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In This Edition EOI Open for New Powerhouse Museum A weekly analysis updating you on the latest developments in the infrastructure sector. View the full report in your browser. Follow us on In this edition EOI open for New Powerhouse Museum WA Energy Systems Plan released WA Government releases new Housing Strategy IEA releases World Energy Outlook, detailing impact of COVID-19 Industry News Appointments Virtual Policy Taskforces and Events SOCIAL INFRASTRUCTURE EOI open for New Powerhouse Museum This week, the NSW Government opened Expressions of Interest for construction of the New Powerhouse Museum in Parramatta, with Infrastructure NSW leading the procurement process. The contractor will further develop the winning architectural designs selected through a design competition completed in December 2019. The project, which in 2018 was estimated to have a total cost of $825 million, involves construction of a new museum on the bank of the Parramatta River, including seven large exhibition spaces, transport connections, as well as education, community, retail, and Source: Infrastructure NSW residential components. EOIs close on 26 October. This announcement follows the NSW Government’s decision in July to keep the existing Powerhouse Museum in Ultimo, close to Sydney’s CBD, open beyond construction of the new facility in Parramatta. Previously, the NSW Government had planned to sell the current site at Ultimo for approximately $195 million, with the proceeds to contribute towards the cost of the new museum at Parramatta. ENERGY WA Energy Systems Plan released This week, the Government of Western Australia released their inaugural Whole of System Plan (WOSP), providing a 20- year outlook on the state’s main electricity network – the South West Interconnected System (SWIS). The WOSP models four scenarios that explore how the SWIS may need to evolve over the next 20 years in response to changes in electricity demand, technology and the economy. Across all scenarios, renewable energy is expected to comprise between 71 and 78 per cent of generation capacity by 2040, up from 34 per cent projected for the end of 2020. This will be Source: Shutterstock driven by continued growth in rooftop solar, wind, and battery storage. In all modelling scenarios, no new transmission capacity is required before 2030, and only required after 2030 in the higher demand scenarios. The WOSP highlights the growing role of large-scale energy storage – particularly batteries – in the main electricity network over the 20-year period. The report indicates that battery storage offers an alternative source of essential system services, such as frequency control, enabling reduced reliance on thermal generation. This follows the WA Government's announcement earlier this month that it is looking to develop a 100 megawatt battery at state-owned energy company Synergy’s existing Kwinana Power Station, and opened a Request for Information process, which closes on 28 October. The project has received $15 million in Federal Government funding. SOCIAL INFRASTRUCTURE WA Government releases new Housing Strategy The Government of Western Australia has this week released its WA Housing Strategy 2020-2030. The Strategy aims to improve access to, and choices for, housing across the coming decade, setting a range of targets including a six per cent increase in social housing stock by 2030. The new Strategy aims to underpin efforts to increase supply, support access to and simple transitions between housing, and ensure design of housing is fit-for-purpose, now and in the future. Source: Shutterstock The Strategy builds on WA’s $444 million Housing Stimulus Package, announced in June as part of the state’s COVID-19 economic recovery. This stimulus package includes the $319 million Social Housing Economic Recovery Package profiled in the WA Budget last week. Other housing initiatives in WA include the $150 million Housing Investment Package, announced in 2019, and the $394 million METRONET Social and Affordable Housing and Jobs Package. ENERGY IEA releases World Energy Outlook, detailing impact of COVID-19 The International Energy Agency (IEA) has released its annual World Energy Outlook, which explores potential development pathways for the global energy sector. The 2020 report has a strong focus on the near-term impacts of the COVID-19 crisis. Impacts include an expected decline in global energy demand of five per cent in 2020, including an eight per cent fall in oil consumption and a seven per cent reduction in coal usage. The Report indicates that COVID-19 will have severe near-term impacts on energy investment. Source: Shutterstock Total investment in the energy sector is expected to fall by 18 per cent in 2020, with oil and gas particularly hit hard. Conversely, the report expects demand for renewables, particularly those in the electricity sector, to remain resilient to the COVID-19 crisis with demand expected to grow by one per cent this year. This growth in renewable investment and capacity is projected to accelerate considerably over the coming decades, underpinned by supportive policies, maturing technologies and historically low costs of capital. Industry News Infrastructure Capital Group has acquired a 75 per cent interest in the Australian Renewable Energy Trust, which was established by ENGIE and Mitsui. At financial close, the Trust will hold the 119 megawatt Willogoleche Wind Farm in South Australia, as well as the exclusive rights to a pipeline of around 1300 megawatts of solar and wind development projects in Australia. Financial close is expected by the end of the month. IFM Investors has announced it will target net-zero emissions by 2050 across its asset classes. IFM’s investment team will lead a taskforce to implement the commitment through existing assets and future investments, and consider a range of other changes to governance and management of climate change risk. Port of Melbourne has been recognised as a Top 10 Best Employer by Kincentric. The Kincentric Best Employers platform recognises workplace excellence in employee engagement, agility, engaging leadership, and talent focus. Inland Rail has held an online industry briefing regarding its new procurement and delivery plan for seven projects under its program of works. The briefing and Q&A session can be accessed here, along with further information and opportunities for suppliers. The Major Transport Infrastructure Authority has released an Advanced Notice for Constructability Advisory Services to support the delivery of the North East Link. Further information and a proposed procurement schedule can be found here. A tender briefing will be held on 29 October. The Victorian Government has tabled its Financial Report 2019-20. The government recorded a general government sector operating deficit of $6.5 billion for FY2019-20. Net debt for the general government sector was $44.3 billion. Government infrastructure investment, which includes general government net infrastructure investment and estimated construction-related cash outflows for Partnerships Victoria projects (net of asset sales), was $12 billion for FY2019-20. This was $3.8 billion below the revised budget in the 2019-20 Budget Update. Queensland Labor has announced a commitment of $600 million for construction of the first 20 Cross River Rail six-car trains in Maryborough. Train manufacturers will be invited to bid in a competitive procurement process to build the next fleet of passenger trains if the Queensland Labor Government is re- elected. The NSW Government has declared the Oven Mountain pumped hydro project as Critical State Significant Infrastructure. The project, to be located in the New England Renewable Energy Zone, will have a generation capacity of 600 megawatts and involve the construction of two reservoirs, tunnels, and a new underground power station. The project will now be subject to planning assessment and the proponent will prepare an Environmental Impact Statement. Transport for NSW has confirmed the preferred option for the $2.5 billion Great Western Highway upgrade will include a tunnel of around four kilometres under Blackheath. Feedback is being sought on three route and portal options. The NSW Government has announced early works for the $750 million Redevelopment of Royal Prince Alfred Hospital will be brought forward by a year. Early works will commence in the next six months, with the new hospital building expected to open to patients in 2026-27. The Level Crossing Removal Project has announced it will fast-track level crossing removals at Neerim Road and Glen Huntly. Construction is expected to commence in 2021 and be completed by 2024. Separately, the designs for the new North Williamstown Station and new Glenroy Station have also been released. The Australian Energy Regulator has commenced public consultation on the contingent project applications received by TransGrid and ElectraNet for Project EnergyConnect. Submissions on the contingent project applications can be emailed here and are due by 30 October. The Australian Energy Market Commission (AEMC) has been asked by Energy Ministers to review Australia’s gas supply guarantee arrangements. The terms of reference for the review can be accessed here. Separately, the AEMC has released the final report in its investigation into system strength frameworks in the National Electricity Market. The report includes a proposal to stabilise the power system by introducing a network planning standard for higher levels of system strength. Additionally, new technical standards on generators connecting to the
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