Request for Tender SPARC Microgrid project

⁠⁠⁠The purpose of the Request for Tender (RFT) is to conduct an open tender for Engineering, Procurement, Construction (EPC) contract solar installers based in the Gippsland/Latrobe Valley region, to supply, install and commission microgrid systems, for Ovida’s SPARC Project.

The outcome will be the establishment of a panel of CEC accredited, capable, pre-qualified, EPC solar installers, which Ovida will engage to design and install the microgrids in the SPARC project. There will not be any financial commitments to panel members and work will be allocated on the basis of submitted proposals for each site, resourcing, capability, site criteria and cost.

Ovida has secured an executed contract with the Victorian Government to deliver 7.5MW solar and 1.5MWH batteries, across 45 to 75 microgrids for commercial or business customers in the Gippsland/Latrobe Valley region. The total project value is $15.3mil.

The key objective of the SPARC Project - “Solar Partnering Around Regional Communities” (the Project) is enable commercial businesses within the Gippsland and Latrobe Valley region access to affordable sustainable energy via commercial microgrids utilising Distributed Energy Resources (DER) and smart controls.

The SPARC Project will develop microgrids in commercial centres of the Latrobe City, Baw Baw and Wellington Local Government Areas over the 3.5 year project. SPARC will be Australia’s largest concentration of microgrids in Australia and the region will become a centre of excellence for microgrids and distributed energy resources.

The microgrids will utilise solar photovoltaics (PV) and innovative smart technology, including energy storage at some sites, and will be a purely ‘behind the meter’ system. The capital cost of the systems will be covered by Ovida, alleviating the need for a large capital outlay by customers. Bespoke microgrid systems will be installed at each site, as the design will depend on the number of participants in the microgrid and their energy requirements, as well as the available area for generation (through solar PV).

The SPARC Microgrid product developed by Ovida will be for commercial tenants, in the microgrid site, and will not require mandatory uptake. Customers can opt in or out from the Power Purchase Agreement (PPA) any time without any financial impact, giving them greater choice and convenience compared to current market offerings. The consumption PPA will allow each customer to only pay for the solar and/or battery energy they have consumed without having to make a capital investment, and independently maintain their existing grid electricity retail arrangements.

The SPARC project will install 7.5 megawatts (MW) of solar PV and 0.5MW and 1.5 megawatt-hours (MWh) of battery storage. This energy capacity will be distributed between 45 and 75 microgrids. As a guide, each microgrid would have between 5 and 10 individual co-located commercial customers, however, there may be significant variation between microgrids. There will be a minimum of 2 distinct business customers per microgrid, with a maximum of 30 customers.

The project will result in between 500 and 750 commercial microgrid customers, across the three local government areas of Baw Baw, Wellington and Latrobe City Council, entering a consumption PPA with Ovida. These customers will benefit from strong financial returns with energy bills reduced by an estimated average of 20 percent (%). The risk to the customer is also heavily reduced as Ovida will install, own and operate all components of the microgrid for the 20 year term of each PPA.

The project will result in a number of economic benefits for Regional Victoria, including jobs growth, local economic development and new investment opportunities, commercial customer electricity cost savings, new business models for Distributed Energy Resources (DER) and assessment of the opportunity to support the electricity network.

The project’s vision is to establish the Gippsland and Latrobe Valley as a centre of excellence in microgrid technology, and to support the transition to sustainable energy models that support local solar installers to develop capability and expertise and grow their businesses, which in turn is expected to create new employment and training opportunities.

A key focus for the project is for Ovida to work with ICN, LVA and the Gippsland GROW program and utilise its best endeavours to source local solar providers to install, maintain and support the microgrids. This will build the technical capability in the region as well as ensuring customers have access to local support resources. Ovida is also seeking to work with Gippsland TAFE to support the development of training programs and create training opportunities in the region.

Ovida will also establish a Microgrid Technical Forum bringing all contracted solar installers together on a regular basis throughout the Project to identify and resolve installation challenges, share knowledge and develop capability in microgrids. Ovida will utilise local facilities and work with local installers and Government groups to leverage existing capability development pathways and develop future pathways for microgrid technical capability.

Over time the local resources will become microgrid experts, bringing local, state and national attention to their capability and supporting their own businesses to grow. A Local Content plan, identifying local investment and jobs created through the project will be developed and delivered, and Ovida will work with the all members of the installer panel to identify and track those developments.