Updated Fact Sheet

23 12 2009

The administration period for Solar Systems has been extended to Feb 17, but there is a big risk of liquidation. Come to our protest 12.00pm, January 23 Parliament House to demand that the government guarantees the Mildura solar power plant goes ahead.



Solar Systems Fact Sheet

l                       The building of the first large-scale solar power plant in Australia is in doubt after its owner, Solar Systems, declared that due to lack of private investment, the company faces collapse.

l                       John Brumby said in parliament on 25th November “we have $50 million on the table for the Mildura solar project which I am confident will be delivered.”, but Solar Systems has not been sold as a going concern and Brumby wont step in to guarantee delivery. Kevin Rudd has been posing on climate in Copenhagen, but will not commit to Australia’s first large scale solar power plant. Spain has 3000 MW of solar power installed,  Australia with vastly more solar potential, has 115 MW. Rudd’s proposed carbon trading legislation, the Carbon Pollution Reduction Scheme (CPRS) will not build the Mildura solar power plant.

l                       China Light & Power, parent company of TRUenergy who also own Yallourn brown coal power station and mine, was a key investor and have written off their investment refusing to put any more money in, but are continuing their coal investments.

l                       Over 100 Solar Systems workers have already been made redundant. They are owed $4 million in entitlements. The remaining 43 employees are on leave without pay.

l                       A new production line (near completion) capable of producing hundreds of solar receivers per week, has been installed in the $23 million Abbotsford factory. Each receiver is capable of powering 30 – 50 homes.

l                       Solar Systems had the contract to build the Mildura power plant. Construction would have provided around 950 green jobs and there would have been around 50 permanent green jobs running the plant. In addition, thousands of extra jobs would be reinforced in a wide variety of component making fields.

l                       The Mildura solar power plant would have powered 45,000 homes (the entire Mildura region) and saved 400,000 tonnes of greenhouse gas per year.  Siting the power station near where power is used would reduce transmission loss of 15% from the Latrobe Valley to Northern Victoria. Solar power has the benefit of peak power on hot sunny days, which coincides with high electricity demand. Storage solutions using hydrogen are being developed for night time power.

l                       No other company in Australia has the new solar technological capacity to build the Mildura plant if Solar Systems doesn’t. Solar Systems is the world leader in concentrated photo-voltaic solar power. Its photovoltaic solar receivers are 36% efficient compared with 15% efficiency on standard household solar panels, with this efficiency had been increasing by about one percent each year.

l                       $125 million was pledged to the project both from the federal government and the state government. Only $500,000 has been delivered to Solar Systems. The first milestone of the project—to build a 140-kilowatt demonstration field—was achieved on time in October last year.  The rest of the funds are tied to milestones when the power station ramps up to full output in 2011 and 2013. The whole project was expected to cost roughly $420 million

l                       The 3 other proposed solar projects planned for Australia are based on the same funding model, of private sector run with around one third government funding, these could easily face simlar funding problems. The Solar Systems Mildura project is by far the most advanced proposal to date. If not this project, and this factory, then when and where will the first large scale solar power plant be built in Australia?

l                       Solar Systems has built  functioning power systems in three remote Aboriginal communities in the Northern Territory. Together they save 420,000 litres of diesel and 1550 tonnes of greenhouse emissions each year. They have also removed the need for daily journeys to buy diesel in some of the most disadvantaged communites in Australia. The future of these plants is in doubt if Solar Systems is liquidated.

l                       What is the campaign demanding? We demand that the government immediately intervenes to guarantee (i) that the Solar Systems factory in Abbotsford remains open, (ii) that the redundant workers are reinstated and, (iii) that a large scale solar power plant is built in Mildura.

l                       Get Involved – campaign meetings every Sunday 4.30pm John Curtain Hotel 29 Lygon St Carlton  (opposite Trades Hall corner Lygon & Victoria Sts) – first meeting for 2010 is Jan 10                                                         For more information visit https://savesolarsystems.wordpress.com                                          Call Chris on 0403 013 183 or email savesolarsystems@gmail.com




One response

23 12 2009
John P Morgan

It is interesting to note that Solar Systems went into administration shortly after the passing of the RET legislation in which a flood of RECs were instituted and so reduced the value of the RECs. It seems there was also a bias in favour of wind over solar. Is it any wonder that potential investors were warned off!

The Federal Treasury did an analysis of the CPRS which identified that the CPRS would not actually start reducing emissions for more than 20 years down the track.
It is easy therefore to come to the conclusion that the Government is not really supporting renewables as the ETS clearly encourages coal.

I am not at all surprised by this. It is for these reasons among others that I retired from the clutches of the state administered energy and water networks and now live in considerable comfort in a 9 star, zero emissions home in rural Victoria. I have plenty of solar energy, plenty of water and real independence.

I can recommend it.

I have had a look at the Solar Systems Test facility at Bridgewater and it seems fine to me.
Where is the problem if it is not at the level of Government itself.

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