Research on Oceanian  
Renewable Energy  
Development and Investment  
( B r i e f Ve r s i o n )  
Global Energy Interconnection  
Development and Cooperation Organization  
(GEIDCO)  
Research on Oceanian Renewable Energy Development and Investment  
PREFACE  
Energy is an important foundation for economic and social  
development. Mankind uses energy, historically we have converted  
energy sources from firewood to fossil such as coal, oil, and natural gas,  
to renewable energy such as hydro, wind and solar energy, every change  
is accompanied by a huge leap in productivity and major progress in  
human civilization. Energy, as the driving force for the development of  
modern society, contributes to the nation’s economy and its citizens’  
interactive dynamic, as well as to their welfare. The massive  
development and use of traditional fossil energy has led to increasingly  
prominent problems such as resource shortages, environmental  
pollution, and climate change, which seriously threaten human survival  
and sustainable development. In essence, the core of sustainable  
development is clean development. The key is to promote renewable  
energy, and replace fossil energy with renewable energy such as solar,  
wind, and hydropower.  
Scientific and accurate quantitative assessment of resources is the  
critical foundation for large-scale development and utilization of  
renewable energy. At present, the globally installed capacity of hydro,  
wind and solar power has exceeded 30% of the installed capacity of  
power sources. Although some achievements have been made in the  
development of renewable energy, there is still potential for it to expand.  
Therefore, it is of great importance to conduct a fine assessment on  
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Research on Oceanian Renewable Energy Development and Investment  
resource reserves. On the basis of establishing and improving the global  
renewable energy resources database, the Global Energy  
Interconnection Development and Cooperation Organization (GEIDCO)  
has established an assessment system and digital fine assessment  
models for renewable energy resources. These models carry out  
systematic calculation and quantitative assessment of theoretical  
potential, technical potential installed capacity and economic potential  
installed capacity of hydro, wind and solar energies from a global  
perspective. An achievement of the Global Renewable-energy  
Exploitation ANalysis (GREAN) platform has been made, thereby the  
accuracy and timeliness of global renewable energy resources  
assessment will be effectively improved, subsequently providing an  
important support for large-scale development and utilization of  
renewable energy in relevant countries and regions.  
Systematic and efficient macro site selection of power bases is an  
important prerequisite for large-scale development and utilization of  
renewable energy. The site selection of renewable energy power bases  
is related to the cost-effectiveness of power station development, which  
crucially contributes to economic development and the efficient  
utilization of renewable energy. There are many factors affecting the  
site selection of power bases, hence the site selection analyses and  
decision-making process are convoluted. The desk top study of site  
selection is often limited by the integrity and accuracy of data. Site  
selection must rely on site surveys, which requires a huge amount of  
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manpower, financial resources and time. By taking into account factors  
such as global topography and terrain elevation, land covers, water  
systems, natural reserves, geology and historical seismic activity  
frequency, power supply and power grid, population and economy,  
GEIDCO has developed a set of basic database, models and tools for  
macro site selection for renewable energy power bases which  
significantly increase the breadth and depth of data collection and  
analysis processes, thereby, greatly improving the accuracy, economy  
and effectiveness of the desk top study of site selection, and achieving  
systematic achievements in promoting the development of global  
renewable energy resources. The data collected and analyzed by such  
models and tools are referred as “Reference Book” and “Data Manual”  
and used during the world's energy strategy research and policy  
formulation.  
Focusing on the world’s resource assessment and base  
development of all continents, GEIDCO has prepared a series of  
scientific reports on renewable energy development and investment  
globally, specifically in continents such as Asia, Europe, Africa, North  
America, Central and South America and Oceania.  
This report is one of the renewable energy research series focusing  
on Oceania, which fully shows the achievements in the assessment of  
renewable energy resources and the site selection of large-scale power  
bases in Oceania. In Chapters 1, 2 and 3, the resource assessment of  
hydroenergy, and the resource assessment and base development  
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research of wind and solar energy in Oceania were completed by digital  
methods. Firstly, the methods, models and data of resource assessment  
and site selection are introduced respectively. In terms of hydropower,  
the theoretical potential of hydroenergy resources in major river basins  
of Oceania is calculated and cascade hydropower development schemes  
for reaches to be developed are proposed. In terms of wind and  
photovoltaic power, on the basis of comprehensive calculation and  
analysis of the main factors affecting centralized development, the  
theoretical potential, technical potential installed capacity and cost of  
wind and solar energy under centralized development in all countries  
and regions of Oceania have been calculated. Using the GREAN  
platform, the  
site selection and layout of large-scale onshore wind  
power bases and large-scale solar photovoltaic power bases in Oceania  
are proposed, and the assessment of development conditions,  
development scale and the calculation of technical and economic  
indicators are completed. In chapter 4, based on the development trend  
of energy and electricity supply and demand in Oceania, the power  
transmission direction and mode of large-scale renewable energy bases  
are studied and analyzed by coordinating the regional, trans-regional  
and trans-continental power consumption markets. Chapter 5 reviews  
the energy policies and investment status of major countries in Oceania,  
analyzes the typical investment modes of renewable energy  
development projects, conducts case studies in the development  
schemes of large-scale hydro, wind and solar power bases in Oceania,  
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and proposes suggestions on policies and investment modes to speed up  
clean development in Oceania  
The Global Renewable Energy Development and Investment  
series of reports made by the GEIDCO are committed to providing  
guidance and reference for the large-scale development and utilization  
of renewable energy around the world and accelerating the  
implementation of clean alternatives on the energy supply side. This  
report provides guidelines and acts as a reference guide for government  
departments, international organizations, energy enterprises, financial  
institutions, universities and relevant individuals who take part in  
renewable energy resource assessment, strategic research, project  
development, international cooperation, etc. However, due to the time  
constraints for data collection and report research writing timeframe,  
the contents may be incomplete. Comments and suggestions are  
welcome for further improvements.  
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CONTENTS  
ꢀ
1ꢀ Hydroenergy Resources Assessment and Development......7ꢀ  
1.1ꢀ RESTRICTIVE FACTORS ANALYSIS............................ 7ꢀ  
1.2ꢀ RESOURCE ASSESSMENT .................................. 10ꢀ  
1.3ꢀ BASE DEVELOPMENT .................................... 11ꢀ  
2ꢀ Wind Energy Resources Assessment and Development.....13ꢀ  
2.1ꢀ RESTRICTIVE FACTORS ANALYSIS........................... 13ꢀ  
2.2ꢀ RESOURCE ASSESSMENT .................................. 16ꢀ  
2.3ꢀ BASE DEVELOPMENT .................................... 20ꢀ  
3ꢀ Solar Energy Resources Assessment and Development....23ꢀ  
3.1ꢀ RESTRICTIVE FACTORS ANALYSIS........................... 23ꢀ  
3.2ꢀ RESOURCE ASSESSMENT .................................. 25ꢀ  
3.3ꢀ POWER BASES DEVELOPMENT............................... 29ꢀ  
4ꢀ Outbound Transmission of Large-scale Renewable Energy Bases  
32ꢀ  
4.1ꢀ OUTBOUND TRANSMISSION OF RENEWABLE ENERGY BASES IN AUSTRALIA . 32ꢀ  
4.2ꢀ OUTBOUND TRANSMISSION OF RENEWABLE ENERGY BASES IN NEW ZEALAND 35ꢀ  
4.3ꢀ OUTBOUND TRANSMISSION OF RENEWABLE ENERGY BASES IN PAPUA NEW GUINEA37ꢀ  
5ꢀ Policy Environment and Investment and Financing Suggestions  
40ꢀ  
5.1ꢀ OVERVIEW OF OCEANIAN COUNTRIES ......................... 40ꢀ  
5.2ꢀ INVESTMENT AND FINANCING PROPOSAL....................... 43ꢀ  
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1 Hydroenergy Resources Assessment and Development  
Hydroenergy resources in Oceania are in general conditions. In  
this report, the digital assessment of hydroenergy resources in basins of  
such eight main rivers as Murray River, Tamar River, Derwent River,  
Clutha River, Waitaki River, Purari River, Fly River and Sepik River is  
carried out, and the theoretical potential of hydroenergy is about 526  
TWh/a. Considering resource characteristics and development  
conditions, and using the digital platform, the report further carried out  
the research on the development scheme of three large-scale  
hydropower bases along basins of such rivers as Purari, Fly and Clutha,  
and the layout scheme of 19 cascade hydropower stations and the  
development scheme of large-scale hydroenergy projects are proposed  
for the reaches to be developed with rich hydroenergy resources, with  
the total installed capacity of 23.58 GW and the annual power  
generation of 109.61 TWh.  
1.1 Restrictive Factors Analysis  
In terms of water system distribution, oceania has few large  
river systems and short rivers. The water volume of the rivers is  
unevenly distributed throughout the year, the water volume soars in the  
rainy season, while in the dry season the rivers sometimes stop flowing.  
The main rivers are the Murray River, the Cooper Creek, the Flinders  
River, the Sepik River, and the Fly River. The land water resources are  
mainly distributed in Australia and Papua New Guinea. According to  
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the analysis, there are 26 first-class rivers with a basin area of more than  
1×104km2, totally with a basin area of 361×104km2, accounting for  
about 40% of the total area of Oceania. The distribution of major river  
systems in the whole continent is shown in Figure 1-1.  
In terms of hydrological data, the Oceania continent studied in  
the report, based on the basic data of the Global Runoff Data Center  
which contains the observation data from more than 450 hydrological  
stations, also covers some river basins in New Zealand, New Caledonia  
(France) and Fiji in addition to the above 26 first-class river basins each  
with a basin area of more than 1×104km2.  
Figure 1-1 Distribution of Major Rivers in Oceania  
In terms of geological conditions, the types and distributions of  
rock strata are equally important for the development and macro site  
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selection of large-scale hydropower bases. Generally speaking, areas  
with stable geologic conditions are selected, and there are no large-scale  
landslides and other geologic disasters near the dam site and the  
powerhouse. The foundation surface of the dam shall  
be stable  
bedrock with strong bearing capacity, such as metamorphic rocks and  
volcanic rocks. See Figure 1-2 for stratum distribution in Oceania.  
Australia is mainly distributed with loose sedimentary rocks and mixed  
sedimentary rocks, with only a few metamorphic rocks distributed in  
the central and northern part. The North Island of New Zealand is  
mainly distributed with mixed sedimentary rocks, and the South Island  
is mainly distributed with metamorphic rocks and mixed sedimentary  
rocks, with the metamorphic rocks mainly distributed in the southern  
part of the South Island. Papua New Guinea in northern Oceania is  
mainly distributed with mixed sedimentary rocks and metamorphic  
rocks.  
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Figure 1-2 Distribution of Major Rock Types in Oceania  
1.2 Resource Assessment  
Overview of Hydroenergy Resources. There are 1420 rivers in  
Oceania with the theoretical potential of hydroenergy resources of 50  
GWh and above each, and the total theoretical potential of hydroenergy  
resources is 687.06 TWh/a, accounting for 1.5% of the world’s total.  
Hydroenergy development potential in Oceania is mainly distributed  
in the Purari, Fly and Clutha Rivers and other basins. Digital assessment  
and calculation of hydro-energy resources in eight major river basins in  
Oceania, including Murray, Tamar, Derwent, Clutha, Waitaki, Purari,  
Fly and Sepik rivers are carried out as shown in the report and the  
distribution of which is shown in Figure 1-9, covering an area of about  
162×104 km2, or 37% of Oceania’s primary rivers, and covering major  
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hydro-energy resources to be developed.  
According to the calculation of the digital platform, the total  
theoretical potential of the eight basins are about 526 TWh/a.  
According to the national statistical assessment carried out by the  
countries involved in the basin, the theoretical hydroenergy potential in  
Oceania is mainly distributed in such three countries as Australia, New  
Zealand and Papua New Guinea, among which the theoretical  
hydroenergy potential in Papua New Guinea is the highest, at 430.27  
TWh/a.  
Figure 1-3 Distribution of Eight Major River Basins in Oceania  
1.3 Base Development  
Considering resource characteristics and development conditions,  
3 basins of such rivers as Purari, Fly and Clutha will be mainly  
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developed in Oceania in the future. Based on the digital platform, the  
base development scheme of basins has been studied, and the cascade  
layout scheme of the river reaches to be developed with rich  
hydroenergy resources has been studied, and the site selection of main  
large-scale hydroenergy projects has been completed. The layout of the  
hydropower bases in Oceania is shown in Figure 1-4.  
Figure 1-4 General Layout of Large-scale Hydropower Bases in Oceania  
Measurement and calculation show that three hydropower bases in  
Oceania involve a total of 19 cascade hydropower stations to be  
developed, with a total installed capacity of 23.58 GW and an annual  
power generation of 109.61 TWh. According to the long-term scheme,  
the total development scale of three large-scale hydropower bases in the  
future is expected to exceed 130 GW.  
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2 Wind Energy Resources Assessment and Development  
Oceania is rich in wind energy resources and holds huge  
development potential. The report assessed 9 countries and regions in  
Oceania, and calculated that the total theoretical potential of wind  
energy resources in Oceania is up to 154.5 PWh/a, and the installed  
capacity suitable for centralized development is 15,554.4 GW, which is  
mainly distributed in Australia, New Zealand and other countries, with  
41.2 PWh of annual power generation. However, the current  
development scale is still less than one percent of the technical potential  
installed capacity. Considering the characteristics and development  
conditions of resources, the site selection and development schemes of  
such five large-scale wind power bases as WesternAustralia inAustralia  
and Wellington in New Zealand, were studied and the main technical  
and economic indicators were proposed by using the digital platform,  
with a total installed capacity expected to be14.2 GW.  
2.1 Restrictive Factors Analysis  
In terms of wind speed distribution, oceania holds great  
potential for wind energy development. The distribution of wind speeds  
is as shown in Figure 2-1. Countries such as Australia and New Zealand  
have rich wind resources. The annual average wind speed in some areas  
is above 6 m/s, which is conducive to the development of large-scale  
wind power bases.  
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Figure 2-1 Distribution of Wind Speeds in Oceania  
In terms of the distribution of transportation facilities, the  
higher the level of development of transportation facilities and the  
wider the distribution of road networks in areas rich in wind energy  
resources will greatly improve the exploitation and construction of  
large-scale wind power bases, facilitating the transportation of  
engineering equipment and materials into the site, and improving the  
cost-effectiveness of base development. In order to study the cost-  
effectiveness of wind power resources development, it is necessary to  
comprehensively analyze and calculate the distribution of  
transportation facilities. Figure 2-2 is a schematic diagram showing the  
distribution of main roads and railways in Oceania.  
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Research on Oceanian Renewable Energy Development and Investment  
In terms of roads, based on the statistics of the global basic  
information database, the total mileage of High Way is about 8×104km,  
and the total mileage of Road exceeds 60×104km in Oceania, basically  
spread all over Oceania. Specifically, there are few roads across central  
Australia in Oceania, and most areas are more than 200 km away from  
the nearest High Way. The southwest coast and east coast of Australia,  
the North Island and the east coast of South Island in New Zealand are  
densely covered by roads, while in other countries, there are few road  
transportation facilities.  
In terms of railways, based on the statistics of global basic  
information database, the total mileage of railways in Oceania is about  
5×104km, mainly distributed in the central, southern and eastern coastal  
areas of Australia, and the eastern coastal areas of the North Island and  
South Island of New Zealand. Generally speaking, Oceania has a short  
railway mileage, leaving huge development space.  
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Figure 2-2 Distribution of Roads and Railways in Oceania  
2.2 Resource Assessment  
In terms of theoretical potential，according to measurement and  
calculation of wind speed data at a height of 100 m, the theoretical  
potential of wind energy resources in Oceania is 154.5 PWh/a,  
accounting for 7.7% of the global total. In terms of distribution, the  
theoretical potential in Australia in the southwest of Oceania and New  
Zealand in the south is higher.  
In terms of technical potential installed capacity ， after  
comprehensive consideration of resources and various technical  
constraints, the technical potential installed capacity of wind power  
suitable for centralized development in Oceania is about 15,554.4 GW,  
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and the annual power generation is about 41.2 PWh/a.  
In terms of distribution, the technically exploitable wind energy  
resources in Oceania are mainly distributed in central and western  
Australia and the eastern coastal areas of New Zealand, accounting for  
more than 99% of the continent’s total. The above areas are basically  
below 1000 m above sea level and are mainly covered by vegetation  
and a small area of bare ground. With the exception of conservation  
areas and cultivated lands in Australia and New Zealand, most areas are  
suitable for construction of large-scale wind power bases.  
The installed capacity per unit land area and its annual power  
generation are important indicators to characterize the technically  
exploitable resource conditions of wind power  
in a region. However,  
the installed capacity is greatly affected by the terrain slope. In  
comparison, the ratio of annual power generation to installed capacity,  
that is, the number of installed capacity full-load hours (capacity factor),  
can better reflect the advantages and disadvantages of regional wind  
power resources, development conditions and technology. Please refer  
to Figure 2-3 for the distribution of technical available areas for wind  
power generation in Oceania and their full-load hours.  
According to technical indicators, the average full-load hours for  
the technical potential installed capacity of continent-wide wind  
power are about 2650 hours (with an average capacity factor of about  
0.3). Among them, the full-load hours of wind power are about 3500-  
4500 hours in western Australia, southern North Island and east coast  
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of South Island in New Zealand. The development conditions are  
favorable, with the maximum value occurring near Wellington on the  
North Island of New Zealand, exceeding 5000 hours.  
Figure 2-3 Distribution of Wind Power Technical Available Areas in Oceania and Their Full-  
load Hours  
In terms of development cost，according to the estimation of the  
cost level of onshore wind power technology and equipment by 2035,  
considering the transportation and grid infrastructure conditions, the  
average cost for centralized wind power development in Oceania is 5.26  
cents, and that in countries of Oceania is between 3.45 and 7.30 cents.  
According to the current global average tariff level of about 8 cents,  
almost all of Oceania’s technical potential installed capacity meets the  
economic requirements. Under the condition of global average  
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tarifflevel of about 5 cents, the calculation shows that the economic  
potential installed capacity of wind power in Oceania is expected to be  
5.2 TW according to the cost level by 2035, accounting for 34% of  
technical potential installed capacity. See Figure 2-4 for the distribution  
of development costs for wind power resources in Oceania.  
In terms of economic indicators by country of wind power  
generation in Oceania, countries and regions with excellent resource  
conditions and relatively good transportation and grid infrastructure  
have low cost and better cost-effectiveness for wind power  
development. Overall, most of the wind power resources that can be  
developed in Oceania are relatively cost-effective. All countries and  
regions in Oceania have a maximum LCOE of less than 8 cents, which  
indicates that all these countries have no areas where development is  
restricted due to cost. From the perspective of the most cost-effective  
development regions, the lowest LCOE of wind power in Australia and  
New Zealand is less than 2.5 cents, showing a high level of cost-  
effectiveness, with the lowest development cost occurring in the  
southeast of Wellington on the North Island of New Zealand, at 2.00  
cents. On average, the average LCOE in New Zealand is the lowest, at  
3.45 cents, ranging from 2.00 to 6.27 cents.  
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Figure 2-4 Distribution of Wind Power Development Costs in Oceania  
2.3 Base Development  
According to the assessment results of wind energy resources in  
Oceania, considering the characteristics of resources and development  
conditions, large-scale wind power bases in Oceania should be laid out  
in regions with high technical indicators and low development cost.  
According to the overall local electricity demand and the layout of the  
main strategic power transmission channels of energy interconnection  
in Oceania, in the future, Western Australia Base, New Southwales Base  
and Tasmania Base in Australia, and Otago Base in New Zealand will  
be developed in Oceania, with a development scale of 14.20 GW by  
2035.  
Based on the digital site selection model and software, the above  
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five wind power bases are studied with regard to the development  
conditions, installation scale, engineering assumption, power  
generation characteristics and investment level, and a preliminary  
development scheme was put forward. The total installed capacity of  
the above five wind power bases is about 14.20 GW and the annual  
power generation will be 48.48 TWh/a. According to the long- term  
scheme, the total development scale is expected to exceed 26.00 GW in  
the future. According to the forecast results of cost for onshore and  
offshore wind power in Oceania by 2035 and investment estimation  
based on the basic situation of the project, the total investment of wind  
power bases in Oceania is about 15.859 billion USD, and the LCOE  
range is 2.93-5.61 cents /kWh. See Figure 2-5 for the overall layout of  
large-scale wind power bases in Oceania.  
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Figure 2-5 Layout of Large-scale Wind Power Bases in Oceania  
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3 Solar Energy Resources Assessment and Development  
Oceania is rich in solar energy resources and has great  
development potential. The report assessed the solar energy  
development in Oceania, and calculated that the theoretical potential of  
solar energy resources in Oceania is about 17,363.8 PWh/a, and the  
installed capacity suitable for centralized development is 263.5 TW,  
which is mainly distributed in northern, central and western Australia,  
with 508.4 PWh of annual power generation. Considering the  
characteristics and development conditions of resources, the site  
selection scheme for five large-scale photovoltaic power bases,  
including Mariaelena Base in Chile and Atacama Base in Peru, is  
proposed by using the digital site selection research platform, with an  
installed capacity expected to be about 20.0 GW.  
3.1 Restrictive Factors Analysis  
In terms of total radiation distribution, oceania holds great  
potential for solar energy development, the distribution of global  
horizontal irradiance of solar energy in Oceania is shown in Figure 3-  
1.  
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Figure 3-1 Distribution of Global Horizontal Irradiance of Solar Energy in Oceania  
Oceania holds great potential for solar energy development. The  
mean annual global horizontal irradiance of most of northern, central  
and western Australia, with good solar energy resources, is above 2200  
kWh/m2, which is beneficial to the development of large-scale  
photovoltaic power bases.  
In terms of ground cover distribution, from the perspective of  
land resources suitable for large-scale development, forests,  
cultivated lands, wetland water bodies, urban areas and glaciers are the  
main restrictive factors of land cover affecting the centralized  
development of solar photovoltaic generation. Most areas of Australia  
in Oceania have a tropical arid and semi-arid climate, with high  
temperature and drought all year round. Except for some areas covered  
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by bare ground in the northern part of Southern Australia, most areas in  
central and western Australia are covered by herbaceous vegetation and  
shrubs, with favorable conditions for centralized development of solar  
energy resources. Figure 3-2 shows the distribution of the above three  
land covers suitable for centralized photovoltaic development in  
Oceania.  
Figure 3-2 Distribution of Herbaceous Vegetation, Shrubs and Bare Surfaces in Oceania  
3.2 Resource Assessment  
In terms of theoretical potential，calculated according to the total  
solar radiation data on the horizontal plane, the theoretical potential of  
solar photovoltaic resources in Oceania is 17,363.8 PWh/a, accounting  
for 8% of the global total. In terms of distribution, the theoretical  
potential in Australia in Oceania is higher.  
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In terms of technical potential installed capacity ， after  
comprehensive consideration of resources and various technical  
constraints, it is estimated that the scale suitable for centralized  
development of solar photovoltaic resources in Oceania is 263.5 TW,  
and the annual power generation is up to 508.4 PWh.  
In terms of distribution, the photovoltaic resources in Oceania are  
mainly distributed in central and western Australia, accounting for  
more than 90% of the continent’s total. The above areas are basically  
below 2000 m above sea level and are mainly covered by herbaceous  
vegetation, shrub and a small area of bare ground. With the exception  
of a large area of natural resources conservation area in central Australia,  
most areas are suitable for construction of large-scale photovoltaic  
power bases.  
Similar to the technical indicator of wind power, the ratio of annual  
power generation per unit land area to installed capacity, that is, the  
number of installed capacity full-load hours (capacity factor) is also a key  
parameter reflecting the advantages and disadvantages of regional  
photovoltaic resource technology development conditions. Please refer  
to Figure 3-3 for the distribution of technical available areas for  
photovoltaic power generation in Oceania and their full-load hours.  
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Figure 3-3 Distribution of Technical Available Areas for Photovoltaic Generation in Oceania  
and Their Full-load Hours  
According to technical indicators, the average full-load hours for  
the technical potential installed capacity of continent-wide photovoltaic  
power generation are about 1929 hours (with an average capacity factor  
of about 0.22). Among them, the full-load hours of photovoltaic  
technology are above 2000 hours in the northern and central parts of  
Western Australia, the central and eastern parts of the Northern Territory,  
the eastern part of Southern Australia, the western part of Queensland  
and the northwest part of New Southwales. The development  
conditions are favorable, with the maximum value occurring near  
Exmouth in northern Australia, exceeding 2100 hours.  
In terms of development cost，according to the estimation of the  
cost level of photovoltaic technology and equipment by 2035,  
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considering the transportation and grid infrastructure conditions, the  
A
average development cost of centralized solar photovoltaic in Oceania  
is 3.43 cents, and the average development costs for each country are  
between 2.96 cents and 7.47 cents. According to the current global  
B
average tariff level of about 8 cents , nearly all of Oceania’s technical  
potential installed capacity meets the economic requirements. Under  
the condition of global average tarifflevel of about 3.5 cents, the  
calculation shows that the economic potential installed capacity of  
photovoltaic power generation in Oceania is expected to be 101.7 TW  
according to the cost level by 2035, accounting for 39% of technical  
potential installed capacity. See Figure 3-4 for the distribution of  
development costs for photovoltaic resources in Oceania.  
Figure 3-4 Distribution of Development Costs for Photovoltaic Generation in Oceania  
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In terms of economic indicators, countries and regions with  
excellent resource conditions and relatively good transportation and  
grid infrastructure have relatively low cost and better cost-  
effectiveness for photovoltaic power development. On the whole, the  
highest LCOE in most countries and regions of Oceania is more than 8  
cents, which indicates that in Oceania, most island countries do not have  
good conditions for large-scale development. Among them, some  
regions of Fiji, New Caledonia, Papua New Guinea, Vanuatu, Solomon  
Islands and other countries have extremely high electricity costs, which  
are closely related to their local poor transportation and grid connection  
conditions.  
On average, Australia has the lowest average development cost in  
countries, namely, 3.42 cents, and its lowest cost of energy is 1.77 cents.  
From the perspective of the most cost-effective development  
regions, the lowest LCOE of photovoltaic power in Australia and New  
Zealand is less than 2.5 cents/kWh, showing a relatively high level of  
cost-effectiveness, with the lowest development cost occurring in the  
northwest of Western Australia in Australia, at 1.77 cents/kWh.  
3.3 Power Bases Development  
According to the assessment results of solar energy resources in  
Oceania, considering the characteristics of resources and development  
conditions, large-scale photovoltaic power bases should be laid out in  
regions with high technical indicators and low development cost.  
According to the overall local electricity demand and the layout of the  
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main strategic power transmission channels of energy interconnection  
in Oceania, in the future, Northern Territory Base, Queensland North  
Base, Queensland North Base, Southern Australia Base and Western  
Australia Base will be developed in Australia, with a development scale  
of 20.00 GW by 2035.  
Based on the digital site selection model and software, the report  
presents the development conditions, installation scale, engineering  
assumption, power generation characteristics and investment level of  
the above five photovoltaic bases, and puts forward a preliminary  
development scheme. The total installed capacity of the five  
photovoltaic bases is about 20 GW and the annual power generation  
will be 38.46 TWh/a. According to the long-term scheme, the total  
development scale is expected to exceed 44 GW in the future.  
According to the forecast results of photovoltaic cost in Oceania in 2035  
and investment estimation based on the basic situation of the project,  
the total investment of photovoltaic power bases in Oceania is about  
9.737 billion USD, and the LCOE range is 1.92-2.28 cents/kWh. See  
Figure 3-5 for the overall layout of large-scale photovoltaic power  
bases in Oceania.  
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Figure 3-5 Layout of Large-scale Photovoltaic Power Bases in Oceania  
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4 Outbound Transmission of Large-scale Renewable  
Energy Bases  
Based on the development trend of energy and power supply and  
demand in Oceania, the distribution and development pattern of  
renewable energy and mineral resources and industrial development  
trend, the report analyzes the power delivery direction and transmission  
mode of large-scale renewable energy bases in Oceania by coordinating  
the regional, cross-regional and inter-continental power consumption  
markets, and fully considering such factors as power delivery  
capacity, transmission distance and grid structure development. The  
research results have important and positive significance for promoting  
the development of renewable energy bases, speeding up the  
construction of domestic power grids and the interconnection of  
transnational power grids, and realizing the wide-range optimal  
allocation and efficient utilization of renewable energy resources in  
Oceania.  
4.1 Outbound Transmission of Renewable Energy Bases in  
Australia  
As a highly developed capitalist country, Australia is the most  
developed economy in the Southern Hemisphere and the 12th largest  
economy in the world. It is also the largest exporter of various minerals  
in the world. Australia is not only rich in mineral resources, but also has  
sufficient and high-quality renewable energy resources such as solar  
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energy and wind energy. Australia has the potential for the  
development and outbound transmission of large- scale renewable  
energy bases. In the future, Australia could focus on the development  
of large-scale solar power and wind power bases, strengthen the  
interconnection of domestic, transnational and trans-continental power  
grids, drive the development of related industries such as hydrogen  
production by electricity and high-end equipment manufacturing, seek  
mutual support with Papua New Guinea in electricity, and transmit  
electricity to Southeast Asian load centers such as Indonesia across  
continents.  
East of Australia is the political and economic center and  
electricity demand center, including New Southwales, Victoria, Capital  
Territory, Queensland, South Australia and Tasmania. Queensland and  
South Australia have the most abundant solar energy resources and are  
suitable for the construction of large-scale solar power bases which  
could supply power to large urban agglomerations along the eastern  
coast and seek mutual support with Papua New Guinea across the sea  
to the north in hydropower. Western New Southwales and coastal areas  
in western Tasmania are sparsely populated and have strong wind. It is  
suitable to build large- scale wind power bases to supply power to load  
centers in New Southwales and Victoria after being combined with  
local hydropower. West of Australia is one of mining centers. The load  
center is the southwest coastal area of Western Australia. There is dry  
climate and abundant solar and wind energy resources. It is suitable to  
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build large-scale solar power and wind power bases to supply power to  
mining areas and major cities. Northern Territory in the north is  
sparsely populated, with the high-temperature and dry climate and  
abundant solar energy resources. It is suitable to build a large-scale solar  
power base to drive the development of the industry of hydrogen  
production by electricity and transmit it to Indonesia Load Center in  
Southeast Asia across continents to the northwest. The long-term  
transmission scheme of the clean energy base in Australia is shown in  
Figure 4-1.  
Figure 4-1 Schematic Diagram of Long-run Transmission Scheme for Renewable Energy  
Bases in Australia  
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4.2 Outbound Transmission of Renewable Energy Bases in  
New Zealand  
As a highly developed capitalist country, New Zealand is the  
second largest economy in the Southern Hemisphere and rated by the  
World Bank as one of the most business-friendly countries. New  
Zealand is rich in renewable energy resources, especially hydropower  
and wind energy. Due to its geographical location far away from other  
countries, the renewable energy exploited is mainly consumed by itself.  
In the future, New Zealand could continue to focus on renewable energy  
exploitation, further expand the scale of hydropower and wind power  
exploitation and strengthen the interconnection of power grids between  
the North and South Islands and various regions to optimize the  
allocation of renewable energy on a larger scale and drive the  
development of related industries such as hydrogen production by  
electricity and high-end equipment manufacturing.  
North Island is New Zealand’s main political, economic and  
cultural center, with electricity consumption accounting for more than  
70% of that of New Zealand. Wellington, Auckland, Waikato and other  
districts with relatively high population density and industrial  
agglomeration are all located on North Island. The southeast coastal  
area of North Island has high wind speed and low population density  
and is relatively far away from the seismic zone. It is suitable to build  
large-scale wind power bases and seek mutual support with local  
hydropower, so as to meet the demand for load and electricity in North  
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Island. Affected by its geographical location and topographic  
conditions. South Island has a low population density. Except for  
Canterbury and Otago, it is sparsely populated and rich in hydropower  
and wind energy resources. Clutha River, Waitaki River and Mataura  
River are all located on South Island. It is suitable to develop large-scale  
hydropower bases. Wind power and hydropower in South Island are  
transmitted northward to Wellington, North Island and its surrounding  
load centers through HVDC channels. The long-term transmission  
scheme of the clean energy base in New Zealand is shown in Figure 4-  
2.  
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Figure 4-2 Schematic Diagram of Long-run Transmission Scheme for Renewable Energy  
Bases in New Zealand  
4.3 Outbound Transmission of Renewable Energy Bases in P  
apua New Guinea  
Papua New Guinea is an island country in the western South  
Pacific and the second largest and second most populous country in  
Oceania, following Australia. It borders Indonesia’s Irian Jaya in the  
west and faces Australia across the Torres Strait in the south. It is one  
of the less developed countries in the world. Its economy mainly  
depends on the export of agricultural products and raw ore. Its  
infrastructure is relatively poor. In terms of transmission networks, a  
unified national transmission network has not yet been formed. The  
highest voltage level is 132 kV and the access to electricity is only about  
30%. The future development of Papua New Guinea could focus on  
strengthening the construction of power infrastructure, relying on the  
development and outbound transmission of large-scale hydropower  
bases and building a high-voltage transmission network covering the  
whole country to promote the interconnected development of  
“electricity-mining-metallurgy-manufacturing-trade”.  
The eastern part is the main load center with rich mineral resources.  
The capital Port Moresby (POM) and the industrial center Lae are all located  
in the eastern part. In the future, the western hydropower could be transmitted  
to the eastern load center through the construction of the east-west  
interconnection transmission channel to meet the electricity demand for the  
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industrial development in the eastern part. The western part is rich in  
hydropower resources. Most of the river basins of Purari River, Sepik River  
and Fly River are located in the western part and have the conditions for the  
development of large-scale hydropower bases. In the future, power could be  
supplied to the load centers in the central and eastern parts of the country  
through a unified national transmission network to meet the electricity  
demand for mining development. At the same time, the power is transmitted  
to the northern Queensland, Australia through a cross-sea HVDC channel to  
perform mutual complementarity and support with the power from  
Queensland Solar Power Base.  
The long-term transmission scheme for the clean energy base in  
Papua New Guinea is shown in Figure 4-3.  
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Figure 4-3 Schematic Diagram of Long-run Transmission Scheme for Hydropower Bases in  
Papua New Guinea  
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5 Policy Environment and Investment and Financing  
Suggestions  
Based on the characteristics of renewable energy resources  
endowment and regional economic development in Oceania, this report  
comprehensively analyzes the policy environment of renewable energy  
investment and financing in Oceania, and systematically analyzes and  
quantitatively evaluates key countries from six dimensions, namely  
business environment, renewable energy development goals, power  
industry system and market, energy and power investment policy,  
supportive fiscal policy and land, labor and environmental protection  
policy. The report also puts forward some investment and financing  
suggestions, such as establish a regional clean energy development fund,  
strengthen energy infrastructure investment, so as to speed up the  
implementation of renewable energy projects, improve the climate  
change adaptability and achieve sustainable development goals of  
Oceania.  
5.1 Overview of Oceanian Countries  
There are significant differences in business environment  
among Oceanian countries. Australia and New Zealand have  
excellent business environment. According to the Doing Business 2020  
issued by the World Bank, New Zealand ranks first among all 190  
countries and regions, while Australia ranks 14th. However, the  
business environment of Papua New Guinea and Fiji needs to be  
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improved, ranking 120th and 102nd among all 190 countries and  
regions, respectively.  
Oceanian countries have set clear medium- and long-term  
clean development goals. Australia and New Zealand have set clear  
renewable energy development goals. Papua New Guinea has set a clear  
development goal for hydropower projects, including renewable energy  
as a key investment area, but has not yet formulated a clear medium-  
and long-term development scheme for various renewable energy  
sources.  
There are great differences in the degree of power  
marketization among Oceanian countries. Some countries have  
fierce market diversification and competition, and some countries  
have great room for improvement. Australia and New Zealand both  
completed reform earlier and thereby have their electricity markets  
mature and well-developed. Australia has the most mature spot  
electricity market in the world. The development level of power  
industry in Papua New Guinea is backward, and the problem of  
population without access to electricity is outstanding. Independent  
power generators are introduced into the power generation side, and a  
single buyer’s market structure is adopted.  
Oceanian countries have relatively loose access conditions for  
foreign investment. Australia, New Zealand and Papua New Guinea  
all allow foreign investment access, and there are no special restrictions  
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on the form and share of foreign investment. Australia provides  
convenient services for major projects; the New Zealand government  
implements a free and open economic policy, and foreign-funded  
enterprises apply the same investment laws as local commercial  
organizations in New Zealand; Papua New Guinea has formulated a  
series of policies to encourage investment and attract foreign  
investment. The governments of the three countries all promote the  
Public-Private-Partnership (PPP) model in the field of infrastructure,  
but no large-scale PPP projects have been carried out yet.  
Some countries in Oceania have set up tax incentives for  
renewable energy projects. The Australian government provides tax  
relief policies for renewable energy projects, while the New Zealand  
government does not provide incentives for investment in specific  
industries and regions. Papua New Guinea has not yet established  
supportive fiscal policies for renewable energy projects, but applies the  
general policy of encouraging foreign investment.  
Some countries in Oceania have stringent management of land  
use by foreign investors, strict restrictions on foreign workers and  
strict environmental impact assessment system. Foreign- funded  
enterprises can purchase or lease land in Australia and New Zealand  
without other special restrictions, while it is difficult to obtain land in  
Papua New Guinea, and only a small amount of land can be rented.  
Australia has decided to introduce foreign labor services according to  
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the forecast report of technical personnel shortage, while New Zealand  
gives priority to ensuring the employment of its own residents. The  
foreign labor market in Papua New Guinea is small and there are strict  
restrictions on the access of foreign workers. Energy investment  
projects in three countries are subject to EIA review in advance.  
5.2 Investment and Financing Proposal  
1.Establishing a Regional Clean Energy Development Fund to  
Accelerate Clean Energy Development  
A regional clean energy development fund with cooperation  
between public finance and private capital could be established to  
accelerate clean energy development in Australia, New Zealand and  
other island countries. Broaden the financing channels of green  
development fund through the adjustment of policies and systems, start  
the fund with financial investment, and introduce financial capital,  
pension, private capital and international capital to invest on regional  
clean energy development fund. On the basis of regional clean energy  
development fund, a guarantee fund could be further set up, covering  
credit guarantee of green small and medium-sized enterprises, green  
bonds, green PPP project guarantee, etc., and promote  
the  
innovation of risk management and incentive mechanism of regional  
clean development financing.  
2.Strengthening energy infrastructure investment to improve  
climate change adaptability  
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In view of the frequency and trend of extreme weather caused by  
climate change in recent years, assess the climate change adaptability  
of energy infrastructure and increase the flexibility of clean energy  
power supplies, power grids and other facilities, to improve climate  
change adaptability of energy infrastructure. Develop insurance  
products for the loss of energy infrastructure caused by climate change,  
improve the market pricing mechanism of clean energy, and give  
investors a reasonable return to reduce investment risks and encourage  
proper investment on clean energy projects.  
Oceania is rich in renewable energy resources, with great  
differences in business environment and regional economic  
development levels. In recent years, Australia and New Zealand,  
developed countries in Oceania, have actively formulated economic  
plans to promote industrial upgrading, while other countries have  
accelerated infrastructure construction to help economic development.  
Improving the investment policy environment in Oceania, innovating  
the investment and financing mode, and promoting the large-scale  
development and utilization of renewable energy resources have  
become an important means to promote the coordinated development  
of Oceania's economy and environment and the general consensus of  
countries in Oceania. This chapter sorts out the overall policy  
environment of the Oceanian region and relevant policies of major  
countries, and studies and puts forward investment and financing  
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suggestions such as establishing regional clean energy development  
funds and strengthening energy infrastructure investment, so as to  
improve the investment and financing policy environment of Oceania,  
accelerate the large-scale development and utilization of renewable  
energy, improve climate change adaptability and promote the high-  
quality economic development of countries in Oceania.  
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