Derby Town to Receive Renewable Energy Upgrade with Solar-Battery Project
The remote town of Derby in Western Australia is poised for a significant upgrade to its electricity infrastructure, as regional energy provider Horizon Power has submitted plans for a major renewable energy project to the federal environmental authorities.
The ambitious proposal includes the establishment of a 21 megawatt (MW) solar farm, a battery energy storage system with a capacity of up to 10 MW/55 MWh, and an 8 MW thermal power station. These components will be interconnected via a new transmission line that is planned to run along the town’s main street.
Future Energy System Initiative
Horizon Power has branded the renewable energy initiative as the “Future Energy System” (FES). The solar farm will be located on one of two sites within a 5km radius of Derby. If the closer site is selected, the solar capacity will be reduced; however, if the slightly further site is chosen, the full 21 MW installation will proceed.
The referral to the Environment Protection and Biodiversity Conservation (EPBC) Act is necessary as the project will involve clearing up to 73.5 hectares of native vegetation and removing topsoil.
Project Timeline and Alternatives
The entire project is anticipated to commence operations by 2029. While wind energy was also considered as an option for Derby, it was ultimately dismissed due to high costs, inadequate wind resources, and the structural challenges posed by cyclonic conditions.
Horizon Power estimates that the renewable energy project could lead to a reduction of up to 12,060 tonnes of CO2 equivalent emissions annually for the town. The company noted in its EPBC referral that many Kimberley towns currently rely on high-emission fossil fuels like diesel and gas for power.
Currently, Derby sources its electricity from an independent power producer, but with the impending expiration of the power purchase agreement (PPA), Horizon Power sees an opportunity to incorporate grid-scale renewable energy into the town’s supply.
Impact of the Derby Tidal Project
Had the Derby Tidal Project, a $375 million initiative, progressed, much of the infrastructure being developed in Derby might have been unnecessary. This project aimed to harness one of the world’s largest tidal ranges at Doctor’s Creek to generate up to 40 MW of electricity for 120 years. However, it stalled in 2023 due to governmental delays and concerns regarding environmental impacts and commercial viability.
Transitioning Away from Diesel
Derby is among five towns targeted by Horizon Power to transition away from costly thermal power stations. The company is also implementing medium-sized renewable energy projects supported by thermal power stations in Broome, Halls Creek, Fitzroy Crossing, and Camballin/Looma.
Broome is currently undergoing the local EPA process for a 90 MW solar system and a 42 MW battery energy storage system, which will be situated 10km outside the town and linked by a new transmission line.
Horizon Power has acknowledged potential environmental impacts, including damage to local flora and fauna due to the clearing of 241 hectares of native vegetation and alterations to inland water courses, as outlined in its submission to the WA EPA.
Renewable Energy Targets
In mid-2024, Horizon Power issued a tender for system suppliers, explicitly excluding any proposals that rely solely on fossil fuels. The company has set minimum annual renewable energy targets for each town, with Derby and Broome aiming for over 80% renewable energy, while Camballin/Looma must achieve at least 44%. Fitzroy Crossing residents are expected to have access to a minimum of 45% renewable energy, and Halls Creek has a target of 55%.
This shift towards renewable energy in these five towns is part of Horizon Power’s broader strategy to reduce the costs associated with transporting and supplying diesel to remote areas across Western Australia.
