The emissions of a council that borrowed $7 million to create a ‘nation-leading’ solar energy system have actually increased since its implementation.
Hobsons Bay Council in Melbourne’s inner-west conceived the Virtual Power Plant (VPP), which comprises of ‘connected’ solar panels on forty council sites.
With the Virtual Power solar energy project, Hobsons Bay is taking significant steps toward the community’s goal of zero net emissions by 2030, as stated on the council’s website.
The Hobsons Bay Council in Melbourne is constructing a ‘Virtual Power Plant,’ which involves linking energy from solar panels on council-owned properties.
On the so-called’sustainability dashboard’ of the council, which is a report card on the progress of the VPP, it is shown that the council’s emissions grew by seven tons of carbon during the previous fiscal year.
This is despite the installation of 450 kW of solar panels in the previous fiscal year and the addition of 795 kW of solar in the fiscal year that ended in July.
Despite the increased solar capacity, emissions increased by the same factor as the council’s electricity consumption during the previous fiscal year: seven MWh.
Finn Peacock, CEO of the consumer solar comparison firm Solar Quotes, was unable to provide an immediate explanation for the discrepancy.
The two most likely causes, according to him, were either an error in the council’s calculations or a dramatic spike in their energy consumption.
If their overall electricity consumption from solar power plus and the usual grid had remained unchanged, then the grid usage would have decreased by 866 MWh, he told Daily Mail Australia.
Despite the exaggerated claims made for the ‘Virtual Power Plant,’ the council’s own report card on the project indicates that emissions increased over the previous fiscal year.
The council increased its gross power use by 859 MWh, which represents an increase of nearly 40 percent.
That is enormous. Possibly some of the increase is due to individuals returning after Covid, but it is still a big spike when they are supposed to be conserving energy.
A council spokeswoman attributed the increase in emissions to Covid.
In 2020-21, overall electricity consumption decreased due to the effects of COVID-19, including the majority of council employees working from home the majority of the time.
In 2021-22, there were an increasing number of instances when Council operations reverted to normal, resulting in a rise in overall electricity use. Without solar energy, total emissions would have been much greater than estimated.
According to the Council, as more solar energy comes online, emissions and cost reductions will increase.
According to the spokesperson, solar panel installations progressed gradually throughout 2021-22, so that only a few systems generated solar electricity for the entire year.
The spokeswoman stated, “Once we’ve had a full year of solar output, total solar generation and the resulting carbon reduction will be greater.”
According to the council’s report card, one thousand kilowatts worth of solar panels were already placed at the beginning of the previous fiscal year, with an additional seven hundred kilowatts added during the year.
Despite charging some of the highest rates for a municipality in Victoria, the most recent budget for Hobsons Bay revealed that council had to borrow $7 million to support the VPP.
Under the heading “Liabilities” on page 55 of the budget, it is stated that the council had “new borrowings of $7 million.”
Council significantly increased the amount of solar energy it generated over the previous fiscal year.
The budget notes, “Council’s new borrowings pertain to the Large Scale Solar Installation Program, which comprises new solar installations on over 40 buildings generating about 4MW of solar-generated electricity.”
It is anticipated that the project would create future savings for the Council through the decrease of energy expenses, yielding a return on its initial investment.
The council spokeswoman stated that the initial estimated cost of the project was $5,1 million, but that the council is aware of COVID-19’s effects on the cost of materials and labor shortages.
When queried about actual electricity bill savings resulting from the VPP, the council spokeswoman stated, “comparing electricity bills from year to year does not provide a valid evaluation of cost savings.”
This was due to “Covid effects and the uneven use of Council facilities that resulted as a result”
However, the spokesman reported that the entire worth of solar energy generated in the previous fiscal year was around $300,000.
The representative stated that total solar generation and the resulting cost reductions will be greater after a full year of generation.
Hobsons Bay, which includes the port suburb of Williamstown (pictured), is one of the most costly places for ratepayers to reside in Victoria.
December of 2020 saw the publication of a slick video promoting the VPP by the Council.
The video’s narrator states, “Hobsons Bay City Council is at the forefront of generating renewable energy to mitigate the effects of climate change.”
The video, which has received 245 views, asserts that the VPP would make “zero carbon power accessible to the community.”
The VPP will create 4MW of power that is “intelligently monitored and allocated across the system”
The movie states, “It (the VPP) provides cutting-edge technology to create meaningful action in tackling the effects of climate change.”
According to the video, the amount of carbon emissions reduced is equivalent to disconnecting 600 households from the power system.
Additionally, the initiative will “create large annual savings for the council by cutting energy expenses.”
Plans for a future “Community Solar Network” are also in the works, which would connect household solar electricity to the council’s initiative.
The movie states, “This approach may be copied or expanded across Melbourne, Victoria, and Australia to generate the same environmental, financial, and economic benefits.”
The Virtual Power Plant connects forty municipal buildings with solar panels on their roofs.
Inexplicably, the’sustainability dashboard’ indicates that the council generated 1,515 MWh of solar energy during the previous fiscal year, thereby avoiding 1,530 tons of carbon emissions.
Finn Peacock, CEO of Solar Quotes, was unable to offer a reason for the increase in council’s emissions other than a large increase in their energy consumption.
Mr. Peacock stated that the video’s claim that the VPP was equivalent to disconnecting ‘600 households from the grid’ was technically accurate but potentially deceptive.
It is accurate to claim that the overall amount of energy generated by the solar panels exceeds the annual energy consumption of 600 dwellings, he said.
However, it is not fair to suggest that these homes could be powered by solar alone.
“Because – there is no solar power at night, and there is insufficient solar power during the winter.”
“In Victoria, with its enormous coal-fired power stations, solar energy will cut emissions when it generates, offsetting the emissions produced by these coal stations.”
Therefore, they are technically accurate, but it is simple to see how a layperson may mistakenly conclude that 600 residences in Hobsons Bay are now entirely powered by solar energy.
Hobsons Bay Council asserts that household power may be connected to its Virtual Power Plant in a manner that would set the national standard.
On its sustainability dashboard, the council has contrasted the amount of energy generated by the VVP each month to the amount of electricity drawn from the grid.
Additionally, there is a metric of “exported” power, which refers to extra electricity sold back to the grid during unusually bright periods.
During Melbourne’s brighter six-month period from October to March, solar power generation accounts for over half of total electricity use.
In December, solar power hits its high as a share of total power used and exported, accounting for around two-thirds of total electricity consumption or offset.
During the next six months, however, the amount of solar energy decreases to below half the amount of energy consumed, and frequently falls much lower.
In July, during the depths of Melbourne’s winter, the VPP generates 29 MWh of solar electricity out of a total of 286 MWh used, which is only around one-ninth of the council’s power requirements.
Hobsons Bay’s mayor, Peter Hemphill, oversaw the council’s transition to “advanced” green technology.
According to the council’s budget for 2021/22, the VPP would be supported by “additional borrowings.”
The budget states, “This long-term, intergenerational initiative will develop a Virtual Energy Network that will allow energy from all buildings to be dispersed among Council-owned and leased assets, resulting in substantial energy cost reductions.”
It is anticipated that the project would create future savings for the Council through the decrease of energy expenses, yielding a return on its initial investment.
It is believed that the claimed plan in the film to make “zero carbon power accessible to the community” has been abandoned.
Despite having to borrow $7 million to fund its green vision, Hobsons Bay Council ranks in the top 10 Victorian councils for dipping into ratepayers’ purses.
According to a review of budget documents, Council charges its inhabitants an average of $1,966 per year, which is the seventh highest price in Victoria.
In comparison, the inner city Yarra Council collects only $1,770 annually from ratepayers.
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