You may well have been approached by numerous developers and so how do you choose a partner that will actually build the project and deliver it in the fastest timeframe?
The team at Zeff possesses extensive experience in this field. Notably, we are one of only a couple of small-scale developers with in-house expertise to have successfully connected to the Western Power grid (Merredin Solar Farm). Integrating intermittent energy supplies with the Western Power network is the most complex aspect of developing a renewable project. It should be noted that the size of a development company does not necessarily correlate with their level of experience; our team has the specialised knowledge required for such tasks.
Forming strong, lasting relationships with landowners is core to Zeff’s values, and the glue that binds us together.
Zeff will stick by your side throughout the feasibility and development phases, and at the optimal time prior to construction, we will partner with another company; a decision that is not taken lightly. Choosing the right company to partner with is crucial to ensuring timely project delivery and maximising the benefits for you as a landowner. Every company has their own drivers as to why they want to invest, but by partnering with the right company that ultimately wants the generated power first, will help maximise the project’s success, ensure it is constructed in a timely manner and create a mutually beneficial relationship for years to come.
The last thing we want you to do is to partner with a company that land banks or sit on the development to fit their company's objectives. (For example, mining companies see power supply as an additive to support mining operations; hydrogen company’s timeframes depend on world hydrogen markets; electricity retailers need a geographically diversified portfolio). Ultimately, we want to see the project built as much as you do.
It is not the size of the developer nor their financial backing that will get the project up and running in the shortest timeframe, but instead their experience and their objective for when they want the generation to commence.
Regardless of who you partner with, the development process does take several years. Anyone who says that they can do it quicker, or says they have a head start over others should be questioned. We will happily explain the process to you so that you are able to make the most informed decision.
The feasibility stage requires significant investment of several million dollars; however, investment in green energy is not a major hurdle - there is plenty of green money ready for investment.
While there is a shortage of experience in being able to deliver grid connected renewable generation projects in Western Australia, partnering with an East Coast developer is not necessarily the answer. The connection processes for Western Australia and for the East Coast states are very different and many developers from the East Coast have come and failed in Western Australia due to an underappreciation of these differences.
During the last renewable 'mini boom' of 2014-2020 there were many developers trying to connect. From the 40-50 applicants in 2018 only six received connections. Zeff’s Managing Director was directly involved in one of these successful applications. And of the six connections, several were delayed by years with some yet to be commissioned. In other words, even if the developer’s team has worked for someone like Western Power or Australian Energy Market Operator (AEMO), that does not mean they know how to successfully negotiate a connection agreement for an intermittent generation facility.
Even large corporations such as multinationals or ASX listed companies may not have experience in grid connections, and using consultants is rarely successful. Of the six connections listed above, all used in house expertise to manage the grid connection process. The Energy market is complex with other entities such as AEMO, Energy Policy WA (EPWA) and Economic Regulatory Authority WA (ERAWA) involved in the connection process.
The first thing to remember is that the wind farm will only impact your farm to the extent that you are comfortable. You may be happy for Zeff to locate a whole range of infrastructure on your property (from electrical substation, lay down areas, even workers’ accommodation) and this may have a large impact on your property. However, if you want to minimise the impact, you will likely only be comfortable allowing Zeff to build turbines and roads on your property. The key is that it is your decision.
Because you own the land privately, we can only impact your property to the extent that you are happy. What this means in practice is that you will make a decision about the cost of the impact of any infrastructure (e.g. an electrical substation) versus the benefit of that infrastructure (i.e. the income you will receive for hosting that infrastructure). If the cost is too high, you will likely say “no”. If the benefit outweighs the cost, you may say “yes”.
Either way, we understand the significance of preserving farming practices and the importance of ensuring your livelihood remains intact. By prioritising your farming practices, maintaining open communication and considering your needs, we always strive to develop a wind farm that respects and supports your livelihood. During construction there will be more impacts to your farming practices than during the decades of the wind farms operational life.
At Zeff, we value fairness and transparency in our compensation structure. We offer a competitive minimum rate for turbines however we highly encourage you to not lock in a price at this early stage (we would suggest the same to you even if you chose to engage with a different company).
Many factors contribute to and affect the value of energy and we are happy to explain all of this to you in more detail. Power prices can be volatile, and over the coming years there is significant potential for upside. As the landowner, we want you to be able to benefit from this opportunity. We do offer a minimum lease rate as we only see potential for an increase in landowner payments as the development risks are better defined.
It is worth noting that you will commence being paid as soon as trucks first turn up at your property and this will continue for the operational life of the project.
