Solar SunShot announced, but has Canberra already decided the winners

By Peter Roberts

The Australian Renewable Energy Agency (ARENA) has today opened the first phase of the $1 billion Solar Sunshot program to support development of a solar photovoltaic (PV) manufacturing industry.

Solar Sunshot will be rolled out in two phases with $550 million available in grants.

Round 1A aims to support solar PV manufacturing innovation with a focus on modules, inputs to modules, and deployment systems with an allocation of $500 million.

Round 1B will provide funding for solar PV manufacturing studies, including feasibility and engineering studies, from a $50 million pool.

It is a great scheme, but the Sunshot comes with odd conditions that make me wonder whether the government has already made up its mind what projects will get the cash, and where the investments will be made.

The Prime Minister Anthony Albanese told ABC Radio Newcastle that the closed Liddell Power Station near Muswellbrook would be developed as a solar manufacturing hub.

“Liddell, of course, helped to power New South Wales for a long period of time in the last century and into this one,” he said.

“Now, the production that will occur there will help power New South Wales and Australia, and potentially have export potential as well.”

Sorry, but are we selecting the best projects with the best prospects in the best places, or are we engaging here in an industry transition programme for the people of Newcastle?

This seeming requirement is entirely inappropriate.

What of places like Gladstone in Queensland that are developing as a solar manufacturing hub, and what about Adelaide in South Australia that houses Australia’s only solar PV manufacturing plant, Tindo Solar?

Tindo recently built a new factory (pictured) and is planning to increase output to 1GW per annum in a new mega-factory.

As recently as this week it announced a deal with aluminium extrusion manufacturer Capral that could lead to local manufacture of extrusions, just one of the plethora of components currently inported from China.

In other words these Australian companies are already developing a local component supply chain, though with no government support.

It would be a travesty if the only company, Tindo that has taken the risk of making solar PV panels despite unsupportive governments could miss out because they are not in New South Wales.

Another aspect worries me which is an apparent bias in the only non generic criteria mentionned which seeks ‘deployment systems’.

5B is the only company in Australia innovating in this area and currently makes in Adelaide prefabricated, rapidly deployable systems which are also likely to be used in the huge Sun Cable project in the Northern Territory to supply Singapore with electricity.

Has Albanese already decided this company will be getting a grant? If not why is this the only non-generic criteria set by ARENA?

The Labor government came to power rightly vowing to end the rorts in federal grants that proliferated under the Coalition.

But here we have a scheme that is not open and fair to all, but favours particular sites for projects, and perhaps, a particular company.

Further reading:
Tindo Solar builds supply chain with Capral deal

Picture: Tindo Solar