragorang can supply Sydneysiders with clean drinking water and clean, renewable energy as well,” said ZEN CEO Anthony Garnaut.
“Large-scale energy storage projects like Western Sydney Pumped Hydro are key to keeping the lights on and energy prices in check in NSW as our coal-fired power stations age and retire over the next decade.”
“Western Sydney Pumped Hydro marks ZEN’s entry into renewable energy development in New South Wales. This is a key milestone for us as we grow and envision a 1.5-degree world for all.”
Importantly, consultation with key stakeholders, particularly Traditional Owner representatives, has already begun. These will continue as the project evolves and ZEN is seeking to co-design many aspects of the project with local residents.
“ZEN is committed to, and looking forward to, sharing and shaping the project design and its benefits with locals, Traditional Owners, Wollondilly Council, and other interested and important stakeholders,” Mr Garnaut said.
READ MORE
ZEN ENERGY SUCCESSFULLY COMPLETES $160M CORPORATE DEBT RAISING
22 March 2024
Australia’s first 1.5°C energy company has successfully completed its debt capital raising. The outcome confirms increasing interest and confidence among high net worth and institutional investors in ZEN’s business strategy.
ZEN’s ambitious growth plans have been supported by organisations including private debt investment manager Longreach Credit Investors, ethical superannuation fund Future Group, ASX listed financial service provider Income Asset Management (IAM), leading WA property investment firm Hesperia, Samuel Terry Asset Management and impact investors.
ZEN closed Tranche A of the capital program at $54M in September 2023. The successful conclusion of the Tranche B capital raising closed the overall program at $160M. This comes just after ZEN’s announcement that it has reached financial close on its 100% owned energy storage asset, a 111-megawatt, 291 megawatt-hour battery located at Templers, 60km north of Adelaide.
A third of the funds raised were from existing investors, shareholders, and employees, demonstrating the depth of support for ZEN’s business model.
Investor confidence in ZEN enables the business to continue to pursue its ambitious growth plans, which centre around enabling large energy users to reduce their carbon footprint in an efficient manner.
Quotes attributable to ZEN’s CEO, Anthony Garnaut:
“We welcome the latest group of institutional and impact investors, including Longreach and Future Group, into ZEN’s ecosystem of partners with aligned sustainability goals.
“Meeting our capital raising goal means we can continue to scale our business model, including by taking the next step in building out our portfolio of renewable energy and storage assets.
“With this injection of capital, ZEN will also be able to scale our existing and attract new sustainability driven customers, accelerating their journey to the zero carbon future.”
Quotes attributable to Longreach Credit Investors Chief Commercial Officer, Alex Nisbet:
“Longreach Credit Investors is pleased to have supported ZEN in this debt raising. ZEN is well positioned to be a key player in driving the renewable energy transition in Australia and is another example of the high-quality Australian businesses and management teams that we seek to partner with.”
Quotes attributable to Future Group Executive Director Investments, Sharon Davis:
“Future Group injected $30M of capital into ZEN Energy, enabling the business to retain 100 per cent ownership of its first major asset, the 291-megawatt-hour Templers Battery in regional South Australia.
“Using superannuation’s $3.4 trillion can unlock climate solutions and investments. Zen Energy’s ESG-driven business reflects the values of Future Group’s, leading the investment movement to advocate for a future worth retiring into.”
Quotes attributable to Income Asset Management (IAM) Executive Director – Debt Capital, Tim Smith:
“IAM is a proud supporter of ZEN’s ambitious renewable energy strategy and have been delighted to be a joint lead manager on this transaction. We believe it is a significant milestone in the context of Australia’s rapidly evolving private credit market. This transaction is a testament to the ZEN management team and a large step toward achieving its long-term aspiration of becoming an investment grade issuer.”
Media contact:
Paul Sheridan
0410 516 656
paul.sheridan@zenenergy.com.au
READ MORE
SOUTH AUSTRALIA’S 2ND BIGGEST BATTERY STORAGE TO BOOST RELIABILITY
19 March 2024
Construction of South Australia’s second largest energy storage project will boost reliability of electricity supply as the state leads the way nationally to become powered by 100 per cent renewable energy by 2027.
Local business success story ZEN Energy today announced with the South Australian Government that construction of the 111-Megawatt, 291 Megawatt-hour battery will commence at Templers, 60km north of Adelaide, following a final investment decision, or financial ‘lock up’ milestone.
ZEN and private partner investors are financing the project. Local employment will be a priority during construction, with more than 180 jobs being created. The battery will be operational in 2025.
The Templers battery will also add significant stability to the electricity grid as South Australia builds toward becoming a renewable energy superpower through its investments in green manufacturing.
ZEN has quickly grown since it began in 2004 to become a leading national renewable energy retailer, supplying the SA Government, Bunnings, and CSIRO, as well as a network of councils in the eastern states.
Other key points:
- ZEN’s ability to construct the battery has been enabled through the South Australian Government’s commitment to a long-term energy contract with the company.
- ZEN has brought together an extensive ecosystem of sustainability driven partners – which includes Stonepeak, a leading alternative investment firm specialising in infrastructure and real assets, through its portfolio company Peak Energy and French financial institution Natixis CIB. ZEN was advised by corporate advisory firm Azure Capital.
- Stonepeak’s funding through an innovative structure has facilitated ZEN’s ownership of the Templers Battery, with opportunities to extend the support as ZEN delivers against its significant pipeline of renewable assets.
- Ethical superannuation fund Future Super recently invested $30 million in ZEN, which is integral to projects like the Templers battery.
- Consolidated Power Projects Australia will be completing the engineering design and installation. Sungrow Power Supply Co. and Shanxi Electric Power will be providing relevant equipment for the construction of the Templers battery.
- ElectraNet, the owner and operator of South Australia’s high voltage transmission network will build and maintain the dedicated connection to the Templers battery
Quotes attributable to the Minister for Energy and Mining, the Hon. Tom Koutsantonis MP: “South Australia led the pack when we invested in the Hornsdale Power Reserve, and our state is now home to six grid-connected batteries with a total capacity of more than 500MW.
“These investments are a big vote of confidence in our state’s ambitious plan to get to net zero emissions in energy production by 2027, and to help the world along the pathway to decarbonisation.”
“Like South Australia, ZEN was an early mover in the renewable energy space. It’s great to see a home-grown success story joining us in the journey to a decarbonised economy.”
Quotes attributable to ZEN Energy CEO, Anthony Garnaut:
“Realising the final investment decision for the Templers battery is a key milestone in ZEN’s significant growth and marks our first 100 per cent owned major asset, in the state where we started.”
“The South Australian Government, through committing to a long-term contract with a renewable retailer has enabled this significant investment in further stabilising the supply of renewable, affordable energy into South Australia.”
“Commitment and support from our capital partners including Stonepeak, Natixis Bank, Future Super and other leading institutions including Longreach, IAM (Income Asset Management) and Azure capital enables ZEN to continue to bring more renewable assets to the Australian grid and in South Australia.”
“Through enabling an eco-system of renewable energy suppliers, the South Australian Government continues to shore up investment growth into the state.”
Media contact:
Paul Sheridan
0410 516 656
paul.sheridan@zenenergy.com.au
READ MORE
ACCIONA ENERGÍA DOUBLES DOWN UNDER WITH ZEN
22 February 2024
The world’s largest 100% renewable energy company, ACCIONA Energía, has doubled down on its relationship with Australian-owned ZEN Energy, signing a second 10-year energy offtake deal from the Waubra Wind Farm in the central highlands of Victoria.
At its peak, the new agreement increases ZEN’s acquisition to over 70% of the total renewable energy produced by the Waubra Wind Farm, elevating its annual offtake to approximately 400,000MWh.
The Waubra Wind Farm, with a capacity of 192MW, is a critical asset in Victoria’s network of renewable energy infrastructure.
Commencing in January 2024, the agreement bolsters the original offtake that began in 2022 and sees ZEN’s partnership with ACCIONA Energía continue until at least December 2033.
“This new agreement underscores our commitment to long-term, sustainable growth and the role we play in Australia’s renewable energy sector. By securing 400,000MWh per year, we are doubling down on our partnership with ACCIONA Energía, supporting our growth plans and our customers on their journey to 100% renewables,” said Anthony Garnaut, CEO of ZEN Energy.
The enduring partnership with ACCIONA Energía manifests ZEN’s resolve to support large-scale renewable developments and the delivery of sustainable power to its customers.
“Demand for renewable energy from commercial partners continues to grow as businesses respond to shareholder and customer expectations,” said ACCIONA Energia Managing Director Brett Wickham.
“Partnerships with ZEN are critical for businesses such as ours and help underwrite investment in future domestic renewable energy projects and deliver upon the energy transition,” said Mr Wickham.
This deal acts as a catalyst for ZEN’s further diversification and strengthening of its renewable energy portfolio, as part of its sustained growth strategy. It illustrates an enduring partnership ethos and signals confidence in renewable infrastructure investment as a mechanism for leadership in the transition to a zero-carbon world.
About ACCIONA Energía
ACCIONA Energía is the largest 100% renewable energy company with no fossil legacy in the world. It has 12.9GW of renewable energy and commercial operations in 20 countries. With 30 years of experience, ACCIONA Energía offers a complete portfolio of tailor-made energy solutions for its corporate and institutional clients to meet their decarbonization goals. ACCIONA Energía is committed to the highest environmental, social and corporate governance (ESG) standards. ACCIONA S.A., a leading global company in the provision of regenerative solutions for a decarbonized economy, is the reference shareholder of ACCIONA Energía. www.acciona-energia.com