Daintree Green Power Options Study - Cairns Regional Council ...

Daintree Green Power Options Study ‐ for Cairns Regional CouncilPRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONS(see Appendix 2: 13.2 ) where population nodes occur and economies ofscale allow; and where ecological impact of limited distribution networkcan be minimised. We suggest, through reviewing block clusteringpatterns in the area, that approximately 100 households from this 317could benefit from the installation of 4 or so Type 2 RAPS.Thornton Beachand Noah Creek23 Type 1 RAPS. Recommended given distance from existing mains gridexcludes connection to mains power. Population density and distributiondoes not lend itself to a Type 2 hybrid network.Cape Tribulation 69 Type 2 RAP (Isolated Network): The distance from existing mains grid i.e.connection costs and the required capital contribution which arisespresent a financial barrier to customers receiving grid connected power.In this precinct a number of commercial customers have expressedinterest in the establishment of an isolated network (refer Section SOCIALISSUES – From Community Consultation Table 14)Again, the possibility exists here for introducing several strategicallylocated Type 2 RAPS i.e. where population nodes occur and economies ofscale allow; and where ecological impact of limited distribution networkcan be minimised. It should be noted the technology now exists for Type2 RAPS to be run entirely on biodiesel.A consortium of businesses from this precinct have put forward a RAP2proposal which has not progressed despite support from local member andkey stakeholders , due to it being deemed contrary to the Electricity Supplyin the Daintree Region policy. (Appendix 13.6).The review has shown that costs for both diesel generators and for provision of mains power have risenat proportionate rates over the past 10 years, both effectively doubling in cost to operate. Opportunitiesto compensate for some of the price rises can be found in energy efficiency measures and the increasedavailability and affordability of renewable energy systems. These opportunities rely upon 1. an educationprogram to maximise alternative power use, 2. equitable access to the latest power generatingtechnology and 3. the willingness to efficiently operate and maintain selected systems.From a technical assessment of the region’s current and ongoing energy supply options and a review ofthe documentation provided, it is clear that the Electricity Supply in the Daintree Region policy is acting asthe major hold point to the introduction of the above recommendations. It should be noted theserecommendations are also entirely congruent with the 2005 Dept of Energy Confidential reportrecommendations (listed in this report as “Department of Energy (October 2005) Confidential Report –Daintree Isolated Power Supply Project – Preliminary Assessment Report). Given the existence of thevarious protection mechanisms, including legislation, now in place that act to protect the Daintree regionand provided in this document, this review proposes that the current Electricity Supply in the DaintreeRegion policy be rescinded and the area restored to the Ergon Distribution Area. The Policy has beensuccessful in its purpose but is now duplicating the intent and action of the IPA approved Cairns RegionalCouncil’s Douglas Shire Plan. The conservation values of the area are now effectively protected throughthis mechanism and other Queensland legislation, particularly the Vegetation Management Act (1999).Rescinding the Electricity Supply in the Daintree Region policy, will allow for timely delivery of energyrequirements in a sustainable manner appropriate to the regions ecological and economic significance, asidentified in Table 1 above. A recommended initiative for government moving forward is for all Policiesand Action Plans developed to assist this situation include Key Performance Indicators to measureThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 5

Daintree Green Power Options Study ‐ for Cairns Regional Councilwhen and how Policy changes have been effectively implemented; and a sunset clause to initiatereview of that Policy in a timely manner, as per other regulatory plans, i.e. 5 or 10yrs.INTRODUCTION:1. Purpose of this study:This Study is based upon the assumption that there could be alternative ways of providing power in theDaintree area north from the intersection of Forest Creek Road and Cape Tribulation Road, and that theStudy needs to address:o The current situationo And proposing possible green solutions: eg: a green isolated network at Cape Tribulationcommunity, ando possible extension of mains power only along Forest Creek Road, and the gravel feeder roads offForest Creek Road.Study includes:o review of previous power supply studiesooassessment of the current power supply arrangements and their environmental impacts, andresults from engagement with stakeholders to assess options for ‘Green’ source which willenhance rather than detract from the environment.2. PREVIOUS HISTORY AND DOC REVIEWThe intent of reviewing previous documents and commitments was to determine whether the findingswere still relevant, and to identify the status of their recommendations in relation to delivering thedesired outcomes of protecting the environmental values of the area into perpetuity.Table 2: Previous Commitments and RecommendationsDate Name2.1 4 Oct 1996 FNQEB Q+A Preliminary PowerlineProposal2.2 19 Oct 1998 Proposed Daintree PowerlineEnvironmental Impact AssessmentStudy (GHD , p ES 24)2.3 22 Feb 1999 Letter Terry Melchert, CEO DouglasShire Council to Hon Peter BeattieRe: Conservation of DaintreeRainforest and Provision of PowerNorth of Daintree River gave theframework for the development ofthe policy2.4 May 2000 Electricity Supply in the DaintreeRegion – Policy of the Minister forMines and Energy2.5 Nov 2000 Daintree Futures Study v1 Table 42.6 Oct 2003 –Feb 2004Letters exchanged from CapeTribulation Business ownersconsortium requesting assistance toinstall a larger scale RAPS system toMajor findings and recommendationsMajor findings and recommendationsin Table 3Definition of the Three Point Plan andrequesting support of QueenslandgovernmentReflects Queensland GovernmentPolicy position of opposing theextension of electricity supply north ofthe Daintree River and of supporting ,as an alternative, the use of standalonepower systems.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 6

Daintree Green Power Options Study ‐ for Cairns Regional CouncilDate NameCape Tribulation to Members ofParliament; GovernmentDepartments and Ergon Energyrequesting advice, assistance andsupport2.7 June 2004 Douglas Shire Council ‐ PlanningScheme Resolution: 2 nd June 20042.8 Oct 2004 Daintree Futures Study v2 –Alternative Scenarios ResourceRequirementsDSC documentation of implementationof Planning Scheme – Part 2 of the “3Point Plan”To evaluate the costs of supporting thecommunity that would develop shouldall blocks in the subdivision areas northof the Daintree River be settled.2.9 Oct 2005 Confidential Daintree Isolated PowerSupply Project – PreliminaryAssessment ReportUsed as reference to compare cost andimpact options with 2009 implicationsRecommendations to Dept of Energyregarding Energy Policy2.10 Feb 2009 FNQ Regional Plan: 2009‐2031 Implications for this process – energysupply and energy supply over theDaintree River2.1 FNQEB Q+A Preliminary Powerline Proposal 4 Oct 1996This was the first of the studies looking at possible energy supply solutions to the growing population inthe Daintree Region. It was commissioned in response to growing pressure from landholders in the areato resolve power supply issues. The report traced out a reticulated mains power grid for the entire studyarea. The grid was costed at the time (1996) at $15 Million. A recent technical assessment of the samesystem puts that figure now closer to $25 Million (refer TEL report, Attachment 2, 13.2).Figure 1: Reticulated Power Grid as shown in FNQEB Daintree Power Study 1996The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 7

Daintree Green Power Options Study ‐ for Cairns Regional Council2.2 Proposed Daintree Powerline Environmental Impact Assessment StudyThis impact assessment study (GHD, October 1998) was the first major evaluation of the options todeliver power to the Daintree region. It provide a raft of recommendations which then formed the basisof the agreed way forward of the key stakeholder group, which met 9 th Feb 1999 and led to what is nowreferred to as the “Three Point Plan”. The Three Point Plan was intended to ‘deliver the protection, inperpetuity of the Daintree Rainforest, as well as allowing the economic provision of local governmentservices and infrastructure for residents and tourists.” – see Letter 2.3 below: Terry Melchert to PremierPeter Beattie, 22 Feb 1999.In the EIAS, a range of alternatives were proposed. At page 24 it was recommended that Alternative G beadopted.“Alternative G proposed the use of renewable energy RAPS systems and the reintroduction ofsubsidy schemes for the purchase of both residential and commercial systems. Stringent controlswere also suggested relating to the establishment and management of RAPS systems, with a freebattery collection service provided by Douglas Shire Council and community education in powerdemand management, renewable energy and energy efficient technology.It is additionally proposed that Alternative G should be coupled with Scenario 6. Scenario 6results in growth occurring at the current rate with a maximum of 30% of private land ultimatelydeveloped. Undeveloped land is acquired through buy back and incorporated into the WorldHeritage listing.To implement Scenario 6 financial commitment would be required from all levels of governmentto bring about buyback, Cooperative Management Agreements, community education and theeffective enforcement of conservation controls.”The major findings of the EIAS are set out in Table 3 below and an evaluation of their status and relevancein 2009 is included:Table 3: Daintree Powerline EIAS Major Findings (1998) and current relevanceFindings from EIAS Status and Relevance in 2009The social (the community) expects this EIAS to The resolution of the supply of power is stillresolve the power supply issue.unresolved and is part of this StudyThe majority of the community expects a firm As evidenced by the submissions received as partbinding decision to be made about the rate of of this Study, this is still the case. Thefuture development associated with power. community would like a commitment to anoption and a date when this will be resolved.The physical and scenic environment is integral Agreed by all partiesto the area’s amenity and character for thecommunity and tourism.The remaining vegetation on private landsprovides habitat for species of high conservationstatus.Substantial alteration of the natural foresthabitat will result in increased threateningprocesses for a variety of vegetationcommunities, and rare, endangered orvulnerable plant and animal species both withinand adjoining the Wet Tropics of QueenslandWorld Heritage Area.And is now essentially protected through theenforcement of the Vegetation Management Act1999 and former Douglas Shire Council LocalLaw 56 – Vegetation Management (15/08/2006)Agreed by all parties. Essentially protected bylegislation and bylaws identified aboveThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 8

Daintree Green Power Options Study ‐ for Cairns Regional CouncilFindings from EIAS Status and Relevance in 2009The power issue has caused community conflict. Continues to be an issue and the rationalebehind this report request.There may be an opportunity for community Aspect one still the subject of much debate as toconsensus on two aspects, firstly that power is a whether “power is a right”; although theright yet must be environmentally ‘’sensitive’’ community meeting indicated consensus onand secondly that maintaining the undeveloped provision in an environmentally sensitiveforested wilderness character is important to the manner; and that maintaining a forested aspectcommunity and for tourism.was important for them as well as tourists.Mention of a realistic presentation of‘wilderness’ required by tourism industry.The vast body of regional planning recognisesthe conservation significance of the area, butsignificant environmental and social issuesremain unsolved.Scenario 4 (half blocks unsettled with strictconservation regime on settled blocks) bestmeets the aim of retaining the conservationsignificance of the private lands and retains thecommunity character and thriving tourismindustry. If scenario 4 is chosen, considerablelegislative and financial commitment will berequired by government.Most residents currently rely on RAPS (eithersolely diesel or solar/wind/hydro and diesel).Some see it as a positive aspect of their lifestyleand accept living with reduced power; othersconsider it a constraint on their lifestyle.There is a demand for power in the study area,but only for power at ‘’a reasonable cost’’.Dependent on the cost 60 – 100 additionalblocks will be settled (as a result of powerprovision) in the four years after power isprovided.Alternative C (mostly underground using cableplough) with directional boring over the Heightsof Alexandra is the preferred alternative as itinvolves less irreversible ecological impacts, doesnot impact on the visual amenity or tourismcharacter, has a favourable life cycle cost anddoes not result in an overall economic cost tothe community. That detailed design may act tofurther mitigate the impacts and reduce costs ofAlternative C.The financial viability of providing grid power tothe remote communities of Whitby, ThorntonBeach and Cape Kimberley is doubtful. RAPS isthe preferred alternative for Whitby.Continues to be the case:Douglas Shire (now Cairns Regional) Plan; FNQRegional Plan 2009‐2031; Wet TropicsManagement Plan are key documents.The Three Point Plan reflects this finding andasked for commitment from all levels ofgovernment to implement. Subsequent fundinghas been allocated and spent. Details below atSection 5: Daintree Buyback.Continues to be the case. Some older systemsare now reaching life and may needrefurbishment or replacement and has led toadditional pressure to resolve this issue. Dieselcosts have risen substantially whilst sometechnologies have improved and reduced in cost.See discussion below.Continues to be the case. See communitymeeting outcomes.Predications based on availability of electricitystill apply, although with buy‐back, less potentialowners exist. Percentages still relevant.Recommendation 20 of the CRC Daintree FuturesStudy 2000. Considered as part of 2005Confidential Report at 2.9Still appliesThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 9

Daintree Green Power Options Study ‐ for Cairns Regional CouncilFindings from EIAS Status and Relevance in 2009At the time, FNQEB estimate that the preferred Current estimated costs are identified at 7 belowalternative would require an increase in theAggregate Annual Revenue Requirement of$2.9M and a Community Service ObligationPayment to Ergon Energy of approximately$2.7M in the first year, declining each yearthereafter to a total net present value loss of$17.8MWTMA, DEH and DSC estimate that the costs of Buyback in its many forms has encompassed thisimplementing the conservation controls could element.include $75 000 per yr for administration and upto $10.7M for compensation and administrationof Conservation Plans (300blocks) andConservation Agreements (191 blocks).3. Emergence of the “Three Point Plan”: Letter Douglas Shire Council to Hon Peter BeattieThis letter entitled “ Conservation of Daintree Rainforest and Provision of Power North of Daintree River”and dated 22 Feb 1999, documents the agreed position of the key stakeholders after assessment of theEIAS recommendations (1998) and details what has become commonly known as the ‘’Three Point Plan’’.The letter set out a package of actions “which provides for the delivery of both grid mains power andconservation outcomes as per the EIAS”.The letter to Premier Beattie stated:“… the (EIAS) report confirmed that grids main power could be installed in an environmentallysensitive manner (underground). However, it identified there could be a significant impact on theenvironment through population expansion unless at least 50% of the vacant freehold blocks areremoved from the development stream.In a ground breaking meeting, facilitated by Council and held on Tuesday 9 th February 1999, ofstakeholders including Council, Queensland Department of Environment and Department of MainRoads, Wet Tropics Management Authority, Environment Australia, members of the communityand representatives of the tourism industry, there was general broad support for theimplementation of what basically are the broader recommendations of the EIAS.The important features of this broad based position are:1) The State and Federal governments provide funding , as promised previously, for theBuy‐back of unoccupied rural residential and selected other unoccupied blocks northof the Daintree River ;2) The State and Federal governments facilitate the consolidation of development, bothresidential and commercial, north of the Daintree River both through buy back andthrough the funding of a review of the Douglas Shire Council town planning schemeto reflect consolidation into development nodes in the scheme.3) Grid Mains Power be provided to the consolidated area in an environmentallysensitive manner.This concept, if implemented appropriately, will deliver the protection, in perpetuity, of theDaintree Rainforest as well as allowing the economic provision of local government services andinfrastructure for residents and tourists.”The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 10

Daintree Green Power Options Study ‐ for Cairns Regional CouncilIn an open letter to the community(undated), to which the abovementioned letter was attached, MayorMike Berwick stated that:“Historically, Council has supported the installation of grid mains power north of the DaintreeRiver provided it is installed in an environmentally sensitive manner. Council has, written to thePremier, Mr Beattie, requesting him to facilitate further discussions as soon as possible on apackage that provides for both grid mains power and conservation outcomes as per the FNQEBEIAS. … It should be emphasised that the package items numbered (1) to (3) are of equalpriority. It is not intended that any one element of the package should occur without theothers.”No formal response is on file in the Douglas Shire system to know what the response of the state was tothis proposal. However, in less than 12 months, (May 2000) the then State Department of Innovation andInformation Economy, Sport and Recreation, Office of Energy, instigated the Policy: Electricity Supply inthe Daintree Region.3.1 Electricity Supply in the Daintree Region Policy (May 2000)The Policy effectively placed controls upon development and limited the delivery of mains power to thearea, and prevented the installation of additional stand‐alone networks. This is verified by the letter,excerpts below, from Minister Paul Lucas to MP Steve Bredhauer.On 21 Nov 2003 Paul Lucas MP (Minister for Innovation and Information Economy, Minister withresponsibility for Energy) wrote to Steve Bredhauer MP – Minister for Transport, Main Roads andMember for Cook (Attachment 13.6) relevant excerpts below:“I refer to your letter of 24 October 2003 on behalf of Rod Colquhoun, Paul Mason and others, regardinga proposal to install an isolated electricity network in Cape Tribulation. I note the Cape Tribulation area ispart of the area north of the Daintree River excluded from Ergon Energy’s electricity distribution area,which means Ergon Energy is not authorised to extend its existing supply network, or establish a newsupply network in this area.Of particular relevance to the current proposal is the Government’s policy position of opposing theextension of mains electricity supply north of the Daintree River, as enunciated in the Government’s“Electricity Supply in the Daintree Region” policy adopted in May 2000.Section 1 of this policy clearly provides that in relation to the Daintree Region north of the Daintree River,“supply of electricity using a supply network is not permitted…: As you would be aware, this policy wasintroduced, firstly by the Goss Government and then reconfirmed by the Beattie Government, to protectthe rainforests in this World Heritage area which have been evolving over the past 120million years, andto safeguard the aesthetics of this unspoilt region.Considering the intent of this policy, it would be difficult to foresee circumstances where the Regulatorwould grant an application for authorisation of a supply network in this region.”The outcome of this has been that economies of scale and efficiency have not encouraged combining thedemand of a number of sources to supply a small concentrated area, like Cape Tribulation.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 11

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 12

Daintree Green Power Options Study ‐ for Cairns Regional Council3.2 Daintree Futures Study (Nov 2000)This study followed on from the Proposed Daintree Powerline Environmental Impact Assessment Study(GHD) of October 1998. It broadened the scope of enquiry from just power provision to encompass anassessment of the social, environmental and economic attributes of the Daintree region with an emphasison building a sustainable rainforest community. The purpose of including this table taken and built uponfrom the original document is to show in the final column progress on each recommendation since itspublication in 2000. The main point to take from the table is to show that in many ways the first twoparts of the “3 Point Plan” have been fulfilled, i.e. 1. the Buy‐back of 50% of the originally subdividedland and 2. the protection of the environmental values of the region through vegetation protection (theQueensland Vegetation Management Act 1999 and following moratorium in 2009) and developmentlimitations set largely through the DSC Planning Scheme.Table 4: Daintree Futures Study Recommendations – Implementation progressRecommendation Summary ofImplementationImplementationResponsibilityImplementation Progress since2000COMMUNITYDEVELOPMENT1. Future residentialsettlement allows forgrowth withinecological constraintsto a forest residentialcommunity ofapproximately 1400Ecological values andexisting settlementpatterns have beendefined for nineprecincts anddesirable futuresettlement limits andmanagementrequirements havebeen identified thatprotect thecommunity and itsnatural resources.Daintree Land TrustThe $23 million Rescue Program was established in 1994 toaddress the most critical threats to the outstandingheritage values between the Daintree and BloomfieldRivers and to support ecologically sustainable tourism inthe area. The Commonwealth and the Queenslandgovernments equally fund the program, while the DouglasShire Council (now Cairns Regional Council) contributesplanning, local expertise and various on ground services.The Program is managed by the Wet Tropics ManagementAuthority under the direction of the Daintree Planning CoordinationGroup (DPCG) The DPCG is made up ofrepresentatives so the Douglas Shire Council (now CairnsRegional Council), the Wet Tropics Management Authority,the Queensland Department of Environment and Heritage(now Department of Environment and resourceManagement) and the Commonwealth Departmentsresponsible for Tourism and Environment andrepresentatives of the Kuku Yalanji Aboriginal community.DSC revised DCP 3The Douglas Shire Council’s Code for “Settlement AreasNorth of the Daintree River” has as its purpose to facilitatethe achievement of the following outcomes for thisLocality:• protect the values of the WTWHA by ensuring thatadjacent settlement areas are limited in extent and have acharacter and identity which are complementary tothose values;• ensure that all development remains low key andsustainable and within the development limits imposed bythe Daintree River ferry crossing and the vehicularcapacity of the Alexandra Range crossing and the local Roadnetwork;• provide adequate services and facilities for settlementareas and an appropriate level of economic opportunity forlocal residents;• ensure that all development is designed and operated toachieve an environmentally sustainable outcome by takinginto account the specific values of the area and/orManagement Area and Precinct in which it is located andthe site’s constraints and opportunities;• ensure that all development is sensitive and sympatheticto its remote location in an area of unique Biodiversity andScenic Amenity value; and• ensure the natural forested landscape character of thelocality is protected and enhanced.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 13

Daintree Green Power Options Study ‐ for Cairns Regional CouncilRecommendationSummary ofImplementationImplementationResponsibilityImplementation Progress since20002. Improvedemploymentopportunities forresidents based innature based tourismand to a lesser extenttropical horticulture.Increasing theopportunities for localland owners to engagein tourismaccommodation andcommercial servicesprovision and bychanges to townplanning and improvingthe system ofCommercial AccessPermits to extend tolocal Operators3. Expansion of primaryservices for thecommunity andimproved outreachservices from Mossman4. Residentsparticipation in landstewardship throughinvolvement inplanning andmanagement processesand incentives forecologically sound landmanagement5. Building guidelinesshould be revised forthe area.6. Establish a land useand developmentcontrol regime whichsets upper limits onoverall settlementdensity and has specificbiodiversityconservation,settlement pattern andeconomic provisions.Increasing theopportunities for localland owners to engagein tourismaccommodation andcommercial servicesprovision and bychanges totown planning andimproving the systemof Commercial AccessPermits to extend tolocal operatorsCoordination withoutreach servicesQueensland HealthExpandedopportunities fornature‐based tourismventures and byformal recognition ofcommunityrepresentatives on themanagementstructures proposedhere. Communityeducation andincentives package.Recognise communityidentity and thecommunityguardianship ofnatural values bysignage andinformation thatinforms visitors of thelegitimacy ofresidential living andthe need to respectprivacy.Town planningchangesDSC revised DCP 3QPWS CAP allocationsDSC ferry feesDPI horticulturebranchQueensland HealthDSC services programDSC rate chargesDaintree Land Trustnegotiations andcovenantsDSC signage andinformationQPWS plans CAP’sWTMA plans andinformationDSC revised DCP 3Not within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceFNQ2033 – Sustainable Housing Guidelines.Q2 ‐ Climate Smart Houses (Climate Smart 2050)Douglas Shire Plan under the Queensland IntegratedPlanning Act 1997 (IPA)The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 14

Daintree Green Power Options Study ‐ for Cairns Regional CouncilRecommendationCONSERVATION ANDLAND MANAGEMENT7. Ensure theprotection of rare andthreatened species onfreehold land.8. Protection ofregional ecosystemtypes not adequatelyconserved elsewhere9. The protection ofhabitat for cassowariesand other vulnerablefauna10. Maintenance ofecosystem processesthrough environmentalquality protection11. Improve the controlof pigs on public land inthe area12. Ensure accountablemanagement ofprotectedareasSummary ofImplementationDetailed conservationassessment of thenine precincts andmapping of plantscommunities at a scalethat allowsassessment of thebiodiversity values ofindividual allotments.For each precinctbiodiversity ‘hotspots’have been identifiedfor priorityconservation. Impactsof settlement on thebiodiversity ofimportant but lessthreatenedcommunities areachieved through acombination of specialmanagementguidelines, and whererelevant, settlementdensities that are lessthan would occur iffull settlementproceeded.ImplementationResponsibilityThe Daintree LandTrustDSC revised DCP 3WTMA PlansQPWS Plans andmanagementImplementation Progress since2000Not within this Report’s Terms of ReferenceAs above As above Not within this Report’s Terms of ReferenceAs above As above Not within this Report’s Terms of Reference1. By acceptinglimits onsettlement andvisitation.2. Management ofwastewater1. Establish a feral pigcontrol officer andprovide necessaryoperationalresources(including sufficienttraps) to reduce pigpopulations.2. Establish weedcontrol programsfor high prioritysites, and indisturbed areasundertakerehabilitation.Not within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 15

Daintree Green Power Options Study ‐ for Cairns Regional Council13. Maintenance ofscenic and wildernessvalues for residents andtourists14. An immediate limitto further land clearingin the study area untilthe precinct plans arein placeTOURISM15. Maintain theDaintree as a primedestination forrainforest tourism16. Maximise theopportunity for localland owners andbusiness to participatein tourism in theDaintree.17. In order todistribute visitor useacross the new andexisting visitor sites andprovide new touropportunities, resolvethe permitmoratorium in anequitable manner,providing opportunitiesfor existing operators,local businesses andtour operatorspreviously deniedopportunities18. Construct a highquality website forDaintree tourismpromotion and directmarketing.ABORIGINAL LAND ANDCULTURAL HERITAGE19. To allow aboriginalcultural heritage andland aspirations for theDaintree to bereconciled in thefuture.Through the greencorridor and hillslopedevelopment controlsand overall reductionin potentialdevelopment densityand vegetationclearing controlsAn interim local policythat allows onlyclearing that isconsistent with theprecinct plans in thisreportThe Daintree LandTrustDSC revised DCP 3WTMA PlansQPWS Plans andmanagementAs aboveNot within this Report’s Terms of Reference‐ Visual amenity falls within Planning Scheme requirements‐ Protection of wilderness values fall within WTMA , QPWSmanagement responsibilitiesAddressed through the following legislation:o Vegetation Management Act 1999 (TreeClearing Guidelines)o Douglas Shire Planning Scheme 1996, updated in2006 and amended 2008.DSC planning scheme. DSC Not within this Report’s Terms of ReferenceAs above As above Not within this Report’s Terms of ReferenceBy resolving thepermit moratoriumfor commercial accessto National ParksSeek $45 000 inindustry developmentfunds and constructwebsite at DaintreeShire Council.Ensuring that thewider communityreceives informationon indigenous landtenure andmanagement options.Ensure no plansinfringe Native Titlerights.DSC in conjunctionwith DCCTA and theregional tourismindustry.Assistance from theTourismCRC.DSC in conjunctionwith DCCTA and theregional tourismindustry.Assistance from theTourismCRC.DSC planningWTMA and NationalPark planning andjointmanagementarrangementsDaintree PlanningGroupNot within this Report’s Terms of Reference but has beendealt with by QPWSNot within this Report’s Terms of Reference.Not within this Report’s Terms of ReferenceProvide that anyDaintree ManagementStructure canimplement IndigenousLand Use Agreements.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 16

Daintree Green Power Options Study ‐ for Cairns Regional CouncilRecommendationPOWER SUPPLY20. Assuming the introductionof mechanisms to limitdevelopment in the Daintreeand thereby protect its ecosystems,construct a hybrid gridof overhead and undergroundpower lines as far as CooperCreek (the FNQEB EIASpreferred Option C).Summary ofImplementationThe implementation ofthe FNQEB PowerlineEIAS’s preferredoption ‘C’ electricitysystem:A hybrid of overheadand undergroundpower lines as farnorth as Cooper Creekbut not includingWhitby and CapeKimberleyImplementationResponsibilityQueenslandGovernment fundingto Ergon Energy toconstruct the networkDME to continueDRAPS program inareasoutside the gridservice areaImplementationProgress since 2000No overhead or underground power, as per OptionC supplied to this time.FNQEB has become Ergon EnergyMechanisms within Ergon to protect ecosystemsinclude the development and implementation ofthe QESI Code of Practice 2000.RAPS elsewhere.Not to be constructeduntil the program toreduce settlementintensity and protectbiodiversity on privatelands is implementedAssuming the introduction ofmechanisms to limitdevelopment in the Daintreeand thereby protect its ecosystems,provide subsidies andgrants to establish remote areapower for residences andbusinesses in the Study Area.ROADS AND FERRIES21. The ferry will provide anattractive gateway experiencefor visitors to the areaThe ferry should beretained.The visitor centre onthe southernapproaches willprovide improvedinterpretationservices.DSCSubsidies for the installation of RAPS provided –community consultation verified.Not within this Report’s Terms of Reference22. The ferry will continue toserve residents and localbusiness needs23. All roads and road corridorswill be sympathetic to theenvironmental sensitivities ofthe areas through which theypassDSC will need toconsider a reservationsystem and/or toduplicate the ferry inthe not too distantfuture.Constructing a prioritylane for localresidential andbusiness traffic. Thiswould only benecessary in peaktimes and directions.See Biodiversity &Land ManagementRecommendation 5DSCDSCNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 17

Daintree Green Power Options Study ‐ for Cairns Regional Council24. The ferry pricing structureshould be changedto:• Self‐drive: $20 per vehicle(30 day passnontransferable)• Transfer buses: $4 perperson• Tour buses: $4 per person• Residents: Current pricingretained.25. Consider the implications ofretaining the Bloomfield Trackfor 4WD only26. Use the ferry as anopportunity to collect revenuefrom tourists for use inconservation management andservice provision north of theRiverWATER SUPPLY AND WASTEMANAGEMENT27. A water quality monitoringprogram be established inseveral key streams in the studyarea.28. Rainwater tanks should berequired for all new dwellingsand businesses and encouragedfor existing dwellings withoutthem.29. Septic waste watertreatment systems to bemonitored to ensure they meetenvironmental standards30. There should be no newseptic systems permitted in theSpecial Management Areasidentified in Section 2.231. Encourage compostingtoilets.Revised fare structure. DSC Not within this Report’s Terms of ReferenceEnvironmental ImpactAssessment toconsider the full rangeof social, economicand environmentalissuesSee section onFinancialarrangementsA regular monitoringprogram underWaterwatch or DNRprogramsCondition of buildingapprovalInspections by DSCenvironmental healthofficerCondition of buildingapproval that drycomposting or otherwaste treatment isinstalledWTMADSCDCS/DNR/EPADSCDSCDSCNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceNot within this Report’s Terms of ReferenceThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 18

Daintree Green Power Options Study ‐ for Cairns Regional CouncilRecommendationFINANCIAL ISSUES32. A package of financialcontributions fromCommonwealth and StateGovernments and the DSC.Summary ofImplementation• Underwriting theDaintree LandTrustImplementationResponsibilityCommonwealthGovernmentImplementationProgress since 2000The Commonwealth Government’s Programme“Conservation Hotspots –Daintree” $6.8M2005‐6provided in 2005‐6 and $21.6M allocated in 2006‐7.(i) For biodiversity conservation• $2 million per year over fiveyears for compensation toprivate landowners fromthe CommonwealthGovernment• $5.6 million from theQueensland Governmentfor the additional costs ofenvironmentallyappropriate grid electricity• $200 000 per year over fiveyears for administrativesupport provided by DSC.Revenue offsets forbiodiversity conservationare to include revenue fromcharitable trusts andprivatedonations, revenue fromland resale and from ferryrevenue• Contribution toERGON for gridconstruction• For office andstaff in DSC• Normal DSCoperationsQueenslandGovernmentDSCDaintree Land TrustDSCThe Queensland Government has provided $10Mover 5 years Daintree Buy Back Scheme.(ii) For infrastructure andservices:• $400 000 per year for roadsand ferry services fundedby DSC ferry revenue• $200 000 per year for localservices funded by DSCrates• $10 5 million to meet thecommunity serviceobligation for electricalsupply funded by theQueensland Government• $500 000 for industry andcommunity developmentfunded by external grantsources. Revenue offsetsfor service provision are toinclude equitable userpayments for electricity,rates and for ferry use.• As above• Payment to Ergon• Applications tofunding agenciesDSCQueenslandGovernmentDaintree Planning GroupThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 19

Daintree Green Power Options Study ‐ for Cairns Regional CouncilRecommendationMANAGEMENTARRANGEMENTS33. Signing of a Memorandumof Agreement between thethree spheres of Government toendorse the (accepted) DaintreeFutures recommendations.Summary ofImplementationImplementationResponsibilityImplementationProgress since 2000Unable to verify, however the three tiers ofgovernment have worked cooperatively to fundapproved recommendations of the DaintreeFutures document.34. The establishment of theDaintree Land Trust under theQueensland Land Act.The Daintree LandTrust to manage arevolving land fund, tobuy and sell land,enter into statutorycovenants withlandholders, acceptgifts, donations andbequests of real andpersonal property andact as agents for otherpersons including theCommonwealth, theState and LocalGovernments inmatters relating toland. Board ofTrustees would consistof:• Local residentsand businesses• Aboriginal NativeTitle holders• Douglas ShireCouncil• CommonwealthGovernment• QueenslandGovernmentThe QueenslandDepartment (Minister)ofNatural ResourcesDone. In 2005 the Australian Governmentprovided the Australian Rainforest Foundationwith $5 million to undertake a range ofconservation initiatives in the Daintree aimed atreducing the impact of development following thecontroversial subdivision of approximately 1100lots of rainforest in the 1980’s.The Wet Tropics Ministerial Council (Queenslandand Commonwealth Environment and TourismMinisters) had previously supported the ARF in a$1 million buy back of privately owner rainforest in2002.This was followed by an additional $5 million fromthe Queensland government for land acquisition in2004.The intent of the land buy back was to reduce theavailable land for residential or commercialdevelopment to about half of the 1100 blocksoriginally sub divided, thereby providing for goodconservation outcomes and a viable community.Date; 10 January 2006Taken fromhttp://www.arf.net.au/daintreeconservation.html35.Establish a short‐termDaintree Planning Group as atripartite agreement betweenFederal, Stateand Local governmentunderpinned by a 5 yearfunding agreement.The Daintree Planning(intergovernmentalcommittee) as atripartite agreementbetween Federal,State and Localgovernmentunderpinned by 5 yearfunding agreement.Main functions to:• Advise the Trust onpriority landmanagement andacquisitionarrangements.• Ensure thatplanning controlframeworks areestablished• Oversee theimplementation ofcommunitydevelopmentrequirements.• Provide economicdevelopmentsupport and linksinto other fundingopportunitiesWet Tropics MinisterialCouncilEstablished and managed by Wet TropicsManagement AuthorityThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 20

Daintree Green Power Options Study ‐ for Cairns Regional Council3.3 Proposal for Remote Area Power System for Cape Tribulation (2003 – 04)In December 2003 an informal consortium of business owners from the Cape Tribulation communityresearched and proposed the construction of a Remote Area Power System (RAPS) for Cape Tribulation“commercial sector”. It is worth noting this aspect provides both a good example of the local business’scommitment to find a more sustainable solution to the ongoing power provision issue in the Daintreeregion and the level of support offered by a number of the key stakeholders in this issue, includingvarious elements of the Queensland and Commonwealth government – EPA, WTMA, and the governmentowned Corporation, Ergon Energy; and seemingly contradictory aspect of the Queensland Government’suse of the policy to prevent such an initiative being implemented. This proposal provided a potentialsolution to power provision in this area, which remains a viable technical option today (refer Table 1) ifthe economic and operational issues can be resolved. Note that private power distribution networks arecurrently prevented by the existing policy.Below are excerpts from the correspondence around this issue:2.6.1 22 October 2003: Letter from Cape Tribulation business community members: Paul Mason,Martin Visser, Mark Biancotti; Colin Gray; Geoff Trewin, Rod Colquhoun, Kevin Malone –o Requesting a central generating plant be installed at Cape Tribulation. Provided background ofconsumption of more than 1.5 million litres of fuel per year; more than 20 generators between 40and 150kVa operating up to 24hrs per day within a 5km radius.o Identifying dangers of emissions, fuel storage and waste disposal.o Requesting solution of a RAPS system similar to installed in other remote locations in Queenslandand offering land on which to place it.2.6.2 Undated: response from Hon Warren Entsch to consortium:o identifying existing limits on extension of power and likelihood of not being connected to mainspower at Cape Tribulation.o Identifies opportunity for “lateral thinking’’ it may be possible to examine installation of a hybridsystem that utilises a small scale hydro generator plus a solar generator, or some alternativepower source.o Has “written to Ergon, WTMA and Douglas Shire to support your initiative.”2.6.3 10 Nov 2003: Letter: Terry Melchert (DSC) to Mr Paul Masono Re: Remote Area Power System. Council considered this matter at its meeting on 27 October2003 and resolved to support, in principle, the concept of a distributed local area electricitysupply system and would be happy to work with the Cape Tribulation group and Ergon Energy toprogress this issue.2.6.4 21 Nov 2003: Letter: Paul Lucas (Minister for Innovation and Energy) toSteve Bredhauer (MP for Cook) Letter in full at Appendix 13.6o Acknowledging proposal to install isolated electricity network in Cape Tribulationo Proposal entailed large diesel generator and small supply network distributing and selling to localbusinesses and residences – similar to Ergon systems on Thursday Island and remote communitieso Electricity Act requires generation, distribution and retail activities be authorised by theRegulator. Application to the Regulator required.o The decision to grant an authority is considered against the criteria of the Regulator beingsatisfied the applicant is competent to perform the relevant activities, and being satisfied of thetechnical suitability of the generating plant and supply network.o The Regulator to consider government policies – of relevance, is the “Electricity Supply in theDaintree Region” policyo Intent of the Policy to protect rainforests in this World Heritage Area.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 21

Daintree Green Power Options Study ‐ for Cairns Regional Councilo Given the policy Lucas considered it difficult to foresee circumstances where the Regulator wouldgrant an application for such a proposal.o The Queensland Government does support the use of Stand‐Alone Power Systems (SPSs)incorporating renewable energy technology, in the Daintree region.o Lucas states he had received advice from Mr Mason that solar cells in the Daintree region are nota viable option, particularly during the wet season when there is limited sunshine.o Suggested contacting EPA’s Sustainable Industries Section to discuss viable energy options suchas wind and mini hydro.2.6.5 5 Dec 2003: Letter: Dean Wells (Minister for Environment) to Steve Bredhauer (MP for Cook)o EPA keen to be involved in “a viable solution to counteract the environmental impacts of usingfossil fuels in a WH listed pristine rainforest.” Mentioned EPA rebate scheme, Renewable EnergyDiesel Replacement Scheme and stated that the proposal would be eligible for the scheme.Recommended contacting a renewable energy supplier, to investigate the costs prior todiscussion in relation to funding taking place.2.6.6 12 December 2003: Letter from Cape Tribulation proponents to Regulator, Mr Scott Flavell,o detailing concerns, proposal and requesting review of government policy on no Electricity Supplyin the Cape Tribulation region.o Attaching support letters from Douglas Shire Council; Hon Warren Entsch; Dean Wells (Ministerfor Environment), Steve Bredhauer (MP for Cook) and EPA.2.6.7 15 December 2003: Lt. Gen John Grey (Chair, Wet Tropics Board) to Warren Entsch.o “The Authority is supportive of the development of remote area power supplies (RAPS) in theDaintree region.o Identified that the Daintree Futures Study had recommended large RAPS for commercialoperation in the Cape Tribulation area.o “The Authority agrees with Mr Visser that current power supply arrangements are neitherefficient nor environmentally friendly. The proposed option would be a better arrangement forall.”2.6.8 6 Jan 2004: Letter: Dr John Glaister (Acting Director General: Dept of Innovation and InformationEconomy to Messrs Mason, Visser, Biancotti, Gray, Trewin, Colquhoun and Malone.o Clarifying submission content and requesto Stating Power over the Daintree Region Policy rationale – no plans for policy to be reviewed.o Clarifying Regulator roleo Identifying proposal is contrary to Government policy and that north of the Daintree is anexclusion zone for Ergon distribution network.o Identifies Queensland Government support for use of Stand‐Alone Power systems incorporatingrenewable energy technology and EPA administration of these systems and associated subsidies.2.6.9 19 Jan 2004: Letter: Des Jones (EPA sustainable Energy Systems and Technology) to MessrsMason, Visser, Biancotti, Gray, Trewin, Colquhoun and Malone.o Identifying EPA role in providing financial assistance to install a Stand‐alone Power System.2.6.10 12 Feb 2004: Letter: Daniel Reynolds (Ergon Solutions) to Messrs Mason, Visser, Biancotti, Gray,Trewin, Colquhoun and Malone. Ergon response to proposal for a renewable‐based Stand‐alonePower Supply system for their group of businesses.o Required capacity initially 1000kVA building to 2000kVAThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 22

Daintree Green Power Options Study ‐ for Cairns Regional CouncilooooooooFormal feasibility study would be required to determine whether there was adequate renewableenergy resources (Solar, Wind, Hydro) in the area to provide an effective input into such assystem.“based on our recent discussions, and current knowledge of the area, our initial impressionwould be that this is not likely to be the case.”A number of companies specialising in ‘’traditional’ power generation on this scale.It is possible for a system of this type to be supplemented from renewable sources.Should you choose to pursue this option, you should seek formal advice to determine whetherthis form of group supply is possible under Queensland’s electricity supply regulations andGovernment policy.A formal opinion on this independent legal advice would then need to be sought from the Officeof Energy, and Queensland’s Dept of Innovation and Information Technology.Ergon offer to determine the viability of Stand‐alone Power Supply Systems (SPS) for individualproperties in the area.These may be eligible for a rebate funding up to 50% under the Qld Government’s RenewableEnergy Diesel Replacement Scheme (REDRS).3.4 Douglas Shire Council ­ Planning Scheme Resolution: 2 June 2004“Moved: Cr Mike BerwickThat Council resolves to:1. Adopt the Temporary Local Planning Instrument, Protection of Conservation Values – North ofthe Daintree River to Cape Tribulation, and give public notice of its adoption and send a copy ofthe notice and 5 certified copies of the Temporary Local Planning Instrument to the Minister inaccordance with the specific requirements of Schedule 2 of the Integrated Planning Act 1997;2. Publicly notify the draft Planning Scheme in accordance with the specific requirements ofSchedule 1 of the Integrated Planning Act 1997 and at the same time to publicly notify the draftPlanning Scheme Policies in accordance with the specific requirements of Schedule 3 of theIntegrated Planning Act 1997.3. Support the Daintree Futures Study and use its best endeavours to implement therecommendations contained in the Study.4. Seek a Commonwealth Government commitment of $5M to assist in achieving therecommendations of the Daintree Futures Study.5. Support the reticulation of electricity, in accordance with the Daintree Futures Study (ie:Cooper Creek/Thornton’s Beach) and a local reticulated supply for the Cape Tribulation area,once the conservation targets outlined in the Daintree Future’s study have been reached;6. Inform the State and Commonwealth Government’s that Council’s adoption of the TemporaryLocal Planning Instrument and public notification of the draft Planning Scheme Policies are based,in good faith, on the understanding both State and Commonwealth will work together andagree to use their best endeavours to supply reticulated electricity as described in Clause 5above and that this be achieved by:‐a. Inclusion of the area North of the Daintree in the Distribution Authority Area once theconservation targets of the Daintree Future’s Study are met;b. The State Government contributing the cost of overhead and reticulated electricity inline with Ergon’s standard supply agreements, andc. The Commonwealth Government contributing the additional cost of undergroundingthe reticulated electricity.7. Reserve its rights under Section 2.1.15 (1) a of the Integrated Planning Act 1997 to repeal theTemporary Local Government Planning Instrument if the State and Commonwealth Governmentsdo not deliver on monetary commitment and the provision of reticulated electricity as outlinedabove in Clauses 4 and 6.FOR: Crs Berwick, Cox, Davis, Egan, PittThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 23

Daintree Green Power Options Study ‐ for Cairns Regional CouncilAGAINST: Crs Bellero, Sciacca Carried.’This Resolution is evidence of the Council’s commitment to delivering its part of component 2 of theThree Point Plan namely that development in the Daintree Region is capped and nodal and must proceedin a manner consistent with protection of World Heritage Area values and sustainable energy use.Council requests both State and Australian Government funding to implement key aspects. As therecommendations of Futures Study are essentially met, and as seen through the commissioning of thisstudy, the Council remains committed to supporting the supply of electricity.3.5 Daintree Futures – Alternative Scenarios Resource Requirements (Oct 2004)The CRC Rainforest study to evaluate the costs of supporting the community that would develop shouldall blocks in the subdivision areas north of the Daintree be settled. It “reviewed costs for supply ofcommunity services, water supply, waste treatment, social services (health, community well‐being,recreation, policy, and schooling) and transport and possibly electricity” so that the Douglas Shire Councilcould understand the possible costs to determine rates for the most likely future scenarios. These ‘futurescenarios’ were considered to be either 1) buy‐back with half the blocks being settled or 2) fulldevelopment of all blocks.The full settlement scenario anticipated a permanent population of 2000, which compared with thepossible 2169 modelled in the 1996 Powerline EIAS. The buyback population was anticipated to be 1000permanent residents. Tourist accommodation anticipated a maximum number of 1200 beds.Table 5: Summary of Daintree Futures: Alternatives Scenarios findings:Scenario Max.Pop1 FullsettlementCapital costfor allcommunityinfrastructureRecurrentcost of allcommunityinfrastructurePowersupplyCapitalcostPowersupplyannualcost2000 $ 133M $ 2.4M $15M $ 152000(1998)Tourism cost(loss ofanticipatedincome over40yrs due todevelopment)Tourismcontribution2013anticipated$ 335M$ 967 M $ 193M2 Buy‐back 1000 $ 22.4M $ 1.2M $15M $ 27M ** $ 328MIn the Full settlement Scenario “it is assumed there is an FNQEB (sic ERGON) supplied power supply andthat this has been provided through a high level of government subsidy (CSO). It is quite clear from thedata provided elsewhere that those existing landholders wanting mains power are neither prepared, or inmany cases able, to pay a high connection or annual access fee.” (p14).The report (p.20) gives an anticipated cost of the provision of electricity:“We anticipate that a full settlement of the area is reached that there will be community demandfor grid power, this would have a capital cost of $15.6M and an annual cost of $152 000 (note1998 dollars). The above cost is based on grid power being provided to all blocks north of theriver to Thornton Beach, using mostly underground construction (including directional drillingover the Heights of Alexandra.“It also states that “additional residential and commercial development in the Daintree will progressivelyimpact upon the tourism industry through reduction in visitor numbers. This arises due to theadverse scenic alteration caused by the extent of clearing and the general visibility ofdevelopment involved, whether or not power is provided, weakening the authenticity of theDaintree visitor experience.”The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 24

Daintree Green Power Options Study ‐ for Cairns Regional CouncilHighlighting provided here to illustrate the key point that the report does not anticipate any additionalincrease in the impact on the net present value of tourism as a result of power provision (p34, Table 13,Daintree Futures.**)The report evaluates the value of tourism to the area and the potential impacts of the two settlementoptions scenarios, as summarised in Table 5 above. The evaluation of the value of tourism, whilstidentifying both the tangible and intangible benefits of tourism, did not identify the emerging issue, andsignificant likely cost to tourism, of the perception that the current supply methodology for electricity isunsustainable in terms of the very high carbon footprint associated with generating power principallyfrom diesel generators.3.6 Department of Energy (October 2005) Confidential Report – Daintree Isolated PowerSupply Project – Preliminary Assessment Report RecommendationsThe 25 th October 2005 document states that an advisory committee to the Department of Energycomprising key stakeholders including: representatives of the EPA, Dept of Premiers and Cabinet;Treasury; Dept of Local Government and Planning; WTMA and technically advised by Ergon had internallyidentified an acceptable path for the delivery of power in the Daintree Region and that to deliver thatwould require the Electricity Supply in the Daintree Region policy to be rescinded. The Department ofEnergy Report recommended to the Minister that:“The Electricity Supply in the Daintree Region policy be rescinded and the Daintree restored toErgon Energy’s distribution area, subject to:1. The proposed Douglas Shire IPA planning scheme protecting State interests to thesatisfaction of the Minister for Environment, Local Government, Planning and Women;and2. Adoption and commencement of the IPA planning scheme by the Douglas Shire Council.”The report defined the probable Electricity Supply Outcomes:“Under the preferred option and in accordance with the Electricity Act 1994, residents andbusinesses in the Daintree wishing to connect to electricity supply will be able to apply to ErgonEnergy. The extent to which new customers are connected to electricity supply would be subjectto the same conditions as prevail throughout Queensland. “The group assessed the likely costs of each outcome and predicted, based on community surveyinformation the likely uptake of mains power supply based on the prevailing delivery conditions.“The electricity supply outcomes which can develop within the framework of the currentregulatory regime are varied; however the results of preliminary analysis indicate certain highlyprobable outcomes” which are detailed in the accumulated table below:Table 6: Summary of Confidential Report findings:PRECINCT LOTS Estimated estimated PROBABLE ELECTRICITY SUPPLY OPTIONScost cost percustomerForest Creek 178 $ 5.2M $29 000 Mains network: it is likely that a number ofindividual customers will immediately apply toErgon Energy for electricity supply and beconnected within normal connectiontimeframes. The majority of customers mayrequire the involvement of the Councilthrough a benefited area arrangement tofinance connection costs.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 25

Daintree Green Power Options Study ‐ for Cairns Regional CouncilPRECINCT LOTS EstimatedcostCow Bay, Diwanand Cooper Creekestimatedcost percustomerPROBABLE ELECTRICITY SUPPLY OPTIONS317 $ 24.2M $36 000 ‐$180 000RAPS: connection costs and the requiredcapital contribution which arises present afinancial barrier to customers receiving gridconnected power and they will continue to bereliant on individual RAPS. The cost of anIsolated Network to Cow Bay ($6.4M) is higherthan the provision of mains power through aHV feeder from Forest Creek ($2.3M)23RAPS – similar outcome to Cow BayThornton Beachand Noah CreekCape Tribulation 69 $5.7 M $83 000 Isolated Network: 1200kVa diesel powerstation. A number of commercial customershave expressed interest in the establishmentof an isolated network (refer Section SOCIALISSUES – From Community Consultation Table14) .3.7 Far North Queensland Regional Plan 2009 – 2031A utility grade isolated network provided byErgon Energy would not be a prudentinvestment however an opportunity may existfor a private entity under a special approval. Ifa private sector proposal was notcommercially viable and did not proceed,customers would continue to be reliant onindividual RAPSA request of this Options Study process was to identify implications and necessary changes to legislationand particularly the FNQ Regional Plan of the distribution of reticulated power to various communitiesover the Daintree River.The Far North Queensland Regional Plan (P47) states:“The landscape and scenic elements of the former Douglas Shire are considered by many residentsand visitors as being regionally significant. The policies included in this section protect these valuesby:• Limiting urban growth and development north of the Daintree River• Designating the area between Daintree River and the Bloomfield River as a regionallandscape and rural production area• Maintaining the existing policies to maintain the car ferry crossing on the Daintree River• Maintaining the roads between Palm Cove and Port Douglas, and the Daintree River toBloomfield River as scenic routes.It is important that development north of the Daintree River remains low key and sustainable toprotect the scenic and World Heritage values and character of the area. The existing accessconfiguration and lack of mains power are two major reasons why the area north of the DaintreeRiver has remained in a relatively undeveloped state. They are also the reasons why the area hasmaintained its heritage status and attractiveness to tourists. The Douglas Shire Planning Schemeprovides for limited infrastructure provision north of the Daintree River, with a strong preference forThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 26

Daintree Green Power Options Study ‐ for Cairns Regional Councilself‐sufficiency using sustainable technologies. The regional plan supports these elements of thescheme. “Whilst recognising the ongoing need to protect the World Heritage values of the Area, the statement that“the maintenance of heritage status and attractiveness to tourists” is based on the lack of mains power ischallengeable. Provided population footprint and densities are maintained, and values protected as theyare through the Planning and myriad legislative mechanisms, whether power is delivered by the grid orRAPS could be seen as immaterial, as defined in the Daintree Futures Alternative Scenarios (p.34, 2004).The technical options available to deliver mains grid power through undergrounding lines, andappropriate and timely rehabilitation of the construction corridor, would retain the heritage status andattractiveness to visitors.Realistic tourism marketing of the Daintree, in terms of visual amenity, amount of existing development,environmental impact and wilderness experience would address many of the concerns over provision ofgrid power affecting visitor satisfaction with this destination. Further discussion at 5.8.4.The Regional Plan’s statement regarding lack of mains power being the major reason the area retains itsattractiveness to tourists does not recognise the visual and noise pollution associated with the currentwidespread use of diesel generators nor the increasing awareness of, and destination choice by tourists,based on the carbon footprint of a tourism destination and how this awareness could detrimentallyimpact on the attractiveness and therefore visitor numbers to the region. Regional sustainabilitypractices are a very recent but significant trend in tourist behaviour and has resulted in eco‐accreditationmechanisms by Tourism Tropical North Queensland (TTNQ) through the Planet Safe Program and ecoefficiencyaudits and training through the Tourism Queensland Sustainable Regions Program.Whilst acknowledging a strong preference for self‐sufficiency using sustainable technologies, the FNQPlan does not specifically state that it prefers the maintenance of the existing policy restricting the supplyof power network in the Daintree Region, as it does state the maintenance of the policy for the car ferry.In addition, on p. 107 6.3 Energy in the same document states:“the Queensland Government is committed to ensuring that consumers have access to reliable,secure and competitively priced energy. At the same time, the government recognises the need tomanage and reduce greenhouse gas emissions through cleaner energy production and enhanceenergy efficiency to achieve a sustainable energy sector for the benefit of all Queenslanders.”This would lend weight to the argument presented by some Daintree residents that access to reliable andcompetitively priced energy is their right, and that the current delivery methodology needs to bereviewed to manage and reduce greenhouse gas emissions from the area. The current contrast betweenprotecting the environment while contributing thousands of tonnes of Carbon emissions through heavyreliance on inefficiently operated diesel generators is a contradiction that requires action to resolve. Theproposal for efficiency measures, education and demand management, defined in sections 6.3.2 and6.3.3 and maximising energy conservation in businesses and homes through measures like Climate Smartis in keeping with the recommendations of Section 9 of this report.4. The Electricity Supply In The Daintree Region PolicyThe Electricity Supply in the Daintree Region Policy was developed to act as a “moratorium” ondevelopment in the Daintree Region. It has acted to enable the “3 Point Plan” – the outcomes of a 1999meeting of key stakeholders to implement the outcomes of the 1998 Daintree Powerline EIAS Reportfrom GHD – to establish the “mechanisms to protect the Daintree region into perpetuity. “The 2000 Electricity Supply in the Daintree Region Policy still remains in force.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 27

Daintree Green Power Options Study ‐ for Cairns Regional CouncilNumerous approaches to government between 2000 and now suggesting that measures implementedwere now effectively protecting the Daintree and proposing various alternative power supply options tobe installed have not led to the policy being rescinded or altered, nor a commitment or timeframe for thisto occur.It appears that this policy is interpreted by departmental officials to refuse consideration of any proposedelectricity supply option that includes a distribution network, which effectively has prevented theintroduction of a larger RAPS system for the Cape Tribulation Area, as was proposed by a consortium ofthe area’s businessmen in 2003 and provided with written letters of support for the concept (in 2.6above) from: Warren Entsch, then Federal Member for Leichhardt ; Dean Wells, then Minister forEnvironment ; Gen Gray, WTMA Board Chair. No explanation of the decision to refuse this applicationwas provided by the Minister for Energy, other than reference to the Policy. It is not surprising that thereis a level of cynicism and frustration amongst the community about Government willingness to meet itsperceived but divergent commitments.4.1 Recommended Policy Options ChangeAs per the 2005 Dept of Energy Confidential report recommendations, and based on the identification ofthe status of the various protection mechanisms in place to protect the Daintree region provided in thisdocument, this review proposes that the current Electricity Supply in the Daintree Region policy berescinded and the area restored to the Ergon Distribution Area. The Policy has effectively served itspurpose and is now duplicating 1) the intent and action of the Cairns Regional Council’s Douglas ShirePlan; and 2) that the conservation values of the area are now effectively protected through thismechanism and Queensland legislation, particularly the Vegetation Management Act.Further it is recommended that, if required, a policy more in line with instigating the area as an icon forsustainable development with best practice sustainable energy generated for sustainably designed andoperated homes be drafted and implemented. A significant part of the tourism message associated withthis area, then becomes that you can live in and work in and visit World Heritage Areas, as happensthroughout the world, without damaging the values for which the area was listed, if you have acommitted and resourced, well educated community who see themselves as the recognised andsupported custodians of the area .5. Status of “Three Point Plan”The anecdotally known “Three Point Plan” came from a Letter from Terry Melchert, CEO Douglas ShireCouncil to Hon Peter Beattie: Conservation of Daintree Rainforest and Provision of Power North ofDaintree River, dated 22 Feb 1999.The important features of this broad based position are:1) The State and Federal governments provide funding , as promised previously, for the Buybackof unoccupied rural residential and selected other unoccupied blocks north of theDaintree River ;2) The State and Federal governments facilitate the consolidation of development, bothresidential and commercial, north of the Daintree River both through buy back and throughthe funding of a review of the Douglas Shire Council town planning scheme to reflectconsolidation into development nodes in the scheme.3) Grid Mains Power be provided to the consolidated area in an environmentally sensitivemanner.This concept, if implemented appropriately, will deliver the protection, in perpetuity, of the DaintreeRainforest as well as allowing the economic provision of local government services and infrastructure forresidents and tourists.” The Three Point Plan was also identified to the community through an OpenThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 28

Daintree Green Power Options Study ‐ for Cairns Regional CouncilLetter from the Mayor Mike Berwick released shortly after the meeting. This is seen by the community asthe ‘blueprint’ against which progress is being made. (Pers Comms. Russell O’Doherty, 2009)Ten years after its inception, points 1 – Buy Back and 2 – Planning Scheme Review and Implementationhave been essentially completed as evidenced below. The community consensus is that it is time toreview and potentially rescind point 3 ‐ the Policy that prevents the provision of Grid Mains Power.A review of the options for delivery of power has been conducted as part of this process.One of the purposes of this paper is to document the status of the various elements which made up the‘’Three Point Plan’’. The varying opinions within the community range from• The first two elements have essentially been provided, so now is the time to provide step 3 , to• Until 100 percent of the area is protected, then step 3 should not be delivered• To, Step 3 should never be delivered because of the perceived negative impacts of provision ofpower can never be mitigated.In section 2.5 above, the status of the recommendations of the report Rainforest CRC Daintree FuturesStudy (GH&D) Nov 2000, which led to the development of the Three Point Plan is documented, and it isconcluded that those recommendations relevant to this issue have been essentially delivered.6. Point 1 of Three Point Plan: Daintree Buy‐Back6.1 History of the Buyback ProcessThe Rainforest Rescue group is the latest iteration of mechanisms to protect the Daintree where theresponsibility was originally vested in the Daintree Land Trust (recommended in the CRC RainforestDaintree Futures Report (2000). The Australian Rainforest Foundation came into existence in2001andstill exists as an agent for managing and rehabilitating purchased blocks in the Daintree and is paralleledby the Rainforest Rescue commenced in 1999. The Rainforest Rescue group now manages the DaintreeBuy Back & Protect Forever project which “ identifies and purchases precious rainforest at risk ofdevelopment and establishes Nature Refuge status which protects it forever under covenants ratified bythe Queensland Parliament in Australia. “. The following timeline sets out how the buy back process hasproceeded and its current status.Table 7: Daintree Buy‐Back timeline20092008200720062005200420032002200120001999199819971996Buy‐ back 1 ‐ $23M Commonwealth (1996)Buy‐ back 2: $6.8M CWTH* (2005) and$21.6M CWTH*$5M QLD Govt ‐ 110 blockspurchased (WT Annual Report2006)132 additional blocks toDec 2008 (DaintreeSummit figures)ARF $1M from WTMAARF $5M from Cth24 blocks: 79 Ha and spent $1.8MDaintree Buyback and Protect Forever: (private donations) . 11 properties purchased 2001 ‐ 2009*http://www.environment.gov.au/about/publications/budget/2006/ebo/appendix1.htmlWet Tropics in Profile p47 (WTMA, 1996) describes the Daintree Rescue program.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 29

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe $23 million Daintree Rescue Program was established in 1994 to address the most critical threats tothe outstanding heritage values between the Daintree and the Bloomfield Rivers and to supportecologically‐sustainable tourism in the area. The Commonwealth and Queensland governments equallyfund the program, while Douglas Shire Council contributes planning, local expertise and various ongroundservices.The program is managed by the Wet Tropics Management Authority under the direction of the DaintreePlanning Coordination Group (DPCG). The DPCG is made up of representatives of Douglas Shire Council,the Authority, the Queensland Department of Environment and Heritage and the CommonwealthDepartments of tourism and Environment, Sport and Territories, and the Kuku Yalangi Aboriginalcommunity. Meetings are open to the public and Daintree resident groups are encouraged to attend.The program has two components: rainforest protection, and visitor management and infrastructure.The rainforest protection sub‐program aims to protect heritage values through the combined efforts of:• A voluntary land purchase scheme (buy‐back) to ensure the most important areas are protectedthrough public ownership and management.• Co‐operative management agreements between the Authority and owners of land who choose toprotect the natural heritage values of their land in exchange for assistance provided through theDaintree Rescue Program (technical, scientific, material assistance to help preserve the naturalvalues of their land);• Development controls that support the objective of the program; and• Community education of visitors, commercial enterprises and residents.The visitor management and infrastructure sub‐program is essentially a capital works program to providenew and improved facilities for visitors and residents. This sub‐program will focus on facilitydevelopment, road upgrades, revegetation and research projects consistent with the draft CapeTribulation – Daintree Management Plan being prepared by the Authority.”From WT Annual Report: 2005‐2006“In June 2006 the Queensland Government finalised the planning scheme for Douglas Shire, including theDaintree’s World Heritage listed rainforest. The scheme identified the areas in the Daintree, outside theArea, that must be protected. The Queensland Government will provide a further $10 million dollars tofairly compensate landowners not allowed to build, taking the government’s commitment to the Daintreeland buy back to $15 million. Since 2004 the Queensland Government has spent $5 million buying 110blocks.”6.2 Current Status of the Buyback ProcessThe Cairns Regional Council website (accessed Sept 2009) states:Two decades after the Daintree became a rallying point for the conservation movement, the workcontinues to ensure it remains a special part of the world.When it came into effect in September 2006, the former Douglas Shire’s Planning Schemerepresented the culmination of 5½ years work to develop and implement a Planning Scheme thatwas compliant with the Integrated Planning Act.It was one of the most controversial planning schemes proposed in Australia as it removed thedevelopment rights from over 330 vacant properties and it used a Temporary Local PlanningInstrument (TLPI) that waived of the requirement for public notification – allowing Council toimplement the development ban overnight.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 30

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThis TLPI, which required State Government endorsement, was employed because in the lead upto releasing the Draft Planning Scheme for public comment, Council was aware of the risk ofdisplaying the Scheme containing the controversial development controls. The TLPI preventeddevelopment applications that would dilute the planned development controls.HistoryIt started in the late 1980s when the State Government overruled Council’s decision to refuse anapplication to subdivide the Daintree rainforest into more than 900 one hectare, housing lots. Theapplicant than took out an advertisement in the Wall Street Journal advertising 958 blocks oftropical rainforest for sale. For $25,500 ($US18,000 in those days) buyers saw it as theiropportunity to own a piece of tropical paradise – either for their dream retirement property, or asa great investment.TodayWhilst the properties are outside the world heritage area, they share many of the same naturalattributes. The need to cap development in order to preserve this extraordinary area wasrecognised by local, state and federal agencies.The initial intention was for all three tiers of government to collaborate, each contributing $5million to buy back the land at market price, or at least provide owners with the option to retainownership and be compensated for loss of development rights.The level of co‐operation between the local, state and federal governments did not turn out asintended and the State Government committed the necessary $15 million for the Daintreebuyback.Progress on Daintree BuybackTo date, three quarters (72%) of the properties earmarked for buyback or compensation havebeen secured.Of the 331 blocks impacted by the Planning Scheme:• 215 have been purchased by Queensland Parks & Wildlife Services• 13 have been purchased by private conservation agencies ‐ Rainforest Rescue (12) andBush Regeneration? ‐ Declared Nature Reserves.• 13 landowners have received compensationOf the remaining 84 properties• 51 are in the process of being sold, or the owners compensated• 5 are where the owners are exploring avenues to development their land• 28 have not indicated a preference to CouncilThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 31

Daintree Green Power Options Study ‐ for Cairns Regional CouncilFor those who continue to live in the area, the new planning scheme provides the opportunity tobe part of the largest self‐sustaining community in Australia; to be immersed in a highly sensitiveeco‐system, one of the world’s oldest rainforests.‐Figures as at 8 October 2008. www.cairns.qld.gov.auFigures presented to Rainforest Summit 2008: 18 th December 2008 indicate ongoing progress toreducing the number of outstanding unprotected blocks in the area.Table 8: Cumulated Daintree Buyback protection mechanismsOct2008Dec 2008Summit informationNumber of lotsCRCwebsiteSummit Cumulativetotal (left toprotect)% Cum %left toprotectTotal lots in Area 800 800Number of lots in Rainforest Conservation519 519Zone‐ Number developed or able to be181 338* 100 100developed (Buy‐Back total*)‐ Under private ownership and ownerscompensated for loss of developmentrights13 13 325 3.8 96.2‐ Purchased back by the Governmentfor inclusion in the National Park‐ Purchased by other conservationagencies and considered ‘protected’215 242 83 72 24.213 16 67 – still inprivateownership4.8 19.4Still in private ownership 67 19.4‐ Lodged compensation claims 17 50 4.8 14.6‐ 4 outstanding rates and uncontactable4 46 1.1 13.5by Council‐ Signed contracts for market valuation 3 43 0.9 12.6‐ Under contract but sale not19 24 * 5.6 7.0proceeding at present‐ Landowners who have not madecontact with either Council or EPA28 24Given this calculation, there is only 7% of the area that is not currently being actioned as part of thisprocess, it suggests the time is right to trigger the review of the protection mechanisms currently in placein order to identify the appropriate course of action once “protection” has been effectively implemented.This likely includes:o Review the implications of each likely electricity delivery option and the timeframes, costs: initialand ongoing; and the environmental and social impacts.o education and engagement of the community in energy efficiency, planned maintenance anddemand management;o education and engagement of the community in ongoing protection of the asset;o understanding of the current protection mechanisms and their ongoing relevance – ie: theQueensland Vegetation Management Act 1999 and the Planning Scheme andThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 32

Daintree Green Power Options Study ‐ for Cairns Regional Councilo a review of the need and function of the Electricity Supply in the Daintree Region policy.In no documentation accessed is there a Key Performance Indicator – either a date or status level ofpurchased /protected blocks ‐ that will initiate a review of the effectiveness and the ongoing need for thepolicy or when the delivery of power infrastructure could commence. A recommended initiative forgovernment moving forward is for all Policies and Action Plans developed to define Key PerformanceIndicators to measure when and how that Policy has been effectively implemented; and a sunset clauseto initiate review of that Policy in a timely manner, as per other regulatory plans, eg: 5 or 10yrs.7. Point 2 of Three Point Plan: Douglas Shire Planning Scheme StatusDouglas Shire Council Corporate Plan (2006)The Corporate Plan is an overarching document that establishes the Council’s Vision for the Shire andoutlines the Council’s strategies and goals for a number of matters for which the Council is responsible.The Planning Scheme is aimed at achieving the Council’s Vision for the Shire by:• conserving, protecting and managing the Shire’s natural resources;• maintaining the Shire’s tourism and agricultural resources; and• providing the equitable and timely provision of infrastructure services to current and futurepopulations of the Shire.The Code for Settlement Areas North of the Daintree River Locality Code (4.2.2, p27) states“The purpose of this Code is to facilitate the achievement of the following outcomes for theSettlement Areas North of the Daintree River Locality:• protect the values of the WTWHA by ensuring that adjacent settlement areas are limited in extentand have a character and identity which are complementary to those values;• ensure that all development remains low key and sustainable and within the development limitsimposed by the Daintree River ferry crossing and the vehicular capacity of the Alexandra Rangecrossing and the local Road network;• provide adequate services and facilities for settlement areas and an appropriate level of economicopportunity for local residents;• ensure that all development is designed and operated to achieve an environmentally sustainableoutcome by taking into account the specific values of the area and/or Management Area and Precinctin which it is located and the site’s constraints and opportunities;• ensure that all development is sensitive and sympathetic to its remote location in an area of uniqueBiodiversity and Scenic Amenity value; and• ensure the natural forested landscape character of the locality is protected and enhanced.Douglas Shire Council Planning Scheme Amended Chapter 3 states:The urban growth proposals specific to the Shire include:• continued development of Mossman as the primary urban and service centre for the north coast;• continued development of Port Douglas as a combined tourist and urban node; and• management of urban and tourist development in the Daintree‐Cape Tribulation area wherebydevelopment is restricted in size and extent and is of a low intensity and environmentally sensitive innature.The preferred development pattern for the Shire is based on:• identifying suitable land to accommodate the long term urban development needs of Mossman, PortDouglas and other coastal settlements;• the continuing role of Port Douglas as a major tourist node which accommodates intensive touristdevelopment;The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 33

Daintree Green Power Options Study ‐ for Cairns Regional Council• restricting expansion of urban development north of the Daintree River in order to protect the scenicquality and environmental values of the Daintree‐Cape Tribulation area;• developing strategies for provision and maintenance of infrastructure services which do not undulyimpact on scenic and environmental quality.The Shire Land Use and Settlement PatternKey features of the Shire land use and settlement pattern, which will be reinforced through theimplementation of the Planning Scheme, are:• the containment of development north of the Daintree River in size, scale and location to ensurethe unique environmental values of the area are maintained and protected.In the Rainforest Precincts ‐ Residential and Tourism, development is generally limited to one House perlot and limited to existing cleared areas on land confirmed by councils Environmental Officer as apreferred location for development, in order to protect the integrity of the existing vegetation on the site.Bed and Breakfast Accommodation is limited to those already approved, and built in accordance with thepremise of approximately 1 bedroom per hectare. Ie: maximum 4 bedrooms (8 bed spaces) where a sitehas a minimum area of 4 hectares.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 34

Daintree Green Power Options Study ‐ for Cairns Regional CouncilFigure 2: Precinct Planning Area from Douglas Shire Council PlanThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 35

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe significant concern regarding the increase in potential residences should mains power be providedcould be mitigated significantly by recent changes in design and planning standards which, as defined inthe FNQ 2009‐2031 Plan, p109 states that “The Queensland government is proposing a number ofimprovement measures that will help make new and existing homes more energy and water efficient.Improvements proposed will require all new houses to be built to a 5 star (out of 10) energy equivalentrating, as of January 2009” meaning efficient in their design, for appliances to be energy rated; for thephase out of incandescent bulbs; and energy efficient building materials to be used. The Cairns RegionalCouncil has in addition to the above defined planning scheme, a “Sustainability Guide: Sustainable HouseDesign for Cairns” Guidelines which it could enforce in this sensitive region to additionally reduce possibleimpacts. These processes in combination with an ongoing education program will result in less demand.Sustainable Siting and Design of Houses is required on land where the Natural Areas and Scenic AmenityCode is triggered. P 112 lists performance criteria and acceptable solutions to deliver those criteria inthese areas.The Douglas Shire Planning Scheme was approved by the Minister for Environment, Local Government,Planning and Women; and adopted on 21st August 2006, taking effect in September 2006. It wasamended on 14th March 2008 to reflect the amalgamation of the Douglas Shire into the Cairns RegionalCouncil.8. Point 3 of Three Point Plan: Review of Energy Provision OptionsA number of energy provision options are technically available for supply in this area. This dot pointsummary identifies the potential and current options and their Benefits (Pro’s) and Costs (Cons).Table 9: Energy Provision OptionsOptions pros consReticulatedpower allthroughEquity of supplyConnection costs may be too high forindividuals to justify/afford – estimatedat between $20 000 and $80 000GHD research (1987) found that “themajority of potential customers may nottake up an offer to connect to mainselectricity when the upfront cost exceedsthe equivalent of their RAPS annualoperating costs.”Possible with technology but withhigh financial cost if environmentalprotection and immediaterehabilitation are includedRecommended option in DaintreeFutures Study 2000 and 2005Confidential Dept of Energy ReportPossible with technology but with highfinancial cost if environmental protectionand immediate rehabilitation areincludedDistance from nearest high voltagetransmission line at MossmanMay demonstrate a “benefited area”classification warranting Councilsubsidising initial cost and recoveringover time under a special levy.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 36

Daintree Green Power Options Study ‐ for Cairns Regional CouncilOptions pros consReticulatedpower –select areasEquity – not available to all residentsRAPS 1 –small scale(business asusual)Reticulated power already suppliedclose by to Forest Creek area.Requires Policy change to bedelivered in an environmentallyfriendly mannerSee TES reportUser‐pays costs for connection may betoo high for individuals to afford/justifyVery high CO2 –e emissions associatedwith diesel usageLack of economy of scaleHigh operating costs due to increasingcost of dieselHigh maintenance cost and replacementcosts due to location in Daintree;inefficient operations due to low loadsRAPS 2 See TES report (Appendix 2)Economy of scale associated withsmall distribution network; moreefficient operations and regularmaintenance; increased reliability ofsupplyNoise – both the level if not insulated andthe duration of noise due to operationlength. DSC regulations re: limit ofoperating hours to 7am‐7pm. This is notpossible in some businesses or to provideassistance to ill individuals.Requires professional maintenanceoperator for most efficient operationsand reliability of supplySolarCould provide employment for anappropriately qualified individualMay be located in areas of lesserenvironmental valueHas the capacity to be linked tosupplement renewable sources.Can be run entirely on biodieselOpportunity for future connection toWind Farm or other renewablesourcesIncreasingly efficient technology atdecreasing price as demand increasesDifficulty of operating in Daintree Region:• High frequency of rainy and cloudydays• Rapid mould growth requiring regularcleaning of the panels,The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 37

Daintree Green Power Options Study ‐ for Cairns Regional CouncilOptions pros cons• shading by fast growing trees(contradiction between maintainingWH values associated with rainforestand cutting them down to reduceshade)• battery replacement regularly – toxicbattery contents and disposal issuesWindHydroTechnology available. Wind resourcemay not be available in theimmediate vicinity – requires furtherinvestigation. (Roam ConsultingReport, May 2009)May be able to link to Archer PointWind Farm at some point in future ifconstructedSmall scale operations exist and workvery effectivelyEconomies of scale and increasedeffectiveness not possible due to Policynot allowing installation of a distributionnetworkTechnology has high costNeed to undertake feasibility study toensure sufficient wind available tooperateLikely negative impacts of tall trees onwind direction and strengthVisual amenity concerns if placedadjacent to WHANoise amelioration to be considered indesign for close neighboursLink to Archer Point Wind Farm – if by seacable then concerns on where it wouldcome ashore – beach protection;undergrounding cable through area –(likely Cow Bay Beach and buried inBuchanan Creek Road.Overland route unlikely to be delivereddue to imminent removal of CREB tracklineLimited by: Unlikelihood of havingresource for large scale waterimpoundment and fall for more than minihydro.Unlikely for permission to be granted todam in WHA – WT Plan 1998Seasonality and size of streams may beinsufficient for all supply needs ofindividuals or larger numbers ofconstituentsThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 38

Daintree Green Power Options Study ‐ for Cairns Regional CouncilOptions pros consAccessing creeks sourced in WHA andpossible environmental impacts ofdiversionRequirement for permits from WTMAand DERM (Water Resources) to extractor divert waterLimit by need for sufficient fall to driveturbinesTurbine location and protecting return tocreek from erosionTidal Minimal impact once constructed No proven functioning technologycurrently operating at scaleRisks of loss of plant due to floodsWill require significant geological andhydrological studies to determine alocation where could be installedBiodieselCogenerationPlant(Biomassplant)LiquidNatural GasGeothermalCommunityServiceObligationPossible as an alternative fuel source– one local runs his business andhome on the local biodiesel supply –he accesses all cooking fat currentlyused in the region north of theDaintree RiverRecycling of all sewage and garbageand green waste including nonrecyclable plastics and bagasse fromMossman Mill could be fed into a“Mini Biomass” power generationfacility if an agent could be identified.Less environmental impact than coalbased generationNo readily identified site in FNQ,although proposed for futureinvestigation by ROAM consultingEquity in cost of supplyWould require permits to install andoperate equipment in waterwayLittle additional biodiesel fuel availablelocally.Not common technology – only a fewlarger scale plants built in Queensland sofar. Mossman Mill has not been identifiedas highest priority for this investment.(Roam Consulting Report May 2009)Issues with storage of green waste ‘’fuel’’– area required, smell, attracting rodents.Accessing the gas pipeline coming toAustralia via the Cape from PNGDelivery to Daintree area limited due tolack of transmission linesMay lead to increased consumption thanwould happen if the true cost of powerprovision was paid.Demand management program requiredin addition to CSO to reduce unnecessaryconsumptionThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 39

Daintree Green Power Options Study ‐ for Cairns Regional CouncilBased on this overview, a more detailed review of the most likely for the largest number of residents wasconducted by Tropical Energy Solutions (August 2009). The complete report is at attachment 2.A summary of the outcomes are:Tropical Energy Solutions conducted a desktop review of a range of power supply options for the Daintreecommunity. We identified that some data provided in 1998 and 2000 continues to be valid today, whileother data and some conclusions would be no longer applicable in 2009.The review shows that operational expenses for power supply systems have grown significantly and atsimilar percentage rates as grid supplied electricity. Capital expenses for medium size power generationsystems have benefited from price reductions due to larger production volumes and advances in systemarchitecture. Even greater reductions are available for renewable energy supply systems resulting in theirimproved commercial viability.Traditional limitations due to the climate, landscape and remoteness of the region are as valid today asthey were in the past. However, these limitations can be minimised in well designed and professionallyoperated systems that could serve clusters of households and/or businesses across all areas of theDaintree if distribution is allowed.1. Key criteria and comparison of optionsCAPEX ‐ previous reports demonstrated the high capital costs of an ecologically acceptable main gridextension solution. Ongoing increases in material and labour costs result in further price increases forsuch solutions.In 2000 RAPS system used to be built in small quantities and from components that were manufacturedin small quantities. Their capital costs used to be relatively high as a result.The establishment of large scale manufacturing facilities for inverter systems and PV Solar modules hasprovided much reduced prices for these components. It is expected that further efficiency gains arepossible and price reductions are likely.OPEX – operational costs per produced kWh are directly related to the size of a system and the selectedpower/fuel source. The economies of scale suggest systems of medium to large size and the bundling oflocal loads/demand. All available power sources shall be compared regarding their current and futureavailability and cost.Green House Gas Emissions – various power sources and system designs provide opportunities to controland reduce the GHG emissions from local power consumption. Both, main grid and local RAPS solutionsoffer numerous options for the integration of renewable energy sources.We recommend a review of the calculations that produced the data for table 2.5.1. shown in the DaintreeFutures Study Report on page 105.Transmission Losses – ideally transmission losses are kept to minimum as they result in additional costs,emissions and – indirectly – capital costs and maintenance cost for the network. In the case of theDaintree location within the East Coast Grid these transmission losses are substantial unless large scalelocal power sources are added to the main grid.Local area grid sizes must be defined with transmission loss minimization strategies. AC coupled RAPS arepreferred over DC coupled systems due to their ability to minimise transmission losses within the system.Ecological impact from construction – The Daintree environment is regarded as a highly sensitive andvaluable asset that requires short term and long term protection from unsustainable development. Thebuilding of LV and MV power lines would require the temporary destruction of fauna and flora habitats.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 40

Daintree Green Power Options Study ‐ for Cairns Regional CouncilSuitable construction techniques and mitigation techniques are recommended but result in additionalcapital costs for such solutions.Ecological impact from operation – Removing the power generation source from the Daintree area isseen as the most desirable solution against these criteria. Local power generation will have a smallerimpact if it is limited to a small number of medium sized systems (especially if designed and operated byexperts) compared to a large number of small systems that are operated by individual households.Noise emissions can be minimized to very acceptable levels by investments into encapsulated dieselgensets.Supply Reliability – Residents and business operators on the Daintree require reliability and predictablecosts for the operation of their properties. Modern, well designed systems offer these features but manyof the home‐build type 1 RAPS struggle to meet such requirements.Negative experiences with these systems can reduce the willingness to invest funds into new RAPSinstallations.Integration Potential for Renewable Energy Sources and Demand Management – Over the coming yearsand decades it will become increasingly important to reduce the contribution from fossil fuel powersources to the power supply systems. A system architecture that allows the cost effective integration ofrenewable energy sources will provide a valuable asset rather than a liability to the Daintree community.In principal all power system solutions allow the gradual integration of additional emission‐free powersources, however, medium and larger size systems and networks offer many advantages in thepositioning of power sources and in the management of intermittent power sources (e.g. wind, solar,hydro).The following table shows a basic, unweighted comparison of 3 power solution types against 8 key criteriain no order of importance. The development of more detailed and weighted assessments arerecommended to assist in the decision making process.Table 10: Comparison of 3 power solutions against key criteriaCriteria\Power SolutionMain Grid Type 1 RAPS Type 2 RAPSExtensionCAPEX Very High Medium MediumOPEX Low High MediumGHG Emissions High* High* Medium*Transmission Losses High Low LowEcological Impact from construction High Low Low ‐MediumEcological Impact from operation Low Medium – MediumHighSupply Reliability Good Medium GoodIntegration Potential for Renewable Energy Sourcesand Demand Management* based on dominant current fuel sources = coal or dieselGood Medium GoodThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 41

Daintree Green Power Options Study ‐ for Cairns Regional Council8.1 Current Energy Use PatternThe area is anecdotally known to be “one of the largest non intentional solar powered communities inAustralia” with well over 100 units installed. It is a “very difficult climate with a high level ofunpredictability of sunshine hours, humidity that averages 80% throughout the year and about 4 metresof rain during the wet – December to June. “ Hugh Spencer (2003)Should this community be involved in a more formalised solar powering program, similar to theCommonwealth Solar Cities program, the support mechanisms may reduce the maintenance and systemefficiency problems that have been identified as part of this process. The region does not meet the SolarCities program criteria, however it is recommended to seek access to the support mechanisms andtraining packages that Solar Cities utilises.Many participants identified the potential Carbon footprint of their operations as being a concern,particularly from a tourism destination acceptability perception. Community members were asked toprovide information on their current consumption rates. The following information was provided, andalthough it is not the complete list of users, it does give an approximation of the current emissions beinggenerated. The calculation is made utilising the latest figures from the Australian Greenhouse Office, ofthe CO2 –e emissions of diesel.Table 11: POTENTIAL CO2 EMISSIONS FROM CURRENT OPTIONSSupplied by Russell O’Doherty and Martin Visser.Name of property / ownerNo of litres diesel consumed annuallyHeritage Lodge 60,225Cockatoo Hill Retreat 8500Daintree Discovery Centre 24016Masons Store 39000Crocodylus 55000Cape Trib Beach House 112732Daintree Entomological Museum 2600Daintree Tea 25000Cow Bay Hotel 78000Lync Haven 36000Daintree Air Strip 672Daintree Views 2800Daintree Manor 1500Chris &Tess Leach 1300R&T O’Doherty 1187B&M Gosper 1800Brian Goon 1000Jamie 1526Beach House 117000C/T Camping 50000WHET 42000Dragon Fly 41600Farm Stay 20000Jungle Lodge 340000P K’s 234000TOTAL1,297,458 litres of dieselCO2 –e footprint for these businesses (at3 505 100kg or2.7kg/L emissions for diesel)3503.1 tonnes CO2 –e emissionsThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 42

Daintree Green Power Options Study ‐ for Cairns Regional CouncilCurrent methodology environmental impacts:The current predominantly solar and diesel generator based generation systems are not withoutenvironmental impact. The predominant issues are:Batteries waste:The existing solar systems require regular replacement and disposal of batteries. The Douglas ShireCouncil Waste Collection service is not able to collect and dispose of all the batteries used, and so astockpile of many hundreds of old batteries exists at the RACQ office at Cow Bay (image above).Concerns have been raised by thecommunity regarding the safety of thebatteries, having had a number of batteriesexplode under people’s houses with thepotential for houses to catch fire (imageleft); and secondly, the potential of leachingof acid from these batteries into the groundand adjacent creeks or waterways due toinappropriately bunded storage area.The area was never intended to provide along‐term storage facility. A moreappropriate short‐term storage area needsto be identified, as well as a long‐term offsitesolution. This could be undertaken withthe assistance of Council and Department of Environment and Resource Management (DERM). Smallquantities of Lead from some of the batteries is recycled to form sinkers – sold to local and visitingfishermen, however this is not sufficient to reduce the quantity on site.Noise:The noise from the operations of generators has been an ongoing issue. It has prompted the DouglasShire to instigate a policy regarding operating hours and noise levels from generators. The policy states:Noise from a Generator must not be audible at premises:• Before 7am or after 7pm – Monday to SaturdayThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 43

Daintree Green Power Options Study ‐ for Cairns Regional Council• Before 8am or after 7pm – Sundays and Public HolidaysIt defines environmental nuisance under the Environmental Protection Act 1992. The issue with noisenuisance relates to the sensitivity (often increasing sensitivity) of the recipient of the noise and the abilityto instigate mitigation measures – which are clearly defined, when Council Officers are not on site toverify non‐compliance. With increasing numbers of ill or elderly residents or those with young children,and some business operations, it is not possible to have power supply (and therefore operate agenerator) for less than 24hrs per day. Although most noise issues can be mitigated if requires willingparticipants to achieve mutually satisfactory results.Table 12: RECOMMENDATIONS for GREEN POWER OPTIONS IN THE DAINTREE:Based on an evaluation of all the documents reviewed and the analysis of likely costs and impacts of eachoption, the following options for each precinct are recommended. These will still need to be considered,costed and the consumer’s willingness to pay evaluated by the relevant authorities.PRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONSForest Creek 178 Mains network: the grid supply already is connected adjacentto Forest Creek and extension of the existing grid to thisconcentrated community would be achieved in aneconomically cost effective manner, and the application ofstringent environmental controls as stipulated in the QESICode of Practice; combined with an education program inenergy demand management (similar to the current ClimateSmart initiative) would ensure minimal environmental impact.Based on feedback received through community consultation,it is likely that a number of individual customers willimmediately apply to Ergon Energy for electricity supply andcould be connected within normal connection timeframes.The majority of customers may require assistance to subsidisethe cost of connection; possibly through a benefitted fund.Cow Bay, Diwan andCooper CreekThornton Beach andNoah Creek317 Type 1 RAPS(Household Hybrid system)and Type 2 RAPS(Isolated Hybrid System Network)Distance from existing mains grid; connection costs and therequired capital contribution which arises present a financialbarrier to customers receiving grid connected power.In this precinct, Type 1 RAPS continue to be the recommendedoption, with possibility of introducing several strategicallylocated Type 2 RAPS (see Appendix 2. 13.2) where populationnodes occur and economies of scale allow; and whereecological impact of limited distribution network can beminimised.23 Type 1 RAPSDistance from existing mains grid excludes connection tomains power.Population density and distribution does not lend itself to aType 2 hybrid network.Cape Tribulation 69 Type 2 RAP (Isolated Network):Distance from existing mains grid; connection costs and therequired capital contribution which arises present a financialbarrier to customers receiving grid connected power.Again, the possibility exists here for introducing severalThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 44

Daintree Green Power Options Study ‐ for Cairns Regional CouncilPRECINCT LOTS PROBABLE ELECTRICITY SUPPLY OPTIONSstrategically located Type 2 RAPS i.e. where population nodesoccur and economies of scale allow; and where ecologicalimpact of limited distribution network can be minimised.A consortium of businesses from this precinct have putforward a RAP2 proposal (Appendix 2.6) which has notprogressed despite support from local member and keystakeholders , due to it being deemed contrary to theElectricity Supply in the Daintree Region policy.If this, or a similar, proposal was not commercially viable anddid not proceed, customers would continue to be reliant onindividual Type 1 RAPS with its ongoing greater community andenvironmental costs.This determination is based around the following information, garnered from the 2005 ConfidentialReport to the Department of Energy, on the likely number of blocks to be supplied power and the blocksidentified for ‘buy‐back due to their ecological significance:Table 13:9. Social Issues – from Community Consultation9.1 Written and Public Meeting SubmissionsThere were 2 public meetings held on the 18 August 2009 (14:00 and 18:00) at the Diwan Sports andRecreation Centre, Diwan. Invitations and background information were distributed via post, email to allmembers of the Cairns Regional Council Database and a public notice was placed in the Mossman Gazetteinviting the community to attend. Two articles were written in the Mossman Gazette and a radiointerview given to the ABC prior to and after the event. The ABC mentioned the meeting in its local newsbulletins on the day prior and of the meeting, inviting all interested residents to attend.Politicians and key stakeholders were not invited to attend or address this meeting, in an attempt tofocus the meeting on hearing the resident’s views and to gather information on their experiences of livingnorth of the Daintree without mains power. Attendees were given a briefing on the Daintree GreenPower Options Study and its terms of reference, relevant legislation and policy, relevant communityThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 45

Daintree Green Power Options Study ‐ for Cairns Regional Councildemographics and some explanation of energy alternatives. Alternatives suggested by the groupincluded solar, wind, solar, thermal and use of the gas coming to Australia via the Cape from PNG.Although many comments of “wish I had known it was on” were received after the event, however anumber of residents attended: Fifteen during the day and thirty‐five during the evening session. Only asmall number attended both. More than 30 written /email submissions – some more than twice andmore than 40 phone calls were received, collated and the key points identified during this process.A summary of the key points brought up through both the written submissions and by the public meetingattendees is set out in Table 14 below, and key submissions are in the Appendices.Table 14 Written and Public Meeting ‐ Summary of CommentsKey: Issue typesSocial, Economic &Diesel powered Generator PowerRegulatorySolar PowerHydro PowerMains PowerWind PowerNo. ISSUE PUBLICMEETING1 Change in Demographics‐ aging population since 1980’s (issue of IIhardship associated with maintaining one’s power with increasingage)2 Want changes in Regulation/Policy/Planning Scheme (2000 Bed IIII IIILimit‐DSP, Daintree Energy Supply Policy – Qld Govt, 3 Point Plan,Vegetation Management Act 19993 Concern that POWER OPTIONS STUDY is going ahead prior to the Iformation of the Daintree Summit Steering Committee –recommendation of Daintree Summit4 First two parts of Three Point Plan met: Planning and Buy‐back – IIII IIInow give us Power5 Frustrated with Surveys/Reports (3 IN 10 YEARS) & NOIIIOUTCOMES6 Want to see timeframe for changes – including phasing out of IIexisting equipment7 Council Driven Survey on Mains Supply needed IIWRITTENRESPONSEIII8 Regional importance of Tourism and reliance of the TourismIndustry on affordable power9 Desire to protect the Unique characteristics of the Region (note:lack of mains power seen as attractive unique characteristic tosome)10 Support for Rebates continuing or being re‐introduced (for using“green” power, ATO fuel rebate scheme, any source back to grid)11 Disagreement with the number of blocks available fordevelopment on completion of current Buy‐back process (186 vless than 30)12 Green Power Options Study should be part of larger planning andBuy‐Back exercise13 Community meeting not representative of community andcommunity opinion (

Daintree Green Power Options Study ‐ for Cairns Regional Council14 Preference for Solar Power – “green grid” ie networked RAP, cost lIIeffective15 Problems with Solar – LACK OF OPERATOR EXPERTISE (education IIII IIII Iissue requiring follow up), LACK OF REBATES TO COMMERCIALPROPERTIES, OUTDATED/UNDERSIZED EQUIPMENT,16 Problems with Solar –SHADE, EXPENSE (capital/maintenance), IIII IIIISAFETY , WASTE DISPOSAL OF BATTERIES (operation/disposal ‐>5‐7yr life of batteries),17 Preference for Mains Power – equity (citing the AntiIIII IIII IIII IIII IIlDiscrimination Act), Quaid representations at time of purchase,government Fact Sheet 8, support for sustainable mains powergeneration.Vote 38:12 at 18/8/09 meeting for gridpower alone18 Preference for Undergrounding Mains Power IIII19 Problems with Mains Power – pollution, negative visuals, cost, IIll IIimpacts on WHA values, sustainability, underground issues20 Support for Restricted Mains – Cow Bay /Forest Ck I21 Against Mains Power and concerned it will be forced upon them IIII III22 Would like to see ERGON’s costing updated II23 Externalised cost of changes‐ borne initially by govt then standard IIII II IIII Icharge rates to consumers – Some belief Ergon has a communityservice obligation.24 Internalised cost of changes – Borne by individual25 Support for Generators – a few large rather than many individual IIlunits, HYBRID systems, if well operated26 Problems with Generators – CARBON FOOTPRINT,IIII IlII IIII IlSAFETY(transport, storage, handling), COST, DIFFICULTY OFOPERATION, NOISE27 Support for Hydro l28 Problems with Hydro (irregular or seasonal flows, drought) II II29 Support for Wind Turbines – Regional power provision (linking to IIIl IArcher Point mentioned)30 Problems with Wind Turbines ‐ cost to run lines, lack of supplyknowledgeIlDiscussion regarding community consultationThe above table illustrates the breath of opinion on what constitutes a desirable type and mode ofprovision of power for the region. Whilst submissions received and meeting attendance was from lessthan 10% of the community population, most opinions appeared to well formed and based on first handexperience over years of living in the area, and there is a high correlation between the issues raised atthis time with issues raised in previous surveys conducted as part of the community consultation processduring the Douglas Shire IPA Planning scheme development in 2005.Broad messages that might be drawn from this consultation process follow:• The satisfaction of one’s experience with various forms of alternative energy production appearsto rest largely on the operators’ knowledge and expertise; both in achieving an appropriate andadequate initial set up and correct ongoing maintenance.• Education on the effective operation/maintenance of alternative forms of energy supply wouldbe likely to increase the energy production and capture efficiency, equipment longevity andconsumer satisfaction.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 47

Daintree Green Power Options Study ‐ for Cairns Regional Council• There is a growing awareness of the high carbon “price” being paid for operating individualhousehold level diesel powered generators.• There appears to be a social cost associated with the relative difficulty of living with highmaintenance and/or inefficient alternative power sources. The aging population of this areameans maintenance of units i.e. cleaning roof panels, carrying heavy batteries and fuel andkeeping hydro units operational can become more fraught. Furthermore, the relative hardshipassociated with running a household under limited power conditions can bring pressure uponfamilies leading to higher than expected levels of relationship break ups and communityfragmentation as families separate to reduce the impacts of living without power – mothersliving ‘over the river’ whilst dad stays home and runs the house and business.9.2 Current DemographicPart of the planning process intent was to limit the potential population of the Daintree region. Withinthe Confidential Report to the Energy Department (2005) was the identified maximum sustainablepopulation for the region:Table 15: Precinct predicted populations:DAINTREE PRECINCTSPOPULATIONForest Creek / Cape Kimberley 453 (33%)North of the Alexandra Range to Cape Tribulation 911 (67%)TOTAL POPULATION 1364 (100%)Many contributors to this project commented about the changing demographic in this area. With apopulation that is now limited by the Planning Scheme, and where 47% of the population is older than 40and aging, according to:Table 16: Bureau of Statistics (2006 Population Demographic figures):Age Statistics Postcode - 4873 Region - QLD40 to 59 31% 27%20 to 39 24% 27%5 to 19 20% 20%60+ 16% 17%0 to 4 6% 6%The aging of the population has significant implications for the effective ongoing operation of highmaintenance electricity generation systems. Many of these residents have few traditional supportnetworks, like family, as anecdotally, they have moved from elsewhere in search of a ‘’tree‐change’’. Themaintenance of current energy supply systems requires consideration of the following:• for Solar systems: daily checking of battery acids to measure their charge; regular removal ofoverhanging branches which block light; and regular cleaning of panels to remove mould and leafdebris; repairs caused by predation by rats or defecation by geckos ; the regular change‐over ofbatteries and replacement and disposal of old non‐functioning batteries. This requires a level ofhealth and fitness and an awareness of workplace health and safety to do safely to ensurebatteries do not explode. The risk with age of falling off roofs and the use of chainsaws alsoincreases significantly.• For diesel generator sets: regular filling of fuel tanks requiring movement of fuel from storageareas to the site of the generator. The risks area associated with carrying and inhaling fuel; andwith spills to land or water. Transporting fuel over these remote and narrow roads; and storinglarge quantities of fuel to ensure that the site doesn’t run out in times when access is limited,have inherent dangers. The risk of fire cannot be under‐estimated.9.3 Fragmentation of CommunityThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 48

Daintree Green Power Options Study ‐ for Cairns Regional CouncilA significant issue raised was that many families feel they are forced to live largely separate lives,particularly during the wet season or when women are pregnant or someone suffers illness ‐ when thewomen and their children move south of the Daintree River to escape being flooded in; to access reliablepower and to be close to medical facilities if required.Ms Helen Cooper wrote:“We have a high instances of relationship break up in our community, I believe due to theseinfluences of living with difficult alternative systems and or generators the outcome is thatchildren are separated from one parent after the mother, wife, partner moves over the river livingin an area close by but with mains power making life easier for herself and the children involved.The father remains on the property isolated from his family, often reverting to alcohol, drug evenworse case scenario suicide. Resulting in a split household where by the children will only have onepermanent parent and visit the remaining parent weekly, monthly etc..they are not divorced justseparated due to difficult living standards.”9.4 Community versus Tourism Need­ Tourism Perspectives and ExpectationsThe heavy focus on protecting this area by government policy and regulation is stated to be to preservethe tourism icon of “the Daintree”. The marketing of the area as a tourism destination dominates theargument for a seeming inconsistency of not providing power to the region. However, World Heritagenomination is not inconsistent with people living and working in, or adjacent to, a World Heritage Area.The Wet Tropics Plan allows for existing use rights, including residents living in the area, to continue. Thearea that this study relates to is largely outside of the World Heritage Area. The issue of ongoingprotection will not be achieved only by excluding power. Ongoing protection needs to be addressed aspart of the larger Rainforest Summit process, as identified by many contributors to this process.The Daintree Rainforest Summit, Dec 2008 discussed Visitor Satisfaction and one outcome stated that“CSIRO research on attitudes did show people were disappointed and wanted more “wilderness” andmore wildlife. The Great Tropical Drive information is contrary to this, instead directing people to zoosrather than to a place where they can experience wildlife in their natural habitat.”“Open paddocks are a mess right on the doorstep of Cape Tribulation. People disappointed that it is not awilderness experience. Landowners with exposed blocks to roadway need to revegetate the roadwayverges.”Although an iconic destination, the Tourism industry from the highest level needs to take responsibilityfor ensuring that unreasonable expectations are not generated in the visiting public of what they areabout to experience. There are ready made and excellent remedies to this situation, as illustrated by thefollowing excerpt from “ A Handbook for Tour Guides: Daintree River to Cape Tribulation” ‐ DaintreeRescue Program, Wet Tropics Management Authority and Qld EPA (1998)P 1‐1: “A word of warning: people often expect a wilderness experience rather than a coastlinethat has experienced significant development. It is a good idea not to enhance these expectationsby over‐glamourising the area. Studies have found that the better informed the visitor is, the lesslikelihood of disappointment. Here is the challenge! Before your visitors reach their destinationyou have the task of bringing their expectations to a realistic level, without generatingdisappointment. Good luck!This is a significant part of what is needed to ensure that visitors are not disappointed with theirexperience. The solution has been identified, but is it effectively being put into place. Is themarketing of the region realistic? Do we build an unfulfillable expectation for tourists before theyget here? “There is an opportunity for the tourism industry to be involved in effectively translating the message andbeing ‘’part of the solution’’ if funds generated by tourists offsetting their eco‐footprint can be focussedon revegetation works along the approach roads to the Daintree, so that a perception of wilderness ispresented by a vegetative screen on the roadsides. This provides an additional benefit of acting as aThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 49

Daintree Green Power Options Study ‐ for Cairns Regional Councilvegetation corridor, however, it must be balanced against the risks associated with vegetation close toroadsides screening cassowaries from the danger of being hit by fast moving vehicles.10. Educating For Energy Efficiency; Demand Reduction and OngoingMaintenance RequirementsInitial reports and strategies for implementing renewable energy solutions in the Daintree Region (1996and 2000 studies) spoke of the need for an education program comprising information on energyefficiency, demand reduction and maintenance requirements for the systems. This cannot be a “one‐off’’program, as the players and the information changes rapidly. An ongoing education program is stillessential to maximise the appropriate installation; efficient use and longevity of use of the energydelivery mechanism. There is potential, with the recent increased awareness of energy efficiency acrossQueensland, and the world, to tie into existing Ergon Energy “Climate Smart” and Cairns Regional Councilsustainability initiative programs that are being rolled out.Of significance in this area, an education campaign should address the following:• Regular and pro‐active /preventative maintenance. All these systems have a maintenancerequirement to ensure their effective and long term functioning. In a tropical climate, this isexacerbated by high humidity and rainfall and its resultant growth of mould and rapid growthrates of trees. An ongoing and regular maintenance regime is required.A quote from Sandia Labs (USA) photovoltaic research section: “Most batteries don’t die, they aremurdered….. “ similarly, “More PV systems fail because of poor battery/charge controller performancethan any other cause” but a motivated householder is far more effective than a thousand controls.”• Energy conservation principles:o Reducing the number of appliances being operated at any one timeo Choosing appliances with minimal energy consumption and maximum ratingso Turning off an appliance at the wall and/or unplugging any appliance not being used so asto reduce the demand from ‘’stand‐by power’’o Timing of use of high consumption appliances to when generators are runningo Design of houses to minimise the demand for air‐conditioning and other coolingappliances; and to maximise the use of natural light.o Keeping seals on fridges and freezers clean to keep them working properly.• Choosing generators appropriate to demand. Generators are very inefficient if under‐loaded.The temptation to buy a bigger generator “just in case” and then load it up with more appliancesis common, resulting in greater consumption of fuel and inefficient use of appliances. Educationabout load and appropriate choice of generator could be part of that process.Dr Hugh Spencer among many others making submissions on many occasions over the years hasreinforced the requirement for an effective and ongoing education program. Whilst pushing for minigridsfor 10 years using a combination of grid and renewal sources, he states:“We need to improve our conservation measures – we still have empty rooms with air conditionersrunning. There is a need to implement energy efficiency program – provision of training andassistance in this area.”The quality of the submissions received and communications made illustrates significant evidence of thecustodial attitude of people who choose to live in this region. Many have had long involvement with thisprocess and more than fifteen years of committed environmental performance. Publicly recognising thatcustodial attitude and supporting people’s efforts to be more energy efficient need to be part of a futureeducational program.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 50

Daintree Green Power Options Study ‐ for Cairns Regional Council11. Position of Key StakeholdersThe position of the key stakeholders was garnered from those who attended the December 2008 Summitand from direct communication where appropriate. Due to the short time‐frame since that meeting,policies have been deemed not to have changed. Main points from discussions with key stakeholders aresummarised below:11.1.1 Queensland Government PositionJason O’Brien attended the December Summit and advised that “the government’s policy was tocomplete the Daintree Buyback prior to any change in the policy. This may involve waiting until thepurchased land is transferred to the National Park. The Daintree Buyback is well progressed with only 77properties from a starting point of 338 remaining unprotected. The State Government is in discussionswith the owners of 41 of the remaining 77 properties.”11.1.2 Department Of Minerals and Energy PositionDermot Teirnan from Department of Minerals & Energy made the following observations:• Energy and power is fundamental to the public good, impacting health and education etc.• If a reticulation system is installed, overhead lines will damage the environment, and continue todamage the environment. An underground system would need to be installed under the road.• Renewal Energy Fund operated by Office of Clean Energy, provides grants or low interest loans –grants can cover up to 50% of capital outlay, loans of up to 100% of cost.• Sustainable Energy Saving Fund – upgrade air‐conditioning units, refrigeration, etc apply for fundsin grants or loans.• Confirmed that the area can’t have reticulated power because of government policy.• Confirmed that the Mayor Cr Val Schier had spoken to Minister of Mines & Energy explaining thatit’s a different situation to what it was years ago.• Government policy was put in place a long time ago and the situation has changed – the first stepto change that policy. It’s not a hard task, up to Department of Mines & Energy to convince therest of government that this is a good thing to do, with the support of the community. Needassurances from the community that this is what they want.• What next? – mini grids possible, but not popular because they are expensive.o Community Plan would give the Minister a lot of ammunition to go to Government.o Local community has driven change – not impossible, but not overnight.11.1.3 ErgonPoints from discussion with Geoff Bowes from Ergon Energy included:‐ Aware of issues of diesel usage, safety concerns of transporting fuel, environment, concernsabout green house gas through use of generators.‐ One solution might be that the government is lobbied to extend the exclusive zone. Costextremely prohibitive and maintain reliability of supply‐ Mini‐grids considered – in exclusion zone Ergon would not have exclusivity and may be it shouldbe looked at as a commercial option. Need to consider choice of supplier & what can be done ifthe supplier fails.‐ Substantial contributions and assistance from government already – is that double‐dipping.‐ Multiple solutions – Forest Creek Road might have one set of outcomes.‐ Installation of overhead or underground will have environmental impact. Directional boring hasbeen considered in the past.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 51

Daintree Green Power Options Study ‐ for Cairns Regional Council‐ There will be an environmental impact of establishing infrastructure. It is important todemonstrate what the net benefit is – that an alternative power source addresses issues oftransport, storage of diesel and reduces pollution.11.1.4 Wet Tropics Management AuthorityMax Chappell, Manager Planning and Conservation, Wet Tropics Management Authority provided thefollowing information on 7 th August 2009‐ WTMA does not have a specific policy position on any proposal to provide power north of theDaintree River or Heights of Alexandra however the provisions of the Wet Tropics ManagementPlan 1998 would apply in consideration of any permit application so received. It is understood theState Government decision to exclude Daintree from mains power supply still stands.‐ WTMA, on behalf of the Wet Tropics Ministerial Council, commissioned Rainforest CRC toundertake the Daintree Futures Study (DFS) 2000.‐ The DFS study has been released for public information.In addition, he confirmed that:‐ No submissions regarding the power issue over the Daintree were received during the recent WetTropics Management Plan Review.12. RECOMMENDATIONS – the way forward:This report will be submitted to Cairns Regional Council to provide evidence of the current status ofprotection of the Daintree Region and the potential Green Power Delivery Options available to consider.This report is derived after considering the provided technical reports, reviewing the latest technologyavailable, and considering the input provided by the local community.The Cairns Regional Council will consider this report as part of the overall planning process committed toas part of the December 2008 Daintree Summit.For the delivery of power to occur to these areas, requires a change of policy at the Queensland Statelevel. This report recommends that the Electricity Supply in the Daintree Region Policy be rescinded.Council will need to apply again to the State for this to occur. Council has applied a number of times overthe past 5 years for this policy to be rescinded without success.State government’s decision will be based on the government’s level of surety that the area is protected,as this report informs; and meeting competing needs across the state. In order to reduce communityconcerns over ongoing failure to deliver its anticipated power outcome, any decision on the delivery ofpower to this region requires clear delivery timelines and costs anticipated to be communicated to allparticipants.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 52

Daintree Green Power Options Study ‐ for Cairns Regional Council13. ReferencesAustralian Greenhouse Office – Carbon Emissions Factors Mar 2009Cairns Regional Plan – Douglas Shire Planning Scheme – 2008Daintree Cape Tribulation Rainforest Summit 2008, 20/20 Group Australia Pty Ltd – 19 Dec 2008Daintree Futures: Alternative Scenarios Resource Requirements” (Oct 2004) Rainforest CRC report toDouglas Shire Council.“Daintree Futures Study” (2000) Rainforest CRC, GHD and Far North Strategies. Report to Wet TropicsMinisterial CouncilElectricity Act (1994) QueenslandVegetation Management Act (1999)“Electricity development opportunities in North Queensland – Summary Report”(May 2009) – RoamConsulting Pty Ltd. Report to Queensland Government, Townsville Enterprise Limited, Advance Cairnsand others.Integrated Planning Act (1997)“Proposed Daintree Powerline – Draft Preliminary Environmental Impact Assessment Study (GHD 1998)for FNQEBQueensland Government Policy: Electricity Supply in the Daintree Policy (2000)Solar RAPS in the Daintree Lowlands – Hugh Spencer and Paul Hollis (Australian Tropical ResearchFoundation (2004)Wet Tropics in Profile (1996) Wet Tropics Management AuthorityWet Tropics Management Plan (1998)www.cairns.qld.gov.au Status of the Buy‐backThanks to:All attendees at the public meeting and all who sent emails, made phone calls and provided links toinformation to review and address this issue. A selection of their key points is detailed in the appendices.Especial thanks to• Martin and Louise Visser – Horsehoe Enterprises – for supplying background information andcopies of letters and previous submissions to government on this issue.• Russell O’Doherty for collating energy use information• Dr Hugh Spencer – for providing relevant historical reports.• Frank Dallmeyer and his team at Tropical Energy Solutions for their technical review of the powersupply options.• Cairns Regional Council staff for their time and generous access to documentation and records.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 53

Daintree Green Power Options Study ‐ for Cairns Regional Council14. APPENDICES:14.1 Appendix 1: CONSULTANCY PROPOSAL ­ TERMS OF REFERENCEIntroduction – Scope for this study, as provided by Cairns Regional CouncilFollowing the World Heritage listing of the Wet Tropics in 1988, questions were raised about the capacityof the Daintree Region to support the level of development possible with land already released for sale.As a measure to discourage development, no extension to the electricity network was permitted by theQueensland government in the coastal area to the north of the Daintree River from Forest Creek to thenorth of Cape Tribulation from 1993. This was later formalised through the Electricity Supply in theDaintree Region policy.The Electricity Supply in the Daintree Region policy states that resident of the Daintree Region are notpermitted to be supplied electricity using a supply network, unless already connected but may providetheir own electricity through the use of stand‐alone power systems. These may include renewableenergy sources such as solar, wind or water power supported by individual diesel or petrol generators.Residents and business operators north of the Daintree River want a change in government policy thatwill result in a cheaper, safer and more environmentally friendly power source.The Cairns Regional Council provided funding to complete the study previously initiated by the formerDouglas Shire Council.Residents have been unsuccessfully trying to get government to recognise that solar power is not anoption in the rainforest and would very much like cooperation from the state government to developefficient and environmentally sound power options. Solar systems can feed back into a ‘grid’ at certaintimes of the year, but it is not a year round power source solution.There are calls for the government to have a serious look at a green grid supply in the denser communityareas. For most of the people living in the Daintree Rainforest, a diesel generator is the main source ofpower. The results of a survey on diesel fuel usage found that more than 800,000 litres of diesel isburned each year. The message from residents is that it is “expensive, noisy, and dangerous in terms oftransport and storage of diesel and harmful to the environment.”BackgroundCouncil conducted a Summit at Cape Tribulation on 14 th November 2008 to identify community issueswhich needed to be given further detailed consideration. The Summit was attended by over 80 people.One of the key issues addressed at the Summit was:“Energy supply options and management”.This background information contains extracts from the Summit Report prepared for Council by the 20/20Group Australia Pty Ltd, 19 th December 2008.The Current Energy Supply Options and ManagementPresently it is State Government policy that prevents Ergon Energy, or indeed any power supply companyfrom providing reticulated power to customers.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 54

Daintree Green Power Options Study ‐ for Cairns Regional CouncilSTATEMENT OF POLICYELECTRICITY SUPPLY IN THE DAINTREE REGIONBACKGROUND:This Statement of Policy reflects the Queensland Government’s policy position of opposing the extensionof mains electricity supply north of the Daintree river and of supporting, as an alternative, the use ofstand‐alone power systems.POLICY:The supply of electricity to customers in the Daintree Region is restricted as follows:1. Supply of electricity using a supply network is not permitted, except to the following customers:‐a. Customers who are already being supplied electricity from an existing supply network;andb. Customers who are capable of being supplied from an existing supply network but only if,in order to supply electricity to any such customer, it is not necessary for the supplynetwork to be extended in any way other than the installation of a service line to thecustomer’s premises.2. Supply of electricity from a stand‐alone power system is permitted.Universally, residents and business operators want a change in government policy that will result in acheaper, safer and more environmentally friendly power source. And with regard to the latter, it is notjust the 20000 tonnes of pollution from the diesel generators, but the noise pollution.• Residents are paying six to seven times more per unit of electricity compared to the rest of thepopulation.• With the recent increases in the price of fuel many businesses nearly went under.• There are safety issues of diesel storage and transportation – the use of diesel generatorsencourages illegal storage of drums of fuel on properties. Stores are required as at timesresidents are flooded in and can’t get to the service station. In addition it’s a 30km round trip forsome.Multiple Solutions to PowerThe Summit emphasised the point that “the Daintree is not a homogenous area and that a ‘’one size fitsall” solution is not what the community wants. The point that there needed to be multiple outcomes forthe different residential areas was mentioned by numerous people, including the Member for Cook, JasonO’Brien, and the Ergon Energy Manager of Regional Services, Geoff Bowes.The Forest Creek community very definitely wants mains power. The community of Forest Creek islocated south of the Alexandra Range and some of the residents are already connected to mains power. Itdoes therefore lend itself more so than perhaps other Daintree communities to connection to mainspower.The Cape Tribulation communityThis community does not want mains power and delegates were passionate about the fact that they hadnever pushed for mains power.Residents reported that in Cape Tribulation, within a seven kilometre strip, there were 10 generatorsrunning 24 hours per day. The community confirmed it wanted technology to provide a ‘green’ powersource to replace fuel combustion generators, and that it could power all businesses and residents in CapeTribulation.Diwan and Cow Bay communityThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 55

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe solution in Diwan and Cow Bay was less clear cut – a ‘’green’’ grid system may be possible in sectionsof Cow Bay and Diwan where there is a concentration of residences, but it will be more difficult wherehouses are more sparsely located such as Turpentine Road, Buchanan Creek Road etc.Residents shared the results of a fuel usage survey they had conducted in order to get an accurate figureof how much diesel is burnt by generators. A combined total of 834,750 litres of fuel burnt in the last 12months by just 15 businesses and 9 private properties. There are in fact 24 businesses in the region andmany more private properties and therefore a conservative estimate of litres used is 2 million.The previous Mayor of Douglas Shire Council, Mike Berwick, said that this type of research was essentialand shoed that a holistic approach is required. “We need some process to carry forward all the issues in apackage to the government – deliver plusses to the environment – not minuses in the development ofpower options.”Daintree Buyback & Relationship to PowerIn light of the removal of development rights from over 300 properties, residents queried why this hadn’talready paved the way for the policy on electricity supply in the Daintree region to be changed.ScopeThe Study is to be based upon the assumption that there could be alternative ways of providing power inthe Daintree area north from the intersection of Forest Creek Road and Cape Tribulation Road, and thatthe Study needs to address the current situation and proposing possible alternative ‘’green’’ solutions: eg:a green isolated network at Cape Tribulation community and possible extension of mains power onlyalong Forest Creek Road, and the gravel feeder roads off Forest Creek Road.The scope of the study will include:• A review of previous power supply studies in the subject area. This information obtained fromBob Baade, Executive Engineer, Mossman. These studies include:o Confidential Daintree Isolated Power supply Project – Preliminary Assessment Report25/10/2005o Daintree Cape Tribulation Rainforest Summit 2008 – 20/20 Group Australia Pty Ltd 19 Dec2008o List of properties not requiring power connection (eg: Buyback properties or lots thathave had development rights removed.)• Ascertain the current power supply arrangements, and their environmental impacts.• Engage with stakeholders in key areas to asses options for ‘Green’ source of power whichenhance rather than detract from the environment.Outcomes:• Identify approximate capital costs with each Option and the likely recurring costs to consumers,Council and /or State Government• Identify indicative positive and negative outcomes associated with each option, includingtechnical shortcomings or advantages, ongoing maintenance and operational considerations.• Identify necessary changes to legislation that might enable options to be implemented.• The probable outcomes could be detailed in the identified format:• Identification of what changes are required to legislation, FNQ 2031 (p 47) and the Douglas ShirePlanning Scheme.• The outcomes from the DGPOS could be used to inform the State Government of the alternatives.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 56

Daintree Green Power Options Study ‐ for Cairns Regional Council14.2 Appendix 2: TROPICAL ENERGY SOLUTIONS – REVIEW OF ENERGY OPTIONSAPPROPRIATE TO THE DAINTREE REGION.2. Executive SummaryTropical Energy Solutions conducted a desktop review of a range of power supply options for the Daintreecommunity. We identified that some data provided in 1998 and 2000 continues to be valid today, whileother data and some conclusions would be no longer applicable in 2009.The review shows that operational expenses for power supply systems have grown significantly and atsimilar percentage rates as grid supplied electricity. Capital expenses for medium size power generationsystems have benefitted from price reductions due to larger production volumes and advances in systemarchitecture. Even greater reductions are available for renewable energy supply systems resulting in theirimproved commercial viability.Traditional limitations due to the climate, landscape and remoteness of the region are as valid today asthey were in the past. However, these limitations can be minimised in well designed and professionallyoperated systems that could serve clusters of households and/or businesses across all areas of theDaintree.3. Objectives‐ Review the proposed options given in the Daintree Futures Study report against the requirements andopportunities present in 2009.‐ Identify current factors that would have an impact on the implementation of these options.‐ Quantify capital and operational costs for example systems‐ Compare selected options against a set of relevant criteriaMethodologyStep 1: Review of existing information supplied in the Daintree Futures Study by theRainforest CRC, November 2000Step 2: Identification of relevant changes in legislation, technology and costs for thenominated development optionsStep 3: Comparison of key parameters for currently available development options4. Overview of opportunities and key dataThe Rainforest CRC had prepared a comprehensive report titled the Daintree Futures Study in November2000. It included a review and recommendations of the Electricity Supply opportunities for the Daintreecommunity and builds on the data provided by the FNQEB commissioned Daintree Power Supply EIASfrom 1998.Many of the underlying data and estimates are still valid while others require adjustments to be accuratefor calculations in 2009.It is estimated that currently 400 properties and business’s are occupied and in operation on theDaintree. They are powered by more than 150 stand‐alone remote area power systems (RAPS). Most ofthese systems are in operation for more than 10 years and require regular replacements of their dieselgensets and their battery banks to stay operational. The inverter systems and PV solar generators do notrequire regular maintenance and offer service life’s from 10‐15 years (inverter systems) to 20‐25 years(PV solar modules). However, many system components are now reaching the end of their service life inthese systems.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 57

Daintree Green Power Options Study ‐ for Cairns Regional CouncilDiesel fuel prices are the largest component in the operational costs (opex) of a RAPS. Since 2000 thediesel fuel price has risen from approx. 85ct/l (source: ACCC, June 2000) by 50ct/l to approx. $1.35/l.For business operators who might claim fuel tax credits of 38.14ct/l the net cost rise from 47ct/l to 97ct/lresulted in a doubling of fuel costs.At the same time the cost of main grid electricity has risen in similar proportions from 9.975 ct/kWh(2000) to 18.843ct/kWh for domestic use (Ergon Energy tariff 11) and 21.120ct/kWh for business use(Ergon Energy tariff 20). The important difference lies in the absolute energy costs for the averagehousehold or business operator and the following two report sections will provide further details on thissubject. Opportunities to compensate for some of the price rises can be found in affordable energyefficiency measures and the increased availability and affordability of renewable energy systems.Over the last 9 years significant improvements in energy efficiency have been achieved in the areas oflighting (CFL and LED technology), refrigeration and air conditioning (inverter and VSD technology),computers and other appliances. Consistent use of modern appliances and smart load management canprovide overall energy/cost savings of 25% or more and result in very short pay back periods in off‐gridinstallations. Unfortunately such savings can remain invisible where increased lifestyle and comfortexpectations result in larger TV screens and the additional use of air conditioners and other electricalappliances.An example for significant energy efficiency gains was made available by the operator of the Cape TribBeach House (Kevin Malone). Following the completion of a comprehensive Energy Audit by TropicalEnergy Solutions the resort invested approx. $ 10,000.00 in various energy efficiency measures andprocedure changes. A large number of the 570 individual loads where upgraded or replaced. The resultwas a 25% reduction in energy consumption. It translates into a saving of $35,000.00 per year. Furthersavings are expected from the ongoing fine‐tuning of the operation and the regular replacement ofageing appliances.Such minimal pay back periods are possible due to the higher cost per kWh in off‐grid situations. Theextension of the Ergon Energy main grid would result in even larger cost reductions for businesses likethese. Buying an average 550 kWh of electricity per day from Ergon Energy would cost $ 116.00 (tariff 20)compared to burning 300 l of fuel at costs of > $400.00/day.These potential cost savings must be reviewed against the capital cost (CAPEX) and operational cost(OPEX) of a main grid extension. The year 2000 Daintree Futures Study report stated CAPEX of $10M forthe most basic solution and >$16M for the desired and ecologically preferred solution. It would berealistic to expect CAPEX of $25M or more if a grid extension is build in 2010. Such investment wouldrepresent cost of > $62,000.00 per block connection (@400 blocks). Similar price increases would apply tothe OPEX, but further investigations in cooperation with Ergon Energy are required to produce accuratedata.5. Review of grid‐connection optionsBuilding a reticulated electricity supply through a mains grid extension into all areas of the Daintree wasnominated as the preferred option in the Daintree Futures Study report. It would include a mixture ofabove ground and underground powerlines for the 22kV and 12.7kV grid extension plus local LVdistribution networks.The responsibility to build, maintain and operate these facilities would be delegated to Ergon Energy andelectricity supply options for the Daintree residents and businesses would be similar to those for everyother customer on the main grid. It includes the opportunities to purchase “green power” or to feedThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 58

Daintree Green Power Options Study ‐ for Cairns Regional Councilpower from renewable energy systems into the grid. It could also include the choice between differentretail power suppliers.Due to the small amount of electricity generated in North Queensland the supply relies heavily on largecoal fired power plants in Central Queensland. Significant transmission losses are the result and thecalculated marginal loss factors create the need for subsidies from state government funds. Theextension of the grid to the Daintree would add further loads and costs to this unbalanced grid.Depending on the design and application of future carbon trading schemes the strong reliance on coalfired power generation for the state wide grid, its extension to the Daintree would also produce a ratherlarge carbon footprints for local tourism operators. Additional costs from carbon crediting schemes anddisadvantages in PR activities could be significant in particular for eco‐tourism operators.The scope and purpose of this document does not include the review of detailed grid connection optionsas provided in the 1998 Daintree Power Supply EIAS for the FNQEB. We recommend a review in closecooperation with Ergon Energy.6. Review of off‐grid power system optionsBoth earlier reports provide data for a variety of distributed, off‐grid power supply systems.At present only site specific RAPS are utilised for the electricity supply to individual households andbusinesses. They require the safe supply, distribution and storage of at least 1 million litre of fuel/year atmore than 150 sites across the Daintree area. It also creates the need for substantial operational andmaintenance skills for all system owners.Where such skills are lacking inefficiencies, additional costs and environmental risks (e.g. fuel spillage) arethe expected results. The scale of economies suggests the bundling of local electricity loads to local areanetworks of efficient size. The intermittency of many individual loads is compensated for in largenetworks and results in reduced peak and surge load margin requirements. The larger system size wouldalso reduce the amount of maintenance and enable the operation through dedicated experts instead ofsemi‐skilled home owners. Reduced numbers of fuel storage facilities and their professional operation isseen as another benefit while connected home owners enjoy semi‐grid reliability and outsourced serviceresponsibilities. Last but not least the positioning of a few larger RAPS in ecologically less sensitive areasprovides environmental benefits and reduced noise emissions.Table 2.5.2 for the RAPS costs in the Daintree Futures Study report shows the combined OPEX as approx.1.5 M$/year. Of these total costs $675,000 would be allocated to the 10 larger RAPS that are nominatedwith OPEX of 45ct/kWh. The remaining costs would represent OPEX of 85 ct/kWh for the 175 small RAPSof 15 kWh/day capacity each.We agree to a different ct/kWh rating for small and medium size RAPS but believe that the differencesare much smaller. The 45 ct/kWh figure is realistic at year 2000 fuel prices and we agree with the ErgonEnergy supplied data on page 104 that show a 0.57l diesel/kWh.A rate of 85ct/kWh would be realistic when using 2009 fuel prices and we suggest using this figure forsmall and larger size RAPS. The advantages in slightly lower fuel consumption are typically eliminated bythe need for professional, outsourced maintenance cost for the larger systems.In compliance with the proposal in the year 2000 report we calculated today’s CAPEX and OPEX for twotypes/sizes of RAPS (see following table).The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 59

Daintree Green Power Options Study ‐ for Cairns Regional CouncilType 1 – 15 kWh/day household hybrid diesel system with PV Solar OptionTypical System Specifications:Encapsulated, electronically controlled Diesel Genset, prime mover rating 10kW / 12.5 kVAHigh quality 48V Battery Bank with 830 Ah C10 capacityOperation for 2 hours/day @ 2.5l/h = 5.0 l/dayEmissions = 15kg CO2e/day or 5.5t CO2e/yearCAPEX = $ 28,000 to 33,000OPEX/year = $ 2,738 for 1,825l fuel @ $1.50/l plus capital cost plus maintenance costPV Solar Supply Option:50% of annual load supply = avg. 7.5kWh/day2 kWp PV Solar system plus regulatorAdditional CAPEX = $ 15,000Reduced OPEX/year by 50% = < $1,400 plus capital cost plus maintenance costReduced Emissions = 2.7t/yearFurther Emission reductions are possible through the use of Bio‐Diesel instead of fossil fuel diesel.No funding assistance is available for hybrid power systems thatdo not include a renewable energy component. Until June 2009the Federal Government RRPGP scheme provided a 50% subsidyfor the CAPEX and design costs of the renewable energycomponents in a hybrid RAPS.In practice this translates into a $15,000 subsidy for small RAPSthat include the PV Solar option as described above. Another$2,000 was refunded through the Renewable Energy Certificates(REC) when the REC’s value was $50.00/unit. At the current REC’svalue of $35.00/unit only $ 1,400 in assistance would be availablefor the investor of a $45,000 hybrid RAPS. Consequently fewPic 1 Type 2 RAP 1hybrid RAPS are being installed now. Instead diesel gensetswithout battery banks and inverters are preferred due to their lower upfront cost. The operator is thenlimited to the option of running a small genset continuously for 24h/day whenever constant powersupply is required or to manually switch the genset on to operate electrical appliances. In practice thisresults in long operating hours at low generator loads. A very high fuel consumption, correspondinglyhigh emissions and costs plus potential genset failures are unavoidable outcomes.Type 2 – 410 kWh/day (=150,000kWh/year) hybrid diesel system with PV Solar OptionTypical System Specification:Encapsulated, electronically controlled Diesel Genset, prime mover rating 40kW / 50 kVAHigh quality 48V Battery Bank with 1,730 Ah C10 capacityAC coupled inverter systemOperation for 24 hours/day @ 7.0l/h = 168.0 l/dayEmissions = 504kg CO2e/day or 184t CO2e/yearCAPEX = $ 75,000OPEX/year = $ 92,000 for 61,320l fuel @ $1.50/l plus capital cost plus maintenance costPV Solar Supply Option:50% of annual load supply = avg. 205kWh/day50 kWp PV Solar system = 300m2 surface area6 units PV Solar grid type inverterAdditional CAPEX = $ 400,000Reduced OPEX/year by 50% = < $46,000 plus capital cost plus maintenance costReduced Emissions = 92t/yearFurther emission reductions are possible through the use of Bio‐Diesel instead of fossil fuel diesel.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 60

Daintree Green Power Options Study ‐ for Cairns Regional CouncilPic 2: typical small capacity, highquality gensetPic 3: solar arrayThe CAPEX AND OPEX example calculations for the type 1 and type 2 systems were selected to allow adirect comparison with the data shown in table 2.5.2, page 108, Daintree Futures Study.We used the OPEX rate of 85ct/kWh for the 2009 data and compared only the operators CAPEX andOPEX. The CSO (Community Service Obligations) expenses were excluded from this comparison.Quantity CAPEX OPEX2000 Type 1 RAPS 175 7,188,536 822,7902000 Type 2 RAPS 10 1,500,000 675,0002000 Total Cost [A$] 8,688,536 1,497,7902009 Type 1 RAPS 175 5,250,000 822,7902009 Type 2 RAPS 10 750,000 1,275,0002009 Total Cost [A$] 6,000,000 2,097,7902009 Type 1 Solar Option 175 2,625,000 ‐ 411,3952009 Type 2 Solar Option 10 4,000,000 ‐ 637,5002009 Total Solar Options 6,625,000 ‐ 1,048,895Table 1: CAPEX + OPEX ComparisonThe comparison shows that the operational expenses for RAPS have increased significantly as a result ofthe fast growing fuel prices. In contrast the CAPEX for these example systems have been reducedsignificantly by > 30% despite 9 years of CPI increases.Adding a substantial PV Solar power supply contribution of 50% would more than double the CAPEX butthe OPEX savings produce a payback period of 6.3 years if capital cost expenses are excluded.The resulting OPEX savings are likely to increase as fuel prices continue to rise for the foreseeable future.Modular AC coupled inverter systems can be established as small systems without renewable energyfeed‐in. Their network could then be gradually increased in size and additional power sources like PVSolar generators could be added.This would allow local area operators to connect their existing renewable energy sources to the AC gridby separate, local inverters. Consequently existing hardware is utilised and the operators can define thedate of grid connection to suit their requirements, e.g. when their battery bank or generator reach theend of their service life.Such AC coupled inverter battery systems cover nominal capacity ratings between 2 and 180 kW resultingin AC grid capacities in excess of > 500kW once diesel gensets and PV Solar generators are added. SeeAppendix 1 for a system layout example.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 61

Daintree Green Power Options Study ‐ for Cairns Regional Council7. Key criteria and comparison of optionsCAPEX ‐ previous reports demonstrated the high capital costs of an ecologically acceptable main gridextension solution. Ongoing increases in material and labour costs result in further price increases forsuch solutions.In 2000 RAPS system used to be built in small quantities and from components that were manufacturedin small quantities. Their capital costs used to be relatively high as a result.The establishment of large scale manufacturing facilities for inverter systems and PV Solar modules hasprovided much reduced prices for these components. It is expected that further efficiency gains arepossible and price reductions are likely.OPEX – operational costs per produced kWh are directly related to the size of a system and the selectedpower/fuel source. The economies of scale suggest systems of medium to large size and the bundling oflocal loads/demand.All available power sources shall be compared regarding their current and future availability and cost.Green House Gas Emissions – various power sources and system designs provide opportunities to controland reduce the GHG emissions from local power consumption. Both, main grid and local RAPS solutionsoffer numerous options for the integration of renewable energy sources.We recommend a review of the calculations that produced the data for table 2.5.1. shown in the DaintreeFutures Study Report on page 105.Transmission Losses – ideally transmission losses are kept to minimum as they result in additional costs,emissions and – indirectly – capital costs and maintenance cost for the network. In the case of theDaintree location within the East Coast Grid these transmission losses are substantial unless large scalelocal power sources are added to the main grid.Local area grid sizes must be defined with transmission loss minimization strategies. AC coupled RAPS arepreferred over DC coupled systems due to their ability to minimise transmission losses within the system.Ecological impact from construction – The Daintree environment is regarded as a highly sensitive andvaluable asset that requires short term and long term protection from unsustainable development. Thebuilding of LV and MV power lines would require the temporary destruction of fauna and flora habitats.Suitable construction techniques and mitigation techniques are recommended but result in additionalcapital costs for such solutions.Ecological impact from operation – Removing the power generation source from the Daintree area isseen as the most desirable solution against this criteria. Local power generation will have a smallerimpact if it is limited to a small number of medium sized systems (especially if designed and operated byexperts) compared to a large number of small systems that are operated by individual households.Noise emissions can be minimized to very acceptable levels by investments into encapsulated dieselgensets.Supply Reliability – Residents and business operators on the Daintree require reliability and predictablecosts for the operation of their properties. Modern, well designed systems offer these features but manyof the home‐build type 1 RAPS struggle to meet such requirements.Negative experiences with these systems can reduce the willingness to invest funds into new RAPSinstallations.Integration Potential for Renewable Energy Sources and Demand Management – Over the coming yearsand decades it will become increasingly important to reduce the contribution from fossil fuel powersources to the power supply systems. A system architecture that allows the cost effective integration ofrenewable energy sources will provide a valuable asset rather than a liability to the Daintree community.In principal all power system solutions allow the gradual integration of additional emission‐free powersources, however, medium and larger size systems and networks offer many advantages in thepositioning of power sources and in the management of intermittent power sources (e.g. wind, solar,hydro).The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 62

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe following table shows a basic, unweighted comparison of 3 power solution types against 8 key criteriain no order of importance. The development of more detailed and weighted assessments arerecommended to assist in the decision making process.Criteria\Power SolutionMain Grid Type 1 RAPS Type 2 RAPSExtensionCAPEX Very High Medium MediumOPEX Low High MediumGHG Emissions High* High* Medium*Transmission Losses High Low LowEcological Impact from construction High Low Low ‐MediumEcological Impact from operation Low Medium – MediumHighSupply Reliability Good Medium GoodIntegration Potential for Renewable Energy Sourcesand Demand Management* based on dominant current fuel sources = coal or dieselGood Medium Good8. Suggestions for additional investigationsThis Daintree Energy Strategy Review was conducted as a desktop study using materials from earlier sitevisits by the author in combination with materials from other expert sources.A strong focus was placed on the review of earlier nominated development options against currentlyavailable system designs and their associated costs (CAPEX and OPEX). Additional investigations andcalculations are recommended to obtain key parameters for the design of ideal size RAPS systems.The combination of correctly sized battery banks with intermittent power sources (e.g. PV Solar) andcontrolled power sources (e.g. diesel genset) must take into account the local area load profiles includingseasonal variations and future extension plans. Where these calculations are based on estimates andassumptions reasonably large safety margins need to be applied.The efficiency and reliability of power supply systems will benefit from accurate planning, engineeringand demand management.Tropical Energy Solutions can provide appropriately qualified staff to assess current power requirementsand to develop suitable power system solutions.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 63

Daintree Green Power Options Study ‐ for Cairns Regional Council9. Disclaimer & AppendicesAppendix 1:Layout Schematic for mid‐sized, AC‐coupled RAPSSource: SMA product informationExample of a modern 3‐phase, AC coupled RAPS with 60kW battery inverter supply, 120 kW PV Solarsupply and 100 kW diesel genset supply in compliance with Australian standards and regulations.Disclaimer:This document has been prepared by Tropical Energy Solutions Pty Ltd for the client named on the front cover of this document. It may not berelied on by any other person without the prior written consent of the author.The document has been prepared in good faith:- Using information supplied by the client and/or obtained by Tropical Energy Solutions from various sources- Is based on Tropical Energy Solutions interpretation of the relevant standards referred to in the documentThe client is urged to make his or her own assessment of the summaries and recommendations contained in the document and to satisfy him orherself as to the truth of all information contained in or used to form the basis of this document.All statements in the document in respect of government rebates, power outputs and expected life of components are based on Tropical EnergySolutions reasonable beliefs at the date of this report and no warranties or representations are made or given in respect of those matters.14.3 Appendix 3: Community feedback: selected responses:The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 64

Daintree Green Power Options Study ‐ for Cairns Regional CouncilA number of the community felt sufficiently strongly about this issue to respond in writing. I thank themfor their reasoned arguments and definition of the issues which face them, their families and theirbusiness operations. Included here, in no specific order are a selection of responses defining the keyissues eloquently.Kevin Malone Managing Director: Cape Trib Beach HouseYour community meeting flyer was passed onto me by my manager at Cape Trib Beach House. In reply toyour questions, I will provide answers in the same sequential order as they appeared in your flyer:1. We currently use a 100 KVA diesel generator (brand new) that powers the resort as our mainsource of power.2. I have considered solar and battery bank options but am wary of going down this path asemployed staff will not be as diligent as an owner when it comes to maintenance and supervisionof power supplies that they are not familiar with.3. I would prefer mains power but second preference would be a central diesel generating plant forthe Cape Tribulation area only similar to that used in the Torres Strait Islands with 2 or 3 full timestaff so that it is manned by professional trained staff.4. I would think that Ergon Energy should be the provider of the power.5. I would be prepared to pay for kilowatt usage on a monthly basis but as I have just spent over$40,000 on a new genset then I am not in a position to contribute more funds.Kelvin Davies ‐ Executive Officer, Rainforest Rescue www.rainforestrescue.org.au“The report to Council on the summit did not include all of the views expressed. There is a concern heldby many that that extension of electricity supply would encourage further housing development and alsoescalate land prices compromising any further land buy back. There remains an estimated 200 propertiesnorth of the river that have a development right. If these properties are developed it would have a verynegative impact on the conservation of the lowland Daintree rainforest. A number of people believe thatextension of the electricity supply should be carefully considered and that it should only occur inconjunction with a commitment to further conservation measures.”David Cook: Rainforest RescueHaving attended the Daintree Power Study meeting in the Daintree this week, Rainforest Rescue requestsyou take a few moment to consider key issues in this week’s debate over reticulated power in theDaintree. From our perspective these include:• the fact that it went ahead prior to the formation of a Daintree Steering Committee, contrary tothe recommendations of the Daintree Cape Tribulation Rainforest Summit;• the very small numbers of persons who voted for reticulated power at the Diwan Sports centremeeting on Tuesday 18 August 2009 was insufficient to provide CRC with a mandate to proceedwith an expensive power study, rather a community postal survey of all rate payers and other keystakeholders should be conducted to further assess the level of support for mains power;• no consensus could be achieved at that meeting without the proviso that any power grid wouldhave to supply green power from renewable power sources and should not involve felling of anynumber of trees;• at present the debate appears to be driven by a vociferous but small minority of business houses;• a key issue in the Daintree Power Study is the number of properties that can still be developedbetween the Daintree River and Cape Tribulation, this figure is a minimum of 186 propertiesincluding 9 commercial or tourism properties ‐ NOT the figure of 30 that has been quoted in themedia recently;• undoubtedly the provision of affordable mains power would escalate property prices in theDaintree as it would then be a much more attractive area for the ‘average’ person to live andmore profitable for businesses;The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 65

Daintree Green Power Options Study ‐ for Cairns Regional Council• mains power would also be an incentive for the development of most or all remaining 186properties in the Daintree, greatly increasing the fragmentation of the rainforest;• The development and settlement of significant numbers of the 186 properties would:‣ seriously exacerbate the effects of rainforest fragmentation;‣ result in an increase in local road traffic throughout the year early in the mornings andlate afternoons/ evenings when wildlife is most vulnerable;‣ mean a rise in numbers of free‐ranging dogs and cats killing local wildlife;‣ increase the rates of both new clearing and incremental clearing;‣ increase the spread of weeds to all new properties and access tracks;‣ more house clearings, tracks and roads would result in edge‐effect desiccation of therainforest during the dry season making it more vulnerable to fire as dry seasons intensifydue to climate change;‣ give rise to greater demand for suburban services inevitably leading to overall increasesin “development”, further incremental clearing and more ongoing fragmentation;‣ reduce the wilderness and ecotourism appeal of the area;‣ put the 122 rare and threatened species found in the Daintree under additional pressure;‣ adversely impact Cairns and Port Douglas tour operators and hoteliers.• A full survey of all major stakeholders in the future of Daintree power should include PortDouglas, Mossman and Cairns based tourism operators.For more detailed discussion please refer to the attached meeting notes and letter to the consultantundertaking the study.Kind regards,David Cook conservation manager ‐ daintree buyback and protect forever projectGeorge Gonthier – Daintree Vanilla And SpiceThanking you for your email of invitation to participate in a discussion relating to power supply toour communities in Cowbay, unfortunately I will not be able to attend, but I fully support thecommunities request, wether it be stand alone or grid supply.However I have motioned several times before, if we want green power that will work is to use a currentturbine or tidal turbine in the Daintree river , it will have minimal impact on the environment , and costeffective as there are no pollution attached to it as for the cable it can be laid underground in the middleof the road, that way no trees get cut down.To answer your questions regarding generators , I have 3 of them 1.8 kva , 3kva, 2.8kva. we always usesthe 1.8 kva , and my fuel bill has skyrocketed since the last budget , and I cannot pass the cost on to mycustomers .i do have solar as well but they don't work when heavy clouds are about, a fridge will drawpower faster than the panel can charge the batteries , however my options are to turn my generators togas power and it is expensive to set it all up.Regards,George GonthierGeneral Manager‐ Daintree Vanilla & Spicewww.daintreevanilla.comMartin Visser – Dragonfly CaféOn Sat 22 nd (Aug) I went past all businesses in Cape Tribulation to find out how come they were not at themeeting. Most had no idea it was on. Had not been notified. Myself and Louise only found out whenthere was a mention of it on the 6.30am radio news. We get no newspaper delivery at Cape Trib. I didsee an article in the Gazette. So that was the reason no‐one turned up.I asked everyone are they still in favour of getting the power on. YES YES YES Please.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 66

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe cost of generating power for each business is crippling. I closed the Dragonfly in Feb 08. Our fuel billwas $48 000 for the year. I have had it on the market for two years. When people ask for the financialsand spot the diesel cost, they lost all interest. That and the downturn in tourism makes it very hard tosell.However, our running costs are not only diesel. We have to change the oil every 200 hrs. Mostgenerators have a life span of 2.5yrs. the replacement cost is according to kVA. Between $25000 and$100 000 is normal.Now all these diesel fumes are going into the rainforest canopy. The same canopy that the government isso very much in favour of protecting. Tourism tourism. Its about time they see the light and give usmains power.Go your hardest. Hope we finally get the power on at the same rates as people pay south of the DaintreeRiver.Yours Martin Visser.Dr Hugh Spencer:Re Daintree Green Power Options Study Community Meeting Tues 18th Aug.1) for some reason we are not on the e‐mail data‐base provided to you by Council ‐ I got this secondhand.2) We (Australian Tropical Research Foundation) carried out a very detailed survey of RAPS systems inthe area (commissioned by EPA) in 2005 ‐ see attached files. (actually one of a number of such surveys wehave carried out over the past 20 years here). I have attached the pdf version of the report.Basic "take‐home" message is that for a large number of households in the Daintree lowlands, solar RAPSwas accepted only‐1) because it was Government subsidised at the time2) there was nothing else available3) the Nation/Liberal (and Aust First) parties all promised the provision of grid power were theyto get office.(I suspect, that this area is still primarily Nat/Lib, Aust First voters ‐ so that dynamic won't change quickly).For this reason, the Daintree lowlands are regarded as the world's largest "non‐intentional" renewableenergy community.Associated with this, and I suspect still, house‐holders seem to refuse to take an interest in the effectiveoperation of their systems ‐ resulting in a very high system failure rate (usually batteries) ‐ this situationcan be readily verified by the experience of experienced solar installers such as Nick Chapman(Solarworks, Malanda).This situation could (perhaps still) be addressed by actually involving house‐holders with the realities oflife here ‐ early installers by and large did little or nothing to educate the house‐holders in the realities ofoperating renewable energy systems, and the Qld Government of the day didn't involve itself inpromoting the effective use of the systems.This has been complicated in the past by candidates for Government from the Right of politics playing the"we'll provide grid power, the moment we are in office" game ‐ and, in the event of the Borbidge Gov't, ‐nothing happened, as there was no funding available and the Corporatisation of Electricity Services hasThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 67

Daintree Green Power Options Study ‐ for Cairns Regional Councilmeant that the market was not considered sufficiently large to justify tax payer funded investment (plusthis is an economically depressed area, and is likely to remain that way). Plus the additional costs ofproviding underground/undersea cabling to address WH concerns, greatly increased the costs ofproviding power.Climatically, the Daintree is not photovoltaic‐power friendly ‐ but by using modern technology, this can beaddressed to a far more effective degree than at present (one of our areas of expertise). There is also areluctance to ask anyone who ACTUALLY might know about renewable systems, for information ‐ Fred,down the pub, who's had battery problems,is more likely to be the source of information. This is anaspect of the very peculiar social dynamic of this area ("more like Belize", said a visitor).Issues:Major issue is the continuing conflict between development and the maintenance of World HeritageValues, in the face of diminishing governmental interest in this area (and a rising 'sea change/treechange' population). The sealing of the road created a burst of settlement; a burst that could have beenavoided had the original buyback scheme taken on board the 350+ settlement blocks that were offered toit in '94‐5.The present land buy‐back scheme (DSC‐20/20 Group has been eminently successful, augmented byDaintree Rainforest Foundation/Rainforest Rescue, but at least another 200 blocks need to be resumed,for the long‐term ecological stability of the area to be assured.At present, many settlers manage to survive for 2‐3 years before moving on, as the climate during theWET can be intolerable to many.Provision of any 'GENERAL' power source that could conceivably be regarded as "grid connected" willgreatly accelerate block uptake.I have made a number of submissions on the issue in the past‐ and basically, the situation is ‐ that a'mini‐grid' of commercial blocks, makes sense (and I have promoted it for years) ‐ in the commercialprecincts of Cow Bay and Cape Tribulation, BUT it MUST be restricted to commercial facilities.Extension to domestic households would be the green light for a serious settlement 'invasion' ‐ While acommercial mini‐grid will by itself greatly reduce fuel usage, without strenuous efforts at reducingenergy consumption by commercial premises (there presently seems to be little if any comprehensionof energy conserving measures), it won't make much difference.To my understanding, we DO NOT need a change in legislation to establish privately operated mini‐ grids ‐as private groups can in fact create a power providing network ‐ and charge appropriate rates ‐ it is thecase in at least one of the islands off the Qld coast. Such a consortium would be obliged to charge the realcosts of operation and supply, which would probably amount to over $1.00 per KWH (the costs ofproviding significant PV or even generator supply to most places exceeds this, but tends to be 'invisible' tomost operators).Essentially ‐ increasing settlement and maintenance of the environmental values of a unique part of theworld, are inimical. We already have Mission Beach ‐ we don't need another..!Oh, by the way ‐ we (Cape Tribulation Tropical Research Station) are effectively self‐sufficient forpower...and not interested in connection.I hope to have an opportunity to discuss this (and possible system design) with you.SincerelyDr. Hugh SpencerThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 68

Daintree Green Power Options Study ‐ for Cairns Regional CouncilDirector/CEO Australian Tropical Research Foundation.Dan and Julie Kiely jkiely@conxx.comIn reference to the above meeting my husband and I are unable to attend on that date so we are takingthe opportunity to email our views as suggested. We begin by advising that we are quite happy toremain on solar power with back up generator. Actually we prefer to remain on this. The governmenthas spent a lot of money to enable solar power to this district and we also have contributed financially tothe system. We are the only house down Mangrove Road, and we would definitely not be happy to nowhave to contribute to another type of power. We think that the policy should include..."those who donot wish to hook up to the mains power should not be forced to, nor should they be made to share in thecosts for others to gain mains power. This is doubling up on costs as solar was basically forced on us tobegin with." Although the costs for solar were originally subsidized by the government there have beenongoing and upgrading and renewing costs over the years. Further, the policy should include.....'seeingthat this is a special area and the people have been studied, studied and restudied almost into oblivionthose wishing not to connect to a grid of mains power should not be forced to, but be allowed to livepeaceably with their chosen power option without being financially penalised." Thankyou for thisopportunity to contribute our views.Janice Van Der ZwaanI ‘m not one of those who is hanging out for mains power.I would be more than happy with affordable access to components for our own system or somestandalone community system – Even it was set up as a research experiment that could be promoted onthe world stage. Think of the PR spin!!Have to admit while I hate generator noise /pollution I understand why folk use them so much. So manyof the ‘old timers’ have RAPS systems that have come to the end of their life and the cost of a new systemis crazy. Rebates aren’t what they were and the process to access any assistance is just too hard basketfor many.A friend of mine while working as a project engineer for Ergon years ago did a couple of feasibility reportson power supply which hinged largely on U/G supply utilising the road reserve and areas where Telstrahave phone lines laid. ‐ We all have a phone line out the front of our properties which I find an oddpriority given the power situation.While my understanding is that modern solar is so much better than the efficiencies of the systems put in10yrs ago sun is still not the most reliable energy source for us unless battery capacity can allow for thewet season low levels.For that reason I have got to admit both micro‐hydro and wind intrigue me. There is a guy on BuchananCk Rd with a wind set up but haven’t had a chance to talk to him about it. I also saw a Daintree microhydro system on You Tube which was clever (noisy and complex but clever none the less)From: http://www.metacafe.com/watch/yt‐Ool1HfYWClM/micro_hydro_electric_power_plant/This is the Hydro Electric Power Plant I designed and Installed at my property in the Rainforests ofThe Daintree. There is no Grid Power in this area, so you have to make your own! Solar Powerisn't the best option due to the amount of overcast, rainy days we get here, especially during theMonsoon [Wet] Season....We can get up to 5 meters of rain a year, and since there's a couple ofcreeks that flow through the Property....what better way to create power.Details : 540 meters of 120mm [5 inch] Pipe. 50 meters Head.Francis Turbine driving a 8Kw Brushless Alternator.Output : Up to 5 Kw [ 20 Amps ] 240 Volt AC. Water Flow : Up to 20 litre / Second.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 69

Daintree Green Power Options Study ‐ for Cairns Regional CouncilRegulated by an Electronic Governor and Water Flow.http://www.daintreedesign.com.au/index.phpHelen Cooper brasiercooper@hotmail.com“I have collated important issues to consider in the need to bring in a decent power source for ourcommunity north of the Daintree RiverBackground HistoryThe local, federal, state government, greens and other individuals would state we all settled hereknowing there were no facilities!The answer to that comment is that people genuinely bought their properties under the umbrella of asubdivision funded by Quaid. The national Party at the time in government promoted the subdivision,including real estate agents selling properties. Both parties stated phone lines, mains power, sealedroads. The unfortunate promise was diminished when the Goss Labour government was elected he cameover the ferry and stated no power. The interesting scenario to that is a pre election promise was todeliver mains power to our community and encouraged business people to build resorts, businessesincluding the Cow bay Hotel. Business people invested money, built resorts, individuals, families builthouses on the promise of power which was retracted. Thus in turn the anti power legislation was putonto the area by the Labour Government and remains in concrete in today.The previous Douglas Shire Council always stated that they as a council were not able to service thesubdivision. This attitude remains current, even though we are part of the Cairns region now. Residents,businesses provide their own water, sewerage treatment and power source.Further informationPreviously the state, local government put restrictions on settlement ,including mains power to preventrapid development. Now the development issues are resolved i.e town plan, vegetation protection laws,development zoning including iconic legislation and the secured purchase of the green zones reachingtheir allocated buy back program, there is no valid reason why our community can't have power.Cost and Maintained Issues with the Remote Power SystemsThe outcome of this legislation is that businesses, residents are struggling with the high costs of generatorfuel, maintenance of the remote Area systems.( batteries, solar panels, inverters and other associatedequipment with alternative power). Severe ongoing financial expense for residents, businesses,maintaining generators, batteries that deteriorate their charge, solar panels, constant repair,replacement of parts and required services. Pollution of the fuel exhaust into the rainforest environment,animals ,humans alike we all breathe the polluted air and are affected. In turn the carbon footprint is veryhigh in this area. The high cost of fuel remains a considerable burden to business and resorts often thesepeople are really struggling. Many others are making $ money out of our area including airlines andothers the saying "Come to the Reef and Rainforest" Our community is not getting an equal share in thisincome. We are doing it poor and are struggling hard.Health Issues For Residents*Daily one has to test the specific gravity with a hydrometer, the fluid in the battery is sulphuric acidwhich is quite toxic on the skin creating burning, also breathing in the fumes.The radiation of energy from a generator is high due to the generator having to be close to the house sothe appliances, batteries keep their charge. This is a definite health issue for all concerned.*The daily usage of petrol and the storage of petrol on properties can be explosive.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 70

Daintree Green Power Options Study ‐ for Cairns Regional CouncilAlso including travelling with cans, tins of fuel in cars, fuel trucks on our roads delivering fuel to resorts,businesses and residents. Fuel trucks being a dangerous traffic hazard competing with the tourist trafficand locals on the narrow range road.*Ageing population of residents who settled in the area now remain having to lift heavy generators,batteries and the constant maintenance, also living on old age pensions with a limited income. Someelderly residents, including the pioneer long term residents are often forced to live over the river andleave their homes because of the constant difficulties embraced when living with alternative power,especially in the wet season when the systems break down due to the extreme heat and constant rain.*Some residents including my husband David and I spent several wet seasons living in Melbourne due tothe difficulties, safety issues maintaining the alternative power system in the wet season. It was cheaperto go and rent and live some where else. In turn we had to leave our home because living their withoutmains power in the wet season is so expensive and stressful.*Climbing on roofs to clean panels which have to be cleaned on a regular basis due to mould build up anddust as most of the residential roads remain unsealed. Residents falling off roofs especially in the wetseason with the heavy rainfall.Social IssuesFamilies especially the women find daily maintenance of their house difficult due to the ongoing costs ofgenerator fuel and alternative systems etc..In turn these constant issues put a lot of emotional stresseson relationships. The high financial outlay of solar alternative systems the residents are paying off theloans .Some loans are from the original systems that are now redundant.Women and children suffer when they have limited clean clothes, refrigeration of food, personal hygieneissues, and difficulty accessing computers to complete normal homework and or further studies. *Normalappliances Australians take for granted individually or in a community we find difficult to have due tothe power systems in place.*We have a high instances of relationship break up in our community, I believe due to these influences ofliving with difficult alternative systems and or generators the outcome is that children are separated fromone parent after the mother, wife, partner moves over the river living in an area close by but with mainspower making life easier for herself and the children involved. The father remains on the propertyisolated from his family, often reverting to alcohol, drug even worse case scenario suicide. Resulting in asplit household where by the children will only have one permanent parent and visit the remaining parentweekly, monthly etc..they are not divorced just separated due to difficult living standards.*Underground mains power will enable residents to live a normal life like every other Australian thattakes for granted. Those who remain having workable solar panels can then feed them back into the grid.*Residents who want to rent their properties and renters are restricted due to the generators andalternative systems. Renters find the systems difficult to maintain and or understand. The resale value onproperties is also restricted because of the power situation", it is not a level playing field" Often ourhomes are devalued in comparison to other properties in the local area over the river.*The storage of old and existing batteries remains a problem, hundreds of dead batteries are sitting atthe transfer station(tip).no one wants them, they remain decomposing into the soil. The batteries are nottaken out weekly with the local rubbish removal.Further InformationI hope all tiers of government involved will subsided power for our community we have suffered enough.As a quote from the "Rainforest crc the Vision For Our Community page 4"The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 71

Daintree Green Power Options Study ‐ for Cairns Regional CouncilPEOPLE SOUTH OF COOPER CREEK WILL CONTINUE OR WILL HAVE THEIR REMOTE AREA POWERSYSTEM RAPS OR WILL HAVE CHOSEN GRID ELECTRICITY AND USE IT AS A GREEN GRID SUPPLYINGSURPLUS ENERGY GENERATED BY RENEWABLE ENERGY SOURCES BACK TO THE GRID"I need to emphasize that our community needs to be totally subsidized for power connection especiallyas the previous mayor Mike Berwick stated "when the green zones were secured ,thus the buy backscheme has succeeded. The green zones have been allocated and purchased we can now have power toour community."In conclusion residents and businesses did not elect to have generators and batteries.These systems were offered to us as no other alternative power source. Those who can't afford a hugeoutlay including ongoing costs basically live below the poverty line. I hope the current power survey willempower our community to gain a better more cost effective, less polluting system that already exists.Yours SincerelyHelen CooperBloodwood Rd,Cow Bay.4873 . Email:brasiercooper@hotmail.com”Digby Gotts ‐ Cape Trib Exotic Fruit Farm“I'm unable to attend your meeting on Tuesday 18th but would like to offer the following opinions.I would not like to see mains grid power brought north of the Alexandra range due to the environmentaldestruction that would cause, both in cable routing and in consequential residential occupation. Thevarious buy back schemes have reduced the potential for the latter but not eliminated it. I cannot imaginethat a marine cable would be cost effective for the low number of installations required.There is no one solution for the whole area. Forest Creek, Cow Bay, Turpentine Rd, Thornton Beach andCape Tribulation each have different demands and different needs and so cannot be provided with similarpower options.At Cape Tribulation, we believe that the most appropriate solution to provide power would be to rununderground cabling throughout the valley, from existing generators based at Cape Trib Resort. It wouldbe essential to allow existing solar installations to contribute to the system while periods of high demandcould be met from the supply with two way metering monitoring the amounts contributed andwithdrawn from the system. The high frequency of cyclone activity and projected increase in cycloneactivity means that undergrounding of cabling is more likely to be cost effective in the long term.We have successfully established a sustainable bed and breakfast ( 6 years), fruit tasting tour (13years) and commercial orchard ( 10 years) using solar power with a diesel generator backup. Averagegenerator running time is less than 2 hours per day for battery top up and pumping water (includingirrigation). However, we are still unable to use an electric jug or hairdryer or microwave or install acooling room for fruit. All options a normal business would regard as essential. We are content with thecurrent power availability although we would be pleased to be able to access more power at some times,particularly if those withdrawals balanced the times of contribution.We would be unable to contribute significant amounts of money for installation or running costs of anyadditional mains supply beyond what we already have spent, unless it could be shown that there wouldbe significant savings in energy and fuel by participating in a community power scheme.I am willing to continue discussing various options by email.RegardsDigby GottsCape Trib Exotic Fruit Farm Cape Tribulation 4873 www.capetrib.com.au”The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 72

Daintree Green Power Options Study ‐ for Cairns Regional CouncilDr Kelly D Lash, B.A.,“Hi,We buy our power from PK's Jungle lodge. Roughly about $15,000.00 / year. Loads of problems with thepower dropping out unexpectedly. shut downs for service... We seriously have considered moving do tothe high cost and all the problems.ThanksKelly D Lash DirectorStrive Till We DieDr Kelly D Lash, B.A.,Pharm.D., R.Ph.info@capetribpharmacy.comwww.capetribpharmacy.comStriving to improve livesCape Trib PharmacyShop1 Lot 11 Cape Trib. RoadCape Tribulation,QLD 4873tel: 07 4098-0090fax: 07 4098-0141mobile: 0422508060Mike Darcy (mtdarcy2000@yahoo.com.au) 17/08/09‘When the report was first mooted by the last Mayor of Douglas Shire, I wrote to each of the Councillorsurging that the Terms of Reference establish some key principles, basically revolving around universaldelivery and equity, along with a hard look at the changed nature of the earlier decision to prohibit powerto residents.CRC Scoping PaperI note that there are no Terms of Reference in this current study. Rather CRC has provided a Scopingpaper entitled “Daintree Green Power Options Study”There are several aspects of this Scoping paper that are of concern.1. No principles of universal coverage are explicitly included—therefore it provides a wriggle factorfor those disposed to partial solutions;2. Perhaps unintentionally, it is strategy‐based rather than outcomes‐based. For example, theScoping paper seems to rule out mains grid supply without any evidence or argument why thishas been ruled out, other than broad brush economic and/or sustainability truisms;3. There is no appreciation that circumstances have changed dramatically since 2000—there is awhole new paradigm, which the report needs to articulate clearly;4. The opening statement of the scoping paper gives no comfort to residents outside Forest Creekor Cape Tribulation. For example, should the current Discriminatory 2000 Regulation be removed,this would allow Forest Creek and Cape Trib to advance separate solutions, which by theirexistence would greatly diminish universal coverage.The Four TribesThe Daintree Coast community comprises four different tribes—the Townies, the Loyalists, the Straddlersand the Separatists (I won’t nominate which are which).The study and the Cairns Regional Council, need to recognise that the four tribes might want differentoutcomes, and will of course be happy to “divide and conquer” by putting forward solutions that suittheir own tribal wants. All parties must be prepared, if possible, to arrive at conclusions and solutions thatdon’t meet the wants of any one of the tribes. This will involve leadership, and maybe some harddecision‐making, but must be based on universality of coverage and evidence‐based logic.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 73

Daintree Green Power Options Study ‐ for Cairns Regional CouncilSome untested and/or irrelevant viewsI have picked up a number of statements or views which are utterly wrong or at least contestable. I amsure that there are others. My point is that our community needs to work with the consultant to bring outthese and other views, challenge them with real evidence and modern knowledge, and work them into orout of solutions.I have raised those of which I am aware, with brief comment.Mains power is not clean or green. Of course, no power is totally green but maybe in this environmentmains power is cleaner than other methods. We know that the carbon footprint of generator and solar issubstantial and arguably worse than mains supply. We need an evidence‐based not opinion‐basedapproach to finding the answers. Also, with the Rudd Government moves to place a special tax on andtherefore clean up our big power generation supplies, we can build in “clean efficiency dividends” intomains supply in the future. This future needs to be factored in to the argument.Mains power is too expensive. This could only be the case if a series of de‐centralised or two‐classsolutions provide solutions that are not universal—even then the real total cost of private and publicpower needs to be factored in.However, centralised systems are simply always cheaper than stand‐alones or de‐centralised. The realcosts that need to be teased out, include:• Capital and operational costs of current and/or alternative systems;• Lost opportunity cost of having a community which is de‐skilled because of lack of power; and• Cost to the environment both of dirty power and an unsustainable community.Of course, the issue of who pays is a separate argument. I am personally not convinced that just becausea bunch of bureaucrats from State government and Ergon argued at a meeting in 2008 that a mainssolution would cost too much (based upon old technology, rubbery/inflated costings and assumptionsabout who should/might pay) that a proper case should not be made.It will cost too much to provide universal coverage. The discriminatory policy imposed by Government as ashort term measure to save the environment through its 2000 Direction to Ergon has of course imposedan enormous burden, not on the entire state of Queensland, but exclusively on Daintree Coast residents.The costs and sacrifices have been not just the obvious direct solar and generator costs, but also to jobs,businesses and quality of life. Now that the management issues have been settled, I am absolutely surethat no State Government representing the entire community would have issues with meeting the capitalcosts needed to provide universal power to all houses in the area. This argument needs to be fleshed out,including advances made in other remote communities and the increasing isolation of this community incomparative terms. I understand that recent power supply to a Rangers station in the Lockhart regionmight provide some illumination into the argument.It will also be important to have costs assessed independently of Ergon, which is not an impartial player inthis matter.You can’t have mains power in a World Heritage area. Indeed, why not? Does mains power have someeerie quality that most of us know nothing about?? The earlier (ie Year 2000) valid argument aboutrestricting development has now been well and truly resolved. The issue now is providing power,communications and job opportunities to enable an intelligent and well‐informed community to be theguardians, the custodians and interpreters of this unique environment. Around the World, this has beenrecognised for years, and enormous attempts are being made in countries such as Brazil to support,involve and empower local communities by giving them skills, resources and a stake in the sustainableThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 74

Daintree Green Power Options Study ‐ for Cairns Regional Councildevelopment of the rainforest. To do less is indeed taking an arrogant and elitist view that therainforest can only be sustained by bureaucrats and politicians.Only Cape Tribulation and Forest Creek Road should have power. The arguments seem to be that ForestCreek Road is close to a Mains supply solution and that Cape Tribulation is the icon destination. Theenvironment (the argument seems to go) is better sustained by funnelling access and tourism within theDaintree Coast region to this one area. This would appear to be utterly contestable, especially ten yearsafter the argument was first conned into policy.One could similarly argue that the less iconic, less environmentally fragile or indeed unique andenvironmentally disparate but nevertheless attractive destinations such as Cow Bay, Coopers Creek ‐‐ oranywhere where the creativity of individuals allows‐‐ are also deserving of orderly opportunities andpower. Besides, there is something particularly un‐Australian about the inequity implied by theproposition.Final commentsThe entire world and this area are different places to that back in 2000, when the Discriminatoryregulation was imposed.A new focus on the importance of infrastructure in a modern world has taken place. A global financialcrisis has changed the paradigm with respect to Government spending. The Rudd Government hascommitted to the supply of (fibre optic) communications not just to the node, but to the home, and isnot basic power more important even than better communications? State Governments are starting tocommit to infrastructure development.Things which seemed difficult in 2000, are possible and indeed imperative in 2009.No doubt, when Government sees the complete argument laid out, with a comprehensive cost/benefitanalysis supplied, it will be of a mind to make a proper response.I see a particular and pressing danger, however, in a solution which does away with the restrictive 2000Directive before the whole universal package has commitment by all parties.Should the 2000 Directive be lifted without the entire package, two of the four tribes could be expectedto proceed unilaterally. However, this will inevitably lead to the diminished likelihood of the other twotribes getting universal power.So, I am urging the individuals and representatives of the four tribes of the entire Daintree Coastcommunity, to forgo their private and business claims in favour of an entire community approach. I amalso asking CRC and the State Government to recognise this also.We want power for all, not power for some.We therefore need both Cairns Regional Council and the State Government to support a total packagewhich provides universal coverage before lifting the discriminatory regulation.Needless to say, all surplus power generated by residents should be able to be fed back into the system ata fair price, with an incentive‐based approach reflecting the capital costs and value of our stand‐aloneswith a planned phasing out of generators.We also would require the State Government to accept responsibility for the costs and implementation ofreticulating power to all households.”The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 75

Daintree Green Power Options Study ‐ for Cairns Regional CouncilDR PETER PAVLOV 16/08/09 alectura@bigpond.com“I have been living in the area since 1992 and we have lived at our house at the above address since itwas completed in November, 1998. We have been on solar power (with govt. assistance) since that timeand last year upgraded our solar collection from 10 to 16 panels, with help from the government subsidy.We understand the limitations of solar power and have adjusted our needs accordingly to minimise ourusage of power. Our Fridge is a small 5 star rated bar fridge and other usage is a ceiling fan in thesummer, energy efficient lighting only on when needed and a very small hi‐fi system. I do have a range ofpower tools in my workshop, but they are only used when sunny days are happening. We hand wash ourclothes and use the Mossman laundrymat for bigger washes.Our 4kva generator has been out of service since March this year and because of the efficiency of ourupgraded system we have been easily able to cope with the duration of cloudy periods since then. I willpurchase a smaller generator before the next wet season.Our current system is more than adequate for our needs and we are extremely happy with solar energy inthis area.I understand that some private homes are not satisfied with solar, but I am rather cynical of their needs,because our experience tells us that if you minimise your demands, solar does work efficiently in a privatehome in this area. Our panels for instance are on an 18 metre high tower, built on the southern side ofour house to maximise the sun interception.I realise that commercial properties use a lot of fossil fuel and I can see the need to make power deliverymore economical for them. After working at Coconut Beach Resort, I remember that the capacity of theirgenerator system would be sufficient to provide power for the whole valley and thus reduce the pollutioncurrently experienced. There must be a system that would provide power in an environmentally sensitiveway for commercial premises and for people who are not able to live within the constraints of solarenergy and are willing to pay for the service.In answer to your attached questions:1. What power options do you have? – I have answered that above2. What alternatives have you considered? – Our current system is working perfectly3. What power options would you like to have? ‐ None!!4. Provided by whom? Not applicable5. What would you be prepared to contribute? I will replace the units of my system as necessary.6. Do you have any views on how the policy should read?I believe that private people should be fully educated on how to live efficiently with solar energy.Consideration should be given to provide power nodes for businesses in the area with options ofunderground power for residents who are prepared to pay the costs of reticulation.People such as myself who are perfectly happy with their solar system will not change because we havebeen well subsidised to have the solar power we have and are satisfied with it.Overhead power reticulation should never be considered for the area.They are the views of this household and I will appreciate them being considered. There is nothing thatwould encourage us to change our energy system or the lifestyle we have chosen.”Dr. Peter M. Heise‐Pavlov and Dr. Sigrid R. Heise‐PavlovThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 76

Daintree Green Power Options Study ‐ for Cairns Regional CouncilPavecol Wildlife Management Turpentine Road, Diwan, via Mossman 4873Rob Lapaer ‐ RAINFOREST HIDEAWAYrob@rainforesthideaway.com“I did not make it to the meeting, but would like to add my bit to this study, although I must admit I amsceptical about the chances of all this leading anywhere, many dozens of studies and reports on thisarea have been placed in filing cabinets at council offices over the years with recommendations neverfollowed up.....I have lived in Cape Tribulation for 16 years and would very much like to see some sort of grid powercoming to our area as the stand alone power systems simply have too downsides.It is simply unfair that our area has been excluded for so long from a service that everybody else in thedeveloped world, and even a lot of the poorer countries, take for granted.Like most people in this area I took advantage of the (now scrapped) solar power subsidy to get a solarsystem installed at my house, while this is better than nothing it is far from ideal;1. The current power situation is very expensive, very few people would be able to get by on solarpower only. As we live in a rainforest area there are six to nine months a year when it rains or it is cloudy,and of course being in rainforest there are trees around the house, creating the dilemma of having tochoose between clearing the rainforest or running the generator more. While tourists are being fedromantic stories of a community living on renewable solar energy the reality is that most householdswould run the generator most nights, creating pollution and creating costly fuel bills.2. Fuel expenses are not the only cost burden that residents of this area have to bear, from time to timegenerators, battery chargers, batteries or other equipment blow up or wear out, and then the bills quicklyrun into many thousands of dollars.3. Standalone power systems create not only a great deal of expense for their owners but also stress.Many people, especially those who rent houses, do not know how to manage them or don't care,batteries and generators are not looked after and have to be replaced at great expense to the owners.4. The current situation is dangerous, there have been several accidents with people injured by fires orother accidents with generators.5. The current situation is wasteful, many houses run generators big enough to power their whole streetso all this energy goes to waste.6. I feel there is a racial discrimination factor in this issue too, where ever there is a small community ofindigenous people living in the outback the government will always arrange a generator and distributeelectricity around the town, and I am sure that if Cape Tribulation was populated by indigenous peoplethen electricity would have been installed a long time ago.7. Now that the state government has scrapped solar power subsidy it makes it too expensive for newresidents to this area to set up systems, or for current residents to upgrade systems.To answer your questions;My only power option at the moment is to run my generator most nights and whenever other time I needa washing machine or power tool, the solar panels help when the sun shines but that is less than half theyear and I only get five hours of sun maximum unless I clear another acre of trees, which is now illegal.I have considered hydro power but the creek is too far away and not enough of a steady flow, windturbines do now work with the trees blocking the wind.I think the only logical and sensible solution for Cape Tribulation is a large generator located in a centralplace with cables to distribute electricity to homes and businesses. This will be far more efficient andThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 77

Daintree Green Power Options Study ‐ for Cairns Regional Councilbeneficial for the environment than the dozens of generators that are now running and polluting everynight.I do not see the logic in the philosophy that the electricity must come from renewable sources, it wouldbe a good thing if we could all sell some solar power back to the grid but apart from that I don't seewhere all this energy could come from. The choices are only solar, hydro and wind as far as I can see.Installing acres of solar panels to feed a town in the wet tropics where it rains half the year sounds like anot too smart idea, hydro is not easy as it would involve the damming of some creeks in this sensitiveworld heritage area and there is a dry season where for a few months this would not work and a wetseason where ferocious weather might wash out the hydro units, wind power would require the erectionof wind turbines at the beaches and there would be plenty of people complaining about the aesthetics ofthat so really the only workable option is one big diesel generator in the centre of town, and even thoughfossil fuels are burnt it would be only ten percent of what the town is burning at present with individualgenerators.In the past we were denied mains power for fear of over development in this area, now all buybacktargets have been met and development controls are in place so now is the time to give us what the restof the country takes for granted. Especially Cape Tribulation has been named in the town plan as thecentral development hub for tourists to stay, businesses and residents need a reliable and affordableelectricity supply for this, I have run a B&B for eight years at my house and got tired of explaining totourists why they could not have a fridge in their room, or air‐con, or a toaster, or a hair dryer, or a microwave or a TV, or any of these things that everybody takes for granted in the rest of the country.Who would provide this power is irrelevant to me, as long as it is available and I can buy it.I would be prepared to contribute $10 000 to $20 000 if I could get connected to some sort of grid andthen I would not have to spend the rest of my life filling jerrycans, carrying them to the shed, fuelling thegenerator, going back before sleeping to turn it off again, stressing when the generator or other parts ofthe sytem need to be repaired again, buying a new $10k battery bank every few years and stressing whenon holidays that the caretakers are killing the batteries.”Kind regards,Rob LapaerEmail: rob@rainforesthideaway.comBob the RACQ Man – runs his house andbusiness on biodiesel for a cost of $4 perday.Collects all the old fat from the area, sothere is no capacity for anyone else to usethis as a source and turns it into biodieselusing his home plant.Collects all the batteries from the region,and transports them to Douglas Shire Tipbut the tip wont take all the batteries. Hasa stockpile of 1000’s of batteries. He turnsmany into sinkers and sells them to touristsand the community. Concerned about theissue of leaching acids into the ground andthe danger of exploding batteries.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 78

Daintree Green Power Options Study ‐ for Cairns Regional Council14.5 Appendix 5 Letter Sent To the Premier identifying the Three Point PlanThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 80

Daintree Green Power Options Study ‐ for Cairns Regional Council14.6 Appendix 6: Letter from Minister Paul Lucas to MP Steve Bredhauer – Stateresponse to proposal for Generation and distribution network in Cape Tribulation2003.The Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 81

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 82

Daintree Green Power Options Study ‐ for Cairns Regional CouncilThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 83

Daintree Green Power Options Study ‐ for Cairns Regional Council14.7 Appendix 7: Acronyms Used:CAPEXCFLCRCDEHDSCEIASGHDGHG EmissionsIPAKWhLEDLVOPEXPV Solar GeneratorsRAPSRECRRPGPTLPIVSDWHAWTMACapital ExpenseCompact Florescent LampCo‐operative Research CentreCommonwealth Department of Environmentand HeritageDouglas Shire CouncilEnvironmental Impact Assessment StudyGutteridge Haskins & DaveyGreen House Gas EmissionsQueensland Govt Integrated Planning ActKilo Watts per hourLight Emitting DiodeLow VoltageOperational ExpensePhoto Voltaic Solar GeneratorsRemote Area Power SystemsRenewable Energy CertificatesRenewable Remote Power GenerationProgrammeTemporary Local Planning InstrumentVariable Speed DriveWorld Heritage AreaWet Tropics Management AuthorityThe Missing Link ‐ Resource Co‐ordinators Pty Ltd Page | 84