What is large-scale solar?
Large-scale solar (LSS) is probably best known as a solar farm, which can generate anywhere from hundreds of kilowatts to thousands of megawatts of solar power. Other terms used for LSS include solar power plants and utility-scale solar.
How does large-scale solar technology work?
LSS typically use solar photovoltaic (PV) technology to generate electricity from fields of solar PV panels.
The solar panels convert the energy from sunlight into direct current (DC) electricity, then inverters convert the power into alternating current (AC) that can be integrated into the electricity grid.
Watch technology explainers & video from our large-scale solar project investments in Australia.
Understand ARENA’s LSS funding round investment which totals $92M committed across 12 projects at a cost of $1.1B cost.
Large-scale solar in Australia
LSS generation is growing rapidly in Australia. By December 2018, over 3000 MW of LSS generation had been connected to the grid. The contribution of LSS generation to Australia’s total energy mix nearly tripled in a year, from 0.3 per cent in 2017 to 0.8 per cent in 2018.
The cost of LSS PV has fallen dramatically in recent years from $135 per megawatt hour (MWh) in 2015 to an expected $44.50 – $61.50 per MWh in 2020. This reduction was driven by a combination of international and local improvements and is expected to continue. International cost drivers include the cost of manufacturing, and local costs include the cost of finance and construction.
How are we supporting large-scale solar projects?
Our purpose is to accelerate Australia’s shift to affordable and reliable renewable energy. By connecting investment, knowledge and people to deliver energy innovation, we are helping to build the foundation of a renewable energy ecosystem in Australia.
As of 2019, our grant funding had contributed to the creation of 1.5 GW of new grid-connected solar farms across Australia. This includes almost $90 million of grant funding provided to 12 LSS projects in NSW, Queensland and Western Australia, which unlocked almost $1 billion of commercial investment in large-scale solar.
Our support has helped to close the cost gap that existed between large-scale solar PV and other commercially competitive forms of power generation. As a result, utility-scale solar is now cost competitive with wind energy.
Learnings from the LSS projects supported by us have helped stakeholders throughout the renewable energy industry by providing information on challenges that are unique to solar, as well as informing regulators on how to best incorporate solar into the grid.
We share knowledge on a range of topics, from construction techniques, solar forecasting and capital costs, to operations and maintenance (O&M) practices and grid impacts. Sharing this data and knowledge can increase efficiency, reduce risk, and drive further cost reductions in LSS.
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