Reviewing the Viability of Renewable Energy in Community Electrification: The Case of Remote Western Australian Communities
Governments and utilities are struggling to respond to the increasing costs of energy supply in remote networks while still meeting social objectives of access and availability. Due to vast distances and sparse population, remote Australian communities are generally electrified by distributed networks using diesel generation. This is expensive, environmentally damaging and fails to exploit vast renewable resources available. These communities are often regarded as “low hanging fruit” from a renewable energy deployment perspective. This paper examines why picking that fruit is not straightforward. In Western Australia, the local electricity distribution utility responsible for remote networks, developed a scheme to incentivise renewable energy deployment in remote communities. This scheme aims to facilitate renewable energy deployment from the “bottom up” by providing a feed-in tariff capped at $0.50/kWh, to reduce the supply cost and environmental damage from diesel generation. This incentive is designed to encourage communities to fund installation. However, to date, there has been limited deployment of renewables in remote communities. The viability of renewable energy in three indigenous communities in the Kimberley region of Western Australia all connected to isolated, diesel powered networks is assessed. Both the potential benefits that can arise across remote communities as well as the barriers to deployment are considered. Renewable energy installation is found to benefit the utility but can also benefit communities subject to their cost of capital and to the imposition of connection charges. However a range of barriers are frustrating deployment and a dynamic and adaptive approach that recognises local challenges and provides the communities with a pathway to installation is needed.
|Date of creation:||20 Jan 2015|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Cook, 2006. "Private sector development strategy in developing countries," Chapters, in: Privatization and Market Development, chapter 5 Edward Elgar Publishing.
- Yadoo, Annabel & Gormally, Alexandra & Cruickshank, Heather, 2011. "Low-carbon off-grid electrification for rural areas in the United Kingdom: Lessons from the developing world," Energy Policy, Elsevier, vol. 39(10), pages 6400-6407, October.
- Vine, Edward & Hamrin, Jan & Eyre, Nick & Crossley, David & Maloney, Michelle & Watt, Greg, 2003. "Public policy analysis of energy efficiency and load management in changing electricity businesses," Energy Policy, Elsevier, vol. 31(5), pages 405-430, April.
- Yadoo, Annabel & Cruickshank, Heather, 2010. "The value of cooperatives in rural electrification," Energy Policy, Elsevier, vol. 38(6), pages 2941-2947, June.
- Yadoo, Annabel & Cruickshank, Heather, 2012. "The role for low carbon electrification technologies in poverty reduction and climate change strategies: A focus on renewable energy mini-grids with case studies in Nepal, Peru and Kenya," Energy Policy, Elsevier, vol. 42(C), pages 591-602.
- John Foster & Liam Wagner & Alexandra Bratanova, 2014. "LCOE models: A comparison of the theoretical frameworks and key assumptions," Energy Economics and Management Group Working Papers 4-2014, School of Economics, University of Queensland, Australia.
- Winkler, Harald & Simões, André Felipe & Rovere, Emilio Lèbre la & Alam, Mozaharul & Rahman, Atiq & Mwakasonda, Stanford, 2011. "Access and Affordability of Electricity in Developing Countries," World Development, Elsevier, vol. 39(6), pages 1037-1050, June.
- Liam Wagner & John Foster, 2011. "Is There an Optimal Entry Time for Carbon Capture and Storage? A Case Study for Australia's National Electricity Market," Energy Economics and Management Group Working Papers 07, School of Economics, University of Queensland, Australia.
- Byrnes, Liam & Brown, Colin & Foster, John & Wagner, Liam D., 2013.
"Australian renewable energy policy: Barriers and challenges,"
Elsevier, vol. 60(C), pages 711-721.
- Liam Byrnes & Colin Brown & John Foster & Liam Wagner, 2013. "Australian Renewable Energy Policy: Barriers and Challenges," Energy Economics and Management Group Working Papers 2-2013, School of Economics, University of Queensland, Australia.
- Krupa, Joel, 2012. "Identifying barriers to aboriginal renewable energy deployment in Canada," Energy Policy, Elsevier, vol. 42(C), pages 710-714.
- Nalan, Çiçek Bezir & Murat, Öztürk & Nuri, Özek, 2009. "Renewable energy market conditions and barriers in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1428-1436, August.
- Rodriguez, Luis C. & May, Barrie & Herr, Alexander & Farine, Damien & O'Connell, Deborah, 2011. "Biofuel excision and the viability of ethanol production in the Green Triangle, Australia," Energy Policy, Elsevier, vol. 39(4), pages 1951-1957, April.
- Liam Byrnes, 2014. "The cost of failing to install renewable energy in regional Western Australia," Energy Economics and Management Group Working Papers 9-2014, School of Economics, University of Queensland, Australia.
- Campbell, Harry F. & Brown, Richard P.C., 2005. "A multiple account framework for cost-benefit analysis," Evaluation and Program Planning, Elsevier, vol. 28(1), pages 23-32.
- Prof Harry Campbell & Assoc Prof Richard Brown, 2003. "A Multiple Account Framework For Cost-Benefit Analysis," Discussion Papers Series 328, School of Economics, University of Queensland, Australia.
- Verbruggen, Aviel & Fischedick, Manfred & Moomaw, William & Weir, Tony & Nadaï, Alain & Nilsson, Lars J. & Nyboer, John & Sathaye, Jayant, 2010. "Renewable energy costs, potentials, barriers: Conceptual issues," Energy Policy, Elsevier, vol. 38(2), pages 850-861, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:61929. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.