19 June 2009
Environment and Natural Resources Committee Parliament of Victoria Parliament House East Melbourne, VIC 3002
To whom it may concern,
Re: Environment Victoria’s submission to the Parliament of Victoria Environment and Natural Resources Committee regarding the inquiry to the approvals process for renewable energy projects in Victoria.
Environment Victoria is the peak non‐government not‐for‐profit environment organisation in Victoria and has over 120 member groups and thousands of individual members and supporters. Environment Victoria has been representing the voice of the Victorian community on the environment for 40 years. We have been actively campaigning on the issue of climate change for over a decade.
Environment Victoria is a strong supporter of renewable energy as a solution to climate change and has actively lead or supported a number of renewable energy campaigns both at the State and Federal level.
Victoria is fortunate to have significant renewable resources available, with great potential for investment in this rapidly growing sector. In particularly, Victoria’s world class wind resources mean that the state is an attractive place for investment in this technology.
The proposed national Mandatory Renewable Energy Target (MRET) of 20 percent by 2020 will spur billions of dollars in investment in the sector across the Australia. Wind energy is poised to attract a significant proportion of this given the relative maturity of the technology, and Victoria is well placed as a location for investment. However, enthusiasm for investing in the State could be dampened without improvements to the necessary planning requirements and other barriers to installation including grid access restrictions.
Our competitive advantage means that Victoria can contribute a significant amount of the nation’s wind energy, boost the industry in Australia, attract investment across rural and regional Victoria, and create thousands of jobs in the process.
In April 2009 Environment Victoria in partnership with the Brotherhood of St. Laurence held a ground‐breaking summit to look at the potential for Victoria to become a world leader in green jobs. At the forum Environment Victoria released a report focusing on key areas where Victoria could develop green job opportunities. The report theVictoria ‐ Green Jobs State: Seizing the Opportunities found that 26,000 new green jobs could be
created across five industries in just five years, many with existing funding commitments1. One industry profiled in this report was the wind industry in Victoria. While the MRET legislation has the potential to deliver 4000 jobs in Victoria in 2010, this could then fall to 900 as the installations stop with the end of the scheme in 2025. The wind sector case study is attached to this submission below (We note that some of the issues raised in the case study have since been addressed by COAG).
For employment benefits to remain in the Victorian economy and to avoid the boom ‐ bust cycle experienced by the industry with previous incentive mechanisms the MRET target scheme should be maintained until at least 2030 and revised upwards to ensure continued steady growth.
Despite this flaw in the current MRET proposal, the recent delay to the passage of the MRET legislation in Canberra is disappointing. This is an important mechanism to drive renewable energy installation across Australia. Environment Victoria is urging both major parties to stop playing games with this important legislation and pass it with amendments to deliver billions of dollars of investment, new green jobs and greenhouse abatement.
The delay is made worse given that it comes only one week after the Rudd Government abruptly ended the Solar Homes and Communities program which provided vital support to small scale solar. In the absence of both the Solar Homes and Communities program and the MRET, there exists no financial incentive for installation of small scale renewable energy in Victoria.
There are a number of barriers to the uptake of small scale renewable energy in Victoria however the most pressing is that of cost. If the MRET is passed, the solar multiplier mechanism included in the scheme as incentive for small scale renewables will provide roughly half the level of incentive provided by the previous Solar Homes and Communities scheme. Victoria should look to overcome these barriers through the introduction of a gross solar feed‐in tariff. Time‐of‐use charging and grid upgrades are further issues that Victoria should investigate to remove barriers to the installation of small scale renewable energy.
The Victorian community has shown themselves committed to action to on climate change with many who have been willing to pay thousands of dollars to install solar panels and contribute to the transformation of our energy supply for a greener future. The Victorian government should look to support and enable community participation in our green energy future through support for small scale renewable energy.
For further information regarding this submission or Environment Victoria’s work please feel free to contact me.
Sincerely,
Mark Wakeham Campaigns Director [email protected] or 03 9341 8127
1 Environment Victoria, April 2009. Victoria – The Green Jobs State: Seizing the Opportunites www.environmentvictoria.org.au
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Summary An introduction to the industry 1,000 By the end of 2008, 1300 MW of wind power had s 4OTAL INSTALLED CAPACITY OF WIND POWER IN GW installed in each countr y 800 6ICTORIA REACHED -7 IN AND COULD been installed in Australia, up from less than 100 3.2 REACH MORE THAN -7 BY MW in 2000.1 The last five years have seen an 600 average annual growth rate of 47 per cent. s 4HE !USTRALIAN WIND INDUSTRY CURRENTLY 17 400 EMPLOYS MORE THAN PEOPLE UP FROM Compared to the world leaders, however, wind 24 2.9 ABOUT IN capacity per person is still low.
MW people per million 200 25 3.7 1.3 3.4 3.2 s +EPPEL 0RINCE IN 0ORTLAND CURRENTLY OPERATES Spain, for example, has 386 MW per million 12 10 THE ONLY WIND MANUFACTURING IN 6ICTORIA people, compared to just under 60 MW in 0 AND SUPPLIES TOWERS TO WIND FARMS AROUND Australia.2 This is despite the fact that Australia Italy UK Spain USA China India THE COUNTRY 4HEY OPERATE lVE FACTORIES IN has some of the best wind resources in the France 0ORTLAND EMPLOYING PEOPLE WITH ANNUAL world. (See Fig 1) DenmarkGermanyPortugal Australia TURNOVER OF MILLION !BOUT PER CENT Wind power capacity in Australia is expected OF THEIR BUSINESS IS WIND ENERGY Fig 1: Capacity per million people, ten leading to increase five fold over the next seven years, countries plus Australia. s 4HE FEDERAL GOVERNMENTS -ANDATORY primarily as a result of the federal government’s 2ENEWABLE %NERGY 4ARGET -2%4 IS LIKELY 20 per cent Mandatory Renewable Energy TO DELIVER A HUGE SPIKE IN JOBS AND PROJECTS IN Target.3 The expanded MRET was preceded by decline sharply unless there are policy interven- 6ICTORIA WITH THE POTENTIAL FOR JOBS IN state targets, including the Victorian Renewable tions to prevent the boom-bust cycle. Energy Target (VRET, legislated in 2007). VRET s 4HE DESIGN OF THE -2%4 SCHEME IS LIKELY TO gave Victorian wind projects a headstart over The state of the industry in Victoria LEAD TO ANOTHER BOOM BUST CYCLE FOR THE WIND other states, with more than 40 per cent of the INDUSTRY 4HE TARGET SHOULD BE MAINTAINED wind power delivered under the increased MRET The first wind farm in Victoria was commissioned UNTIL AND REVISED UPWARDS TO ENSURE target expected to be located in Victoria.4 in 2001 at Codrington, near Port Fairy, and CONTINUED STEADY GROWTH IN THE INDUSTRY The growth in wind power is expected to result was rated at 18 MW. Total capacity in Victoria in investment of more than $4 billion in Australia reached 192 MW by the end of 2008, and could between 2010 and 2020.5 (See Fig 2) reach more than 2500 MW over the next four years according to the projections prepared for The Australian wind industry currently employs the National Electricity Markets Management 6 more than 2000 people , up from about 1000 Company (NEMMCO)8. (See Fig 3) in 20057. Annual installations in 2008 doubled compared to 2005, so the development, con- After a strong start, there was very little growth struction and installation sectors show particu- from 2005 until 2008 as the national MRET target larly strong growth. On current projections for (set at 9500 GWh under the Howard Govern- growth, employment in the wind industry will ment) was reached ahead of schedule and was peak at nearly 6000 people in 2011, and then not increased. By 2006 it had become uneco-
44 – Victoria – the Green Jobs State: Seizing the Opportunities nomic to construct new projects and a number 7000 3000 of wind installers and manufacturers were forced MW cumulative MW cumulative to move offshore, including the Vestas blade 6000 2500 manufacturing facility in Portland, Victoria. 5000 2000 The commencement in 2007 of the Victorian Re- 4000 newable Energy Target (VRET) for 3274 GWh of 1500 renewable energy by 2016 meant that projects, 3000 planning and construction were ramped up. 1000 The VRET will be incorporated into the revised 2000 national mandatory renewable energy target, al- 500 though the legislation has not yet been finalised. 1000 0 There are now 1650 MW of approved projects in 0 Victoria, with a further 2513 MW proposed. (See 2002 2004 2006 2008 2010 2012 2016 2020
Table 1) 2000 2002 2004 2006 2008 2010 2012 2014 2016 2020 The only wind manufacturing currently operating Fig 2: Wind power in Australia and projection to 2020. Fig 3: Wind power in Victoria and projection to 2020. in Victoria is at Keppel Prince in Portland, which supplies wind towers to wind farms around the Reduction Scheme (CPRS) in its current form. onshore is fabrication of the towers. This ac- country. Keppel Prince operates five factories counts for an estimated 19 per cent of the manu- If the CPRS becomes law it will deliver an ad- in Portland. They employ 430 people, including facturing value of a wind turbine.10 200 working on wind. Their annual turnover is ditional incentive to develop wind projects (aside $110 million, with 60 per cent of that in the wind from its impact on GreenPower), although the Blade manufacturing accounts for a further 23 energy business. (Read more about the Keppel carbon price is not expected to be sufficient to per cent, so re-establishing this capability in Prince success story further on). get new projects off the ground independent of Australia could secure up to 2000 jobs. Manu- the MRET. facturing jobs are entirely dependent on new Current state and federal installations, however, and it is very challenging Jobs created by this industry to maintain or expand facilities in Australia if government policies The types of jobs created in wind are varied, installations follow a boom and bust pattern. De- As described, the federal government’s MRET ranging from engineers, electricians, and con- velopment and consultancy staff, which currently and the state government’s VRET have been the struction workers to highly specialised consult- make up nearly 20 per cent of jobs in the wind major drivers of new wind projects in Victoria. A ants in noise or meteorology. industry, will also not remain without prospects of secondary driver of wind projects nationally has new development. been consumer GreenPower purchases. Victoria More than half of the direct employment related currently has the highest consumer take-up of to wind turbines is in manufacturing, most of Smoothing the growth profile for the wind indus- GreenPower. The GreenPower program is threat- which currently takes place off-shore. The only try is a top priority if we want to develop a stable ened by the introduction of the Carbon Pollution large scale manufacturing currently taking place local manufacturing industry.
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Growing the industry Prospects for growth in the wind industry are very strong until 2016. Wind power in Australia is expected to increase five-fold, and in Victoria is expected to increase nearly fourteen-fold. While this is good news, it is important to avoid the boom and bust cycle of the past eight years. The wind industry in Australia came close to stalling in 2007. The first national Renewable En- ergy Target, for 9500 GWh renewable energy by 2010, was met ahead of time in 2006. Although projects were in advanced stages of develop- TABLE 1: Wind farms in Victoria at end of January 2009 by developer9 Photo: Waubra wind farm, courtesy Acciona Energy ment, they were unable to go ahead without the Operator/ developer Operating Approved Proposed Total income from Renewable Energy Certificates.11 Wind Power Pty Ltd 12 MW 29 MW 930 MW 971 MW With uncertain prospects, wind developers struggled to remain in Australia, especially at a Union Fenosa - 198 MW 705 MW 903 MW time when the industry was booming globally. Acciona Energy - 471 MW 288 MW 759 MW The commencement of the Victorian Energy Pacific Hydro 159 MW 107 MW 173 MW 438 MW Target in 2007, followed soon after by the NSW AGL/ Meridian - 409 MW - 409 MW target, kick-started Australian wind energy on a West Wind Energy 131 140 MW 271 MW new growth cycle. These targets are set to be rolled into the 20 per cent national renewable RES Southern Cross - - 150 MW 150 MW energy target. Wind Farm Developments - 112 MW 30 MW 142 MW The projection for growth to 2020, however, Mitsui & Company (Australia) Ltd - 104 MW - 104 MW looks set to repeat the boom and bust cycle un- Roaring 40’s - - 68 MW 68 MW less there is a policy change. Estimated employ- ment in the wind industry is set to reach nearly NewEn Australia - 30 MW 30 MW 60 MW 6000 people in 2011 as a result of the projected Synergy Wind Pty Ltd - 28 MW - 28 MW surge in construction.12 On current projections, International Power - 28 MW - 28 MW jobs fluctuate between 4000 and 5800 until 2016, and then drop back to 4000 when annual Transfield Services 21 MW - - 21 MW installations cease. (See Fig 4) In Victoria, em- Hepburn Renewable Energy - 4 MW - 4 MW ployment could reach more than 4000 in 2010, Association and fall to 900 as installations stop. TOTAL 192 MW 1,650 MW 2,513 MW 4,355 MW This may overestimate the jobs that would re-
46 – Victoria – the Green Jobs State: Seizing the Opportunities main if the industry stalls once more. +EPPEL 0RINCE %NGINEERING n The Vestas blade factories in Tasmania and ! 7IND 0OWER 3UCCESS 3TORY Portland were victims of the previous downturn in Australian wind energy. The factories closed +EPPEL 0RINCE %NGINEERING WAS SET UP IN WITH in 2006 and 2007, with the loss of 300 jobs, lVE EMPLOYEES INITIALLY TO UNDERTAKE CONSTRUCTION 130 of which were in Victoria. The poor outlook WORK AND MAINTENANCE FOR THE !LCOA ALUMINIUM for Australian wind energy in the absence of a SMELTER )N THERE WAS AN OPPORTUNITY TO GROW THEIR BUSINESS BY MANUFACTURING WIND TOWERS AND higher national renewable energy target meant OFFERING TOWER INSTALLATION SERVICES TO THE WIND the Danish parent company could not justify the INDUSTRY capital investment needed to expand and retool Photo courtesy Acciona Energy for larger turbines, so the operations became +EPPEL 0RINCE INVESTED MILLION TO EXPAND AND QUICK FACTS ABOUT KEPPEL PRINCE uneconomic. Keppel Prince is currently consid- RETOOL AND NOW HAVE lVE FACTORIES IN 0ORTLAND ering recommencing blade manufacture in Victo- 4HEY EMPLOY PEOPLE INCLUDING WORKING s 3TARTED IN AND EXPANDED INTO WIND POWER services in 2000 ria13, but has said it would find it difficult to justify ON WIND 4HEIR ANNUAL TURNOVER IS MILLION unless policies are structured to maintain steady WITH PER CENT OF THAT IN THE WIND ENERGY BUSI s 4HE ANNUAL TURNOVER OF THEIR WIND BUSINESS IS and predictable industry growth. NESS $66 million ($110 million in total) %MPLOYMENT IN THE WIND PART OF THE BUSINESS IS s 4HEY HAVE lVE FACTORIES IN 0ORTLAND 6ICTORIA Policy measures that would help DOWN FROM IN ESSENTIALLY BECAUSE WIND s 4HEY EMPLOY PEOPLE FOR WIND POWER WORK PROJECTS ARE QUEUED UP WAITING FOR THE NATIONAL (430 people altogether) promote this growth RENEWABLE ENERGY TARGET LEGISLATION TO BE lNALISED /NCE THOSE PROJECTS GO AHEAD THE COMPANY HOPES s 4HIS COULD EXPAND TO GREATER THAN WIND RELATED The legislation for the expanded renewable jobs with the forecast growth in wind power TO REHIRE STAFF energy target is not yet in place, although the s 4HEY PURCHASED THE 6ESTAS BLADE FACTORY SITE WHEN IT federal government undertook consultation on +EPPEL 0RINCE EXPECTS TO SEE CONTINUED GROWTH closed in 2007 draft legislation in February 2009. OVER THE NEXT TEN YEARS 4URNOVER IS EXPECTED TO REACH MILLION WITH MILLION OF THAT WIND s 4HEY AIM TO EXPAND INTO MANUFACTURING WIND COMPO- A number of key issues need to be addressed, RELATED nents, particularly blades however, to prevent a repeat of the boom and bust cycle which has characterised the develop- h+EPPEL 0RINCES WIND RELATED BUSINESS COULD EX TINUE WITH BOOM AND BUSTv ment of wind energy in Australia thus far: PAND TO PEOPLE AND MILLION ANNUALLY WITH THE FORECAST GROWTH IN WIND POWER v SAYS 3TEVE +EPPEL 0RINCE MANUFACTURES TOWERS FOR WIND UÊ/ iÊvÕÊÌ>À}iÌÊà Õ`ÊLiÊ>Ì>i`ÊÕÌÊ 'ARNER +EPPEL 0RINCE #%/ TURBINES AND ERECTS THEM AT SITES ALL OVER 6ICTO 2030; RIA .37 AND 3OUTH !USTRALIA 4HEY ALSO EXPORT h)F THERE WERE GOOD POLICIES IN PLACE TO SUSTAIN THAT TOWERS *OBS INCLUDE FABRICATION AND MECHANICAL UÊ/ iÊÌ>À}iÌÊà Õ`ÊLiÊÌ>«iÀi`ÊvÀÊÓäÎäÊ GROWTH WE WOULD EXPAND FURTHER TO MANUFACTURE ENGINEERS BLASTING AND PAINTING ELECTRICAL lTTERS so that all projects have a 15 year time pe- OTHER WIND COMPONENTS "UT THATS A BIG CAPITAL CRANE DRIVERS AND RIGGERS AND DRIVERS riod to recoup investment when they enter INVESTMENT WE CANT DO IT IF WIND IS GOING TO CON the scheme; and
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8,000 MW wind power commissioned each year 7,000
1,006 531 350 6,000 540 1,199 636 595 5,000 0 97 000 4,000 3,000 463 2,000 People employed People 168 192 230 Fig 4: Wind – projected 1,000 jobs in Australia and MW 0 commissioned each year. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
operation & maintenance other installation manufacturing
emissions reduction necessary to achieve a safe Photo courtesy Keppel Prince UÊ/ iÊÌ>À}iÌÊÃ Õ`ÊLiÊÀiÛÃi`ÊÕ«Ü>À`ÃÊÃÊ that a minimum of 20 per cent of electricity climate future. $ARREN #HAPPLE comes from renewable energy by 2020. Projections for the current draft legislation show that wind capacity will grow rapidly until 2014 – h) USED TO MANAGE AN INDUSTRIAL LAUNDRY BUT WHEN The current draft MRET legislation only maintains AN OPPORTUNITY CAME UP WITH +EPPEL 0RINCE ) TOOK the 45,000 GWh target until 2024, after which it 2016, and then virtually stop. At this point there IT tapers to 23,000 GWh by 2030. This means that is likely to be about 6000 MW of wind power in Australia. h4HEY ARE A SOLID COMPANY INVOLVED IN WIND EN there will be a rush to build projects early so that ERGY WHICH HOPEFULLY HAS AN EXCITING FUTURE they can recoup their investment through REC This would provide about 5 per cent of Austral- sales. Projects generally require a 15 year term h+EPPEL 0RINCE HAS PROVIDED ME WITH QUITE A BIT OF ia’s electricity – well below the amount that could for debt repayment. A number of submissions TRAINING IN MY MONTHS WITH THE lRM INCLUDING be managed within our electricity system. It FORK LIFT RIGGING ELEVATED WORK PLATFORM HEAVY on the draft legislation highlighted the need to would bring Australia to about the same capac- VEHICLE ESCORT AND WORKING AT HEIGHTS TRAINING maintain the target at 45,000 GWh until 2030 in ity per person that Germany has now. order to spread development across the whole h)T MEANS ) CAN GO OUT AND WORK ON SITE OR ASSIST IN Increasing the time horizon and the target would period.14 THE ADMINISTRATION AREAv avoid the scramble to get projects constructed n $ARREN #HAPPLE EMPLOYEE +EPPEL 0RINCE Over the longer term a higher renewable energy early, and encourage a steady growth period target will be necessary to achieve the level of rather than a repeat of the boom bust cycle. This
48 – Victoria – the Green Jobs State: Seizing the Opportunities in turn would create more sustainable jobs and UÊ-Õ««ÀÌÊÃÌ>vvÊi}°Ê>`°]ÊÃ>iÃÊ>>}iÀÃ]Ê )MPORTANCE OF COMMUNITY WIND allow developers the necessary time to consult marketing, accounting). properly with local communities without rushing #OMMUNITY WIND HAS THE POTENTIAL TO SIGNIlCANTLY Operations and maintenance to get their projects off the ground. CONTRIBUTE TO !USTRALIAS RENEWABLE ENERGY TARGET OF UÊ iVÌÀV>]ÊiÛÀiÌ>Ê>`ÊVÛÊi}iiÀÃÊ PER CENT BY 4HE MODEL HAS BEEN PROVEN Given the potential boom in the wind industry, for the management of plants. IN $ENMARK WHICH SOURCES ALMOST PER CENT OF the Victorian Government should enter into dis- ITS ELECTRICITY FROM WIND POWER LARGELY THROUGH UÊ/iV V>ÊÃÌ>vvÊvÀÊÌ iÊ«iÀ>ÌÃÊ>`Ê>>}i- cussions with the major wind companies (both COMMUNITY OWNED INFRASTRUCTURE WITH OVER ment of plants. developers and manufacturers) with a view to HOUSEHOLDS OWNING OVER TURBINES helping them locate within Victoria. Consultants "ENElTS OF COMMUNITY WIND INCLUDE UÊ*À}À>iÀÃÊ>`ÊiÌiÀ}ÃÌÃÊvÀÊ>>ÞÃ}Ê s )NCREASED COMMUNITY INVOLVEMENT IN RE Training required to promote this wind regimes and output forecasts. NEWABLE ENERGY DEVELOPMENT growth UÊ }iiÀÃÊëiV>Ãi`ÊÊ>iÀ`Þ>VÃ]ÊV- s &INANCIAL BENElTS ARE AVAILABLE TO LOCAL COM putational fluid dynamics. MUNITY INVESTORS NOT JUST THE LANDOWNER The following skills are needed in the wind industry15: UÊ ÛÀiÌ>Êi}iiÀð s 0ROVIDES A LONG TERM PERSPECTIVE ON INVEST MENT THAT WILL BE REQUIRED TO DEVELOP A SUS Wind farm developers UÊ iÀ}ÞÊ«VÞÊiÝ«iÀÌð TAINABLE ENERGY SUPPLY FOR FUTURE GENERATIONS UÊ*ÀiVÌÊ>>}iÀÃÊi}°Êi}iiÀÃ]ÊiVÃÌÃ®Ê UÊ Ý«iÀÌÃÊÊÃV>ÊÃÕÀÛiÞÃ]ÊÌÀ>}Ê>`ÊV- s $ISTRIBUTED GENERATION INCREASES GRID STABIL to coordinate the process. munication. ITY AND REDUCES TRANSMISSION LOSSES s 'REATER ACCEPTANCE BY COMMUNITIES OF WIND UÊ ÛÀiÌ>Êi}iiÀÃÊ>`ÊÌ iÀÊëiV>ÃÌÃÊ UÊ>ViÀÃÊ>`ÊiVÃÌð to design projects and analyse the environmen- OR OTHER RENEWABLE POWER GENERATION tal impacts. UÊ >ÜÞiÀÃÊëiV>Ãi`ÊÊiiÀ}ÞÊ>`ÊiÛÀ- s /PPORTUNITIES FOR RURAL DIVERSIlCATION AND mental matters. ENTERPRISE DEVELOPMENT UÊ*À}À>iÀÃÊ>`ÊiÌiÀ}ÃÌÃÊvÀÊÜ`Ê energy forecasts and prediction models. UÊ >ÀiÌ}ÊÃÌ>vvÊ>`ÊiÛiÌÊÀ}>ÃiÀð UÊ ÕÌÞÊi}>}iiÌÊ>`ÊVÃÕÌ>Ì° Construction UÊ-Õ««ÀÌÊÃÌ>vvÊi}°Ê>`°]ÊÃ>iÃÊ>>}iÀÃ]Ê UÊ iVÌÀV>Ê>`ÊVÛÊi}iiÀÃÊÌÊVÀ`>ÌiÊÌ iÊ marketing, accounting). building work. Manufacturing UÊ-«iV>ÃÌÃÊÊÌ iÊÌÀ>ëÀÌÊvÊ i>ÛÞÊ}`à UÊ iVÌÀV>]ÊiV >V>Ê>`Ê>ÌiÀ>ÃÊi}- UÊ iVÌÀV>ð neers. UÊ/iV V>ÊÃÌ>vvÊvÀÊÜ`ÊÌÕÀLiÊÃÌ>>Ì]Ê UÊ-iÃi`ÊÜÀiÀÃÊvÀÊ«À`ÕVÌÊ>`Ê>Ã- (eg. crane drivers, fitters). sembly. UÊ-iÃi`Ê>`ÊÃi`ÊÜÀiÀÃÊvÀÊÌ iÊ UÊi>Ì Ê>`ÊÃ>viÌÞÊiÝ«iÀÌð building process.
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Construction and installation uses similar skills to Further information 5 Based on $1.2 million on-shore investment per mining, so the current boom in wind farm con- MW (compared to $1.7 total), from the BCSE struction will absorb some of the downturn in the Certified wind farms - a Clean Energy Council Clean Energy Report 2007. mining sector. and industry initiative to promote best practice in wind farm development: www.auswind.org/ac- 6 The most recent data for employment is the Current shortages are primarily in the project creditation/index.php Business Council for Sustainable Energy (now management and engineering roles needed for the Clean Energy Council) Clean Energy Report wind farm development, and the highly special- Clean Energy Council: www.cleanenergycouncil. 2007, which listed 988 employed in wind energy ized consultancy work needed to get projects org.au in 2005. There is no more recent data, so em- from inception to completion. European Wind Energy Association: www.ewea. ployment has been estimated using projected org installations and employment factors from the European Wind Energy Association (2009) Wind Success Stories Global Wind Energy Council: www.gwec.net at work. Wind energy and job creation in the EU, Hepburn Wind – pioneering community Victorian wind farm status: www.dpi.vic.gov.au Table 7. Manufacturing data has been adjusted, owned renewable energy in Australia Wind in Australia – information on existing and assuming that only 19 per cent of manufacturing Hepburn Community Wind Park Co-operative proposed wind farms (private site): www.geoci- occurs onshore (effectively tower manufacture (Hepburn Wind) will be one of Australia’s first ties.com/daveclarkecb/Australia/WindPower.html only). community owned wind farm projects. Based on a highly successful European model, Hepburn 7 BCSE 2008. Clean Energy Report 2007. Wind’s significant local ownership ensures that Endnotes 8 NIEIR (2008), op cit 3. it will play a leading role in the environmental, 1 Global Wind Energy Council. 2009. Global economic and social sustainability of the region. 9 DPI Victoria. Wind Projects in Victoria. Down- wind 2008 report. loaded March 2009 www.dpi.vic.gov.au The project will consist of two wind turbines each 2 Op cit 1 rated at 2 MW, located on Leonards Hill ap- 10 From Opportunities for Canadian Stakehold- proximately 10km south of Daylesford, Victoria. 3 Projections for growth to 2020 for states other ers in the North American Large Wind Turbine The energy production from the wind park will than WA are from NIEIR (2008) Projections of Supply Chain, Figure 23. www.ic.gc.ca/eic/site/ average over 12,200 MWh of renewable electric- Non-scheduled and exempted generation in the rei-ier.nsf/eng/nz00166.html#figure2.3 ity each year, which is enough energy to power NEM, A report for the National ElectricityMarket 11 Under the Mandatory Renewable Energy Tar- over 2300 homes, offsetting the entire residential Management Company, Prepared by the Nation- get electricity retailers are required to purchase electricity demand of both Hepburn Springs and al Institute of Economic and Industry Research in Renewable Energy Certicates (RECs) equivalent Daylesford. This electricity will be fed directly association with Carbon Market Economics. The ot 9500 GWh by 2010 (according to their share into the local distribution network. projection for WA is from SEDO. WA 2020. Re- of electricity sales). Renewable energy genera- newable energy target. Consultation on scheme The project has progressed through several criti- tors such as wind create RECs and sell them. design. Presentation October 2007. cal development stages, from preliminary site This mechanism drives the development of analysis through to permit approvals and fund- 4 Growth between 2006 and 2020 is assumed renewable energy by ensuring an income stream raising. Over two-thirds of the $12 million need- to be a result of the new MRET. Projections from to bridge the gap between coal fired electricity ed for the project to proceed has been secured. NIEIR (2008) op cit 3 and SEDO (2007). costs and renewable electricity costs, with the
50 – Victoria – the Green Jobs State: Seizing the Opportunities price of RECs is set by the market. Once suf- ficient renewable generation to meet the target is in place, any further renewable projects built would create an oversupply of RECs, causing the price to collapse. Effectively, developers could not go ahead. 12 Data on Australian employment is not avail- able, so projected numbers are estimated using projected construction rates and employment factors from the European wind industry (see note 6). Actual manufacturing numbers are used for 2007 and 2008. 13 See boxed text, Keppel Prince, a wind suc- cess story. 14 For example, the Clean Energy Council, the Centre for Environmental Markets (UNSW), Pacif- ic Hydro Pty, Wind Prospect Pty. Available from www.climatechange.gov.au/renewabletarget/ consultation/sub_ret/submissions.html 15 European Wind Energy Association (2009) Wind at work. Wind energy and job creation in the EU. Table 09, page 27-28.
Victoria – the Green Jobs State: Seizing the Opportunities – 51 Victoria – the Green Jobs State: Seizing the Opportunities is published by Environment Victoria.