Horizon pulls plug on renewable energy plan

Utility company Horizon Power has pulled the plug on a renewable energy project called the Living Laboratory, in which Broome applied to become the pilot town.

Days after the Shire of Broome made its submission, Horizon said changes to the political landscape and the loss of WA's AAA credit rating represented uncertainty of funding for renewable energy projects from the newly elected Federal Government.

"These changes, in addition to increased scrutiny of the energy portfolio, have resulted in Horizon Power commencing a review of its projects," Horizon told the council.

"As a precautionary step, we are placing the Living Laboratory Project on hold pending the outcome of the review, expected in December 2013."

Horizon shortlisted Broome, Carnarvon, Exmouth and Esperance for the project, and expressions of interest closed last week.

The shires were expected to prepare a proposal to demonstrate their commitment, strategy and enthusiasm for their community to take part.

The three-year project proposed a partnership between Horizon and CSIRO in conjunction with the chosen council, key stakeholders and communities to trial and implement new technology to improve the use of renewal energy.

Power provided by solar energy was a key aspect.

The energy could have been directed into the grid and batteries to reduce electricity production and distribution costs.

The proposal suggested "a subsidised solar battery system, which would save money on residents' bills for the next 25 years".

One of the obstacles outlined in a report to council was that the current feed in tariff for Broome of just 10 cents per kilowatt hour provided little incentive to export power to the grid.

"It makes economic sense to invest in solar and batteries only if there is an adequate return of investment from replacing power sourced from Horizon Power (at 25cents/kWh)," it stated.

Horizon hoped to attract $60 million in funding from Royalties for Regions, the CSRIO and the Australian Renewable Energy Agency.

"We're disappointed that the funding for Living Laboratories has become uncertain, but we've been advised that the project will be re-considered toward the end of the year, and if this happens we'll then re-engage with the process," Shire of Broome chief executive Kenn Donohoe said.

Horizon engineering and projects general manager Ted Brereton said the expressions of interest had been cancelled in line with probity.

"This will enable the shires and Horizon Power to have further discussions about the project pending a renewal of the EOI process in the new year," he said.

"Once the preferred community has been chosen, Horizon Power proposes to work with them as a co-creator of a renewable energy solution suitable for implementing within that town.

"This research model presents an ideal way for Horizon Power to architect and develop sustainable energy solutions, together with local governments and communities, to find the best models for the future."

He said Horizon appreciated the time and effort shires and other partners had taken to respond to the project, and was grateful for their enthusiasm.