Energy Policy 28 (2000) 1059}1068

Solar Olympic village case study

E.D. Spooner *, D. Morphett
, M.E. Watt , G. Grunwald, P. Zacharias
Australian CRC for Renewable Energy, University of New South Wales, Kensington 2052, Australia

Pacixc Power, Park and Elizabeth St, Sydney 2000, Australia
Energy Australia 570 George St, Sydney 2000, Australia
Department Head/ISET Konigstor 59, Kassel D-34119, Germany
Received 25 May 2000

Abstract

The Sydney 2000 Olympic Games incorporates an athlete's village which is part of a larger new residential development called
Newington, aimed at creating a practical example of more sustainable living for the 21st century. Newington has a range of
environmental features including solar hot water, solar photovoltaics, energy e$cient design and water recycling for irrigation and
toilets. Each home will have 1 kW (peak) of roof integrated PV connected to the grid via an inverter system. This paper presents a case
study of the management, design, installation and testing of the solar village PV systems and also discusses related policy issues and
requirements. The Newington development demonstrates that using today's technology a high concentration of solar power may be
readily integrated into a residential development with bene"ts to all participants. However, work is needed to allow sustainable
options to be made available to the mainstream market.  2000 Elsevier Science Ltd. All rights reserved.

Keywords: Case-study; Solar; Village

1. Introduction sortium (MLLVC) (a venture between Lend Lease and

This paper provides a case study of an internationally
signi"cant large distributed residential PV power system
installed in the athlete's village for the 2000 Olympic
Games. Sydney's Olympic Games in 2000 will be the "rst
to provide accommodation for all the athletes in one
suburb called Newington, built as an example of a move
to more sustainable housing for the 21st century. A rigor-
ous set of sustainable development principles applies to
all aspects of the Sydney Olympic site redevelopment in
order to leave a legacy for the future. There are many
lessons which have been learned in building Newington
in the areas of standards, building and architectural
information required and in policies to assist future
developments.
In 1996 the New South Wales (NSW) state govern-
ment called for expressions of interest in design and
construction of a village to house the athletes during the
Sydney Olympic Games in the year 2000. A group
consisting of Mirvac Lend Lease Village Industry Con-
* Corresponding author. Tel.: #61-2-9385-4047; fax: #61-2-9385-
5993.
Mirvac building company), the Sustainable Energy De-
velopment Authority (SEDA), and Paci"c Power forged
an agreement during the bidding process. The group put
together an innovative bid to build an internationally
signi"cant solar powered suburb named `Newingtona,
incorporating grid connected solar photovoltaic systems,
solar thermal hot water heating and energy e$cient de-
sign. The bid was successful and the construction of
Newington was commenced in late 1997 and is due for
completion in June 2000.
Newington is located adjacent to the main Olympic
venues at Homebush Bay, only a few minutes walk from
the Olympic Stadium. During the Olympic Games it will
provide accommodation for 15,300 athletes and o$cials
and up to 7000 for the Paralympics. The solar suburb
consists of up to 629 permanent homes, 1380 home units
and up to 500 specially designed relocate-able modular
dwellings (which will only be used for the period of the
games). The result is a very attractive new suburb for
Sydney, which incorporates many aspects of sustainable
development including a very signi"cant solar photovol-
taic generation component.
Photovoltaic systems will be "tted to all permanent
houses and townhouses built by the time of the Games.

0301-4215/00/$ - see front matter  2000 Elsevier Science Ltd. All rights reserved.
PII: S 0 3 0 1 - 4 2 1 5 ( 0 0 ) 0 0 0 9 2 - 6
1060 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
Fig. 1. Newington houses with Olympic Stadium in the background.
SEDA's calculations show that for energy conscious
home owners, the net draw from the grid over a year
should be approximately zero. Fig. 1 shows some of the
houses, against the background of the Olympic Stadium.
2. Consortium to build Newington
The agreement forged between MLLVC (Australia's
leading property developer Lend Lease and their venture
partner, building company Mirvac), SEDA (a New South
Wales State Government agency with a mission to re-
duce the level of greenhouse gas emissions in NSW and
to promote the use of renewable energy) and Paci"c
Power (a power generating business operating in the
highly competitive Eastern Australian electricity market),
produced positive outcomes for all parties. MLLVC was
looking for something to give their bid a distinctive
competitive edge. SEDA was looking for something that
would promote greenhouse gas reducing technologies
through practical application of energy e$cient fuel
switching and renewable energy. Paci"c Power was look-
ing for commercially viable green energy sources to add
to its portfolio. The parties found complementary inter-
ests and entered into an agreement that provided for
a `Solar Villagea construction.
Under the agreement, MLLVC agreed to build houses
that were energy e$cient, make roof tops suitable for PV
available and provide some funding support. SEDA
agreed to assist with advice and marketing of energy
e$ciency and to provide funding support. Paci"c Power
agreed to supply, install, own, operate and maintain the
PV systems, to provide the balance of funding and to
take on the full commercial and performance risk for the
PV power stations.
The arrangement was able to bridge the PV cost gap
on a fully commercial basis by combining the separate
values that the PV systems o!ered to each party. The
value for MLLVC was winning the bid. The value for
SEDA was ful"lling its charter to bring about greenhouse
gas reductions and use of renewables. The value for
Paci"c Power was the green electricity that could be sold.
Other key parties included:
E EnergyAustralia, the electricity distributor for the
area, provides the grid connection for the PV systems
and the grid supply to the houses.
E BP Solar, Paci"c Power's contractors, which supplied
and installed the PV systems.
E The University of New South Wales, which provided
consulting on design, installation, testing and commis-
sioning aspects of the PV systems.
E A large group of leading house building companies,
their subcontractors and tradespeople.
3. Signi5cant issues for PV
The project, while appearing deceptively simple on the
surface, has been far from that in practice. Developing
and managing the relationships between the parties has
been a critical part of the project. Because grid connected
PV in urban areas of Australia is relatively new, much of
the management has been to do with educating people
about PV systems and gradually developing their know-
ledge and con"dence in what is being done. One of the
main reasons that the solar village project was able to
come about was because of Paci"c Power's experience
and reputation as an electricity generator; their backing
gave other parties con"dence to proceed.
Some of the more signi"cant issues that have been
addressed include:
E Assessment of best practice around the world to ensure
an e!ective solution. In assessing best practice, the key
issue was translating this to "t with the domestic house
building industry, which varies widely from country to
country. The conclusion was that a new solution was
needed to meet out requirements for #exibility, low
cost and ease of construction.
E Aesthetics: This aspect has been particularly important
as PVs in the Newington context are more of a lifestyle
product, rather than a low-cost way of producing
electricity to compete with the grid. MLLVC placed
a strong emphasis on house product development and
matching it to market needs. Newington went through
many design interations in the early days as the
 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068 1061

architects worked to evolve designs that would bridge

the gap between sustainable development and per-
ceived consumer preferences.
E Ensuring adequacy of equipment supply and matching of
system components: BP Solar was engaged as the con-
tractor to supply and install all of the systems.
E Resolution of the technical issues associated with instal-
lation and grid connection (Spooner et al., 1998): A draft
set of grid connection guidelines had been developed
as a joint e!ort by distribution authorities and indus-
try representatives from around Australia, however
this did not fully resolve all of the issues to the satisfac-
tion of the local distribution authority. Having regard
to the size of the project, concerns were raised regard-
ing islanding, harmonics EMI and voltage rise.
Achieving certi"cation of an inverter for grid connec-
tion on the scale of the Newington development took
almost one year.
E Site supervision: Provision of constant on-site super-
vision has been essential to ensure adequate training of
builders and roof installers, maintenance of satisfactory
installation standards and liaison with new owners.
E Commercial arrangements with home owners: The orig-
inal concept was that Paci"c Power would maintain
ownership of the systems and operate them as a mini
power station. As the project progressed, it was agreed
that a better marketing arrangement would be to have
the PVs as an integral part of the house package, to be
owned and operated by the house owner.
E Managing perceptions: The "nal, and perhaps the most
important issue has been achieving a transition in
perception of PVs so that they are now seen as provid-
ing a competitive edge when marketing new houses.

4. PV system design

Paci"c Power worked with BP solar to perfect the

building integrated aspects of the PV roo"ng system,
inverter and cabling, and to ensure that the e$cient
operation, aesthetic, and safety aspects of installation
were addressed early in the design process.

4.1. PV electrical system overview
Each of the 629 permanent homes in Newington solar
suburb has 1 kW peak (at STC) of photovoltaic on the
roof, connected to the local low voltage (240/415 V) grid
via an inverter. The PV consists of one string of 12 by
85 W frameless BP solar laser buried grid mono-crystal-
line silicon single glass tedlar modules. The inverter used
is a BP Solar GCI 1200 badged SMA Sunny Boy 850,
mounted in a weatherproof box adjacent to the house
switchboard which in Australia is generally "tted to the
outside wall of the house. See photo and schematic
Fig. 2a and b.
Fig. 2. Inverter enclosure and house switchboard external to house. (b)
Schematic of single house.
4.2. Building integrated design
Paci"c Power worked with BP solar to perfect a build-
ing integrated roof design which:
E Satis"ed the architects desire to have a variety of
roo"ng material to provide interest and diversity in the
building design.
E Provided a cost e!ective and simple method of
mounting the PV.
1062 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
Fig. 3. PV Mounting system: (a) roof integrated in tiled roof, (b)
cross-section of system showing battens.
E Provided e!ective ventilation of the panels to maintain
e$ciency.
In order to satisfy all these requirements, the majority
of the photovoltaic installations are being integrated into
the roof structure using a pre-painted zincalume
(zinc!aluminium alloy) coated sheet steel roof pan for
waterproo"ng with the photovoltaics supported above
the pan (see Fig. 3). Because of the diversity in roo"ng
materials being used, it was decided that a simple #at roof
pan, which provided waterproo"ng, was the simplest
integration method. This would integrate easily with the
surrounding roof materials and provide a universal
mounting platform for the PV so that the PV design for
the majority of houses was standardised. Frameless mod-
ules were chosen because the lack of frame reduced cost
and also made the panels integrate seemlessly into the
roof without the visual outlining that might occur with
aluminium frames. They also reduced the embodied en-
ergy of the PV systems. Plastic clips specially designed by
BP solar were used at the corners and side of the modules
to hold them down to battens, which spaced the modules
o! the roof pan. The battens provided an air space under
the modules, which allowed for ventilation. The group of
modules was placed adjacent to the gutter at the edge of
the roof so that the intake for the ventilation and outlet
for water required no step up to roof level. The mounting
system made it simple to replace modules, if required,
with no implications for the integrity of the waterproof-
ing of the roof. The roof integration system was tested on
some prototype roofs to perfect the fabrication technique
and to evaluate the ventilation system under Sydney
climate conditions. This insured that the installation on
the actual roofs proceeded without signi"cant problems.
4.3. A utility perspective
The design of Newington solar suburb has to be
viewed in light of its initial application as the athletes'
village for the Olympic Games. The Olympics is a very
high pro"le event and because of this the electrical system
for the athlete's village has been designed for a high level
of supply security. A low supply impedance in the village
is a result of this type of design. This has many design
bene"ts but also required that the systems installed be of
a very high standard.
A key focus for the project, from the view of Paci"c
power and energy Australia, has been to resolve concerns
regarding any impacts of multiple PV systems on the
grid, to pave the way for future developments. For utili-
ties, the impact of installations in Newington can be
viewed from a number of perspectives. On the one hand,
as an opportunity to test what has, up to now, been
theoretical assumptions on the behaviour of densely
packed grid connected inverters. On the other hand,
there was concern about the consequence of the same
solar installations in the areas of safety of sta! and the
public and quality of supply. These concerns are high-
lighted by the following:
E There was limited prior experience available world-
wide relating to a project of this magnitude.
E The venue will become normal residential housing
both before and after the 2000 Olympics.
E The focus of the world will be directed to this area of the
energyAustralia network during the 2000 Olympics.
To address these concerns the following broad areas
were seen as critical:
E Safety for both the public and utility sta!.
E Voltage e!ects due to varying output from the inver-
ters.
E Quality of supply matters relating to inverter opera-
tion, i.e., harmonics, #icker, DC current injection and
reactive power #ow.
In addressing these issues Paci"c Power, through its 70%
owned subsidiary Paci"c Solar, and energyAustralia
were fortunate to have been members of the working
group which formulated the &Australian Guidelines for
grid connection of renewable energy systems via inver-
ters' (Australian Guidelines Committee, 1998). Newington
was seen as the ideal opportunity to test these guidelines.
Paci"c Power and energyAustralia jointly contracted the
University of New South Wales to undertake assessment
 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
of grid connection issues and BP solar contracted
UNSW to conduct-type testing of inverters for guidelines
compliance.
This has led to a very careful assessment of the issues
relating to:
E the AC side of the inverter and grid connection and
E the DC side of the inverter and PV array.
One of the main problems at the time of design and
installation of the PV systems was the lack of standards
both in Australia and internationally to cover building
integrated PV. There is still a considerable amount of
discussion on standards and various drafts of standards
are in preparation, many of which are very general in
nature. This led to a survey of what standards and guide-
lines existed, in order to provide the very best installation
without going to unreasonable extremes. The Interna-
tional Energy agency produced very good reference
document (IEA, 1996).
4.4. AC side issues
4.4.1. Australian guidelines for grid connection of
energy systems via inverters
In 1996 in Australia a committee, comprised of people
from electricity utility and inverter manufacturers, was
formed to develop guidelines for grid connection energy
systems via inverters. One of the major reasons for form-
ing this committee was the rapid increase in activity in
grid connected photovoltaic systems. This has led to the
development of a set of guidelines (Australian Guidelines
Committee, 1998) which allows for type testing of an
inverter for acceptance for grid connection by authorities
in Australia. The development of this document has been
pivotal in streamlining the approval of the connection of
inverter systems without the need for external protection
relaying. The Australian guidelines are currently under
review in the light of international discussion on anti-
islanding protection requirements. A committee is
currently being formed to move this document to an
Australian Standard
EnergyAustralia is one of the leading utilities in Aus-
tralia in the implementations of renewable energy onto
their grid. This has provided a positive environment for
managing the process of resolving grid connection as-
pects of Newington.
4.4.2. Disconnection of inverters to prevent islanding
Distribution authorities require that all PV systems
disconnect from the grid if the grid fails due to a fault or
operator intervention. If PV inverters maintain supply to
an islanded section of the distribution system there are
signi"cant safety issues for the public and for line sta!.
There may also be signi"cant problems with quality of
supply in an island due to the variability of the renewable
1063
resource and the probable mismatch between generation
and load. The inverters used for Newington are some of
the most sophisticated inverters on the market with
respect to protection systems and they were extensively
tested in single and multiple units to assure authorities of
the viability of their protection systems.
4.4.3. Impact on fault levels
A large number of PV inverters or other distributed
generation can have the e!ect of increasing the time
taken by normal grid protection systems to clear faults.
This is because, under fault conditions the PV inverters
can supply some of the fault current, thus decreasing the
current drawn through the normal grid protection
device.
In Newington the contribution of the inverters to any
fault situation is small, due to the small supply impe-
dance and the high level of supply security in the area.
4.4.4. Voltage regulation
Normally, the voltage pro"le in any distribution sys-
tems allows for load-induced voltage drop from the
source of supply to the end consumer. Where PV inver-
ters are feeding into the network during the day there is
a possibility for voltage rise instead of drop toward the
end of a line, which could, in some installations, cause
out- of-tolerance conditions.
In the case of Newington, the output of the inverters
will be almost pure watts. This will assist in maintaining
a normal voltage pro"le because reactive power will still
be imported. Also, Newington is part of a new network
development and, in-line with current Australian design
standards, the cabling is of large cross-sectional area.
Additionally, system loading and network arrangement
have been given particular attention due to the import-
ance of this part of the network. Computer simulation
studies show only a 1% worst-case change in regulation
due to the solar generation.
4.4.5. Harmonics
Because the distribution system impedance in Newington
is very low, a simple check of worst-case harmonic volt-
ages at the extremity of the suburb was carried out.
The results of calculations of harmonic voltages at the
extremity of the network are less than required by IEC
61000 limits. Under actual operating conditions the har-
monic current components are expected to be signi"-
cantly less than the worst-case simulation.
4.4.6. In situ test and commissioning
In many housing development projects it is very di$-
cult to perform islanding and harmonic testing under
controlled conditions because developers understand-
ably want to sell houses as quickly as possible after
completion. This inevitably means that there is never
a large block of houses available for testing. Once the
1064 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
houses are occupied the last thing that owners want is for
the grid to be switched to perform islanding tests. One of
the unique features of Newington is that a large number
of houses will be unoccupied until the Olympic games.
The houses are being constructed and locked away in
a security zone, providing an ideal test site.
Actual measurements of harmonics in Newington are
currently being carried out and matched load testing of
the islanding protection systems in situ in Newington is
scheduled to occur in February 2000. The results of these
tests are expected to be very good and will assist in
assuring authorities and developers of the safety and
quality of the PV systems.
4.5. DC side issues
The major problem with tackling a design and installa-
tion of this type is the lack of standards both in Australia
and internationally which cover PV systems in buildings.
In order to establish the best practice possible for
Newington, a survey of international standards and draft
standards was undertaken and the major issues identi-
"ed. These can be broken down into two key areas:
E Personal safety.
E Installation and equipment protection.
The key, from a personal safety point of view, is that
while the sun is shining the array is not easily turned o!
and is capable of generating high voltage, even at low
levels of irradiance.
Many grid connected systems installed around the
world have DC voltages above 120 V, for reasons of
e$ciency and cost of inverter systems. This places the DC
voltage at a potentially lethal level. For this reason the
Newington DC systems were carefully installed to worlds
best practice and maintained double insulated to avoid
any personnel or equipment problems.
The method of installation is called `ground fault and
short-circuit proof a (Laukamp and Bopp, 1996) and is
considered to be su$cient to virtually exclude the occur-
rence of one of these faults and also exclude the possibili-
ty of human contact.
In the case of Newington, the DC array wiring can be
broken down into four major areas:
E PV modules and structure.
E Array wiring between modules and wiring to the array
junction boxes mounted in the roof cavity.
E Wiring from the array junction boxes to the inverter
enclosure.
E Inverter enclosure DC junction box DC switch and
inverter connections.
Each of these installation and wiring areas was careful-
ly addressed to ensure safety and integrity of systems in
the environmental conditions in which they have to oper-
ate and over their expected lifetime. In these systems
a single fault will not compromise safety. If an unlikely
earth fault should occur on the DC system the inverter
includes detection systems which will illuminate a warn-
ing light to alert the resident of a fault so repairs may be
undertaken.
4.6. Builders perspective
The main issue for the builders has been the DC wiring
from the PV array. Because it is something that they have
not until now been familiar with, it was initially of some
concern to them because the DC cabling is live while
there is light and the open-circuit voltage of the array is
of the order of 250 VDC. The main concern was the
possibility of a contractor drilling through the wall and
striking a DC conductor. The builders' concerns were
addressed by providing information to assure than that
the array was completely isolated from earth and the
double insulated cabling was carried through the build-
ing in separate conduits.
This has demonstrated the need for education of all
people in the building and architectural professions to
the important issues with respect to PV systems. It also
highlights the need for standards. Where standards are
available it re-assure trades people that important safety
issues have been discussed and addressed. Without
appropriate standards, installations can be either over
engineered at a high cost, or under engineered at the cost
of safety.
5. Metering
The metering arrangement for each house is shown in
Fig. 4. Each meter is detented so it will only measure
energy #ow in one direction. This allows the electricity
utility the #exibility to set di!erent rates for import and
export of energy or to use a simple net metering tari! (by
subtracting the two meter readings). Currently, con-
sumers pay a quarterly grid connection charge and
Fig. 4. Meter and subscircuit arrangements.
 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
energy in each direction is priced at 10.15 c/kWh. The use
of two meters adds cost to the system but allows #exibil-
ity. A much simpler system when net metering is to be
used is to use one bi-directional meter.
6. System performance
Extensive modelling of the PV systems, considering the
insolation conditions in Sydney and the temperature rise
of the modules in their location at Homebush, was
undertaken before installation. Monitoring of actual PV
systems in Newington has just commenced and very
preliminary data indicates good systems performance but
insu$cient data is available to publish at this stage.
7. Policy issues
7.1. Electricity industry restructuring
Many countries, including Australia are now restruc-
turing their electricity industries, usually with the stated
objective of allowing greater customer choice, although
there are often other objectives as well, such as obtaining
government revenue through privatisation and achieving
changes in conditions of employment. Industry restruc-
turing can also facilitate consideration of distributed
resources, such as building integrated PV, because it aims
to decentralise decision-making.
7.1.1. Implications of electricity industry restructuring
for PV
To date, the most obvious outcomes of electricity in-
dustry restructuring in Australia have been low prices in
the national electricity market (NEM) and substantial
reductions in retail prices for large consumers. For
example in NSW, average electricity prices for business
customers fell by 30% in real terms between 1992/1993
and 1997/1998 (although they have recently begun to rise
again) while average prices for residential consumers fell
by 10% (IPART, 1998). These price decreases reduce the
competitiveness of PV and other renewables.
7.1.2. Ancillary services
Ancillary services are resources used to maintain
quality of supply, in particular voltage, frequency and
waveform purity. Arrangements for ancillary services are
important for PV for a number of reasons:
E The solar resource is stochastic in nature and, without
associated storage, PV generators are not &dispatach-
able'. Fluctuations in PV output may exacerbate qual-
ity of supply problems rather than improve them.
E Inverters used in association with DC generators, such
as PV, must be designed to improve waveform quality,
rather than worsen it.
1065
E Investment decisions in network augmentation are
often taken on the basis of quality of supply consider-
ations. Excessive investment in network capacity may
result unless distributed ancillary service options are
given appropriate consideration.
The present arrangements for ancillary services in the
NEM focus on large participants, and distributed
options for ancillary services do not yet receive equal
consideration.
7.1.3. Climate change externalities
Regulation of the electricity industry with respect to
climate change impacts is in its infancy. The 1995 NSW
electricity Act includes a requirement for electricity re-
tailers to set greenhouse gas emission targets and imple-
ment renewable energy strategies, and a requirement for
electricity distributors to assess distributed resource al-
ternatives to network expansion or augmentation. These
requirements only became fully e!ective during 1999
while, as yet, there are no similar regulatory provisions in
other states, although the National Greenhouse Strategy
calls for a uniform national approach along the lines of
the NSW requirements.
7.1.4. Distributed generation
Over the past half-century, central generation has been
seen as the most e$cient way of delivering electricity to
large numbers of consumers. This resulted from the econ-
omies of scale o!ered by large fossil fuel and nuclear
generators, combined with the availability of low-cost
fuels and government support for infrastructure develop-
ment. However, for many renewable energy technologies,
the lower energy density of the energy sources results in
optimal sizes being smaller than for fossil fuel systems,
while economies of scale are achieved by increases in
production volumes rather than installation size. This
makes them well suited to distributed generation.
Distributed generation o!ers reduced costs for infras-
tructure, such as line capacity and peak load generation
facilities, as well as reduced network operating and main-
tenance costs. It can also serve to delay or eliminate the
need for network augmentation. In Australia, network
costs typically account for nearly 50% of franchise cus-
tomers' bills and regulation of network service providers
should now take into account the fact that distributed
resources can sometimes compete with investment in
network augmentation or extension (Outhred and Watt,
1999). This important principle is recognised in the na-
tional electricity code, however it has proved di$cult to
implement e!ectively in practice, and noncompliant pol-
icies such as uniform pricing remain common. This issue
is particularly important for Australia, where many net-
works span large distances, high load growth in some
areas is leading to grid constraints and many lines are
reaching the end of their expected life.
1066 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
Another advantage of decentralised renewables over
traditional centralised supplies is the lower risk it o!ers
in upgrading capacity. The ability to follow load growth
more closely by adding incrementally to supply reduces
the period of over-capacity that inevitably follows the
installation of a large system, and hence also the period of
low prices experienced until load growth catches up. In
periods of uncertainty, the risks associated with under-
utilised assets may add considerably to the costs. Excess
new capacity can also lead to premature retirement of
older plant and hence reduce the returns on previous
investments.
Grid access for distributed systems is still an issue in
Australia. For systems less than 30 MW, the local dis-
tributor currently has an e!ective monopoly on grid
access. There have been several cases where prices o!ered
to distributed generators have been signi"cantly lower
than those available on the open market. Signi"cant
changes to the market signals and regulation are obvi-
ously needed before distributed generation will be able to
prove its value.
7.1.5. Tariws
Many European countries and US states have intro-
duced minimum buy-back rates for renewable-based
electricity feeding into the grid from small generators.
Typically, these rates are higher than standard bulk rates
which would otherwise be paid, and have been e!ective
in stimulating the renewables market, particularly when
the rates are guaranteed for long enough to achieve
acceptable returns on investment (Goldstein et al., 1999).
Even if they are not much higher, the availability of
standard rates removes uncertainty during the feasibility
phase of new projects and reduces the time and cost
otherwise associated with tari! negotiations.
Net metering can be a practical way to provide
transition support for small-scale grid-connected renew-
able energy generators. A single meter is used to measure
both the export of electricity to the grid and the import of
electricity from the grid. This eases market access for
renewables by reducing administrative costs and me-
tering complexity. In addition to the simplicity and low
cost of this arrangement, customers receive the retail rate
for electricity exported to the grid until their exports
exceed their imports. This in turn encourages appropri-
ate sizing of renewable energy installations and e$cient
energy use. Net metering is particularly useful once the
performance of a technology is reasonably well under-
stood, since the single meter removes the monitoring
function that would otherwise be provided by a separate
meter.
Typically, a cap is placed on installations qualifying for
net metering, based on MW installed or a percentage of
electricity generated in the area. There is a move to
encourage standard application procedures, as a further
means of easing access, rather than using a system of
individual contracts (State of Vermont Public Service
Board, 1999).
For many utilities, net metering is seen as good
marketing strategy, with minimal "nancial risk and the
possible added value of distributed generation in grid con-
strained areas. It could also be a very cost e!ective means of
reducing the need to purchase power during summer peaks,
when spot prices have been as high as $50/kWh. However,
even if net metering is mandated, utilities can still apply
high connection or supply charges as a disincentive.
The cost e!ectiveness of rooftop PV systems has been
improved in NSW with SEDA providing capital cost
rebates and will be improved Australia- wide from 2000
under a new Commonwealth Government PV subsidy
scheme. The availability of standard net metering rules
would assist both programs.
7.2. Overcoming market barriers in Australia
Market barriers to PV and other renewables occur in
the areas of market access, price, acceptance and regula-
tion. Experiences at Newington can be used to lower
these barriers and make sustainable options an easier
choice for the mainstream market. The following strat-
egies are suggested for Australia.
7.2.1. Market access
At least for systems up to a certain size, standard
procedures and requirements must be developed for grid
connection, incorporation into buildings, and other
points of access to the mainstream energy market. This
will minimise the costs and time required for project
evaluation and approval. These procedures and require-
ments must be transparent, so that the existing energy
industry does not have an unfair market advantage.
A readily accessible database of information should be
developed which covers solar resources, nodal prices,
trends in load growth, plans for infrastructure develop-
ments, "nance available and other market information.
This will make the process of site selection, project feasi-
bility studies and economic assessment much faster and
more reliable, thereby reducing the costs and the risks for
new projects.
Service centres need to be established which can sup-
ply information, prices trained personnel for installation
and maintenance of PV systems. Customers are used to
having this level of support infrastructure for their energy
services and without it they will not have the con"dence
to try new technologies. Industry credibility will also be
enhanced by the availability of standards and regulations
for PV applications, although these need to be #exible
enough to incorporate new developments.
7.2.2. Price
Price, particularly initial capital cost, is the most vis-
ible barrier to PV. Government and utility investment
 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
should be actively used to provide viable market sizes,
while options to pool their purchasing power to achieve
cost reductions, which could be passed on to smaller
users, should be examined. Governments should con-
tinue to examine the need for targeted long-term subsides
for market stimulation. Standard "nance packages for
certi"ed systems should be developed, to assist pur-
chasers.
Standard net metering guidelines should be developed
and made mandatory across the country for small-scale
installations, up to an agreed percentage of electricity
sales, to reduce up front costs and boost economic viabil-
ity for PV and other renewables. For larger systems,
on-cost assistance for feasibility studies, project develop-
ment and approval processes should be made available,
to lower up front costs and reduce risk.
Emission taxes on fossil fuels would ensure that their
prices more correctly re#ect true costs, hence reducing
price di!erentials with renewables.
Regulatory processes should also be used to
ensure transparent pricing of energy supplies, with
clear indications of cross subsidies, to allow PV to target
those areas where it is most cost e!ective. Further, the use
of life cycle cost calculations must be encouraged in
public sector energy decision-making and re#ected in
funding allocations to capital expenditure and running
costs.
7.2.3. Market acceptance
Market acceptance of renewables is very low at pres-
ent, despite a high level of community support for its
development and use. Signi"cant e!ort is needed to raise
levels of awareness and credibility. Information on re-
newable options must be made readily available to the
general public, for household applications and for trades,
professions, investors, insurers and planning agencies for
all applications. Certi"cation procedures and standards
must be developed to enhance credibility and perfor-
mance.
Customers are often surprised by the low level of
renewables in existing electricity supplies and have
generally been supportive of Green Power and other
renewables support schemes, when given the choice.
Disclosure of fuel mix details on electricity accounts
should be mandatory under competitive market electric-
ity sector regulations, to facilitate customer choice.
Well-documented and monitored demonstration of
technical and nontechnical aspects of PV projects is
critically necessary * information on design, installation
requirements and procedures, performance, costs or
"nancing arrangements should be published for all pub-
licly funded projects. Few such examples are available in
Australia. Most utility or industry installations, whether
or not supported by government funding, have provided
very limited information to the public. Government in-
vestment and use of PV should be used to provide dem-
1067
onstrations, as well as to increase public con"dence in
renewables.
Information on general "eld performance is also
needed. Systematic monitoring and standardised report-
ing formats must be developed, as well as a coordinated
system of user feedback. The latter would be particularly
useful in the short term as a means of ensuring that any
scale up of production to meet demand growth has taken
into account problems with existing systems.
A range of educational programs is necessary, as
is targeted promotion and training for trades and
decision-makers.
7.2.4. Energy industry restructuring and regulatory
requirements
To be supportive of the introduction of signi"cant
increases in renewable energy contributions to Austra-
lia's electricity supply, the current restructuring of the
energy industry must provide e!ective regulation for
long-term energy goals. Key strategies include:
E the adoption of a form of electricity industry restruc-
turing which ensures that distributed resources receive
equal consideration to traditional centralised options,
E e!ective regulation, to ensure that the external impacts
associated with the electricity industry are taken into
account in operating and investment decisions, e.g.,
legislation covering the environmental and social im-
pacts of major investment projects,
E industry development policies that encourage e!ective
innovation in renewable energy technologies and local
participation in research, development and commer-
cialisation,
E breaking of the current distributor/retailer link, with
its associated supply side bias, and
E if retail competition is delayed, the introduction of
mechanisms to support customer requirements for sus-
tainable energy.
8. Conclusions
Newington solar suburb is a clear demonstration of
the practicality of large-scale PV systems in residential
applications. There are many international projects to
install PV systems such as the US Million roofs program.
This development in Australia is a signi"cant step to-
wards providing information which it is hoped will lead
to future Australian and international developments and
policy initiatives. The development has provided a key
opportunity for Australian designers to develop a best-
practice residential PV power system solution. It is pro-
viding an opportunity for builders and developers to
experience and learn about the application of many sus-
tainable development principals. The experience gained
is being fed back to the international community through
test reports and international publications.
1068 E.D. Spooner et al. / Energy Policy 28 (2000) 1059}1068
Newington is assisting in the development of Austra-
lian and international standards (through IEC com-
mittees) for building integrated PV and providing
opportunities for testing the operation of PV systems in
large-scale developments, providing useful input to assist
the further international development of these systems.
Newington will also leave a legacy for Sydeny of a
viable solar powered suburb and will assist in the estab-
lishment of other suburbs based on similar principles in
the future. However, a number of policy actions are
necessary to allow the manistream market to have access
to the sustainable options demonstrated at Newington.
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