DAINTREE GREEN POWER OPTIONS STUDY SEPTEMBER 2009

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1 DAINTREE GREEN POWER OPTIONS STUDY SEPTEMBER 2009 Prepared for Cairns Regional Council By: The Missing Link Resource Coordinators Pty Ltd missing link.com.au

2 TABLE OF CONTENTS EXECUTIVE SUMMARY...4 INTRODUCTION: Purpose of this study: PREVIOUS HISTORY AND DOC REVIEW FNQEB Q+A Preliminary Powerline Proposal 4 Oct Proposed Daintree Powerline Environmental Impact Assessment Study Emergence of the Three Point Plan : Letter Douglas Shire Council to Hon Peter Beattie Electricity Supply in the Daintree Region Policy (May 2000) Daintree Futures Study (Nov 2000) Proposal for Remote Area Power System for Cape Tribulation ( ) Douglas Shire Council Planning Scheme Resolution: 2 June Daintree Futures Alternative Scenarios Resource Requirements (Oct 2004) Department of Energy (October 2005) Confidential Report Daintree Isolated Power Supply Project Preliminary Assessment Report Recommendations Far North Queensland Regional Plan The Electricity Supply In The Daintree Region Policy Recommended Policy Options Change Status of Three Point Plan Point 1 of Three Point Plan: Daintree Buy Back History of the Buyback Process Current Status of the Buyback Process Point 2 of Three Point Plan: Douglas Shire Planning Scheme Status Point 3 of Three Point Plan: Review of Energy Provision Options Current Energy Use Pattern Social Issues from Community Consultation Written and Public Meeting Submissions Current Demographic Fragmentation of Community Community versus Tourism Need Tourism Perspectives and Expectations Educating For Energy Efficiency; Demand Reduction and Ongoing Maintenance Requirements Position of Key Stakeholders Queensland Government Position Department Of Minerals and Energy Position Ergon Wet Tropics Management Authority RECOMMENDATIONS the way forward:...52 The Missing Link Resource Co ordinators Pty Ltd Page 2

3 13. References APPENDICES: Appendix 1: CONSULTANCY PROPOSAL TERMS OF REFERENCE Appendix 2: TROPICAL ENERGY SOLUTIONS REVIEW OF ENERGY OPTIONS APPROPRIATE TO THE DAINTREE REGION Appendix 3: Community feedback: selected responses: Appendix 4 Letter Sent To The Community Inviting Them To Attend Meeting And Gather Information Regarding Their Current Energy Use And Desired Outcomes Appendix 5 Letter Sent To the Premier identifying the Three Point Plan Appendix 6: Letter from Minister Paul Lucas to MP Steve Bredhauer State response to proposal for Generation and distribution network in Cape Tribulation Appendix 7: Acronyms Used: TABLES: Table No Table Name Page 1 Preferred Future Options for Power Delivery 4 2 Previous commitments and Recommendations 6 3 Daintree Powerline EIAS Major Findings (1988) and current relevance 8 4 Daintree Futures Study Recommendations (2000) Implementation 13 Progress 5 Daintree Futures: Alternative Scenarios findings (2004) 24 6 Summary of Confidential Report to Department of Energy (2005) findings 25 7 Daintree Buy back timeline 29 8 Cumulative Daintree Buy back protection mechanisms 32 9 Energy Provision Options Comparison of Three Power Solutions against key criteria Potential CO2 e emissions from Current Power Options Recommendations for Green Power Options in the Daintree Region Daintree Region Freehold Lots Written and Public meeting submissions summary of comments Precinct predicted populations Bureau of Statistics Demographic figures 48 QUALITY CONTROL Doc created by Date Checked by Date Version 1 Kim Forde The Missing Link Resource 30/09/09 Anne Clarke 1/10/09 Coordinators Pty Ltd Version 2 Anne Clarke 20/10/09 Kim Forde 20/10/09 Disclaimer: This has been prepared by The Missing Link Resource Coordinators Pty Ltd for the Client named on the front cover of this document. It may not be relied on by any other person without written consent by the author. The document has been prepared in good faith: Using information supplied by the client and/or obtained by Missing Link Pty Ltd from publicly available information. Is based on Missing Link Pty Ltd s interpretation of the relevant Australian Standards referred to in this document. The Missing Link Resource Co ordinators Pty Ltd Page 3

4 EXECUTIVE SUMMARY The Daintree Region is internationally recognised for the significance of its rainforest ecosystems. In recognition of these values and mindful of the potential impacts large scale subdivision might have upon its World Heritage status, the Queensland Government in 1993 instigated a policy of not allowing the extension of mains power from Forest Creek north over the Daintree River. The intent of this policy was to limit development in the region while other control processes were explored and developed. To provide a pathway forward whilst the Policy was in place a Three Point Plan was developed by regional stakeholders in 1999 to both conserve the rainforest and reassess the provision of power north of the Daintree River. Points One and Two of the Plan were specifically designed to control development and thereby protect the values of the Daintree Region. Point Three suggests a reassessment of the provision of power to the Daintree region could occur should effective development controls be emplaced. This Report confirms that the first two elements of the Three Point Plan are now in place. This Report also assesses power options available to the Daintree region. A change in current power provision practice for economic, environmental and social reasons is recommended. With the general acknowledgement that development has essentially been controlled in the region and given the issues surrounding current power arrangements as set out in this Report, there is now widespread desire in the Daintree community for government policy to be changed to allow for appropriate environmentally friendly, equitably costed power delivery options to be delivered. For this Policy review to occur, however, it appears the State will require evidence that sufficient mechanisms are now in place to provide effective controls over development, without the Policy, and that the community s desire is reasonable and achievable. In terms of energy options for the region, if there were no limit on the dollars available for this project it is feasible to supply mains power to all residents in the area. By applying a cost benefit analysis to this option, however, and recognising the dispersed community, it is proposed in this Report that a range of power supply options be made available for the Daintree community and that these options provide a practical, cost effective outcome considering economic, environmental and social costs for the whole community. These options are identified and summarised in Table 1 below. Table 1: Preferred future options PRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONS Forest Creek 178 Mains network: the grid supply already is connected adjacent to Forest Creek and extension of the existing grid to this concentrated community would be achieved in an economically cost effective manner, and the application of stringent environmental controls as stipulated in the QESI Code of Practice; combined with an education program in energy demand management (similar to the current Climate Smart initiative) would ensure minimal environmental impact. Based on feedback received through community consultation, it is likely that a number of individual customers will immediately apply to Ergon Energy for electricity supply and could be connected within normal connection timeframes. The majority of customers may require assistance to subsidise the cost of connection. Cow Bay, Diwan and Cooper Creek 317 Type 1 RAPS(Household Hybrid system) and Type 2 RAPS (Isolated Hybrid System Network). The distance from existing mains grid i.e. connection costs and the required capital contribution which arise, present a financial barrier to customers receiving grid connected power. In this precinct, Type 1 RAPS continue to be the recommended option, with possibility of introducing several strategically located Type 2 RAPS The Missing Link Resource Co ordinators Pty Ltd Page 4

5 PRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONS (see Appendix 2: 13.2 ) where population nodes occur and economies of scale allow; and where ecological impact of limited distribution network can be minimised. We suggest, through reviewing block clustering patterns in the area, that approximately 100 households from this 317 could benefit from the installation of 4 or so Type 2 RAPS. Thornton Beach and Noah Creek 23 Type 1 RAPS. Recommended given distance from existing mains grid excludes connection to mains power. Population density and distribution does not lend itself to a Type 2 hybrid network. Cape Tribulation 69 Type 2 RAP (Isolated Network): The distance from existing mains grid i.e. connection costs and the required capital contribution which arises present a financial barrier to customers receiving grid connected power. In this precinct a number of commercial customers have expressed interest in the establishment of an isolated network (refer Section SOCIAL ISSUES From Community Consultation Table 14) Again, the possibility exists here for introducing several strategically located Type 2 RAPS i.e. where population nodes occur and economies of scale allow; and where ecological impact of limited distribution network can be minimised. It should be noted the technology now exists for Type 2 RAPS to be run entirely on biodiesel. A consortium of businesses from this precinct have put forward a RAP2 proposal which has not progressed despite support from local member and key stakeholders, due to it being deemed contrary to the Electricity Supply in the Daintree Region policy. (Appendix 13.6). The review has shown that costs for both diesel generators and for provision of mains power have risen at proportionate rates over the past 10 years, both effectively doubling in cost to operate. Opportunities to compensate for some of the price rises can be found in energy efficiency measures and the increased availability and affordability of renewable energy systems. These opportunities rely upon 1. an education program to maximise alternative power use, 2. equitable access to the latest power generating technology and 3. the willingness to efficiently operate and maintain selected systems. From a technical assessment of the region s current and ongoing energy supply options and a review of the documentation provided, it is clear that the Electricity Supply in the Daintree Region policy is acting as the major hold point to the introduction of the above recommendations. It should be noted these recommendations are also entirely congruent with the 2005 Dept of Energy Confidential report recommendations (listed in this report as Department of Energy (October 2005) Confidential Report Daintree Isolated Power Supply Project Preliminary Assessment Report). Given the existence of the various protection mechanisms, including legislation, now in place that act to protect the Daintree region and provided in this document, this review proposes that the current Electricity Supply in the Daintree Region policy be rescinded and the area restored to the Ergon Distribution Area. The Policy has been successful in its purpose but is now duplicating the intent and action of the IPA approved Cairns Regional Council s Douglas Shire Plan. The conservation values of the area are now effectively protected through this mechanism and other Queensland legislation, particularly the Vegetation Management Act (1999). Rescinding the Electricity Supply in the Daintree Region policy, will allow for timely delivery of energy requirements in a sustainable manner appropriate to the regions ecological and economic significance, as identified in Table 1 above. A recommended initiative for government moving forward is for all Policies and Action Plans developed to assist this situation include Key Performance Indicators to measure The Missing Link Resource Co ordinators Pty Ltd Page 5

6 when and how Policy changes have been effectively implemented; and a sunset clause to initiate review of that Policy in a timely manner, as per other regulatory plans, i.e. 5 or 10yrs. INTRODUCTION: 1. Purpose of this study: This Study is based upon the assumption that there could be alternative ways of providing power in the Daintree area north from the intersection of Forest Creek Road and Cape Tribulation Road, and that the Study needs to address: o The current situation o And proposing possible green solutions: eg: a green isolated network at Cape Tribulation community, and o possible extension of mains power only along Forest Creek Road, and the gravel feeder roads off Forest Creek Road. Study includes: o review of previous power supply studies o o assessment of the current power supply arrangements and their environmental impacts, and results from engagement with stakeholders to assess options for Green source which will enhance rather than detract from the environment. 2. PREVIOUS HISTORY AND DOC REVIEW The intent of reviewing previous documents and commitments was to determine whether the findings were still relevant, and to identify the status of their recommendations in relation to delivering the desired outcomes of protecting the environmental values of the area into perpetuity. Table 2: Previous Commitments and Recommendations Date Name Oct 1996 FNQEB Q+A Preliminary Powerline Proposal Oct 1998 Proposed Daintree Powerline Environmental Impact Assessment Study (GHD, p ES 24) Feb 1999 Letter Terry Melchert, CEO Douglas Shire Council to Hon Peter Beattie Re: Conservation of Daintree Rainforest and Provision of Power North of Daintree River gave the framework for the development of the policy 2.4 May 2000 Electricity Supply in the Daintree Region Policy of the Minister for Mines and Energy 2.5 Nov 2000 Daintree Futures Study v1 Table Oct 2003 Feb 2004 Letters exchanged from Cape Tribulation Business owners consortium requesting assistance to install a larger scale RAPS system to Major findings and recommendations Major findings and recommendations in Table 3 Definition of the Three Point Plan and requesting support of Queensland government Reflects Queensland Government Policy position of opposing the extension of electricity supply north of the Daintree River and of supporting, as an alternative, the use of standalone power systems. The Missing Link Resource Co ordinators Pty Ltd Page 6

7 Date Name Cape Tribulation to Members of Parliament; Government Departments and Ergon Energy requesting advice, assistance and support 2.7 June 2004 Douglas Shire Council Planning Scheme Resolution: 2 nd June Oct 2004 Daintree Futures Study v2 Alternative Scenarios Resource Requirements DSC documentation of implementation of Planning Scheme Part 2 of the 3 Point Plan To evaluate the costs of supporting the community that would develop should all blocks in the subdivision areas north of the Daintree River be settled. 2.9 Oct 2005 Confidential Daintree Isolated Power Supply Project Preliminary Assessment Report Used as reference to compare cost and impact options with 2009 implications Recommendations to Dept of Energy regarding Energy Policy 2.10 Feb 2009 FNQ Regional Plan: Implications for this process energy supply and energy supply over the Daintree River 2.1 FNQEB Q+A Preliminary Powerline Proposal 4 Oct 1996 This was the first of the studies looking at possible energy supply solutions to the growing population in the Daintree Region. It was commissioned in response to growing pressure from landholders in the area to resolve power supply issues. The report traced out a reticulated mains power grid for the entire study area. The grid was costed at the time (1996) at $15 Million. A recent technical assessment of the same system puts that figure now closer to $25 Million (refer TEL report, Attachment 2, 13.2). Figure 1: Reticulated Power Grid as shown in FNQEB Daintree Power Study 1996 The Missing Link Resource Co ordinators Pty Ltd Page 7

8 2.2 Proposed Daintree Powerline Environmental Impact Assessment Study This impact assessment study (GHD, October 1998) was the first major evaluation of the options to deliver power to the Daintree region. It provide a raft of recommendations which then formed the basis of the agreed way forward of the key stakeholder group, which met 9 th Feb 1999 and led to what is now referred to as the Three Point Plan. The Three Point Plan was intended to deliver the protection, in perpetuity of the Daintree Rainforest, as well as allowing the economic provision of local government services and infrastructure for residents and tourists. see Letter 2.3 below: Terry Melchert to Premier Peter Beattie, 22 Feb In the EIAS, a range of alternatives were proposed. At page 24 it was recommended that Alternative G be adopted. Alternative G proposed the use of renewable energy RAPS systems and the reintroduction of subsidy schemes for the purchase of both residential and commercial systems. Stringent controls were also suggested relating to the establishment and management of RAPS systems, with a free battery collection service provided by Douglas Shire Council and community education in power demand management, renewable energy and energy efficient technology. It is additionally proposed that Alternative G should be coupled with Scenario 6. Scenario 6 results in growth occurring at the current rate with a maximum of 30% of private land ultimately developed. Undeveloped land is acquired through buy back and incorporated into the World Heritage listing. To implement Scenario 6 financial commitment would be required from all levels of government to bring about buyback, Cooperative Management Agreements, community education and the effective enforcement of conservation controls. The major findings of the EIAS are set out in Table 3 below and an evaluation of their status and relevance in 2009 is included: Table 3: Daintree Powerline EIAS Major Findings (1998) and current relevance Findings from EIAS Status and Relevance in 2009 The social (the community) expects this EIAS to The resolution of the supply of power is still resolve the power supply issue. unresolved and is part of this Study The majority of the community expects a firm As evidenced by the submissions received as part binding decision to be made about the rate of of this Study, this is still the case. The future development associated with power. community would like a commitment to an option and a date when this will be resolved. The physical and scenic environment is integral Agreed by all parties to the area s amenity and character for the community and tourism. The remaining vegetation on private lands provides habitat for species of high conservation status. Substantial alteration of the natural forest habitat will result in increased threatening processes for a variety of vegetation communities, and rare, endangered or vulnerable plant and animal species both within and adjoining the Wet Tropics of Queensland World Heritage Area. And is now essentially protected through the enforcement of the Vegetation Management Act 1999 and former Douglas Shire Council Local Law 56 Vegetation Management (15/08/2006) Agreed by all parties. Essentially protected by legislation and bylaws identified above The Missing Link Resource Co ordinators Pty Ltd Page 8

9 Findings from EIAS Status and Relevance in 2009 The power issue has caused community conflict. Continues to be an issue and the rationale behind this report request. There may be an opportunity for community Aspect one still the subject of much debate as to consensus on two aspects, firstly that power is a whether power is a right ; although the right yet must be environmentally sensitive community meeting indicated consensus on and secondly that maintaining the undeveloped provision in an environmentally sensitive forested wilderness character is important to the manner; and that maintaining a forested aspect community and for tourism. was important for them as well as tourists. Mention of a realistic presentation of wilderness required by tourism industry. The vast body of regional planning recognises the conservation significance of the area, but significant environmental and social issues remain unsolved. Scenario 4 (half blocks unsettled with strict conservation regime on settled blocks) best meets the aim of retaining the conservation significance of the private lands and retains the community character and thriving tourism industry. If scenario 4 is chosen, considerable legislative and financial commitment will be required by government. Most residents currently rely on RAPS (either solely diesel or solar/wind/hydro and diesel). Some see it as a positive aspect of their lifestyle and accept living with reduced power; others consider it a constraint on their lifestyle. There is a demand for power in the study area, but only for power at a reasonable cost. Dependent on the cost additional blocks will be settled (as a result of power provision) in the four years after power is provided. Alternative C (mostly underground using cable plough) with directional boring over the Heights of Alexandra is the preferred alternative as it involves less irreversible ecological impacts, does not impact on the visual amenity or tourism character, has a favourable life cycle cost and does not result in an overall economic cost to the community. That detailed design may act to further mitigate the impacts and reduce costs of Alternative C. The financial viability of providing grid power to the remote communities of Whitby, Thornton Beach and Cape Kimberley is doubtful. RAPS is the preferred alternative for Whitby. Continues to be the case: Douglas Shire (now Cairns Regional) Plan; FNQ Regional Plan ; Wet Tropics Management Plan are key documents. The Three Point Plan reflects this finding and asked for commitment from all levels of government to implement. Subsequent funding has been allocated and spent. Details below at Section 5: Daintree Buyback. Continues to be the case. Some older systems are now reaching life and may need refurbishment or replacement and has led to additional pressure to resolve this issue. Diesel costs have risen substantially whilst some technologies have improved and reduced in cost. See discussion below. Continues to be the case. See community meeting outcomes. Predications based on availability of electricity still apply, although with buy back, less potential owners exist. Percentages still relevant. Recommendation 20 of the CRC Daintree Futures Study Considered as part of 2005 Confidential Report at 2.9 Still applies The Missing Link Resource Co ordinators Pty Ltd Page 9

10 Findings from EIAS Status and Relevance in 2009 At the time, FNQEB estimate that the preferred Current estimated costs are identified at 7 below alternative would require an increase in the Aggregate Annual Revenue Requirement of $2.9M and a Community Service Obligation Payment to Ergon Energy of approximately $2.7M in the first year, declining each year thereafter to a total net present value loss of $17.8M WTMA, DEH and DSC estimate that the costs of Buyback in its many forms has encompassed this implementing the conservation controls could element. include $ per yr for administration and up to $10.7M for compensation and administration of Conservation Plans (300blocks) and Conservation Agreements (191 blocks). 3. Emergence of the Three Point Plan : Letter Douglas Shire Council to Hon Peter Beattie This letter entitled Conservation of Daintree Rainforest and Provision of Power North of Daintree River and dated 22 Feb 1999, documents the agreed position of the key stakeholders after assessment of the EIAS recommendations (1998) and details what has become commonly known as the Three Point Plan. The letter set out a package of actions which provides for the delivery of both grid mains power and conservation outcomes as per the EIAS. The letter to Premier Beattie stated: the (EIAS) report confirmed that grids main power could be installed in an environmentally sensitive manner (underground). However, it identified there could be a significant impact on the environment through population expansion unless at least 50% of the vacant freehold blocks are removed from the development stream. In a ground breaking meeting, facilitated by Council and held on Tuesday 9 th February 1999, of stakeholders including Council, Queensland Department of Environment and Department of Main Roads, Wet Tropics Management Authority, Environment Australia, members of the community and representatives of the tourism industry, there was general broad support for the implementation of what basically are the broader recommendations of the EIAS. The important features of this broad based position are: 1) The State and Federal governments provide funding, as promised previously, for the Buy back of unoccupied rural residential and selected other unoccupied blocks north of the Daintree River ; 2) The State and Federal governments facilitate the consolidation of development, both residential and commercial, north of the Daintree River both through buy back and through the funding of a review of the Douglas Shire Council town planning scheme to reflect consolidation into development nodes in the scheme. 3) Grid Mains Power be provided to the consolidated area in an environmentally sensitive manner. This concept, if implemented appropriately, will deliver the protection, in perpetuity, of the Daintree Rainforest as well as allowing the economic provision of local government services and infrastructure for residents and tourists. The Missing Link Resource Co ordinators Pty Ltd Page 10

11 In an open letter to the community(undated), to which the abovementioned letter was attached, Mayor Mike Berwick stated that: Historically, Council has supported the installation of grid mains power north of the Daintree River provided it is installed in an environmentally sensitive manner. Council has, written to the Premier, Mr Beattie, requesting him to facilitate further discussions as soon as possible on a package that provides for both grid mains power and conservation outcomes as per the FNQEB EIAS. It should be emphasised that the package items numbered (1) to (3) are of equal priority. It is not intended that any one element of the package should occur without the others. No formal response is on file in the Douglas Shire system to know what the response of the state was to this proposal. However, in less than 12 months, (May 2000) the then State Department of Innovation and Information Economy, Sport and Recreation, Office of Energy, instigated the Policy: Electricity Supply in the Daintree Region. 3.1 Electricity Supply in the Daintree Region Policy (May 2000) The Policy effectively placed controls upon development and limited the delivery of mains power to the area, and prevented the installation of additional stand alone networks. This is verified by the letter, excerpts below, from Minister Paul Lucas to MP Steve Bredhauer. On 21 Nov 2003 Paul Lucas MP (Minister for Innovation and Information Economy, Minister with responsibility for Energy) wrote to Steve Bredhauer MP Minister for Transport, Main Roads and Member for Cook (Attachment 13.6) relevant excerpts below: I refer to your letter of 24 October 2003 on behalf of Rod Colquhoun, Paul Mason and others, regarding a proposal to install an isolated electricity network in Cape Tribulation. I note the Cape Tribulation area is part of the area north of the Daintree River excluded from Ergon Energy s electricity distribution area, which means Ergon Energy is not authorised to extend its existing supply network, or establish a new supply network in this area. Of particular relevance to the current proposal is the Government s policy position of opposing the extension of mains electricity supply north of the Daintree River, as enunciated in the Government s Electricity Supply in the Daintree Region policy adopted in May Section 1 of this policy clearly provides that in relation to the Daintree Region north of the Daintree River, supply of electricity using a supply network is not permitted : As you would be aware, this policy was introduced, firstly by the Goss Government and then reconfirmed by the Beattie Government, to protect the rainforests in this World Heritage area which have been evolving over the past 120million years, and to safeguard the aesthetics of this unspoilt region. Considering the intent of this policy, it would be difficult to foresee circumstances where the Regulator would grant an application for authorisation of a supply network in this region. The outcome of this has been that economies of scale and efficiency have not encouraged combining the demand of a number of sources to supply a small concentrated area, like Cape Tribulation. The Missing Link Resource Co ordinators Pty Ltd Page 11

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13 3.2 Daintree Futures Study (Nov 2000) This study followed on from the Proposed Daintree Powerline Environmental Impact Assessment Study (GHD) of October It broadened the scope of enquiry from just power provision to encompass an assessment of the social, environmental and economic attributes of the Daintree region with an emphasis on building a sustainable rainforest community. The purpose of including this table taken and built upon from the original document is to show in the final column progress on each recommendation since its publication in The main point to take from the table is to show that in many ways the first two parts of the 3 Point Plan have been fulfilled, i.e. 1. the Buy back of 50% of the originally subdivided land and 2. the protection of the environmental values of the region through vegetation protection (the Queensland Vegetation Management Act 1999 and following moratorium in 2009) and development limitations set largely through the DSC Planning Scheme. Table 4: Daintree Futures Study Recommendations Implementation progress Recommendation Summary of Implementation Implementation Responsibility Implementation Progress since 2000 COMMUNITY DEVELOPMENT 1. Future residential settlement allows for growth within ecological constraints to a forest residential community of approximately 1400 Ecological values and existing settlement patterns have been defined for nine precincts and desirable future settlement limits and management requirements have been identified that protect the community and its natural resources. Daintree Land Trust The $23 million Rescue Program was established in 1994 to address the most critical threats to the outstanding heritage values between the Daintree and Bloomfield Rivers and to support ecologically sustainable tourism in the area. The Commonwealth and the Queensland governments equally fund the program, while the Douglas Shire Council (now Cairns Regional Council) contributes planning, local expertise and various on ground services. The Program is managed by the Wet Tropics Management Authority under the direction of the Daintree Planning Coordination Group (DPCG) The DPCG is made up of representatives so the Douglas Shire Council (now Cairns Regional Council), the Wet Tropics Management Authority, the Queensland Department of Environment and Heritage (now Department of Environment and resource Management) and the Commonwealth Departments responsible for Tourism and Environment and representatives of the Kuku Yalanji Aboriginal community. DSC revised DCP 3 The Douglas Shire Council s Code for Settlement Areas North of the Daintree River has as its purpose to facilitate the achievement of the following outcomes for this Locality: protect the values of the WTWHA by ensuring that adjacent settlement areas are limited in extent and have a character and identity which are complementary to those values; ensure that all development remains low key and sustainable and within the development limits imposed by the Daintree River ferry crossing and the vehicular capacity of the Alexandra Range crossing and the local Road network; provide adequate services and facilities for settlement areas and an appropriate level of economic opportunity for local residents; ensure that all development is designed and operated to achieve an environmentally sustainable outcome by taking into account the specific values of the area and/or Management Area and Precinct in which it is located and the site s constraints and opportunities; ensure that all development is sensitive and sympathetic to its remote location in an area of unique Biodiversity and Scenic Amenity value; and ensure the natural forested landscape character of the locality is protected and enhanced. The Missing Link Resource Co ordinators Pty Ltd Page 13

14 Recommendation Summary of Implementation Implementation Responsibility Implementation Progress since Improved employment opportunities for residents based in nature based tourism and to a lesser extent tropical horticulture. Increasing the opportunities for local land owners to engage in tourism accommodation and commercial services provision and by changes to town planning and improving the system of Commercial Access Permits to extend to local Operators 3. Expansion of primary services for the community and improved outreach services from Mossman 4. Residents participation in land stewardship through involvement in planning and management processes and incentives for ecologically sound land management 5. Building guidelines should be revised for the area. 6. Establish a land use and development control regime which sets upper limits on overall settlement density and has specific biodiversity conservation, settlement pattern and economic provisions. Increasing the opportunities for local land owners to engage in tourism accommodation and commercial services provision and by changes to town planning and improving the system of Commercial Access Permits to extend to local operators Coordination with outreach services Queensland Health Expanded opportunities for nature based tourism ventures and by formal recognition of community representatives on the management structures proposed here. Community education and incentives package. Recognise community identity and the community guardianship of natural values by signage and information that informs visitors of the legitimacy of residential living and the need to respect privacy. Town planning changes DSC revised DCP 3 QPWS CAP allocations DSC ferry fees DPI horticulture branch Queensland Health DSC services program DSC rate charges Daintree Land Trust negotiations and covenants DSC signage and information QPWS plans CAP s WTMA plans and information DSC revised DCP 3 Not within this Report s Terms of Reference Not within this Report s Terms of Reference Not within this Report s Terms of Reference FNQ2033 Sustainable Housing Guidelines. Q2 Climate Smart Houses (Climate Smart 2050) Douglas Shire Plan under the Queensland Integrated Planning Act 1997 (IPA) The Missing Link Resource Co ordinators Pty Ltd Page 14

15 Recommendation CONSERVATION AND LAND MANAGEMENT 7. Ensure the protection of rare and threatened species on freehold land. 8. Protection of regional ecosystem types not adequately conserved elsewhere 9. The protection of habitat for cassowaries and other vulnerable fauna 10. Maintenance of ecosystem processes through environmental quality protection 11. Improve the control of pigs on public land in the area 12. Ensure accountable management of protected areas Summary of Implementation Detailed conservation assessment of the nine precincts and mapping of plants communities at a scale that allows assessment of the biodiversity values of individual allotments. For each precinct biodiversity hotspots have been identified for priority conservation. Impacts of settlement on the biodiversity of important but less threatened communities are achieved through a combination of special management guidelines, and where relevant, settlement densities that are less than would occur if full settlement proceeded. Implementation Responsibility The Daintree Land Trust DSC revised DCP 3 WTMA Plans QPWS Plans and management Implementation Progress since 2000 Not within this Report s Terms of Reference As above As above Not within this Report s Terms of Reference As above As above Not within this Report s Terms of Reference 1. By accepting limits on settlement and visitation. 2. Management of wastewater 1. Establish a feral pig control officer and provide necessary operational resources (including sufficient traps) to reduce pig populations. 2. Establish weed control programs for high priority sites, and in disturbed areas undertake rehabilitation. Not within this Report s Terms of Reference Not within this Report s Terms of Reference The Missing Link Resource Co ordinators Pty Ltd Page 15

16 13. Maintenance of scenic and wilderness values for residents and tourists 14. An immediate limit to further land clearing in the study area until the precinct plans are in place TOURISM 15. Maintain the Daintree as a prime destination for rainforest tourism 16. Maximise the opportunity for local land owners and business to participate in tourism in the Daintree. 17. In order to distribute visitor use across the new and existing visitor sites and provide new tour opportunities, resolve the permit moratorium in an equitable manner, providing opportunities for existing operators, local businesses and tour operators previously denied opportunities 18. Construct a high quality website for Daintree tourism promotion and direct marketing. ABORIGINAL LAND AND CULTURAL HERITAGE 19. To allow aboriginal cultural heritage and land aspirations for the Daintree to be reconciled in the future. Through the green corridor and hillslope development controls and overall reduction in potential development density and vegetation clearing controls An interim local policy that allows only clearing that is consistent with the precinct plans in this report The Daintree Land Trust DSC revised DCP 3 WTMA Plans QPWS Plans and management As above Not within this Report s Terms of Reference Visual amenity falls within Planning Scheme requirements Protection of wilderness values fall within WTMA, QPWS management responsibilities Addressed through the following legislation: o Vegetation Management Act 1999 (Tree Clearing Guidelines) o Douglas Shire Planning Scheme 1996, updated in 2006 and amended DSC planning scheme. DSC Not within this Report s Terms of Reference As above As above Not within this Report s Terms of Reference By resolving the permit moratorium for commercial access to National Parks Seek $ in industry development funds and construct website at Daintree Shire Council. Ensuring that the wider community receives information on indigenous land tenure and management options. Ensure no plans infringe Native Title rights. DSC in conjunction with DCCTA and the regional tourism industry. Assistance from the Tourism CRC. DSC in conjunction with DCCTA and the regional tourism industry. Assistance from the Tourism CRC. DSC planning WTMA and National Park planning and joint management arrangements Daintree Planning Group Not within this Report s Terms of Reference but has been dealt with by QPWS Not within this Report s Terms of Reference. Not within this Report s Terms of Reference Provide that any Daintree Management Structure can implement Indigenous Land Use Agreements. The Missing Link Resource Co ordinators Pty Ltd Page 16

17 Recommendation POWER SUPPLY 20. Assuming the introduction of mechanisms to limit development in the Daintree and thereby protect its ecosystems, construct a hybrid grid of overhead and underground power lines as far as Cooper Creek (the FNQEB EIAS preferred Option C). Summary of Implementation The implementation of the FNQEB Powerline EIAS s preferred option C electricity system: A hybrid of overhead and underground power lines as far north as Cooper Creek but not including Whitby and Cape Kimberley Implementation Responsibility Queensland Government funding to Ergon Energy to construct the network DME to continue DRAPS program in areas outside the grid service area Implementation Progress since 2000 No overhead or underground power, as per Option C supplied to this time. FNQEB has become Ergon Energy Mechanisms within Ergon to protect ecosystems include the development and implementation of the QESI Code of Practice RAPS elsewhere. Not to be constructed until the program to reduce settlement intensity and protect biodiversity on private lands is implemented Assuming the introduction of mechanisms to limit development in the Daintree and thereby protect its ecosystems, provide subsidies and grants to establish remote area power for residences and businesses in the Study Area. ROADS AND FERRIES 21. The ferry will provide an attractive gateway experience for visitors to the area The ferry should be retained. The visitor centre on the southern approaches will provide improved interpretation services. DSC Subsidies for the installation of RAPS provided community consultation verified. Not within this Report s Terms of Reference 22. The ferry will continue to serve residents and local business needs 23. All roads and road corridors will be sympathetic to the environmental sensitivities of the areas through which they pass DSC will need to consider a reservation system and/or to duplicate the ferry in the not too distant future. Constructing a priority lane for local residential and business traffic. This would only be necessary in peak times and directions. See Biodiversity & Land Management Recommendation 5 DSC DSC Not within this Report s Terms of Reference Not within this Report s Terms of Reference The Missing Link Resource Co ordinators Pty Ltd Page 17

18 24. The ferry pricing structure should be changed to: Self drive: $20 per vehicle (30 day pass nontransferable) Transfer buses: $4 per person Tour buses: $4 per person Residents: Current pricing retained. 25. Consider the implications of retaining the Bloomfield Track for 4WD only 26. Use the ferry as an opportunity to collect revenue from tourists for use in conservation management and service provision north of the River WATER SUPPLY AND WASTE MANAGEMENT 27. A water quality monitoring program be established in several key streams in the study area. 28. Rainwater tanks should be required for all new dwellings and businesses and encouraged for existing dwellings without them. 29. Septic waste water treatment systems to be monitored to ensure they meet environmental standards 30. There should be no new septic systems permitted in the Special Management Areas identified in Section Encourage composting toilets. Revised fare structure. DSC Not within this Report s Terms of Reference Environmental Impact Assessment to consider the full range of social, economic and environmental issues See section on Financial arrangements A regular monitoring program under Waterwatch or DNR programs Condition of building approval Inspections by DSC environmental health officer Condition of building approval that dry composting or other waste treatment is installed WTMA DSC DCS/DNR/EPA DSC DSC DSC Not within this Report s Terms of Reference Not within this Report s Terms of Reference Not within this Report s Terms of Reference Not within this Report s Terms of Reference Not within this Report s Terms of Reference Not within this Report s Terms of Reference The Missing Link Resource Co ordinators Pty Ltd Page 18

19 Recommendation FINANCIAL ISSUES 32. A package of financial contributions from Commonwealth and State Governments and the DSC. Summary of Implementation Underwriting the Daintree Land Trust Implementation Responsibility Commonwealth Government Implementation Progress since 2000 The Commonwealth Government s Programme Conservation Hotspots Daintree $6.8M provided in and $21.6M allocated in (i) For biodiversity conservation $2 million per year over five years for compensation to private landowners from the Commonwealth Government $5.6 million from the Queensland Government for the additional costs of environmentally appropriate grid electricity $ per year over five years for administrative support provided by DSC. Revenue offsets for biodiversity conservation are to include revenue from charitable trusts and private donations, revenue from land resale and from ferry revenue Contribution to ERGON for grid construction For office and staff in DSC Normal DSC operations Queensland Government DSC Daintree Land Trust DSC The Queensland Government has provided $10M over 5 years Daintree Buy Back Scheme. (ii) For infrastructure and services: $ per year for roads and ferry services funded by DSC ferry revenue $ per year for local services funded by DSC rates $10 5 million to meet the community service obligation for electrical supply funded by the Queensland Government $ for industry and community development funded by external grant sources. Revenue offsets for service provision are to include equitable user payments for electricity, rates and for ferry use. As above Payment to Ergon Applications to funding agencies DSC Queensland Government Daintree Planning Group The Missing Link Resource Co ordinators Pty Ltd Page 19

20 Recommendation MANAGEMENT ARRANGEMENTS 33. Signing of a Memorandum of Agreement between the three spheres of Government to endorse the (accepted) Daintree Futures recommendations. Summary of Implementation Implementation Responsibility Implementation Progress since 2000 Unable to verify, however the three tiers of government have worked cooperatively to fund approved recommendations of the Daintree Futures document. 34. The establishment of the Daintree Land Trust under the Queensland Land Act. The Daintree Land Trust to manage a revolving land fund, to buy and sell land, enter into statutory covenants with landholders, accept gifts, donations and bequests of real and personal property and act as agents for other persons including the Commonwealth, the State and Local Governments in matters relating to land. Board of Trustees would consist of: Local residents and businesses Aboriginal Native Title holders Douglas Shire Council Commonwealth Government Queensland Government The Queensland Department (Minister) of Natural Resources Done. In 2005 the Australian Government provided the Australian Rainforest Foundation with $5 million to undertake a range of conservation initiatives in the Daintree aimed at reducing the impact of development following the controversial subdivision of approximately 1100 lots of rainforest in the 1980 s. The Wet Tropics Ministerial Council (Queensland and Commonwealth Environment and Tourism Ministers) had previously supported the ARF in a $1 million buy back of privately owner rainforest in This was followed by an additional $5 million from the Queensland government for land acquisition in The intent of the land buy back was to reduce the available land for residential or commercial development to about half of the 1100 blocks originally sub divided, thereby providing for good conservation outcomes and a viable community. Date; 10 January 2006 Taken from ml 35.Establish a short term Daintree Planning Group as a tripartite agreement between Federal, State and Local government underpinned by a 5 year funding agreement. The Daintree Planning (intergovernmental committee) as a tripartite agreement between Federal, State and Local government underpinned by 5 year funding agreement. Main functions to: Advise the Trust on priority land management and acquisition arrangements. Ensure that planning control frameworks are established Oversee the implementation of community development requirements. Provide economic development support and links into other funding opportunities Wet Tropics Ministerial Council Established and managed by Wet Tropics Management Authority The Missing Link Resource Co ordinators Pty Ltd Page 20

21 3.3 Proposal for Remote Area Power System for Cape Tribulation ( ) In December 2003 an informal consortium of business owners from the Cape Tribulation community researched and proposed the construction of a Remote Area Power System (RAPS) for Cape Tribulation commercial sector. It is worth noting this aspect provides both a good example of the local business s commitment to find a more sustainable solution to the ongoing power provision issue in the Daintree region and the level of support offered by a number of the key stakeholders in this issue, including various elements of the Queensland and Commonwealth government EPA, WTMA, and the government owned Corporation, Ergon Energy; and seemingly contradictory aspect of the Queensland Government s use of the policy to prevent such an initiative being implemented. This proposal provided a potential solution to power provision in this area, which remains a viable technical option today (refer Table 1) if the economic and operational issues can be resolved. Note that private power distribution networks are currently prevented by the existing policy. Below are excerpts from the correspondence around this issue: October 2003: Letter from Cape Tribulation business community members: Paul Mason, Martin Visser, Mark Biancotti; Colin Gray; Geoff Trewin, Rod Colquhoun, Kevin Malone o Requesting a central generating plant be installed at Cape Tribulation. Provided background of consumption of more than 1.5 million litres of fuel per year; more than 20 generators between 40 and 150kVa operating up to 24hrs per day within a 5km radius. o Identifying dangers of emissions, fuel storage and waste disposal. o Requesting solution of a RAPS system similar to installed in other remote locations in Queensland and offering land on which to place it Undated: response from Hon Warren Entsch to consortium: o identifying existing limits on extension of power and likelihood of not being connected to mains power at Cape Tribulation. o Identifies opportunity for lateral thinking it may be possible to examine installation of a hybrid system that utilises a small scale hydro generator plus a solar generator, or some alternative power source. o Has written to Ergon, WTMA and Douglas Shire to support your initiative Nov 2003: Letter: Terry Melchert (DSC) to Mr Paul Mason o Re: Remote Area Power System. Council considered this matter at its meeting on 27 October 2003 and resolved to support, in principle, the concept of a distributed local area electricity supply system and would be happy to work with the Cape Tribulation group and Ergon Energy to progress this issue Nov 2003: Letter: Paul Lucas (Minister for Innovation and Energy) to Steve Bredhauer (MP for Cook) Letter in full at Appendix 13.6 o Acknowledging proposal to install isolated electricity network in Cape Tribulation o Proposal entailed large diesel generator and small supply network distributing and selling to local businesses and residences similar to Ergon systems on Thursday Island and remote communities o Electricity Act requires generation, distribution and retail activities be authorised by the Regulator. Application to the Regulator required. o The decision to grant an authority is considered against the criteria of the Regulator being satisfied the applicant is competent to perform the relevant activities, and being satisfied of the technical suitability of the generating plant and supply network. o The Regulator to consider government policies of relevance, is the Electricity Supply in the Daintree Region policy o Intent of the Policy to protect rainforests in this World Heritage Area. The Missing Link Resource Co ordinators Pty Ltd Page 21

22 o Given the policy Lucas considered it difficult to foresee circumstances where the Regulator would grant an application for such a proposal. o The Queensland Government does support the use of Stand Alone Power Systems (SPSs) incorporating renewable energy technology, in the Daintree region. o Lucas states he had received advice from Mr Mason that solar cells in the Daintree region are not a viable option, particularly during the wet season when there is limited sunshine. o Suggested contacting EPA s Sustainable Industries Section to discuss viable energy options such as wind and mini hydro Dec 2003: Letter: Dean Wells (Minister for Environment) to Steve Bredhauer (MP for Cook) o EPA keen to be involved in a viable solution to counteract the environmental impacts of using fossil fuels in a WH listed pristine rainforest. Mentioned EPA rebate scheme, Renewable Energy Diesel Replacement Scheme and stated that the proposal would be eligible for the scheme. Recommended contacting a renewable energy supplier, to investigate the costs prior to discussion in relation to funding taking place December 2003: Letter from Cape Tribulation proponents to Regulator, Mr Scott Flavell, o detailing concerns, proposal and requesting review of government policy on no Electricity Supply in the Cape Tribulation region. o Attaching support letters from Douglas Shire Council; Hon Warren Entsch; Dean Wells (Minister for Environment), Steve Bredhauer (MP for Cook) and EPA December 2003: Lt. Gen John Grey (Chair, Wet Tropics Board) to Warren Entsch. o The Authority is supportive of the development of remote area power supplies (RAPS) in the Daintree region. o Identified that the Daintree Futures Study had recommended large RAPS for commercial operation in the Cape Tribulation area. o The Authority agrees with Mr Visser that current power supply arrangements are neither efficient nor environmentally friendly. The proposed option would be a better arrangement for all Jan 2004: Letter: Dr John Glaister (Acting Director General: Dept of Innovation and Information Economy to Messrs Mason, Visser, Biancotti, Gray, Trewin, Colquhoun and Malone. o Clarifying submission content and request o Stating Power over the Daintree Region Policy rationale no plans for policy to be reviewed. o Clarifying Regulator role o Identifying proposal is contrary to Government policy and that north of the Daintree is an exclusion zone for Ergon distribution network. o Identifies Queensland Government support for use of Stand Alone Power systems incorporating renewable energy technology and EPA administration of these systems and associated subsidies Jan 2004: Letter: Des Jones (EPA sustainable Energy Systems and Technology) to Messrs Mason, Visser, Biancotti, Gray, Trewin, Colquhoun and Malone. o Identifying EPA role in providing financial assistance to install a Stand alone Power System Feb 2004: Letter: Daniel Reynolds (Ergon Solutions) to Messrs Mason, Visser, Biancotti, Gray, Trewin, Colquhoun and Malone. Ergon response to proposal for a renewable based Stand alone Power Supply system for their group of businesses. o Required capacity initially 1000kVA building to 2000kVA The Missing Link Resource Co ordinators Pty Ltd Page 22

23 o o o o o o o o Formal feasibility study would be required to determine whether there was adequate renewable energy resources (Solar, Wind, Hydro) in the area to provide an effective input into such as system. based on our recent discussions, and current knowledge of the area, our initial impression would be that this is not likely to be the case. A number of companies specialising in traditional power generation on this scale. It is possible for a system of this type to be supplemented from renewable sources. Should you choose to pursue this option, you should seek formal advice to determine whether this form of group supply is possible under Queensland s electricity supply regulations and Government policy. A formal opinion on this independent legal advice would then need to be sought from the Office of Energy, and Queensland s Dept of Innovation and Information Technology. Ergon offer to determine the viability of Stand alone Power Supply Systems (SPS) for individual properties in the area. These may be eligible for a rebate funding up to 50% under the Qld Government s Renewable Energy Diesel Replacement Scheme (REDRS). 3.4 Douglas Shire Council Planning Scheme Resolution: 2 June 2004 Moved: Cr Mike Berwick That Council resolves to: 1. Adopt the Temporary Local Planning Instrument, Protection of Conservation Values North of the Daintree River to Cape Tribulation, and give public notice of its adoption and send a copy of the notice and 5 certified copies of the Temporary Local Planning Instrument to the Minister in accordance with the specific requirements of Schedule 2 of the Integrated Planning Act 1997; 2. Publicly notify the draft Planning Scheme in accordance with the specific requirements of Schedule 1 of the Integrated Planning Act 1997 and at the same time to publicly notify the draft Planning Scheme Policies in accordance with the specific requirements of Schedule 3 of the Integrated Planning Act Support the Daintree Futures Study and use its best endeavours to implement the recommendations contained in the Study. 4. Seek a Commonwealth Government commitment of $5M to assist in achieving the recommendations of the Daintree Futures Study. 5. Support the reticulation of electricity, in accordance with the Daintree Futures Study (ie: Cooper Creek/Thornton s Beach) and a local reticulated supply for the Cape Tribulation area, once the conservation targets outlined in the Daintree Future s study have been reached; 6. Inform the State and Commonwealth Government s that Council s adoption of the Temporary Local Planning Instrument and public notification of the draft Planning Scheme Policies are based, in good faith, on the understanding both State and Commonwealth will work together and agree to use their best endeavours to supply reticulated electricity as described in Clause 5 above and that this be achieved by: a. Inclusion of the area North of the Daintree in the Distribution Authority Area once the conservation targets of the Daintree Future s Study are met; b. The State Government contributing the cost of overhead and reticulated electricity in line with Ergon s standard supply agreements, and c. The Commonwealth Government contributing the additional cost of undergrounding the reticulated electricity. 7. Reserve its rights under Section (1) a of the Integrated Planning Act 1997 to repeal the Temporary Local Government Planning Instrument if the State and Commonwealth Governments do not deliver on monetary commitment and the provision of reticulated electricity as outlined above in Clauses 4 and 6. FOR: Crs Berwick, Cox, Davis, Egan, Pitt The Missing Link Resource Co ordinators Pty Ltd Page 23

24 AGAINST: Crs Bellero, Sciacca Carried. This Resolution is evidence of the Council s commitment to delivering its part of component 2 of the Three Point Plan namely that development in the Daintree Region is capped and nodal and must proceed in a manner consistent with protection of World Heritage Area values and sustainable energy use. Council requests both State and Australian Government funding to implement key aspects. As the recommendations of Futures Study are essentially met, and as seen through the commissioning of this study, the Council remains committed to supporting the supply of electricity. 3.5 Daintree Futures Alternative Scenarios Resource Requirements (Oct 2004) The CRC Rainforest study to evaluate the costs of supporting the community that would develop should all blocks in the subdivision areas north of the Daintree be settled. It reviewed costs for supply of community services, water supply, waste treatment, social services (health, community well being, recreation, policy, and schooling) and transport and possibly electricity so that the Douglas Shire Council could understand the possible costs to determine rates for the most likely future scenarios. These future scenarios were considered to be either 1) buy back with half the blocks being settled or 2) full development of all blocks. The full settlement scenario anticipated a permanent population of 2000, which compared with the possible 2169 modelled in the 1996 Powerline EIAS. The buyback population was anticipated to be 1000 permanent residents. Tourist accommodation anticipated a maximum number of 1200 beds. Table 5: Summary of Daintree Futures: Alternatives Scenarios findings: Scenario Max. Pop 1 Full settlement Capital cost for all community infrastructure Recurrent cost of all community infrastructure Power supply Capital cost Power supply annual cost 2000 $ 133M $ 2.4M $15M $ (1998) Tourism cost (loss of anticipated income over 40yrs due to development) Tourism contribution 2013 anticipated $ 335M $ 967 M $ 193M 2 Buy back 1000 $ 22.4M $ 1.2M $15M $ 27M ** $ 328M In the Full settlement Scenario it is assumed there is an FNQEB (sic ERGON) supplied power supply and that this has been provided through a high level of government subsidy (CSO). It is quite clear from the data provided elsewhere that those existing landholders wanting mains power are neither prepared, or in many cases able, to pay a high connection or annual access fee. (p14). The report (p.20) gives an anticipated cost of the provision of electricity: We anticipate that a full settlement of the area is reached that there will be community demand for grid power, this would have a capital cost of $15.6M and an annual cost of $ (note 1998 dollars). The above cost is based on grid power being provided to all blocks north of the river to Thornton Beach, using mostly underground construction (including directional drilling over the Heights of Alexandra. It also states that additional residential and commercial development in the Daintree will progressively impact upon the tourism industry through reduction in visitor numbers. This arises due to the adverse scenic alteration caused by the extent of clearing and the general visibility of development involved, whether or not power is provided, weakening the authenticity of the Daintree visitor experience. The Missing Link Resource Co ordinators Pty Ltd Page 24

25 Highlighting provided here to illustrate the key point that the report does not anticipate any additional increase in the impact on the net present value of tourism as a result of power provision (p34, Table 13, Daintree Futures.**) The report evaluates the value of tourism to the area and the potential impacts of the two settlement options scenarios, as summarised in Table 5 above. The evaluation of the value of tourism, whilst identifying both the tangible and intangible benefits of tourism, did not identify the emerging issue, and significant likely cost to tourism, of the perception that the current supply methodology for electricity is unsustainable in terms of the very high carbon footprint associated with generating power principally from diesel generators. 3.6 Department of Energy (October 2005) Confidential Report Daintree Isolated Power Supply Project Preliminary Assessment Report Recommendations The 25 th October 2005 document states that an advisory committee to the Department of Energy comprising key stakeholders including: representatives of the EPA, Dept of Premiers and Cabinet; Treasury; Dept of Local Government and Planning; WTMA and technically advised by Ergon had internally identified an acceptable path for the delivery of power in the Daintree Region and that to deliver that would require the Electricity Supply in the Daintree Region policy to be rescinded. The Department of Energy Report recommended to the Minister that: The Electricity Supply in the Daintree Region policy be rescinded and the Daintree restored to Ergon Energy s distribution area, subject to: 1. The proposed Douglas Shire IPA planning scheme protecting State interests to the satisfaction of the Minister for Environment, Local Government, Planning and Women; and 2. Adoption and commencement of the IPA planning scheme by the Douglas Shire Council. The report defined the probable Electricity Supply Outcomes: Under the preferred option and in accordance with the Electricity Act 1994, residents and businesses in the Daintree wishing to connect to electricity supply will be able to apply to Ergon Energy. The extent to which new customers are connected to electricity supply would be subject to the same conditions as prevail throughout Queensland. The group assessed the likely costs of each outcome and predicted, based on community survey information the likely uptake of mains power supply based on the prevailing delivery conditions. The electricity supply outcomes which can develop within the framework of the current regulatory regime are varied; however the results of preliminary analysis indicate certain highly probable outcomes which are detailed in the accumulated table below: Table 6: Summary of Confidential Report findings: PRECINCT LOTS Estimated estimated PROBABLE ELECTRICITY SUPPLY OPTIONS cost cost per customer Forest Creek 178 $ 5.2M $ Mains network: it is likely that a number of individual customers will immediately apply to Ergon Energy for electricity supply and be connected within normal connection timeframes. The majority of customers may require the involvement of the Council through a benefited area arrangement to finance connection costs. The Missing Link Resource Co ordinators Pty Ltd Page 25

26 PRECINCT LOTS Estimated cost Cow Bay, Diwan and Cooper Creek estimated cost per customer PROBABLE ELECTRICITY SUPPLY OPTIONS 317 $ 24.2M $ $ RAPS: connection costs and the required capital contribution which arises present a financial barrier to customers receiving grid connected power and they will continue to be reliant on individual RAPS. The cost of an Isolated Network to Cow Bay ($6.4M) is higher than the provision of mains power through a HV feeder from Forest Creek ($2.3M) 23 RAPS similar outcome to Cow Bay Thornton Beach and Noah Creek Cape Tribulation 69 $5.7 M $ Isolated Network: 1200kVa diesel power station. A number of commercial customers have expressed interest in the establishment of an isolated network (refer Section SOCIAL ISSUES From Community Consultation Table 14). 3.7 Far North Queensland Regional Plan A utility grade isolated network provided by Ergon Energy would not be a prudent investment however an opportunity may exist for a private entity under a special approval. If a private sector proposal was not commercially viable and did not proceed, customers would continue to be reliant on individual RAPS A request of this Options Study process was to identify implications and necessary changes to legislation and particularly the FNQ Regional Plan of the distribution of reticulated power to various communities over the Daintree River. The Far North Queensland Regional Plan (P47) states: The landscape and scenic elements of the former Douglas Shire are considered by many residents and visitors as being regionally significant. The policies included in this section protect these values by: Limiting urban growth and development north of the Daintree River Designating the area between Daintree River and the Bloomfield River as a regional landscape and rural production area Maintaining the existing policies to maintain the car ferry crossing on the Daintree River Maintaining the roads between Palm Cove and Port Douglas, and the Daintree River to Bloomfield River as scenic routes. It is important that development north of the Daintree River remains low key and sustainable to protect the scenic and World Heritage values and character of the area. The existing access configuration and lack of mains power are two major reasons why the area north of the Daintree River has remained in a relatively undeveloped state. They are also the reasons why the area has maintained its heritage status and attractiveness to tourists. The Douglas Shire Planning Scheme provides for limited infrastructure provision north of the Daintree River, with a strong preference for The Missing Link Resource Co ordinators Pty Ltd Page 26

27 self sufficiency using sustainable technologies. The regional plan supports these elements of the scheme. Whilst recognising the ongoing need to protect the World Heritage values of the Area, the statement that the maintenance of heritage status and attractiveness to tourists is based on the lack of mains power is challengeable. Provided population footprint and densities are maintained, and values protected as they are through the Planning and myriad legislative mechanisms, whether power is delivered by the grid or RAPS could be seen as immaterial, as defined in the Daintree Futures Alternative Scenarios (p.34, 2004). The technical options available to deliver mains grid power through undergrounding lines, and appropriate and timely rehabilitation of the construction corridor, would retain the heritage status and attractiveness to visitors. Realistic tourism marketing of the Daintree, in terms of visual amenity, amount of existing development, environmental impact and wilderness experience would address many of the concerns over provision of grid power affecting visitor satisfaction with this destination. Further discussion at The Regional Plan s statement regarding lack of mains power being the major reason the area retains its attractiveness to tourists does not recognise the visual and noise pollution associated with the current widespread use of diesel generators nor the increasing awareness of, and destination choice by tourists, based on the carbon footprint of a tourism destination and how this awareness could detrimentally impact on the attractiveness and therefore visitor numbers to the region. Regional sustainability practices are a very recent but significant trend in tourist behaviour and has resulted in eco accreditation mechanisms by Tourism Tropical North Queensland (TTNQ) through the Planet Safe Program and ecoefficiency audits and training through the Tourism Queensland Sustainable Regions Program. Whilst acknowledging a strong preference for self sufficiency using sustainable technologies, the FNQ Plan does not specifically state that it prefers the maintenance of the existing policy restricting the supply of power network in the Daintree Region, as it does state the maintenance of the policy for the car ferry. In addition, on p Energy in the same document states: the Queensland Government is committed to ensuring that consumers have access to reliable, secure and competitively priced energy. At the same time, the government recognises the need to manage and reduce greenhouse gas emissions through cleaner energy production and enhance energy efficiency to achieve a sustainable energy sector for the benefit of all Queenslanders. This would lend weight to the argument presented by some Daintree residents that access to reliable and competitively priced energy is their right, and that the current delivery methodology needs to be reviewed to manage and reduce greenhouse gas emissions from the area. The current contrast between protecting the environment while contributing thousands of tonnes of Carbon emissions through heavy reliance on inefficiently operated diesel generators is a contradiction that requires action to resolve. The proposal for efficiency measures, education and demand management, defined in sections and and maximising energy conservation in businesses and homes through measures like Climate Smart is in keeping with the recommendations of Section 9 of this report. 4. The Electricity Supply In The Daintree Region Policy The Electricity Supply in the Daintree Region Policy was developed to act as a moratorium on development in the Daintree Region. It has acted to enable the 3 Point Plan the outcomes of a 1999 meeting of key stakeholders to implement the outcomes of the 1998 Daintree Powerline EIAS Report from GHD to establish the mechanisms to protect the Daintree region into perpetuity. The 2000 Electricity Supply in the Daintree Region Policy still remains in force. The Missing Link Resource Co ordinators Pty Ltd Page 27

28 Numerous approaches to government between 2000 and now suggesting that measures implemented were now effectively protecting the Daintree and proposing various alternative power supply options to be installed have not led to the policy being rescinded or altered, nor a commitment or timeframe for this to occur. It appears that this policy is interpreted by departmental officials to refuse consideration of any proposed electricity supply option that includes a distribution network, which effectively has prevented the introduction of a larger RAPS system for the Cape Tribulation Area, as was proposed by a consortium of the area s businessmen in 2003 and provided with written letters of support for the concept (in 2.6 above) from: Warren Entsch, then Federal Member for Leichhardt ; Dean Wells, then Minister for Environment ; Gen Gray, WTMA Board Chair. No explanation of the decision to refuse this application was provided by the Minister for Energy, other than reference to the Policy. It is not surprising that there is a level of cynicism and frustration amongst the community about Government willingness to meet its perceived but divergent commitments. 4.1 Recommended Policy Options Change As per the 2005 Dept of Energy Confidential report recommendations, and based on the identification of the status of the various protection mechanisms in place to protect the Daintree region provided in this document, this review proposes that the current Electricity Supply in the Daintree Region policy be rescinded and the area restored to the Ergon Distribution Area. The Policy has effectively served its purpose and is now duplicating 1) the intent and action of the Cairns Regional Council s Douglas Shire Plan; and 2) that the conservation values of the area are now effectively protected through this mechanism and Queensland legislation, particularly the Vegetation Management Act. Further it is recommended that, if required, a policy more in line with instigating the area as an icon for sustainable development with best practice sustainable energy generated for sustainably designed and operated homes be drafted and implemented. A significant part of the tourism message associated with this area, then becomes that you can live in and work in and visit World Heritage Areas, as happens throughout the world, without damaging the values for which the area was listed, if you have a committed and resourced, well educated community who see themselves as the recognised and supported custodians of the area. 5. Status of Three Point Plan The anecdotally known Three Point Plan came from a Letter from Terry Melchert, CEO Douglas Shire Council to Hon Peter Beattie: Conservation of Daintree Rainforest and Provision of Power North of Daintree River, dated 22 Feb The important features of this broad based position are: 1) The State and Federal governments provide funding, as promised previously, for the Buyback of unoccupied rural residential and selected other unoccupied blocks north of the Daintree River ; 2) The State and Federal governments facilitate the consolidation of development, both residential and commercial, north of the Daintree River both through buy back and through the funding of a review of the Douglas Shire Council town planning scheme to reflect consolidation into development nodes in the scheme. 3) Grid Mains Power be provided to the consolidated area in an environmentally sensitive manner. This concept, if implemented appropriately, will deliver the protection, in perpetuity, of the Daintree Rainforest as well as allowing the economic provision of local government services and infrastructure for residents and tourists. The Three Point Plan was also identified to the community through an Open The Missing Link Resource Co ordinators Pty Ltd Page 28

29 Letter from the Mayor Mike Berwick released shortly after the meeting. This is seen by the community as the blueprint against which progress is being made. (Pers Comms. Russell O Doherty, 2009) Ten years after its inception, points 1 Buy Back and 2 Planning Scheme Review and Implementation have been essentially completed as evidenced below. The community consensus is that it is time to review and potentially rescind point 3 the Policy that prevents the provision of Grid Mains Power. A review of the options for delivery of power has been conducted as part of this process. One of the purposes of this paper is to document the status of the various elements which made up the Three Point Plan. The varying opinions within the community range from The first two elements have essentially been provided, so now is the time to provide step 3, to Until 100 percent of the area is protected, then step 3 should not be delivered To, Step 3 should never be delivered because of the perceived negative impacts of provision of power can never be mitigated. In section 2.5 above, the status of the recommendations of the report Rainforest CRC Daintree Futures Study (GH&D) Nov 2000, which led to the development of the Three Point Plan is documented, and it is concluded that those recommendations relevant to this issue have been essentially delivered. 6. Point 1 of Three Point Plan: Daintree Buy Back 6.1 History of the Buyback Process The Rainforest Rescue group is the latest iteration of mechanisms to protect the Daintree where the responsibility was originally vested in the Daintree Land Trust (recommended in the CRC Rainforest Daintree Futures Report (2000). The Australian Rainforest Foundation came into existence in2001and still exists as an agent for managing and rehabilitating purchased blocks in the Daintree and is paralleled by the Rainforest Rescue commenced in The Rainforest Rescue group now manages the Daintree Buy Back & Protect Forever project which identifies and purchases precious rainforest at risk of development and establishes Nature Refuge status which protects it forever under covenants ratified by the Queensland Parliament in Australia.. The following timeline sets out how the buy back process has proceeded and its current status. Table 7: Daintree Buy Back timeline Buy back 1 $23M Commonwealth (1996) Buy back 2: $6.8M CWTH* (2005) and $21.6M CWTH* $5M QLD Govt 110 blocks purchased (WT Annual Report 2006) 132 additional blocks to Dec 2008 (Daintree Summit figures) ARF $1M from WTMA ARF $5M from Cth 24 blocks: 79 Ha and spent $1.8M Daintree Buyback and Protect Forever: (private donations). 11 properties purchased * Wet Tropics in Profile p47 (WTMA, 1996) describes the Daintree Rescue program. The Missing Link Resource Co ordinators Pty Ltd Page 29

30 The $23 million Daintree Rescue Program was established in 1994 to address the most critical threats to the outstanding heritage values between the Daintree and the Bloomfield Rivers and to support ecologically sustainable tourism in the area. The Commonwealth and Queensland governments equally fund the program, while Douglas Shire Council contributes planning, local expertise and various onground services. The program is managed by the Wet Tropics Management Authority under the direction of the Daintree Planning Coordination Group (DPCG). The DPCG is made up of representatives of Douglas Shire Council, the Authority, the Queensland Department of Environment and Heritage and the Commonwealth Departments of tourism and Environment, Sport and Territories, and the Kuku Yalangi Aboriginal community. Meetings are open to the public and Daintree resident groups are encouraged to attend. The program has two components: rainforest protection, and visitor management and infrastructure. The rainforest protection sub program aims to protect heritage values through the combined efforts of: A voluntary land purchase scheme (buy back) to ensure the most important areas are protected through public ownership and management. Co operative management agreements between the Authority and owners of land who choose to protect the natural heritage values of their land in exchange for assistance provided through the Daintree Rescue Program (technical, scientific, material assistance to help preserve the natural values of their land); Development controls that support the objective of the program; and Community education of visitors, commercial enterprises and residents. The visitor management and infrastructure sub program is essentially a capital works program to provide new and improved facilities for visitors and residents. This sub program will focus on facility development, road upgrades, revegetation and research projects consistent with the draft Cape Tribulation Daintree Management Plan being prepared by the Authority. From WT Annual Report: In June 2006 the Queensland Government finalised the planning scheme for Douglas Shire, including the Daintree s World Heritage listed rainforest. The scheme identified the areas in the Daintree, outside the Area, that must be protected. The Queensland Government will provide a further $10 million dollars to fairly compensate landowners not allowed to build, taking the government s commitment to the Daintree land buy back to $15 million. Since 2004 the Queensland Government has spent $5 million buying 110 blocks. 6.2 Current Status of the Buyback Process The Cairns Regional Council website (accessed Sept 2009) states: Two decades after the Daintree became a rallying point for the conservation movement, the work continues to ensure it remains a special part of the world. When it came into effect in September 2006, the former Douglas Shire s Planning Scheme represented the culmination of 5½ years work to develop and implement a Planning Scheme that was compliant with the Integrated Planning Act. It was one of the most controversial planning schemes proposed in Australia as it removed the development rights from over 330 vacant properties and it used a Temporary Local Planning Instrument (TLPI) that waived of the requirement for public notification allowing Council to implement the development ban overnight. The Missing Link Resource Co ordinators Pty Ltd Page 30

31 This TLPI, which required State Government endorsement, was employed because in the lead up to releasing the Draft Planning Scheme for public comment, Council was aware of the risk of displaying the Scheme containing the controversial development controls. The TLPI prevented development applications that would dilute the planned development controls. History It started in the late 1980s when the State Government overruled Council s decision to refuse an application to subdivide the Daintree rainforest into more than 900 one hectare, housing lots. The applicant than took out an advertisement in the Wall Street Journal advertising 958 blocks of tropical rainforest for sale. For $25,500 ($US18,000 in those days) buyers saw it as their opportunity to own a piece of tropical paradise either for their dream retirement property, or as a great investment. Today Whilst the properties are outside the world heritage area, they share many of the same natural attributes. The need to cap development in order to preserve this extraordinary area was recognised by local, state and federal agencies. The initial intention was for all three tiers of government to collaborate, each contributing $5 million to buy back the land at market price, or at least provide owners with the option to retain ownership and be compensated for loss of development rights. The level of co operation between the local, state and federal governments did not turn out as intended and the State Government committed the necessary $15 million for the Daintree buyback. Progress on Daintree Buyback To date, three quarters (72%) of the properties earmarked for buyback or compensation have been secured. Of the 331 blocks impacted by the Planning Scheme: 215 have been purchased by Queensland Parks & Wildlife Services 13 have been purchased by private conservation agencies Rainforest Rescue (12) and Bush Regeneration? Declared Nature Reserves. 13 landowners have received compensation Of the remaining 84 properties 51 are in the process of being sold, or the owners compensated 5 are where the owners are exploring avenues to development their land 28 have not indicated a preference to Council The Missing Link Resource Co ordinators Pty Ltd Page 31

32 For those who continue to live in the area, the new planning scheme provides the opportunity to be part of the largest self sustaining community in Australia; to be immersed in a highly sensitive eco system, one of the world s oldest rainforests. Figures as at 8 October Figures presented to Rainforest Summit 2008: 18 th December 2008 indicate ongoing progress to reducing the number of outstanding unprotected blocks in the area. Table 8: Cumulated Daintree Buyback protection mechanisms Oct 2008 Dec 2008 Summit information Number of lots CRC websit e Summit Cumulative total (left to protect) % Cum % left to protect Total lots in Area Number of lots in Rainforest Conservation Zone Number developed or able to be * developed (Buy Back total*) Under private ownership and owners compensated for loss of development rights Purchased back by the Government for inclusion in the National Park Purchased by other conservation agencies and considered protected still in private ownership Still in private ownership Lodged compensation claims outstanding rates and uncontactable by Council Signed contracts for market valuation Under contract but sale not proceeding at present * Landowners who have not made contact with either Council or EPA Given this calculation, there is only 7% of the area that is not currently being actioned as part of this process, it suggests the time is right to trigger the review of the protection mechanisms currently in place in order to identify the appropriate course of action once protection has been effectively implemented. This likely includes: o Review the implications of each likely electricity delivery option and the timeframes, costs: initial and ongoing; and the environmental and social impacts. o education and engagement of the community in energy efficiency, planned maintenance and demand management; o education and engagement of the community in ongoing protection of the asset; o understanding of the current protection mechanisms and their ongoing relevance ie: the Queensland Vegetation Management Act 1999 and the Planning Scheme and The Missing Link Resource Co ordinators Pty Ltd Page 32

33 o a review of the need and function of the Electricity Supply in the Daintree Region policy. In no documentation accessed is there a Key Performance Indicator either a date or status level of purchased /protected blocks that will initiate a review of the effectiveness and the ongoing need for the policy or when the delivery of power infrastructure could commence. A recommended initiative for government moving forward is for all Policies and Action Plans developed to define Key Performance Indicators to measure when and how that Policy has been effectively implemented; and a sunset clause to initiate review of that Policy in a timely manner, as per other regulatory plans, eg: 5 or 10yrs. 7. Point 2 of Three Point Plan: Douglas Shire Planning Scheme Status Douglas Shire Council Corporate Plan (2006) The Corporate Plan is an overarching document that establishes the Council s Vision for the Shire and outlines the Council s strategies and goals for a number of matters for which the Council is responsible. The Planning Scheme is aimed at achieving the Council s Vision for the Shire by: conserving, protecting and managing the Shire s natural resources; maintaining the Shire s tourism and agricultural resources; and providing the equitable and timely provision of infrastructure services to current and future populations of the Shire. The Code for Settlement Areas North of the Daintree River Locality Code (4.2.2, p27) states The purpose of this Code is to facilitate the achievement of the following outcomes for the Settlement Areas North of the Daintree River Locality: protect the values of the WTWHA by ensuring that adjacent settlement areas are limited in extent and have a character and identity which are complementary to those values; ensure that all development remains low key and sustainable and within the development limits imposed by the Daintree River ferry crossing and the vehicular capacity of the Alexandra Range crossing and the local Road network; provide adequate services and facilities for settlement areas and an appropriate level of economic opportunity for local residents; ensure that all development is designed and operated to achieve an environmentally sustainable outcome by taking into account the specific values of the area and/or Management Area and Precinct in which it is located and the site s constraints and opportunities; ensure that all development is sensitive and sympathetic to its remote location in an area of unique Biodiversity and Scenic Amenity value; and ensure the natural forested landscape character of the locality is protected and enhanced. Douglas Shire Council Planning Scheme Amended Chapter 3 states: The urban growth proposals specific to the Shire include: continued development of Mossman as the primary urban and service centre for the north coast; continued development of Port Douglas as a combined tourist and urban node; and management of urban and tourist development in the Daintree Cape Tribulation area whereby development is restricted in size and extent and is of a low intensity and environmentally sensitive in nature. The preferred development pattern for the Shire is based on: identifying suitable land to accommodate the long term urban development needs of Mossman, Port Douglas and other coastal settlements; the continuing role of Port Douglas as a major tourist node which accommodates intensive tourist development; The Missing Link Resource Co ordinators Pty Ltd Page 33

34 restricting expansion of urban development north of the Daintree River in order to protect the scenic quality and environmental values of the Daintree Cape Tribulation area; developing strategies for provision and maintenance of infrastructure services which do not unduly impact on scenic and environmental quality. The Shire Land Use and Settlement Pattern Key features of the Shire land use and settlement pattern, which will be reinforced through the implementation of the Planning Scheme, are: the containment of development north of the Daintree River in size, scale and location to ensure the unique environmental values of the area are maintained and protected. In the Rainforest Precincts Residential and Tourism, development is generally limited to one House per lot and limited to existing cleared areas on land confirmed by councils Environmental Officer as a preferred location for development, in order to protect the integrity of the existing vegetation on the site. Bed and Breakfast Accommodation is limited to those already approved, and built in accordance with the premise of approximately 1 bedroom per hectare. Ie: maximum 4 bedrooms (8 bed spaces) where a site has a minimum area of 4 hectares. The Missing Link Resource Co ordinators Pty Ltd Page 34

35 Figure 2: Precinct Planning Area from Douglas Shire Council Plan The Missing Link Resource Co ordinators Pty Ltd Page 35

36 The significant concern regarding the increase in potential residences should mains power be provided could be mitigated significantly by recent changes in design and planning standards which, as defined in the FNQ Plan, p109 states that The Queensland government is proposing a number of improvement measures that will help make new and existing homes more energy and water efficient. Improvements proposed will require all new houses to be built to a 5 star (out of 10) energy equivalent rating, as of January 2009 meaning efficient in their design, for appliances to be energy rated; for the phase out of incandescent bulbs; and energy efficient building materials to be used. The Cairns Regional Council has in addition to the above defined planning scheme, a Sustainability Guide: Sustainable House Design for Cairns Guidelines which it could enforce in this sensitive region to additionally reduce possible impacts. These processes in combination with an ongoing education program will result in less demand. Sustainable Siting and Design of Houses is required on land where the Natural Areas and Scenic Amenity Code is triggered. P 112 lists performance criteria and acceptable solutions to deliver those criteria in these areas. The Douglas Shire Planning Scheme was approved by the Minister for Environment, Local Government, Planning and Women; and adopted on 21st August 2006, taking effect in September It was amended on 14th March 2008 to reflect the amalgamation of the Douglas Shire into the Cairns Regional Council. 8. Point 3 of Three Point Plan: Review of Energy Provision Options A number of energy provision options are technically available for supply in this area. This dot point summary identifies the potential and current options and their Benefits (Pro s) and Costs (Cons). Table 9: Energy Provision Options Options pros cons Reticulated power all through Equity of supply Connection costs may be too high for individuals to justify/afford estimated at between $ and $ GHD research (1987) found that the majority of potential customers may not take up an offer to connect to mains electricity when the upfront cost exceeds the equivalent of their RAPS annual operating costs. Possible with technology but with high financial cost if environmental protection and immediate rehabilitation are included Recommended option in Daintree Futures Study 2000 and 2005 Confidential Dept of Energy Report Possible with technology but with high financial cost if environmental protection and immediate rehabilitation are included Distance from nearest high voltage transmission line at Mossman May demonstrate a benefited area classification warranting Council subsidising initial cost and recovering over time under a special levy. The Missing Link Resource Co ordinators Pty Ltd Page 36

37 Options pros cons Reticulated power select areas Equity not available to all residents RAPS 1 small scale (business as usual) Reticulated power already supplied close by to Forest Creek area. Requires Policy change to be delivered in an environmentally friendly manner See TES report User pays costs for connection may be too high for individuals to afford/justify Very high CO2 e emissions associated with diesel usage Lack of economy of scale High operating costs due to increasing cost of diesel High maintenance cost and replacement costs due to location in Daintree; inefficient operations due to low loads RAPS 2 See TES report (Appendix 2) Economy of scale associated with small distribution network; more efficient operations and regular maintenance; increased reliability of supply Noise both the level if not insulated and the duration of noise due to operation length. DSC regulations re: limit of operating hours to 7am 7pm. This is not possible in some businesses or to provide assistance to ill individuals. Requires professional maintenance operator for most efficient operations and reliability of supply Solar Could provide employment for an appropriately qualified individual May be located in areas of lesser environmental value Has the capacity to be linked to supplement renewable sources. Can be run entirely on biodiesel Opportunity for future connection to Wind Farm or other renewable sources Increasingly efficient technology at decreasing price as demand increases Difficulty of operating in Daintree Region: High frequency of rainy and cloudy days Rapid mould growth requiring regular cleaning of the panels, The Missing Link Resource Co ordinators Pty Ltd Page 37

38 Options pros cons shading by fast growing trees (contradiction between maintaining WH values associated with rainforest and cutting them down to reduce shade) battery replacement regularly toxic battery contents and disposal issues Wind Hydro Technology available. Wind resource may not be available in the immediate vicinity requires further investigation. (Roam Consulting Report, May 2009) May be able to link to Archer Point Wind Farm at some point in future if constructed Small scale operations exist and work very effectively Economies of scale and increased effectiveness not possible due to Policy not allowing installation of a distribution network Technology has high cost Need to undertake feasibility study to ensure sufficient wind available to operate Likely negative impacts of tall trees on wind direction and strength Visual amenity concerns if placed adjacent to WHA Noise amelioration to be considered in design for close neighbours Link to Archer Point Wind Farm if by sea cable then concerns on where it would come ashore beach protection; undergrounding cable through area (likely Cow Bay Beach and buried in Buchanan Creek Road. Overland route unlikely to be delivered due to imminent removal of CREB track line Limited by: Unlikelihood of having resource for large scale water impoundment and fall for more than mini hydro. Unlikely for permission to be granted to dam in WHA WT Plan 1998 Seasonality and size of streams may be insufficient for all supply needs of individuals or larger numbers of constituents The Missing Link Resource Co ordinators Pty Ltd Page 38

39 Options pros cons Accessing creeks sourced in WHA and possible environmental impacts of diversion Requirement for permits from WTMA and DERM (Water Resources) to extract or divert water Limit by need for sufficient fall to drive turbines Turbine location and protecting return to creek from erosion Tidal Minimal impact once constructed No proven functioning technology currently operating at scale Risks of loss of plant due to floods Will require significant geological and hydrological studies to determine a location where could be installed Biodiesel Cogeneration Plant (Biomass plant) Liquid Natural Gas Geothermal Community Service Obligation Possible as an alternative fuel source one local runs his business and home on the local biodiesel supply he accesses all cooking fat currently used in the region north of the Daintree River Recycling of all sewage and garbage and green waste including non recyclable plastics and bagasse from Mossman Mill could be fed into a Mini Biomass power generation facility if an agent could be identified. Less environmental impact than coal based generation No readily identified site in FNQ, although proposed for future investigation by ROAM consulting Equity in cost of supply Would require permits to install and operate equipment in waterway Little additional biodiesel fuel available locally. Not common technology only a few larger scale plants built in Queensland so far. Mossman Mill has not been identified as highest priority for this investment. (Roam Consulting Report May 2009) Issues with storage of green waste fuel area required, smell, attracting rodents. Accessing the gas pipeline coming to Australia via the Cape from PNG Delivery to Daintree area limited due to lack of transmission lines May lead to increased consumption than would happen if the true cost of power provision was paid. Demand management program required in addition to CSO to reduce unnecessary consumption The Missing Link Resource Co ordinators Pty Ltd Page 39

40 Based on this overview, a more detailed review of the most likely for the largest number of residents was conducted by Tropical Energy Solutions (August 2009). The complete report is at attachment 2. A summary of the outcomes are: Tropical Energy Solutions conducted a desktop review of a range of power supply options for the Daintree community. We identified that some data provided in 1998 and 2000 continues to be valid today, while other data and some conclusions would be no longer applicable in The review shows that operational expenses for power supply systems have grown significantly and at similar percentage rates as grid supplied electricity. Capital expenses for medium size power generation systems have benefited from price reductions due to larger production volumes and advances in system architecture. Even greater reductions are available for renewable energy supply systems resulting in their improved commercial viability. Traditional limitations due to the climate, landscape and remoteness of the region are as valid today as they were in the past. However, these limitations can be minimised in well designed and professionally operated systems that could serve clusters of households and/or businesses across all areas of the Daintree if distribution is allowed. 1. Key criteria and comparison of options CAPEX previous reports demonstrated the high capital costs of an ecologically acceptable main grid extension solution. Ongoing increases in material and labour costs result in further price increases for such solutions. In 2000 RAPS system used to be built in small quantities and from components that were manufactured in small quantities. Their capital costs used to be relatively high as a result. The establishment of large scale manufacturing facilities for inverter systems and PV Solar modules has provided much reduced prices for these components. It is expected that further efficiency gains are possible and price reductions are likely. OPEX operational costs per produced kwh are directly related to the size of a system and the selected power/fuel source. The economies of scale suggest systems of medium to large size and the bundling of local loads/demand. All available power sources shall be compared regarding their current and future availability and cost. Green House Gas Emissions various power sources and system designs provide opportunities to control and reduce the GHG emissions from local power consumption. Both, main grid and local RAPS solutions offer numerous options for the integration of renewable energy sources. We recommend a review of the calculations that produced the data for table shown in the Daintree Futures Study Report on page 105. Transmission Losses ideally transmission losses are kept to minimum as they result in additional costs, emissions and indirectly capital costs and maintenance cost for the network. In the case of the Daintree location within the East Coast Grid these transmission losses are substantial unless large scale local power sources are added to the main grid. Local area grid sizes must be defined with transmission loss minimization strategies. AC coupled RAPS are preferred over DC coupled systems due to their ability to minimise transmission losses within the system. Ecological impact from construction The Daintree environment is regarded as a highly sensitive and valuable asset that requires short term and long term protection from unsustainable development. The building of LV and MV power lines would require the temporary destruction of fauna and flora habitats. The Missing Link Resource Co ordinators Pty Ltd Page 40

41 Suitable construction techniques and mitigation techniques are recommended but result in additional capital costs for such solutions. Ecological impact from operation Removing the power generation source from the Daintree area is seen as the most desirable solution against these criteria. Local power generation will have a smaller impact if it is limited to a small number of medium sized systems (especially if designed and operated by experts) compared to a large number of small systems that are operated by individual households. Noise emissions can be minimized to very acceptable levels by investments into encapsulated diesel gensets. Supply Reliability Residents and business operators on the Daintree require reliability and predictable costs for the operation of their properties. Modern, well designed systems offer these features but many of the home build type 1 RAPS struggle to meet such requirements. Negative experiences with these systems can reduce the willingness to invest funds into new RAPS installations. Integration Potential for Renewable Energy Sources and Demand Management Over the coming years and decades it will become increasingly important to reduce the contribution from fossil fuel power sources to the power supply systems. A system architecture that allows the cost effective integration of renewable energy sources will provide a valuable asset rather than a liability to the Daintree community. In principal all power system solutions allow the gradual integration of additional emission free power sources, however, medium and larger size systems and networks offer many advantages in the positioning of power sources and in the management of intermittent power sources (e.g. wind, solar, hydro). The following table shows a basic, unweighted comparison of 3 power solution types against 8 key criteria in no order of importance. The development of more detailed and weighted assessments are recommended to assist in the decision making process. Table 10: Comparison of 3 power solutions against key criteria Criteria\Power Solution Main Grid Type 1 RAPS Type 2 RAPS Extension CAPEX Very High Medium Medium OPEX Low High Medium GHG Emissions High* High* Medium* Transmission Losses High Low Low Ecological Impact from construction High Low Low Medium Ecological Impact from operation Low Medium Medium High Supply Reliability Good Medium Good Integration Potential for Renewable Energy Sources and Demand Management * based on dominant current fuel sources = coal or diesel Good Medium Good The Missing Link Resource Co ordinators Pty Ltd Page 41

42 8.1 Current Energy Use Pattern The area is anecdotally known to be one of the largest non intentional solar powered communities in Australia with well over 100 units installed. It is a very difficult climate with a high level of unpredictability of sunshine hours, humidity that averages 80% throughout the year and about 4 metres of rain during the wet December to June. Hugh Spencer (2003) Should this community be involved in a more formalised solar powering program, similar to the Commonwealth Solar Cities program, the support mechanisms may reduce the maintenance and system efficiency problems that have been identified as part of this process. The region does not meet the Solar Cities program criteria, however it is recommended to seek access to the support mechanisms and training packages that Solar Cities utilises. Many participants identified the potential Carbon footprint of their operations as being a concern, particularly from a tourism destination acceptability perception. Community members were asked to provide information on their current consumption rates. The following information was provided, and although it is not the complete list of users, it does give an approximation of the current emissions being generated. The calculation is made utilising the latest figures from the Australian Greenhouse Office, of the CO2 e emissions of diesel. Table 11: POTENTIAL CO2 EMISSIONS FROM CURRENT OPTIONS Supplied by Russell O Doherty and Martin Visser. Name of property / owner No of litres diesel consumed annually Heritage Lodge 60,225 Cockatoo Hill Retreat 8500 Daintree Discovery Centre Masons Store Crocodylus Cape Trib Beach House Daintree Entomological Museum 2600 Daintree Tea Cow Bay Hotel Lync Haven Daintree Air Strip 672 Daintree Views 2800 Daintree Manor 1500 Chris &Tess Leach 1300 R&T O Doherty 1187 B&M Gosper 1800 Brian Goon 1000 Jamie 1526 Beach House C/T Camping WHET Dragon Fly Farm Stay Jungle Lodge P K s TOTAL 1,297,458 litres of diesel CO2 e footprint for these businesses (at kg or 2.7kg/L emissions for diesel) tonnes CO2 e emissions The Missing Link Resource Co ordinators Pty Ltd Page 42

43 Current methodology environmental impacts: The current predominantly solar and diesel generator based generation systems are not without environmental impact. The predominant issues are: Batteries waste: The existing solar systems require regular replacement and disposal of batteries. The Douglas Shire Council Waste Collection service is not able to collect and dispose of all the batteries used, and so a stockpile of many hundreds of old batteries exists at the RACQ office at Cow Bay (image above). Concerns have been raised by the community regarding the safety of the batteries, having had a number of batteries explode under people s houses with the potential for houses to catch fire (image left); and secondly, the potential of leaching of acid from these batteries into the ground and adjacent creeks or waterways due to inappropriately bunded storage area. The area was never intended to provide a long term storage facility. A more appropriate short term storage area needs to be identified, as well as a long term offsite solution. This could be undertaken with the assistance of Council and Department of Environment and Resource Management (DERM). Small quantities of Lead from some of the batteries is recycled to form sinkers sold to local and visiting fishermen, however this is not sufficient to reduce the quantity on site. Noise: The noise from the operations of generators has been an ongoing issue. It has prompted the Douglas Shire to instigate a policy regarding operating hours and noise levels from generators. The policy states: Noise from a Generator must not be audible at premises: Before 7am or after 7pm Monday to Saturday The Missing Link Resource Co ordinators Pty Ltd Page 43

44 Before 8am or after 7pm Sundays and Public Holidays It defines environmental nuisance under the Environmental Protection Act The issue with noise nuisance relates to the sensitivity (often increasing sensitivity) of the recipient of the noise and the ability to instigate mitigation measures which are clearly defined, when Council Officers are not on site to verify non compliance. With increasing numbers of ill or elderly residents or those with young children, and some business operations, it is not possible to have power supply (and therefore operate a generator) for less than 24hrs per day. Although most noise issues can be mitigated if requires willing participants to achieve mutually satisfactory results. Table 12: RECOMMENDATIONS for GREEN POWER OPTIONS IN THE DAINTREE: Based on an evaluation of all the documents reviewed and the analysis of likely costs and impacts of each option, the following options for each precinct are recommended. These will still need to be considered, costed and the consumer s willingness to pay evaluated by the relevant authorities. PRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONS Forest Creek 178 Mains network: the grid supply already is connected adjacent to Forest Creek and extension of the existing grid to this concentrated community would be achieved in an economically cost effective manner, and the application of stringent environmental controls as stipulated in the QESI Code of Practice; combined with an education program in energy demand management (similar to the current Climate Smart initiative) would ensure minimal environmental impact. Based on feedback received through community consultation, it is likely that a number of individual customers will immediately apply to Ergon Energy for electricity supply and could be connected within normal connection timeframes. The majority of customers may require assistance to subsidise the cost of connection; possibly through a benefitted fund. Cow Bay, Diwan and Cooper Creek Thornton Beach and Noah Creek 317 Type 1 RAPS(Household Hybrid system)and Type 2 RAPS (Isolated Hybrid System Network) Distance from existing mains grid; connection costs and the required capital contribution which arises present a financial barrier to customers receiving grid connected power. In this precinct, Type 1 RAPS continue to be the recommended option, with possibility of introducing several strategically located Type 2 RAPS (see Appendix ) where population nodes occur and economies of scale allow; and where ecological impact of limited distribution network can be minimised. 23 Type 1 RAPS Distance from existing mains grid excludes connection to mains power. Population density and distribution does not lend itself to a Type 2 hybrid network. Cape Tribulation 69 Type 2 RAP (Isolated Network): Distance from existing mains grid; connection costs and the required capital contribution which arises present a financial barrier to customers receiving grid connected power. Again, the possibility exists here for introducing several The Missing Link Resource Co ordinators Pty Ltd Page 44

45 PRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONS strategically located Type 2 RAPS i.e. where population nodes occur and economies of scale allow; and where ecological impact of limited distribution network can be minimised. A consortium of businesses from this precinct have put forward a RAP2 proposal (Appendix 2.6) which has not progressed despite support from local member and key stakeholders, due to it being deemed contrary to the Electricity Supply in the Daintree Region policy. If this, or a similar, proposal was not commercially viable and did not proceed, customers would continue to be reliant on individual Type 1 RAPS with its ongoing greater community and environmental costs. This determination is based around the following information, garnered from the 2005 Confidential Report to the Department of Energy, on the likely number of blocks to be supplied power and the blocks identified for buy back due to their ecological significance: Table 13: 9. Social Issues from Community Consultation 9.1 Written and Public Meeting Submissions There were 2 public meetings held on the 18 August 2009 (14:00 and 18:00) at the Diwan Sports and Recreation Centre, Diwan. Invitations and background information were distributed via post, to all members of the Cairns Regional Council Database and a public notice was placed in the Mossman Gazette inviting the community to attend. Two articles were written in the Mossman Gazette and a radio interview given to the ABC prior to and after the event. The ABC mentioned the meeting in its local news bulletins on the day prior and of the meeting, inviting all interested residents to attend. Politicians and key stakeholders were not invited to attend or address this meeting, in an attempt to focus the meeting on hearing the resident s views and to gather information on their experiences of living north of the Daintree without mains power. Attendees were given a briefing on the Daintree Green Power Options Study and its terms of reference, relevant legislation and policy, relevant community The Missing Link Resource Co ordinators Pty Ltd Page 45

46 demographics and some explanation of energy alternatives. Alternatives suggested by the group included solar, wind, solar, thermal and use of the gas coming to Australia via the Cape from PNG. Although many comments of wish I had known it was on were received after the event, however a number of residents attended: Fifteen during the day and thirty five during the evening session. Only a small number attended both. More than 30 written / submissions some more than twice and more than 40 phone calls were received, collated and the key points identified during this process. A summary of the key points brought up through both the written submissions and by the public meeting attendees is set out in Table 14 below, and key submissions are in the Appendices. Table 14 Written and Public Meeting Summary of Comments Key: Issue types Social, Economic & Diesel powered Generator Power Regulatory Solar Power Hydro Power Mains Power Wind Power No. ISSUE PUBLIC MEETING 1 Change in Demographics aging population since 1980 s (issue of II hardship associated with maintaining one s power with increasing age) 2 Want changes in Regulation/Policy/Planning Scheme (2000 Bed IIII III Limit DSP, Daintree Energy Supply Policy Qld Govt, 3 Point Plan, Vegetation Management Act Concern that POWER OPTIONS STUDY is going ahead prior to the I formation of the Daintree Summit Steering Committee recommendation of Daintree Summit 4 First two parts of Three Point Plan met: Planning and Buy back IIII III now give us Power 5 Frustrated with Surveys/Reports (3 IN 10 YEARS) & NO III OUTCOMES 6 Want to see timeframe for changes including phasing out of II existing equipment 7 Council Driven Survey on Mains Supply needed II WRITTEN RESPONSE III 8 Regional importance of Tourism and reliance of the Tourism Industry on affordable power 9 Desire to protect the Unique characteristics of the Region (note: lack of mains power seen as attractive unique characteristic to some) 10 Support for Rebates continuing or being re introduced (for using green power, ATO fuel rebate scheme, any source back to grid) 11 Disagreement with the number of blocks available for development on completion of current Buy back process (186 v less than 30) 12 Green Power Options Study should be part of larger planning and Buy Back exercise 13 Community meeting not representative of community and community opinion (<5% pop.) IIII IIll IIII I I I The Missing Link Resource Co ordinators Pty Ltd Page 46

47 14 Preference for Solar Power green grid ie networked RAP, cost lii effective 15 Problems with Solar LACK OF OPERATOR EXPERTISE (education IIII IIII I issue requiring follow up), LACK OF REBATES TO COMMERCIAL PROPERTIES, OUTDATED/UNDERSIZED EQUIPMENT, 16 Problems with Solar SHADE, EXPENSE (capital/maintenance), IIII IIII SAFETY, WASTE DISPOSAL OF BATTERIES (operation/disposal >5 7 yr life of batteries), 17 Preference for Mains Power equity (citing the Anti Discrimination Act), Quaid representations at time of purchase, government Fact Sheet 8, support for sustainable mains power IIII IIII IIII IIII IIl generation. Vote 38:12 at 18/8/09 meeting for grid power alone 18 Preference for Undergrounding Mains Power IIII 19 Problems with Mains Power pollution, negative visuals, cost, IIll II impacts on WHA values, sustainability, underground issues 20 Support for Restricted Mains Cow Bay /Forest Ck I 21 Against Mains Power and concerned it will be forced upon them IIII III 22 Would like to see ERGON s costing updated II 23 Externalised cost of changes borne initially by govt then standard IIII II IIII I charge rates to consumers Some belief Ergon has a community service obligation. 24 Internalised cost of changes Borne by individual 25 Support for Generators a few large rather than many individual IIl units, HYBRID systems, if well operated 26 Problems with Generators CARBON FOOTPRINT, IIII IlII IIII Il SAFETY(transport, storage, handling), COST, DIFFICULTY OF OPERATION, NOISE 27 Support for Hydro l 28 Problems with Hydro (irregular or seasonal flows, drought) II II 29 Support for Wind Turbines Regional power provision (linking to IIIl I Archer Point mentioned) 30 Problems with Wind Turbines cost to run lines, lack of supply knowledge Il Discussion regarding community consultation The above table illustrates the breath of opinion on what constitutes a desirable type and mode of provision of power for the region. Whilst submissions received and meeting attendance was from less than 10% of the community population, most opinions appeared to well formed and based on first hand experience over years of living in the area, and there is a high correlation between the issues raised at this time with issues raised in previous surveys conducted as part of the community consultation process during the Douglas Shire IPA Planning scheme development in Broad messages that might be drawn from this consultation process follow: The satisfaction of one s experience with various forms of alternative energy production appears to rest largely on the operators knowledge and expertise; both in achieving an appropriate and adequate initial set up and correct ongoing maintenance. Education on the effective operation/maintenance of alternative forms of energy supply would be likely to increase the energy production and capture efficiency, equipment longevity and consumer satisfaction. The Missing Link Resource Co ordinators Pty Ltd Page 47

48 There is a growing awareness of the high carbon price being paid for operating individual household level diesel powered generators. There appears to be a social cost associated with the relative difficulty of living with high maintenance and/or inefficient alternative power sources. The aging population of this area means maintenance of units i.e. cleaning roof panels, carrying heavy batteries and fuel and keeping hydro units operational can become more fraught. Furthermore, the relative hardship associated with running a household under limited power conditions can bring pressure upon families leading to higher than expected levels of relationship break ups and community fragmentation as families separate to reduce the impacts of living without power mothers living over the river whilst dad stays home and runs the house and business. 9.2 Current Demographic Part of the planning process intent was to limit the potential population of the Daintree region. Within the Confidential Report to the Energy Department (2005) was the identified maximum sustainable population for the region: Table 15: Precinct predicted populations: DAINTREE PRECINCTS POPULATION Forest Creek / Cape Kimberley 453 (33%) North of the Alexandra Range to Cape Tribulation 911 (67%) TOTAL POPULATION 1364 (100%) Many contributors to this project commented about the changing demographic in this area. With a population that is now limited by the Planning Scheme, and where 47% of the population is older than 40 and aging, according to: Table 16: Bureau of Statistics (2006 Population Demographic figures): Age Statistics Postcode Region - QLD 40 to 59 31% 27% 20 to 39 24% 27% 5 to 19 20% 20% % 17% 0 to 4 6% 6% The aging of the population has significant implications for the effective ongoing operation of high maintenance electricity generation systems. Many of these residents have few traditional support networks, like family, as anecdotally, they have moved from elsewhere in search of a tree change. The maintenance of current energy supply systems requires consideration of the following: for Solar systems: daily checking of battery acids to measure their charge; regular removal of overhanging branches which block light; and regular cleaning of panels to remove mould and leaf debris; repairs caused by predation by rats or defecation by geckos ; the regular change over of batteries and replacement and disposal of old non functioning batteries. This requires a level of health and fitness and an awareness of workplace health and safety to do safely to ensure batteries do not explode. The risk with age of falling off roofs and the use of chainsaws also increases significantly. For diesel generator sets: regular filling of fuel tanks requiring movement of fuel from storage areas to the site of the generator. The risks area associated with carrying and inhaling fuel; and with spills to land or water. Transporting fuel over these remote and narrow roads; and storing large quantities of fuel to ensure that the site doesn t run out in times when access is limited, have inherent dangers. The risk of fire cannot be under estimated. 9.3 Fragmentation of Community The Missing Link Resource Co ordinators Pty Ltd Page 48

49 A significant issue raised was that many families feel they are forced to live largely separate lives, particularly during the wet season or when women are pregnant or someone suffers illness when the women and their children move south of the Daintree River to escape being flooded in; to access reliable power and to be close to medical facilities if required. Ms Helen Cooper wrote: We have a high instances of relationship break up in our community, I believe due to these influences of living with difficult alternative systems and or generators the outcome is that children are separated from one parent after the mother, wife, partner moves over the river living in an area close by but with mains power making life easier for herself and the children involved. The father remains on the property isolated from his family, often reverting to alcohol, drug even worse case scenario suicide. Resulting in a split household where by the children will only have one permanent parent and visit the remaining parent weekly, monthly etc..they are not divorced just separated due to difficult living standards. 9.4 Community versus Tourism Need Tourism Perspectives and Expectations The heavy focus on protecting this area by government policy and regulation is stated to be to preserve the tourism icon of the Daintree. The marketing of the area as a tourism destination dominates the argument for a seeming inconsistency of not providing power to the region. However, World Heritage nomination is not inconsistent with people living and working in, or adjacent to, a World Heritage Area. The Wet Tropics Plan allows for existing use rights, including residents living in the area, to continue. The area that this study relates to is largely outside of the World Heritage Area. The issue of ongoing protection will not be achieved only by excluding power. Ongoing protection needs to be addressed as part of the larger Rainforest Summit process, as identified by many contributors to this process. The Daintree Rainforest Summit, Dec 2008 discussed Visitor Satisfaction and one outcome stated that CSIRO research on attitudes did show people were disappointed and wanted more wilderness and more wildlife. The Great Tropical Drive information is contrary to this, instead directing people to zoos rather than to a place where they can experience wildlife in their natural habitat. Open paddocks are a mess right on the doorstep of Cape Tribulation. People disappointed that it is not a wilderness experience. Landowners with exposed blocks to roadway need to revegetate the roadway verges. Although an iconic destination, the Tourism industry from the highest level needs to take responsibility for ensuring that unreasonable expectations are not generated in the visiting public of what they are about to experience. There are ready made and excellent remedies to this situation, as illustrated by the following excerpt from A Handbook for Tour Guides: Daintree River to Cape Tribulation Daintree Rescue Program, Wet Tropics Management Authority and Qld EPA (1998) P 1 1: A word of warning: people often expect a wilderness experience rather than a coastline that has experienced significant development. It is a good idea not to enhance these expectations by over glamourising the area. Studies have found that the better informed the visitor is, the less likelihood of disappointment. Here is the challenge! Before your visitors reach their destination you have the task of bringing their expectations to a realistic level, without generating disappointment. Good luck! This is a significant part of what is needed to ensure that visitors are not disappointed with their experience. The solution has been identified, but is it effectively being put into place. Is the marketing of the region realistic? Do we build an unfulfillable expectation for tourists before they get here? There is an opportunity for the tourism industry to be involved in effectively translating the message and being part of the solution if funds generated by tourists offsetting their eco footprint can be focussed on revegetation works along the approach roads to the Daintree, so that a perception of wilderness is presented by a vegetative screen on the roadsides. This provides an additional benefit of acting as a The Missing Link Resource Co ordinators Pty Ltd Page 49

50 vegetation corridor, however, it must be balanced against the risks associated with vegetation close to roadsides screening cassowaries from the danger of being hit by fast moving vehicles. 10. Educating For Energy Efficiency; Demand Reduction and Ongoing Maintenance Requirements Initial reports and strategies for implementing renewable energy solutions in the Daintree Region (1996 and 2000 studies) spoke of the need for an education program comprising information on energy efficiency, demand reduction and maintenance requirements for the systems. This cannot be a one off program, as the players and the information changes rapidly. An ongoing education program is still essential to maximise the appropriate installation; efficient use and longevity of use of the energy delivery mechanism. There is potential, with the recent increased awareness of energy efficiency across Queensland, and the world, to tie into existing Ergon Energy Climate Smart and Cairns Regional Council sustainability initiative programs that are being rolled out. Of significance in this area, an education campaign should address the following: Regular and pro active /preventative maintenance. All these systems have a maintenance requirement to ensure their effective and long term functioning. In a tropical climate, this is exacerbated by high humidity and rainfall and its resultant growth of mould and rapid growth rates of trees. An ongoing and regular maintenance regime is required. A quote from Sandia Labs (USA) photovoltaic research section: Most batteries don t die, they are murdered.. similarly, More PV systems fail because of poor battery/charge controller performance than any other cause but a motivated householder is far more effective than a thousand controls. Energy conservation principles: o Reducing the number of appliances being operated at any one time o Choosing appliances with minimal energy consumption and maximum ratings o Turning off an appliance at the wall and/or unplugging any appliance not being used so as to reduce the demand from stand by power o Timing of use of high consumption appliances to when generators are running o Design of houses to minimise the demand for air conditioning and other cooling appliances; and to maximise the use of natural light. o Keeping seals on fridges and freezers clean to keep them working properly. Choosing generators appropriate to demand. Generators are very inefficient if under loaded. The temptation to buy a bigger generator just in case and then load it up with more appliances is common, resulting in greater consumption of fuel and inefficient use of appliances. Education about load and appropriate choice of generator could be part of that process. Dr Hugh Spencer among many others making submissions on many occasions over the years has reinforced the requirement for an effective and ongoing education program. Whilst pushing for minigrids for 10 years using a combination of grid and renewal sources, he states: We need to improve our conservation measures we still have empty rooms with air conditioners running. There is a need to implement energy efficiency program provision of training and assistance in this area. The quality of the submissions received and communications made illustrates significant evidence of the custodial attitude of people who choose to live in this region. Many have had long involvement with this process and more than fifteen years of committed environmental performance. Publicly recognising that custodial attitude and supporting people s efforts to be more energy efficient need to be part of a future educational program. The Missing Link Resource Co ordinators Pty Ltd Page 50

51 11. Position of Key Stakeholders The position of the key stakeholders was garnered from those who attended the December 2008 Summit and from direct communication where appropriate. Due to the short time frame since that meeting, policies have been deemed not to have changed. Main points from discussions with key stakeholders are summarised below: Queensland Government Position Jason O Brien attended the December Summit and advised that the government s policy was to complete the Daintree Buyback prior to any change in the policy. This may involve waiting until the purchased land is transferred to the National Park. The Daintree Buyback is well progressed with only 77 properties from a starting point of 338 remaining unprotected. The State Government is in discussions with the owners of 41 of the remaining 77 properties Department Of Minerals and Energy Position Dermot Teirnan from Department of Minerals & Energy made the following observations: Energy and power is fundamental to the public good, impacting health and education etc. If a reticulation system is installed, overhead lines will damage the environment, and continue to damage the environment. An underground system would need to be installed under the road. Renewal Energy Fund operated by Office of Clean Energy, provides grants or low interest loans grants can cover up to 50% of capital outlay, loans of up to 100% of cost. Sustainable Energy Saving Fund upgrade air conditioning units, refrigeration, etc apply for funds in grants or loans. Confirmed that the area can t have reticulated power because of government policy. Confirmed that the Mayor Cr Val Schier had spoken to Minister of Mines & Energy explaining that it s a different situation to what it was years ago. Government policy was put in place a long time ago and the situation has changed the first step to change that policy. It s not a hard task, up to Department of Mines & Energy to convince the rest of government that this is a good thing to do, with the support of the community. Need assurances from the community that this is what they want. What next? mini grids possible, but not popular because they are expensive. o Community Plan would give the Minister a lot of ammunition to go to Government. o Local community has driven change not impossible, but not overnight Ergon Points from discussion with Geoff Bowes from Ergon Energy included: Aware of issues of diesel usage, safety concerns of transporting fuel, environment, concerns about green house gas through use of generators. One solution might be that the government is lobbied to extend the exclusive zone. Cost extremely prohibitive and maintain reliability of supply Mini grids considered in exclusion zone Ergon would not have exclusivity and may be it should be looked at as a commercial option. Need to consider choice of supplier & what can be done if the supplier fails. Substantial contributions and assistance from government already is that double dipping. Multiple solutions Forest Creek Road might have one set of outcomes. Installation of overhead or underground will have environmental impact. Directional boring has been considered in the past. The Missing Link Resource Co ordinators Pty Ltd Page 51

52 There will be an environmental impact of establishing infrastructure. It is important to demonstrate what the net benefit is that an alternative power source addresses issues of transport, storage of diesel and reduces pollution Wet Tropics Management Authority Max Chappell, Manager Planning and Conservation, Wet Tropics Management Authority provided the following information on 7 th August 2009 WTMA does not have a specific policy position on any proposal to provide power north of the Daintree River or Heights of Alexandra however the provisions of the Wet Tropics Management Plan 1998 would apply in consideration of any permit application so received. It is understood the State Government decision to exclude Daintree from mains power supply still stands. WTMA, on behalf of the Wet Tropics Ministerial Council, commissioned Rainforest CRC to undertake the Daintree Futures Study (DFS) The DFS study has been released for public information. In addition, he confirmed that: No submissions regarding the power issue over the Daintree were received during the recent Wet Tropics Management Plan Review. 12. RECOMMENDATIONS the way forward: This report will be submitted to Cairns Regional Council to provide evidence of the current status of protection of the Daintree Region and the potential Green Power Delivery Options available to consider. This report is derived after considering the provided technical reports, reviewing the latest technology available, and considering the input provided by the local community. The Cairns Regional Council will consider this report as part of the overall planning process committed to as part of the December 2008 Daintree Summit. For the delivery of power to occur to these areas, requires a change of policy at the Queensland State level. This report recommends that the Electricity Supply in the Daintree Region Policy be rescinded. Council will need to apply again to the State for this to occur. Council has applied a number of times over the past 5 years for this policy to be rescinded without success. State government s decision will be based on the government s level of surety that the area is protected, as this report informs; and meeting competing needs across the state. In order to reduce community concerns over ongoing failure to deliver its anticipated power outcome, any decision on the delivery of power to this region requires clear delivery timelines and costs anticipated to be communicated to all participants. The Missing Link Resource Co ordinators Pty Ltd Page 52

53 13. References Australian Greenhouse Office Carbon Emissions Factors Mar 2009 Cairns Regional Plan Douglas Shire Planning Scheme 2008 Daintree Cape Tribulation Rainforest Summit 2008, 20/20 Group Australia Pty Ltd 19 Dec 2008 Daintree Futures: Alternative Scenarios Resource Requirements (Oct 2004) Rainforest CRC report to Douglas Shire Council. Daintree Futures Study (2000) Rainforest CRC, GHD and Far North Strategies. Report to Wet Tropics Ministerial Council Electricity Act (1994) Queensland Vegetation Management Act (1999) Electricity development opportunities in North Queensland Summary Report (May 2009) Roam Consulting Pty Ltd. Report to Queensland Government, Townsville Enterprise Limited, Advance Cairns and others. Integrated Planning Act (1997) Proposed Daintree Powerline Draft Preliminary Environmental Impact Assessment Study (GHD 1998) for FNQEB Queensland Government Policy: Electricity Supply in the Daintree Policy (2000) Solar RAPS in the Daintree Lowlands Hugh Spencer and Paul Hollis (Australian Tropical Research Foundation (2004) Wet Tropics in Profile (1996) Wet Tropics Management Authority Wet Tropics Management Plan (1998) Status of the Buy back Thanks to: All attendees at the public meeting and all who sent s, made phone calls and provided links to information to review and address this issue. A selection of their key points is detailed in the appendices. Especial thanks to Martin and Louise Visser Horsehoe Enterprises for supplying background information and copies of letters and previous submissions to government on this issue. Russell O Doherty for collating energy use information Dr Hugh Spencer for providing relevant historical reports. Frank Dallmeyer and his team at Tropical Energy Solutions for their technical review of the power supply options. Cairns Regional Council staff for their time and generous access to documentation and records. The Missing Link Resource Co ordinators Pty Ltd Page 53

54 14. APPENDICES: 14.1 Appendix 1: CONSULTANCY PROPOSAL TERMS OF REFERENCE Introduction Scope for this study, as provided by Cairns Regional Council Following the World Heritage listing of the Wet Tropics in 1988, questions were raised about the capacity of the Daintree Region to support the level of development possible with land already released for sale. As a measure to discourage development, no extension to the electricity network was permitted by the Queensland government in the coastal area to the north of the Daintree River from Forest Creek to the north of Cape Tribulation from This was later formalised through the Electricity Supply in the Daintree Region policy. The Electricity Supply in the Daintree Region policy states that resident of the Daintree Region are not permitted to be supplied electricity using a supply network, unless already connected but may provide their own electricity through the use of stand alone power systems. These may include renewable energy sources such as solar, wind or water power supported by individual diesel or petrol generators. Residents and business operators north of the Daintree River want a change in government policy that will result in a cheaper, safer and more environmentally friendly power source. The Cairns Regional Council provided funding to complete the study previously initiated by the former Douglas Shire Council. Residents have been unsuccessfully trying to get government to recognise that solar power is not an option in the rainforest and would very much like cooperation from the state government to develop efficient and environmentally sound power options. Solar systems can feed back into a grid at certain times of the year, but it is not a year round power source solution. There are calls for the government to have a serious look at a green grid supply in the denser community areas. For most of the people living in the Daintree Rainforest, a diesel generator is the main source of power. The results of a survey on diesel fuel usage found that more than 800,000 litres of diesel is burned each year. The message from residents is that it is expensive, noisy, and dangerous in terms of transport and storage of diesel and harmful to the environment. Background Council conducted a Summit at Cape Tribulation on 14 th November 2008 to identify community issues which needed to be given further detailed consideration. The Summit was attended by over 80 people. One of the key issues addressed at the Summit was: Energy supply options and management. This background information contains extracts from the Summit Report prepared for Council by the 20/20 Group Australia Pty Ltd, 19 th December The Current Energy Supply Options and Management Presently it is State Government policy that prevents Ergon Energy, or indeed any power supply company from providing reticulated power to customers. The Missing Link Resource Co ordinators Pty Ltd Page 54

55 STATEMENT OF POLICY ELECTRICITY SUPPLY IN THE DAINTREE REGION BACKGROUND: This Statement of Policy reflects the Queensland Government s policy position of opposing the extension of mains electricity supply north of the Daintree river and of supporting, as an alternative, the use of stand alone power systems. POLICY: The supply of electricity to customers in the Daintree Region is restricted as follows: 1. Supply of electricity using a supply network is not permitted, except to the following customers: a. Customers who are already being supplied electricity from an existing supply network; and b. Customers who are capable of being supplied from an existing supply network but only if, in order to supply electricity to any such customer, it is not necessary for the supply network to be extended in any way other than the installation of a service line to the customer s premises. 2. Supply of electricity from a stand alone power system is permitted. Universally, residents and business operators want a change in government policy that will result in a cheaper, safer and more environmentally friendly power source. And with regard to the latter, it is not just the tonnes of pollution from the diesel generators, but the noise pollution. Residents are paying six to seven times more per unit of electricity compared to the rest of the population. With the recent increases in the price of fuel many businesses nearly went under. There are safety issues of diesel storage and transportation the use of diesel generators encourages illegal storage of drums of fuel on properties. Stores are required as at times residents are flooded in and can t get to the service station. In addition it s a 30km round trip for some. Multiple Solutions to Power The Summit emphasised the point that the Daintree is not a homogenous area and that a one size fits all solution is not what the community wants. The point that there needed to be multiple outcomes for the different residential areas was mentioned by numerous people, including the Member for Cook, Jason O Brien, and the Ergon Energy Manager of Regional Services, Geoff Bowes. The Forest Creek community very definitely wants mains power. The community of Forest Creek is located south of the Alexandra Range and some of the residents are already connected to mains power. It does therefore lend itself more so than perhaps other Daintree communities to connection to mains power. The Cape Tribulation community This community does not want mains power and delegates were passionate about the fact that they had never pushed for mains power. Residents reported that in Cape Tribulation, within a seven kilometre strip, there were 10 generators running 24 hours per day. The community confirmed it wanted technology to provide a green power source to replace fuel combustion generators, and that it could power all businesses and residents in Cape Tribulation. Diwan and Cow Bay community The Missing Link Resource Co ordinators Pty Ltd Page 55

56 The solution in Diwan and Cow Bay was less clear cut a green grid system may be possible in sections of Cow Bay and Diwan where there is a concentration of residences, but it will be more difficult where houses are more sparsely located such as Turpentine Road, Buchanan Creek Road etc. Residents shared the results of a fuel usage survey they had conducted in order to get an accurate figure of how much diesel is burnt by generators. A combined total of 834,750 litres of fuel burnt in the last 12 months by just 15 businesses and 9 private properties. There are in fact 24 businesses in the region and many more private properties and therefore a conservative estimate of litres used is 2 million. The previous Mayor of Douglas Shire Council, Mike Berwick, said that this type of research was essential and shoed that a holistic approach is required. We need some process to carry forward all the issues in a package to the government deliver plusses to the environment not minuses in the development of power options. Daintree Buyback & Relationship to Power In light of the removal of development rights from over 300 properties, residents queried why this hadn t already paved the way for the policy on electricity supply in the Daintree region to be changed. Scope The Study is to be based upon the assumption that there could be alternative ways of providing power in the Daintree area north from the intersection of Forest Creek Road and Cape Tribulation Road, and that the Study needs to address the current situation and proposing possible alternative green solutions: eg: a green isolated network at Cape Tribulation community and possible extension of mains power only along Forest Creek Road, and the gravel feeder roads off Forest Creek Road. The scope of the study will include: A review of previous power supply studies in the subject area. This information obtained from Bob Baade, Executive Engineer, Mossman. These studies include: o Confidential Daintree Isolated Power supply Project Preliminary Assessment Report 25/10/2005 o Daintree Cape Tribulation Rainforest Summit /20 Group Australia Pty Ltd 19 Dec 2008 o List of properties not requiring power connection (eg: Buyback properties or lots that have had development rights removed.) Ascertain the current power supply arrangements, and their environmental impacts. Engage with stakeholders in key areas to asses options for Green source of power which enhance rather than detract from the environment. Outcomes: Identify approximate capital costs with each Option and the likely recurring costs to consumers, Council and /or State Government Identify indicative positive and negative outcomes associated with each option, including technical shortcomings or advantages, ongoing maintenance and operational considerations. Identify necessary changes to legislation that might enable options to be implemented. The probable outcomes could be detailed in the identified format: Identification of what changes are required to legislation, FNQ 2031 (p 47) and the Douglas Shire Planning Scheme. The outcomes from the DGPOS could be used to inform the State Government of the alternatives. The Missing Link Resource Co ordinators Pty Ltd Page 56

57 14.2 Appendix 2: TROPICAL ENERGY SOLUTIONS REVIEW OF ENERGY OPTIONS APPROPRIATE TO THE DAINTREE REGION. 2. Executive Summary Tropical Energy Solutions conducted a desktop review of a range of power supply options for the Daintree community. We identified that some data provided in 1998 and 2000 continues to be valid today, while other data and some conclusions would be no longer applicable in The review shows that operational expenses for power supply systems have grown significantly and at similar percentage rates as grid supplied electricity. Capital expenses for medium size power generation systems have benefitted from price reductions due to larger production volumes and advances in system architecture. Even greater reductions are available for renewable energy supply systems resulting in their improved commercial viability. Traditional limitations due to the climate, landscape and remoteness of the region are as valid today as they were in the past. However, these limitations can be minimised in well designed and professionally operated systems that could serve clusters of households and/or businesses across all areas of the Daintree. 3. Objectives Review the proposed options given in the Daintree Futures Study report against the requirements and opportunities present in Identify current factors that would have an impact on the implementation of these options. Quantify capital and operational costs for example systems Compare selected options against a set of relevant criteria Methodology Step 1: Review of existing information supplied in the Daintree Futures Study by the Rainforest CRC, November 2000 Step 2: Identification of relevant changes in legislation, technology and costs for the nominated development options Step 3: Comparison of key parameters for currently available development options 4. Overview of opportunities and key data The Rainforest CRC had prepared a comprehensive report titled the Daintree Futures Study in November It included a review and recommendations of the Electricity Supply opportunities for the Daintree community and builds on the data provided by the FNQEB commissioned Daintree Power Supply EIAS from Many of the underlying data and estimates are still valid while others require adjustments to be accurate for calculations in It is estimated that currently 400 properties and business s are occupied and in operation on the Daintree. They are powered by more than 150 stand alone remote area power systems (RAPS). Most of these systems are in operation for more than 10 years and require regular replacements of their diesel gensets and their battery banks to stay operational. The inverter systems and PV solar generators do not require regular maintenance and offer service life s from years (inverter systems) to years (PV solar modules). However, many system components are now reaching the end of their service life in these systems. The Missing Link Resource Co ordinators Pty Ltd Page 57

58 Diesel fuel prices are the largest component in the operational costs (opex) of a RAPS. Since 2000 the diesel fuel price has risen from approx. 85ct/l (source: ACCC, June 2000) by 50ct/l to approx. $1.35/l. For business operators who might claim fuel tax credits of 38.14ct/l the net cost rise from 47ct/l to 97ct/l resulted in a doubling of fuel costs. At the same time the cost of main grid electricity has risen in similar proportions from ct/kwh (2000) to ct/kWh for domestic use (Ergon Energy tariff 11) and ct/kWh for business use (Ergon Energy tariff 20). The important difference lies in the absolute energy costs for the average household or business operator and the following two report sections will provide further details on this subject. Opportunities to compensate for some of the price rises can be found in affordable energy efficiency measures and the increased availability and affordability of renewable energy systems. Over the last 9 years significant improvements in energy efficiency have been achieved in the areas of lighting (CFL and LED technology), refrigeration and air conditioning (inverter and VSD technology), computers and other appliances. Consistent use of modern appliances and smart load management can provide overall energy/cost savings of 25% or more and result in very short pay back periods in off grid installations. Unfortunately such savings can remain invisible where increased lifestyle and comfort expectations result in larger TV screens and the additional use of air conditioners and other electrical appliances. An example for significant energy efficiency gains was made available by the operator of the Cape Trib Beach House (Kevin Malone). Following the completion of a comprehensive Energy Audit by Tropical Energy Solutions the resort invested approx. $ 10, in various energy efficiency measures and procedure changes. A large number of the 570 individual loads where upgraded or replaced. The result was a 25% reduction in energy consumption. It translates into a saving of $35, per year. Further savings are expected from the ongoing fine tuning of the operation and the regular replacement of ageing appliances. Such minimal pay back periods are possible due to the higher cost per kwh in off grid situations. The extension of the Ergon Energy main grid would result in even larger cost reductions for businesses like these. Buying an average 550 kwh of electricity per day from Ergon Energy would cost $ (tariff 20) compared to burning 300 l of fuel at costs of > $400.00/day. These potential cost savings must be reviewed against the capital cost (CAPEX) and operational cost (OPEX) of a main grid extension. The year 2000 Daintree Futures Study report stated CAPEX of $10M for the most basic solution and >$16M for the desired and ecologically preferred solution. It would be realistic to expect CAPEX of $25M or more if a grid extension is build in Such investment would represent cost of > $62, per block connection (@400 blocks). Similar price increases would apply to the OPEX, but further investigations in cooperation with Ergon Energy are required to produce accurate data. 5. Review of grid connection options Building a reticulated electricity supply through a mains grid extension into all areas of the Daintree was nominated as the preferred option in the Daintree Futures Study report. It would include a mixture of above ground and underground powerlines for the 22kV and 12.7kV grid extension plus local LV distribution networks. The responsibility to build, maintain and operate these facilities would be delegated to Ergon Energy and electricity supply options for the Daintree residents and businesses would be similar to those for every other customer on the main grid. It includes the opportunities to purchase green power or to feed The Missing Link Resource Co ordinators Pty Ltd Page 58

59 power from renewable energy systems into the grid. It could also include the choice between different retail power suppliers. Due to the small amount of electricity generated in North Queensland the supply relies heavily on large coal fired power plants in Central Queensland. Significant transmission losses are the result and the calculated marginal loss factors create the need for subsidies from state government funds. The extension of the grid to the Daintree would add further loads and costs to this unbalanced grid. Depending on the design and application of future carbon trading schemes the strong reliance on coal fired power generation for the state wide grid, its extension to the Daintree would also produce a rather large carbon footprints for local tourism operators. Additional costs from carbon crediting schemes and disadvantages in PR activities could be significant in particular for eco tourism operators. The scope and purpose of this document does not include the review of detailed grid connection options as provided in the 1998 Daintree Power Supply EIAS for the FNQEB. We recommend a review in close cooperation with Ergon Energy. 6. Review of off grid power system options Both earlier reports provide data for a variety of distributed, off grid power supply systems. At present only site specific RAPS are utilised for the electricity supply to individual households and businesses. They require the safe supply, distribution and storage of at least 1 million litre of fuel/year at more than 150 sites across the Daintree area. It also creates the need for substantial operational and maintenance skills for all system owners. Where such skills are lacking inefficiencies, additional costs and environmental risks (e.g. fuel spillage) are the expected results. The scale of economies suggests the bundling of local electricity loads to local area networks of efficient size. The intermittency of many individual loads is compensated for in large networks and results in reduced peak and surge load margin requirements. The larger system size would also reduce the amount of maintenance and enable the operation through dedicated experts instead of semi skilled home owners. Reduced numbers of fuel storage facilities and their professional operation is seen as another benefit while connected home owners enjoy semi grid reliability and outsourced service responsibilities. Last but not least the positioning of a few larger RAPS in ecologically less sensitive areas provides environmental benefits and reduced noise emissions. Table for the RAPS costs in the Daintree Futures Study report shows the combined OPEX as approx. 1.5 M$/year. Of these total costs $675,000 would be allocated to the 10 larger RAPS that are nominated with OPEX of 45ct/kWh. The remaining costs would represent OPEX of 85 ct/kwh for the 175 small RAPS of 15 kwh/day capacity each. We agree to a different ct/kwh rating for small and medium size RAPS but believe that the differences are much smaller. The 45 ct/kwh figure is realistic at year 2000 fuel prices and we agree with the Ergon Energy supplied data on page 104 that show a 0.57l diesel/kwh. A rate of 85ct/kWh would be realistic when using 2009 fuel prices and we suggest using this figure for small and larger size RAPS. The advantages in slightly lower fuel consumption are typically eliminated by the need for professional, outsourced maintenance cost for the larger systems. In compliance with the proposal in the year 2000 report we calculated today s CAPEX and OPEX for two types/sizes of RAPS (see following table). The Missing Link Resource Co ordinators Pty Ltd Page 59

60 Type 1 15 kwh/day household hybrid diesel system with PV Solar Option Typical System Specifications: Encapsulated, electronically controlled Diesel Genset, prime mover rating 10kW / 12.5 kva High quality 48V Battery Bank with 830 Ah C10 capacity Operation for 2 2.5l/h = 5.0 l/day Emissions = 15kg CO2e/day or 5.5t CO2e/year CAPEX = $ 28,000 to 33,000 OPEX/year = $ 2,738 for 1,825l $1.50/l plus capital cost plus maintenance cost PV Solar Supply Option: 50% of annual load supply = avg. 7.5kWh/day 2 kwp PV Solar system plus regulator Additional CAPEX = $ 15,000 Reduced OPEX/year by 50% = < $1,400 plus capital cost plus maintenance cost Reduced Emissions = 2.7t/year Further Emission reductions are possible through the use of Bio Diesel instead of fossil fuel diesel. No funding assistance is available for hybrid power systems that do not include a renewable energy component. Until June 2009 the Federal Government RRPGP scheme provided a 50% subsidy for the CAPEX and design costs of the renewable energy components in a hybrid RAPS. In practice this translates into a $15,000 subsidy for small RAPS that include the PV Solar option as described above. Another $2,000 was refunded through the Renewable Energy Certificates (REC) when the REC s value was $50.00/unit. At the current REC s value of $35.00/unit only $ 1,400 in assistance would be available for the investor of a $45,000 hybrid RAPS. Consequently few Pic 1 Type 2 RAP 1 hybrid RAPS are being installed now. Instead diesel gensets without battery banks and inverters are preferred due to their lower upfront cost. The operator is then limited to the option of running a small genset continuously for 24h/day whenever constant power supply is required or to manually switch the genset on to operate electrical appliances. In practice this results in long operating hours at low generator loads. A very high fuel consumption, correspondingly high emissions and costs plus potential genset failures are unavoidable outcomes. Type kwh/day (=150,000kWh/year) hybrid diesel system with PV Solar Option Typical System Specification: Encapsulated, electronically controlled Diesel Genset, prime mover rating 40kW / 50 kva High quality 48V Battery Bank with 1,730 Ah C10 capacity AC coupled inverter system Operation for l/h = l/day Emissions = 504kg CO2e/day or 184t CO2e/year CAPEX = $ 75,000 OPEX/year = $ 92,000 for 61,320l $1.50/l plus capital cost plus maintenance cost PV Solar Supply Option: 50% of annual load supply = avg. 205kWh/day 50 kwp PV Solar system = 300m2 surface area 6 units PV Solar grid type inverter Additional CAPEX = $ 400,000 Reduced OPEX/year by 50% = < $46,000 plus capital cost plus maintenance cost Reduced Emissions = 92t/year Further emission reductions are possible through the use of Bio Diesel instead of fossil fuel diesel. The Missing Link Resource Co ordinators Pty Ltd Page 60

61 Pic 2: typical small capacity, high quality genset Pic 3: solar array The CAPEX AND OPEX example calculations for the type 1 and type 2 systems were selected to allow a direct comparison with the data shown in table 2.5.2, page 108, Daintree Futures Study. We used the OPEX rate of 85ct/kWh for the 2009 data and compared only the operators CAPEX and OPEX. The CSO (Community Service Obligations) expenses were excluded from this comparison. Quantity CAPEX OPEX 2000 Type 1 RAPS 175 7,188, , Type 2 RAPS 10 1,500, , Total Cost [A$] 8,688,536 1,497, Type 1 RAPS 175 5,250, , Type 2 RAPS ,000 1,275, Total Cost [A$] 6,000,000 2,097, Type 1 Solar Option 175 2,625, , Type 2 Solar Option 10 4,000, , Total Solar Options 6,625,000 1,048,895 Table 1: CAPEX + OPEX Comparison The comparison shows that the operational expenses for RAPS have increased significantly as a result of the fast growing fuel prices. In contrast the CAPEX for these example systems have been reduced significantly by > 30% despite 9 years of CPI increases. Adding a substantial PV Solar power supply contribution of 50% would more than double the CAPEX but the OPEX savings produce a payback period of 6.3 years if capital cost expenses are excluded. The resulting OPEX savings are likely to increase as fuel prices continue to rise for the foreseeable future. Modular AC coupled inverter systems can be established as small systems without renewable energy feed in. Their network could then be gradually increased in size and additional power sources like PV Solar generators could be added. This would allow local area operators to connect their existing renewable energy sources to the AC grid by separate, local inverters. Consequently existing hardware is utilised and the operators can define the date of grid connection to suit their requirements, e.g. when their battery bank or generator reach the end of their service life. Such AC coupled inverter battery systems cover nominal capacity ratings between 2 and 180 kw resulting in AC grid capacities in excess of > 500kW once diesel gensets and PV Solar generators are added. See Appendix 1 for a system layout example. The Missing Link Resource Co ordinators Pty Ltd Page 61

62 7. Key criteria and comparison of options CAPEX previous reports demonstrated the high capital costs of an ecologically acceptable main grid extension solution. Ongoing increases in material and labour costs result in further price increases for such solutions. In 2000 RAPS system used to be built in small quantities and from components that were manufactured in small quantities. Their capital costs used to be relatively high as a result. The establishment of large scale manufacturing facilities for inverter systems and PV Solar modules has provided much reduced prices for these components. It is expected that further efficiency gains are possible and price reductions are likely. OPEX operational costs per produced kwh are directly related to the size of a system and the selected power/fuel source. The economies of scale suggest systems of medium to large size and the bundling of local loads/demand. All available power sources shall be compared regarding their current and future availability and cost. Green House Gas Emissions various power sources and system designs provide opportunities to control and reduce the GHG emissions from local power consumption. Both, main grid and local RAPS solutions offer numerous options for the integration of renewable energy sources. We recommend a review of the calculations that produced the data for table shown in the Daintree Futures Study Report on page 105. Transmission Losses ideally transmission losses are kept to minimum as they result in additional costs, emissions and indirectly capital costs and maintenance cost for the network. In the case of the Daintree location within the East Coast Grid these transmission losses are substantial unless large scale local power sources are added to the main grid. Local area grid sizes must be defined with transmission loss minimization strategies. AC coupled RAPS are preferred over DC coupled systems due to their ability to minimise transmission losses within the system. Ecological impact from construction The Daintree environment is regarded as a highly sensitive and valuable asset that requires short term and long term protection from unsustainable development. The building of LV and MV power lines would require the temporary destruction of fauna and flora habitats. Suitable construction techniques and mitigation techniques are recommended but result in additional capital costs for such solutions. Ecological impact from operation Removing the power generation source from the Daintree area is seen as the most desirable solution against this criteria. Local power generation will have a smaller impact if it is limited to a small number of medium sized systems (especially if designed and operated by experts) compared to a large number of small systems that are operated by individual households. Noise emissions can be minimized to very acceptable levels by investments into encapsulated diesel gensets. Supply Reliability Residents and business operators on the Daintree require reliability and predictable costs for the operation of their properties. Modern, well designed systems offer these features but many of the home build type 1 RAPS struggle to meet such requirements. Negative experiences with these systems can reduce the willingness to invest funds into new RAPS installations. Integration Potential for Renewable Energy Sources and Demand Management Over the coming years and decades it will become increasingly important to reduce the contribution from fossil fuel power sources to the power supply systems. A system architecture that allows the cost effective integration of renewable energy sources will provide a valuable asset rather than a liability to the Daintree community. In principal all power system solutions allow the gradual integration of additional emission free power sources, however, medium and larger size systems and networks offer many advantages in the positioning of power sources and in the management of intermittent power sources (e.g. wind, solar, hydro). The Missing Link Resource Co ordinators Pty Ltd Page 62

63 The following table shows a basic, unweighted comparison of 3 power solution types against 8 key criteria in no order of importance. The development of more detailed and weighted assessments are recommended to assist in the decision making process. Criteria\Power Solution Main Grid Type 1 RAPS Type 2 RAPS Extension CAPEX Very High Medium Medium OPEX Low High Medium GHG Emissions High* High* Medium* Transmission Losses High Low Low Ecological Impact from construction High Low Low Medium Ecological Impact from operation Low Medium Medium High Supply Reliability Good Medium Good Integration Potential for Renewable Energy Sources and Demand Management * based on dominant current fuel sources = coal or diesel Good Medium Good 8. Suggestions for additional investigations This Daintree Energy Strategy Review was conducted as a desktop study using materials from earlier site visits by the author in combination with materials from other expert sources. A strong focus was placed on the review of earlier nominated development options against currently available system designs and their associated costs (CAPEX and OPEX). Additional investigations and calculations are recommended to obtain key parameters for the design of ideal size RAPS systems. The combination of correctly sized battery banks with intermittent power sources (e.g. PV Solar) and controlled power sources (e.g. diesel genset) must take into account the local area load profiles including seasonal variations and future extension plans. Where these calculations are based on estimates and assumptions reasonably large safety margins need to be applied. The efficiency and reliability of power supply systems will benefit from accurate planning, engineering and demand management. Tropical Energy Solutions can provide appropriately qualified staff to assess current power requirements and to develop suitable power system solutions. The Missing Link Resource Co ordinators Pty Ltd Page 63

64 9. Disclaimer & Appendices Appendix 1: Layout Schematic for mid sized, AC coupled RAPS Source: SMA product information Example of a modern 3 phase, AC coupled RAPS with 60kW battery inverter supply, 120 kw PV Solar supply and 100 kw diesel genset supply in compliance with Australian standards and regulations. Disclaimer: This document has been prepared by Tropical Energy Solutions Pty Ltd for the client named on the front cover of this document. It may not be relied on by any other person without the prior written consent of the author. The document has been prepared in good faith: - Using information supplied by the client and/or obtained by Tropical Energy Solutions from various sources - Is based on Tropical Energy Solutions interpretation of the relevant standards referred to in the document The client is urged to make his or her own assessment of the summaries and recommendations contained in the document and to satisfy him or herself as to the truth of all information contained in or used to form the basis of this document. All statements in the document in respect of government rebates, power outputs and expected life of components are based on Tropical Energy Solutions reasonable beliefs at the date of this report and no warranties or representations are made or given in respect of those matters Appendix 3: Community feedback: selected responses: The Missing Link Resource Co ordinators Pty Ltd Page 64

65 A number of the community felt sufficiently strongly about this issue to respond in writing. I thank them for their reasoned arguments and definition of the issues which face them, their families and their business operations. Included here, in no specific order are a selection of responses defining the key issues eloquently. Kevin Malone Managing Director: Cape Trib Beach House Your community meeting flyer was passed onto me by my manager at Cape Trib Beach House. In reply to your questions, I will provide answers in the same sequential order as they appeared in your flyer: 1. We currently use a 100 KVA diesel generator (brand new) that powers the resort as our main source of power. 2. I have considered solar and battery bank options but am wary of going down this path as employed staff will not be as diligent as an owner when it comes to maintenance and supervision of power supplies that they are not familiar with. 3. I would prefer mains power but second preference would be a central diesel generating plant for the Cape Tribulation area only similar to that used in the Torres Strait Islands with 2 or 3 full time staff so that it is manned by professional trained staff. 4. I would think that Ergon Energy should be the provider of the power. 5. I would be prepared to pay for kilowatt usage on a monthly basis but as I have just spent over $40,000 on a new genset then I am not in a position to contribute more funds. Kelvin Davies Executive Officer, Rainforest Rescue The report to Council on the summit did not include all of the views expressed. There is a concern held by many that that extension of electricity supply would encourage further housing development and also escalate land prices compromising any further land buy back. There remains an estimated 200 properties north of the river that have a development right. If these properties are developed it would have a very negative impact on the conservation of the lowland Daintree rainforest. A number of people believe that extension of the electricity supply should be carefully considered and that it should only occur in conjunction with a commitment to further conservation measures. David Cook: Rainforest Rescue Having attended the Daintree Power Study meeting in the Daintree this week, Rainforest Rescue requests you take a few moment to consider key issues in this week s debate over reticulated power in the Daintree. From our perspective these include: the fact that it went ahead prior to the formation of a Daintree Steering Committee, contrary to the recommendations of the Daintree Cape Tribulation Rainforest Summit; the very small numbers of persons who voted for reticulated power at the Diwan Sports centre meeting on Tuesday 18 August 2009 was insufficient to provide CRC with a mandate to proceed with an expensive power study, rather a community postal survey of all rate payers and other key stakeholders should be conducted to further assess the level of support for mains power; no consensus could be achieved at that meeting without the proviso that any power grid would have to supply green power from renewable power sources and should not involve felling of any number of trees; at present the debate appears to be driven by a vociferous but small minority of business houses; a key issue in the Daintree Power Study is the number of properties that can still be developed between the Daintree River and Cape Tribulation, this figure is a minimum of 186 properties including 9 commercial or tourism properties NOT the figure of 30 that has been quoted in the media recently; undoubtedly the provision of affordable mains power would escalate property prices in the Daintree as it would then be a much more attractive area for the average person to live and more profitable for businesses; The Missing Link Resource Co ordinators Pty Ltd Page 65

66 mains power would also be an incentive for the development of most or all remaining 186 properties in the Daintree, greatly increasing the fragmentation of the rainforest; The development and settlement of significant numbers of the 186 properties would: seriously exacerbate the effects of rainforest fragmentation; result in an increase in local road traffic throughout the year early in the mornings and late afternoons/ evenings when wildlife is most vulnerable; mean a rise in numbers of free ranging dogs and cats killing local wildlife; increase the rates of both new clearing and incremental clearing; increase the spread of weeds to all new properties and access tracks; more house clearings, tracks and roads would result in edge effect desiccation of the rainforest during the dry season making it more vulnerable to fire as dry seasons intensify due to climate change; give rise to greater demand for suburban services inevitably leading to overall increases in development, further incremental clearing and more ongoing fragmentation; reduce the wilderness and ecotourism appeal of the area; put the 122 rare and threatened species found in the Daintree under additional pressure; adversely impact Cairns and Port Douglas tour operators and hoteliers. A full survey of all major stakeholders in the future of Daintree power should include Port Douglas, Mossman and Cairns based tourism operators. For more detailed discussion please refer to the attached meeting notes and letter to the consultant undertaking the study. Kind regards, David Cook conservation manager daintree buyback and protect forever project George Gonthier Daintree Vanilla And Spice Thanking you for your of invitation to participate in a discussion relating to power supply to our communities in Cowbay, unfortunately I will not be able to attend, but I fully support the communities request, wether it be stand alone or grid supply. However I have motioned several times before, if we want green power that will work is to use a current turbine or tidal turbine in the Daintree river, it will have minimal impact on the environment, and cost effective as there are no pollution attached to it as for the cable it can be laid underground in the middle of the road, that way no trees get cut down. To answer your questions regarding generators, I have 3 of them 1.8 kva, 3kva, 2.8kva. we always uses the 1.8 kva, and my fuel bill has skyrocketed since the last budget, and I cannot pass the cost on to my customers.i do have solar as well but they don't work when heavy clouds are about, a fridge will draw power faster than the panel can charge the batteries, however my options are to turn my generators to gas power and it is expensive to set it all up. Regards, George Gonthier General Manager Daintree Vanilla & Spice Martin Visser Dragonfly Café On Sat 22 nd (Aug) I went past all businesses in Cape Tribulation to find out how come they were not at the meeting. Most had no idea it was on. Had not been notified. Myself and Louise only found out when there was a mention of it on the 6.30am radio news. We get no newspaper delivery at Cape Trib. I did see an article in the Gazette. So that was the reason no one turned up. I asked everyone are they still in favour of getting the power on. YES YES YES Please. The Missing Link Resource Co ordinators Pty Ltd Page 66

67 The cost of generating power for each business is crippling. I closed the Dragonfly in Feb 08. Our fuel bill was $ for the year. I have had it on the market for two years. When people ask for the financials and spot the diesel cost, they lost all interest. That and the downturn in tourism makes it very hard to sell. However, our running costs are not only diesel. We have to change the oil every 200 hrs. Most generators have a life span of 2.5yrs. the replacement cost is according to kva. Between $25000 and $ is normal. Now all these diesel fumes are going into the rainforest canopy. The same canopy that the government is so very much in favour of protecting. Tourism tourism. Its about time they see the light and give us mains power. Go your hardest. Hope we finally get the power on at the same rates as people pay south of the Daintree River. Yours Martin Visser. Dr Hugh Spencer: Re Daintree Green Power Options Study Community Meeting Tues 18th Aug. 1) for some reason we are not on the e mail data base provided to you by Council I got this second hand. 2) We (Australian Tropical Research Foundation) carried out a very detailed survey of RAPS systems in the area (commissioned by EPA) in 2005 see attached files. (actually one of a number of such surveys we have carried out over the past 20 years here). I have attached the pdf version of the report. Basic "take home" message is that for a large number of households in the Daintree lowlands, solar RAPS was accepted only 1) because it was Government subsidised at the time 2) there was nothing else available 3) the Nation/Liberal (and Aust First) parties all promised the provision of grid power were they to get office. (I suspect, that this area is still primarily Nat/Lib, Aust First voters so that dynamic won't change quickly). For this reason, the Daintree lowlands are regarded as the world's largest "non intentional" renewable energy community. Associated with this, and I suspect still, house holders seem to refuse to take an interest in the effective operation of their systems resulting in a very high system failure rate (usually batteries) this situation can be readily verified by the experience of experienced solar installers such as Nick Chapman (Solarworks, Malanda). This situation could (perhaps still) be addressed by actually involving house holders with the realities of life here early installers by and large did little or nothing to educate the house holders in the realities of operating renewable energy systems, and the Qld Government of the day didn't involve itself in promoting the effective use of the systems. This has been complicated in the past by candidates for Government from the Right of politics playing the "we'll provide grid power, the moment we are in office" game and, in the event of the Borbidge Gov't, nothing happened, as there was no funding available and the Corporatisation of Electricity Services has The Missing Link Resource Co ordinators Pty Ltd Page 67

68 meant that the market was not considered sufficiently large to justify tax payer funded investment (plus this is an economically depressed area, and is likely to remain that way). Plus the additional costs of providing underground/undersea cabling to address WH concerns, greatly increased the costs of providing power. Climatically, the Daintree is not photovoltaic power friendly but by using modern technology, this can be addressed to a far more effective degree than at present (one of our areas of expertise). There is also a reluctance to ask anyone who ACTUALLY might know about renewable systems, for information Fred, down the pub, who's had battery problems,is more likely to be the source of information. This is an aspect of the very peculiar social dynamic of this area ("more like Belize", said a visitor). Issues: Major issue is the continuing conflict between development and the maintenance of World Heritage Values, in the face of diminishing governmental interest in this area (and a rising 'sea change/tree change' population). The sealing of the road created a burst of settlement; a burst that could have been avoided had the original buyback scheme taken on board the 350+ settlement blocks that were offered to it in '94 5. The present land buy back scheme (DSC 20/20 Group has been eminently successful, augmented by Daintree Rainforest Foundation/Rainforest Rescue, but at least another 200 blocks need to be resumed, for the long term ecological stability of the area to be assured. At present, many settlers manage to survive for 2 3 years before moving on, as the climate during the WET can be intolerable to many. Provision of any 'GENERAL' power source that could conceivably be regarded as "grid connected" will greatly accelerate block uptake. I have made a number of submissions on the issue in the past and basically, the situation is that a 'mini grid' of commercial blocks, makes sense (and I have promoted it for years) in the commercial precincts of Cow Bay and Cape Tribulation, BUT it MUST be restricted to commercial facilities. Extension to domestic households would be the green light for a serious settlement 'invasion' While a commercial mini grid will by itself greatly reduce fuel usage, without strenuous efforts at reducing energy consumption by commercial premises (there presently seems to be little if any comprehension of energy conserving measures), it won't make much difference. To my understanding, we DO NOT need a change in legislation to establish privately operated mini grids as private groups can in fact create a power providing network and charge appropriate rates it is the case in at least one of the islands off the Qld coast. Such a consortium would be obliged to charge the real costs of operation and supply, which would probably amount to over $1.00 per KWH (the costs of providing significant PV or even generator supply to most places exceeds this, but tends to be 'invisible' to most operators). Essentially increasing settlement and maintenance of the environmental values of a unique part of the world, are inimical. We already have Mission Beach we don't need another..! Oh, by the way we (Cape Tribulation Tropical Research Station) are effectively self sufficient for power...and not interested in connection. I hope to have an opportunity to discuss this (and possible system design) with you. Sincerely Dr. Hugh Spencer The Missing Link Resource Co ordinators Pty Ltd Page 68

69 Director/CEO Australian Tropical Research Foundation. Dan and Julie Kiely In reference to the above meeting my husband and I are unable to attend on that date so we are taking the opportunity to our views as suggested. We begin by advising that we are quite happy to remain on solar power with back up generator. Actually we prefer to remain on this. The government has spent a lot of money to enable solar power to this district and we also have contributed financially to the system. We are the only house down Mangrove Road, and we would definitely not be happy to now have to contribute to another type of power. We think that the policy should include..."those who do not wish to hook up to the mains power should not be forced to, nor should they be made to share in the costs for others to gain mains power. This is doubling up on costs as solar was basically forced on us to begin with." Although the costs for solar were originally subsidized by the government there have been ongoing and upgrading and renewing costs over the years. Further, the policy should include...'seeing that this is a special area and the people have been studied, studied and restudied almost into oblivion those wishing not to connect to a grid of mains power should not be forced to, but be allowed to live peaceably with their chosen power option without being financially penalised." Thankyou for this opportunity to contribute our views. Janice Van Der Zwaan I m not one of those who is hanging out for mains power. I would be more than happy with affordable access to components for our own system or some standalone community system Even it was set up as a research experiment that could be promoted on the world stage. Think of the PR spin!! Have to admit while I hate generator noise /pollution I understand why folk use them so much. So many of the old timers have RAPS systems that have come to the end of their life and the cost of a new system is crazy. Rebates aren t what they were and the process to access any assistance is just too hard basket for many. A friend of mine while working as a project engineer for Ergon years ago did a couple of feasibility reports on power supply which hinged largely on U/G supply utilising the road reserve and areas where Telstra have phone lines laid. We all have a phone line out the front of our properties which I find an odd priority given the power situation. While my understanding is that modern solar is so much better than the efficiencies of the systems put in 10yrs ago sun is still not the most reliable energy source for us unless battery capacity can allow for the wet season low levels. For that reason I have got to admit both micro hydro and wind intrigue me. There is a guy on Buchanan Ck Rd with a wind set up but haven t had a chance to talk to him about it. I also saw a Daintree micro hydro system on You Tube which was clever (noisy and complex but clever none the less) From: Ool1HfYWClM/micro_hydro_electric_power_plant/ This is the Hydro Electric Power Plant I designed and Installed at my property in the Rainforests of The Daintree. There is no Grid Power in this area, so you have to make your own! Solar Power isn't the best option due to the amount of overcast, rainy days we get here, especially during the Monsoon [Wet] Season...We can get up to 5 meters of rain a year, and since there's a couple of creeks that flow through the Property...what better way to create power. Details : 540 meters of 120mm [5 inch] Pipe. 50 meters Head. Francis Turbine driving a 8Kw Brushless Alternator. Output : Up to 5 Kw [ 20 Amps ] 240 Volt AC. Water Flow : Up to 20 litre / Second. The Missing Link Resource Co ordinators Pty Ltd Page 69

70 Regulated by an Electronic Governor and Water Flow. Helen Cooper I have collated important issues to consider in the need to bring in a decent power source for our community north of the Daintree River Background History The local, federal, state government, greens and other individuals would state we all settled here knowing there were no facilities! The answer to that comment is that people genuinely bought their properties under the umbrella of a subdivision funded by Quaid. The national Party at the time in government promoted the subdivision, including real estate agents selling properties. Both parties stated phone lines, mains power, sealed roads. The unfortunate promise was diminished when the Goss Labour government was elected he came over the ferry and stated no power. The interesting scenario to that is a pre election promise was to deliver mains power to our community and encouraged business people to build resorts, businesses including the Cow bay Hotel. Business people invested money, built resorts, individuals, families built houses on the promise of power which was retracted. Thus in turn the anti power legislation was put onto the area by the Labour Government and remains in concrete in today. The previous Douglas Shire Council always stated that they as a council were not able to service the subdivision. This attitude remains current, even though we are part of the Cairns region now. Residents, businesses provide their own water, sewerage treatment and power source. Further information Previously the state, local government put restrictions on settlement,including mains power to prevent rapid development. Now the development issues are resolved i.e town plan, vegetation protection laws, development zoning including iconic legislation and the secured purchase of the green zones reaching their allocated buy back program, there is no valid reason why our community can't have power. Cost and Maintained Issues with the Remote Power Systems The outcome of this legislation is that businesses, residents are struggling with the high costs of generator fuel, maintenance of the remote Area systems.( batteries, solar panels, inverters and other associated equipment with alternative power). Severe ongoing financial expense for residents, businesses, maintaining generators, batteries that deteriorate their charge, solar panels, constant repair, replacement of parts and required services. Pollution of the fuel exhaust into the rainforest environment, animals,humans alike we all breathe the polluted air and are affected. In turn the carbon footprint is very high in this area. The high cost of fuel remains a considerable burden to business and resorts often these people are really struggling. Many others are making $ money out of our area including airlines and others the saying "Come to the Reef and Rainforest" Our community is not getting an equal share in this income. We are doing it poor and are struggling hard. Health Issues For Residents *Daily one has to test the specific gravity with a hydrometer, the fluid in the battery is sulphuric acid which is quite toxic on the skin creating burning, also breathing in the fumes. The radiation of energy from a generator is high due to the generator having to be close to the house so the appliances, batteries keep their charge. This is a definite health issue for all concerned. *The daily usage of petrol and the storage of petrol on properties can be explosive. The Missing Link Resource Co ordinators Pty Ltd Page 70

71 Also including travelling with cans, tins of fuel in cars, fuel trucks on our roads delivering fuel to resorts, businesses and residents. Fuel trucks being a dangerous traffic hazard competing with the tourist traffic and locals on the narrow range road. *Ageing population of residents who settled in the area now remain having to lift heavy generators, batteries and the constant maintenance, also living on old age pensions with a limited income. Some elderly residents, including the pioneer long term residents are often forced to live over the river and leave their homes because of the constant difficulties embraced when living with alternative power, especially in the wet season when the systems break down due to the extreme heat and constant rain. *Some residents including my husband David and I spent several wet seasons living in Melbourne due to the difficulties, safety issues maintaining the alternative power system in the wet season. It was cheaper to go and rent and live some where else. In turn we had to leave our home because living their without mains power in the wet season is so expensive and stressful. *Climbing on roofs to clean panels which have to be cleaned on a regular basis due to mould build up and dust as most of the residential roads remain unsealed. Residents falling off roofs especially in the wet season with the heavy rainfall. Social Issues Families especially the women find daily maintenance of their house difficult due to the ongoing costs of generator fuel and alternative systems etc..in turn these constant issues put a lot of emotional stresses on relationships. The high financial outlay of solar alternative systems the residents are paying off the loans.some loans are from the original systems that are now redundant. Women and children suffer when they have limited clean clothes, refrigeration of food, personal hygiene issues, and difficulty accessing computers to complete normal homework and or further studies. *Normal appliances Australians take for granted individually or in a community we find difficult to have due to the power systems in place. *We have a high instances of relationship break up in our community, I believe due to these influences of living with difficult alternative systems and or generators the outcome is that children are separated from one parent after the mother, wife, partner moves over the river living in an area close by but with mains power making life easier for herself and the children involved. The father remains on the property isolated from his family, often reverting to alcohol, drug even worse case scenario suicide. Resulting in a split household where by the children will only have one permanent parent and visit the remaining parent weekly, monthly etc..they are not divorced just separated due to difficult living standards. *Underground mains power will enable residents to live a normal life like every other Australian that takes for granted. Those who remain having workable solar panels can then feed them back into the grid. *Residents who want to rent their properties and renters are restricted due to the generators and alternative systems. Renters find the systems difficult to maintain and or understand. The resale value on properties is also restricted because of the power situation", it is not a level playing field" Often our homes are devalued in comparison to other properties in the local area over the river. *The storage of old and existing batteries remains a problem, hundreds of dead batteries are sitting at the transfer station(tip).no one wants them, they remain decomposing into the soil. The batteries are not taken out weekly with the local rubbish removal. Further Information I hope all tiers of government involved will subsided power for our community we have suffered enough. As a quote from the "Rainforest crc the Vision For Our Community page 4" The Missing Link Resource Co ordinators Pty Ltd Page 71

72 PEOPLE SOUTH OF COOPER CREEK WILL CONTINUE OR WILL HAVE THEIR REMOTE AREA POWER SYSTEM RAPS OR WILL HAVE CHOSEN GRID ELECTRICITY AND USE IT AS A GREEN GRID SUPPLYING SURPLUS ENERGY GENERATED BY RENEWABLE ENERGY SOURCES BACK TO THE GRID" I need to emphasize that our community needs to be totally subsidized for power connection especially as the previous mayor Mike Berwick stated "when the green zones were secured,thus the buy back scheme has succeeded. The green zones have been allocated and purchased we can now have power to our community."in conclusion residents and businesses did not elect to have generators and batteries. These systems were offered to us as no other alternative power source. Those who can't afford a huge outlay including ongoing costs basically live below the poverty line. I hope the current power survey will empower our community to gain a better more cost effective, less polluting system that already exists. Yours Sincerely Helen Cooper Bloodwood Rd,Cow Bay brasiercooper@hotmail.com Digby Gotts Cape Trib Exotic Fruit Farm I'm unable to attend your meeting on Tuesday 18th but would like to offer the following opinions. I would not like to see mains grid power brought north of the Alexandra range due to the environmental destruction that would cause, both in cable routing and in consequential residential occupation. The various buy back schemes have reduced the potential for the latter but not eliminated it. I cannot imagine that a marine cable would be cost effective for the low number of installations required. There is no one solution for the whole area. Forest Creek, Cow Bay, Turpentine Rd, Thornton Beach and Cape Tribulation each have different demands and different needs and so cannot be provided with similar power options. At Cape Tribulation, we believe that the most appropriate solution to provide power would be to run underground cabling throughout the valley, from existing generators based at Cape Trib Resort. It would be essential to allow existing solar installations to contribute to the system while periods of high demand could be met from the supply with two way metering monitoring the amounts contributed and withdrawn from the system. The high frequency of cyclone activity and projected increase in cyclone activity means that undergrounding of cabling is more likely to be cost effective in the long term. We have successfully established a sustainable bed and breakfast ( 6 years), fruit tasting tour (13 years) and commercial orchard ( 10 years) using solar power with a diesel generator backup. Average generator running time is less than 2 hours per day for battery top up and pumping water (including irrigation). However, we are still unable to use an electric jug or hairdryer or microwave or install a cooling room for fruit. All options a normal business would regard as essential. We are content with the current power availability although we would be pleased to be able to access more power at some times, particularly if those withdrawals balanced the times of contribution. We would be unable to contribute significant amounts of money for installation or running costs of any additional mains supply beyond what we already have spent, unless it could be shown that there would be significant savings in energy and fuel by participating in a community power scheme. I am willing to continue discussing various options by . Regards Digby Gotts Cape Trib Exotic Fruit Farm Cape Tribulation The Missing Link Resource Co ordinators Pty Ltd Page 72

73 Dr Kelly D Lash, B.A., Hi, We buy our power from PK's Jungle lodge. Roughly about $15, / year. Loads of problems with the power dropping out unexpectedly. shut downs for service... We seriously have considered moving do to the high cost and all the problems. Thanks Kelly D Lash Director Strive Till We Die Dr Kelly D Lash, B.A., Pharm.D., R.Ph. info@capetribpharmacy.com Striving to improve lives Cape Trib Pharmacy Shop1 Lot 11 Cape Trib. Road Cape Tribulation,QLD 4873 tel: fax: mobile: Mike Darcy (mtdarcy2000@yahoo.com.au) 17/08/09 When the report was first mooted by the last Mayor of Douglas Shire, I wrote to each of the Councillors urging that the Terms of Reference establish some key principles, basically revolving around universal delivery and equity, along with a hard look at the changed nature of the earlier decision to prohibit power to residents. CRC Scoping Paper I note that there are no Terms of Reference in this current study. Rather CRC has provided a Scoping paper entitled Daintree Green Power Options Study There are several aspects of this Scoping paper that are of concern. 1. No principles of universal coverage are explicitly included therefore it provides a wriggle factor for those disposed to partial solutions; 2. Perhaps unintentionally, it is strategy based rather than outcomes based. For example, the Scoping paper seems to rule out mains grid supply without any evidence or argument why this has been ruled out, other than broad brush economic and/or sustainability truisms; 3. There is no appreciation that circumstances have changed dramatically since 2000 there is a whole new paradigm, which the report needs to articulate clearly; 4. The opening statement of the scoping paper gives no comfort to residents outside Forest Creek or Cape Tribulation. For example, should the current Discriminatory 2000 Regulation be removed, this would allow Forest Creek and Cape Trib to advance separate solutions, which by their existence would greatly diminish universal coverage. The Four Tribes The Daintree Coast community comprises four different tribes the Townies, the Loyalists, the Straddlers and the Separatists (I won t nominate which are which). The study and the Cairns Regional Council, need to recognise that the four tribes might want different outcomes, and will of course be happy to divide and conquer by putting forward solutions that suit their own tribal wants. All parties must be prepared, if possible, to arrive at conclusions and solutions that don t meet the wants of any one of the tribes. This will involve leadership, and maybe some hard decision making, but must be based on universality of coverage and evidence based logic. The Missing Link Resource Co ordinators Pty Ltd Page 73

74 Some untested and/or irrelevant views I have picked up a number of statements or views which are utterly wrong or at least contestable. I am sure that there are others. My point is that our community needs to work with the consultant to bring out these and other views, challenge them with real evidence and modern knowledge, and work them into or out of solutions. I have raised those of which I am aware, with brief comment. Mains power is not clean or green. Of course, no power is totally green but maybe in this environment mains power is cleaner than other methods. We know that the carbon footprint of generator and solar is substantial and arguably worse than mains supply. We need an evidence based not opinion based approach to finding the answers. Also, with the Rudd Government moves to place a special tax on and therefore clean up our big power generation supplies, we can build in clean efficiency dividends into mains supply in the future. This future needs to be factored in to the argument. Mains power is too expensive. This could only be the case if a series of de centralised or two class solutions provide solutions that are not universal even then the real total cost of private and public power needs to be factored in. However, centralised systems are simply always cheaper than stand alones or de centralised. The real costs that need to be teased out, include: Capital and operational costs of current and/or alternative systems; Lost opportunity cost of having a community which is de skilled because of lack of power; and Cost to the environment both of dirty power and an unsustainable community. Of course, the issue of who pays is a separate argument. I am personally not convinced that just because a bunch of bureaucrats from State government and Ergon argued at a meeting in 2008 that a mains solution would cost too much (based upon old technology, rubbery/inflated costings and assumptions about who should/might pay) that a proper case should not be made. It will cost too much to provide universal coverage. The discriminatory policy imposed by Government as a short term measure to save the environment through its 2000 Direction to Ergon has of course imposed an enormous burden, not on the entire state of Queensland, but exclusively on Daintree Coast residents. The costs and sacrifices have been not just the obvious direct solar and generator costs, but also to jobs, businesses and quality of life. Now that the management issues have been settled, I am absolutely sure that no State Government representing the entire community would have issues with meeting the capital costs needed to provide universal power to all houses in the area. This argument needs to be fleshed out, including advances made in other remote communities and the increasing isolation of this community in comparative terms. I understand that recent power supply to a Rangers station in the Lockhart region might provide some illumination into the argument. It will also be important to have costs assessed independently of Ergon, which is not an impartial player in this matter. You can t have mains power in a World Heritage area. Indeed, why not? Does mains power have some eerie quality that most of us know nothing about?? The earlier (ie Year 2000) valid argument about restricting development has now been well and truly resolved. The issue now is providing power, communications and job opportunities to enable an intelligent and well informed community to be the guardians, the custodians and interpreters of this unique environment. Around the World, this has been recognised for years, and enormous attempts are being made in countries such as Brazil to support, involve and empower local communities by giving them skills, resources and a stake in the sustainable The Missing Link Resource Co ordinators Pty Ltd Page 74

75 development of the rainforest. To do less is indeed taking an arrogant and elitist view that the rainforest can only be sustained by bureaucrats and politicians. Only Cape Tribulation and Forest Creek Road should have power. The arguments seem to be that Forest Creek Road is close to a Mains supply solution and that Cape Tribulation is the icon destination. The environment (the argument seems to go) is better sustained by funnelling access and tourism within the Daintree Coast region to this one area. This would appear to be utterly contestable, especially ten years after the argument was first conned into policy. One could similarly argue that the less iconic, less environmentally fragile or indeed unique and environmentally disparate but nevertheless attractive destinations such as Cow Bay, Coopers Creek or anywhere where the creativity of individuals allows are also deserving of orderly opportunities and power. Besides, there is something particularly un Australian about the inequity implied by the proposition. Final comments The entire world and this area are different places to that back in 2000, when the Discriminatory regulation was imposed. A new focus on the importance of infrastructure in a modern world has taken place. A global financial crisis has changed the paradigm with respect to Government spending. The Rudd Government has committed to the supply of (fibre optic) communications not just to the node, but to the home, and is not basic power more important even than better communications? State Governments are starting to commit to infrastructure development. Things which seemed difficult in 2000, are possible and indeed imperative in No doubt, when Government sees the complete argument laid out, with a comprehensive cost/benefit analysis supplied, it will be of a mind to make a proper response. I see a particular and pressing danger, however, in a solution which does away with the restrictive 2000 Directive before the whole universal package has commitment by all parties. Should the 2000 Directive be lifted without the entire package, two of the four tribes could be expected to proceed unilaterally. However, this will inevitably lead to the diminished likelihood of the other two tribes getting universal power. So, I am urging the individuals and representatives of the four tribes of the entire Daintree Coast community, to forgo their private and business claims in favour of an entire community approach. I am also asking CRC and the State Government to recognise this also. We want power for all, not power for some. We therefore need both Cairns Regional Council and the State Government to support a total package which provides universal coverage before lifting the discriminatory regulation. Needless to say, all surplus power generated by residents should be able to be fed back into the system at a fair price, with an incentive based approach reflecting the capital costs and value of our stand alones with a planned phasing out of generators. We also would require the State Government to accept responsibility for the costs and implementation of reticulating power to all households. The Missing Link Resource Co ordinators Pty Ltd Page 75

76 DR PETER PAVLOV 16/08/09 I have been living in the area since 1992 and we have lived at our house at the above address since it was completed in November, We have been on solar power (with govt. assistance) since that time and last year upgraded our solar collection from 10 to 16 panels, with help from the government subsidy. We understand the limitations of solar power and have adjusted our needs accordingly to minimise our usage of power. Our Fridge is a small 5 star rated bar fridge and other usage is a ceiling fan in the summer, energy efficient lighting only on when needed and a very small hi fi system. I do have a range of power tools in my workshop, but they are only used when sunny days are happening. We hand wash our clothes and use the Mossman laundrymat for bigger washes. Our 4kva generator has been out of service since March this year and because of the efficiency of our upgraded system we have been easily able to cope with the duration of cloudy periods since then. I will purchase a smaller generator before the next wet season. Our current system is more than adequate for our needs and we are extremely happy with solar energy in this area. I understand that some private homes are not satisfied with solar, but I am rather cynical of their needs, because our experience tells us that if you minimise your demands, solar does work efficiently in a private home in this area. Our panels for instance are on an 18 metre high tower, built on the southern side of our house to maximise the sun interception. I realise that commercial properties use a lot of fossil fuel and I can see the need to make power delivery more economical for them. After working at Coconut Beach Resort, I remember that the capacity of their generator system would be sufficient to provide power for the whole valley and thus reduce the pollution currently experienced. There must be a system that would provide power in an environmentally sensitive way for commercial premises and for people who are not able to live within the constraints of solar energy and are willing to pay for the service. In answer to your attached questions: 1. What power options do you have? I have answered that above 2. What alternatives have you considered? Our current system is working perfectly 3. What power options would you like to have? None!! 4. Provided by whom? Not applicable 5. What would you be prepared to contribute? I will replace the units of my system as necessary. 6. Do you have any views on how the policy should read? I believe that private people should be fully educated on how to live efficiently with solar energy. Consideration should be given to provide power nodes for businesses in the area with options of underground power for residents who are prepared to pay the costs of reticulation. People such as myself who are perfectly happy with their solar system will not change because we have been well subsidised to have the solar power we have and are satisfied with it. Overhead power reticulation should never be considered for the area. They are the views of this household and I will appreciate them being considered. There is nothing that would encourage us to change our energy system or the lifestyle we have chosen. Dr. Peter M. Heise Pavlov and Dr. Sigrid R. Heise Pavlov The Missing Link Resource Co ordinators Pty Ltd Page 76

77 Pavecol Wildlife Management Turpentine Road, Diwan, via Mossman 4873 Rob Lapaer RAINFOREST HIDEAWAY I did not make it to the meeting, but would like to add my bit to this study, although I must admit I am sceptical about the chances of all this leading anywhere, many dozens of studies and reports on this area have been placed in filing cabinets at council offices over the years with recommendations never followed up... I have lived in Cape Tribulation for 16 years and would very much like to see some sort of grid power coming to our area as the stand alone power systems simply have too downsides. It is simply unfair that our area has been excluded for so long from a service that everybody else in the developed world, and even a lot of the poorer countries, take for granted. Like most people in this area I took advantage of the (now scrapped) solar power subsidy to get a solar system installed at my house, while this is better than nothing it is far from ideal; 1. The current power situation is very expensive, very few people would be able to get by on solar power only. As we live in a rainforest area there are six to nine months a year when it rains or it is cloudy, and of course being in rainforest there are trees around the house, creating the dilemma of having to choose between clearing the rainforest or running the generator more. While tourists are being fed romantic stories of a community living on renewable solar energy the reality is that most households would run the generator most nights, creating pollution and creating costly fuel bills. 2. Fuel expenses are not the only cost burden that residents of this area have to bear, from time to time generators, battery chargers, batteries or other equipment blow up or wear out, and then the bills quickly run into many thousands of dollars. 3. Standalone power systems create not only a great deal of expense for their owners but also stress. Many people, especially those who rent houses, do not know how to manage them or don't care, batteries and generators are not looked after and have to be replaced at great expense to the owners. 4. The current situation is dangerous, there have been several accidents with people injured by fires or other accidents with generators. 5. The current situation is wasteful, many houses run generators big enough to power their whole street so all this energy goes to waste. 6. I feel there is a racial discrimination factor in this issue too, where ever there is a small community of indigenous people living in the outback the government will always arrange a generator and distribute electricity around the town, and I am sure that if Cape Tribulation was populated by indigenous people then electricity would have been installed a long time ago. 7. Now that the state government has scrapped solar power subsidy it makes it too expensive for new residents to this area to set up systems, or for current residents to upgrade systems. To answer your questions; My only power option at the moment is to run my generator most nights and whenever other time I need a washing machine or power tool, the solar panels help when the sun shines but that is less than half the year and I only get five hours of sun maximum unless I clear another acre of trees, which is now illegal. I have considered hydro power but the creek is too far away and not enough of a steady flow, wind turbines do now work with the trees blocking the wind. I think the only logical and sensible solution for Cape Tribulation is a large generator located in a central place with cables to distribute electricity to homes and businesses. This will be far more efficient and The Missing Link Resource Co ordinators Pty Ltd Page 77

78 beneficial for the environment than the dozens of generators that are now running and polluting every night. I do not see the logic in the philosophy that the electricity must come from renewable sources, it would be a good thing if we could all sell some solar power back to the grid but apart from that I don't see where all this energy could come from. The choices are only solar, hydro and wind as far as I can see. Installing acres of solar panels to feed a town in the wet tropics where it rains half the year sounds like a not too smart idea, hydro is not easy as it would involve the damming of some creeks in this sensitive world heritage area and there is a dry season where for a few months this would not work and a wet season where ferocious weather might wash out the hydro units, wind power would require the erection of wind turbines at the beaches and there would be plenty of people complaining about the aesthetics of that so really the only workable option is one big diesel generator in the centre of town, and even though fossil fuels are burnt it would be only ten percent of what the town is burning at present with individual generators. In the past we were denied mains power for fear of over development in this area, now all buyback targets have been met and development controls are in place so now is the time to give us what the rest of the country takes for granted. Especially Cape Tribulation has been named in the town plan as the central development hub for tourists to stay, businesses and residents need a reliable and affordable electricity supply for this, I have run a B&B for eight years at my house and got tired of explaining to tourists why they could not have a fridge in their room, or air con, or a toaster, or a hair dryer, or a micro wave or a TV, or any of these things that everybody takes for granted in the rest of the country. Who would provide this power is irrelevant to me, as long as it is available and I can buy it. I would be prepared to contribute $ to $ if I could get connected to some sort of grid and then I would not have to spend the rest of my life filling jerrycans, carrying them to the shed, fuelling the generator, going back before sleeping to turn it off again, stressing when the generator or other parts of the sytem need to be repaired again, buying a new $10k battery bank every few years and stressing when on holidays that the caretakers are killing the batteries. Kind regards, Rob Lapaer rob@rainforesthideaway.com Bob the RACQ Man runs his house and business on biodiesel for a cost of $4 per day. Collects all the old fat from the area, so there is no capacity for anyone else to use this as a source and turns it into biodiesel using his home plant. Collects all the batteries from the region, and transports them to Douglas Shire Tip but the tip wont take all the batteries. Has a stockpile of 1000 s of batteries. He turns many into sinkers and sells them to tourists and the community. Concerned about the issue of leaching acids into the ground and the danger of exploding batteries. The Missing Link Resource Co ordinators Pty Ltd Page 78