Evidence and Presentation Greater Shepparton Permit Application Nos 2017‐162, 2017‐274, 2017‐301 and 2017‐344 Land: 610 Ferguson Road, Tatura East Vic 3616 (Application 2017‐162) Expert Witness Statement John Noronha Director - Essential Economics Pty Ltd Ma y 2018 Authorship Report stage Author Date Review Date Draft report John Noronha 3 May 2018 Chris McNeil 3 May 2018 Revised draft John Noronha 7 May 2018 Final report Disclaimer Every effort has been made to ensure the accuracy of the material and the integrity of the analysis presented in this report. However, Essential Economics Pty Ltd accepts no liability for any actions taken on the basis of report contents. Contact details For further details please contact Essential Economics Pty Ltd at one of our offices: 96 Pelham Street Level 26 / 44 Market Street Carlton Sydney Victoria 3053 New South Wales 2000 Australia Australia PH +61 3 9347 5255 PH +61 2 9089 8654 FAX +61 3 9347 5355 EMAIL [email protected] WEB www.essentialeconomics.com ABN 92 079 850 427 Our Reference: 18085 Contents 1 Introduction ............................................................................................................... 1 1.1 Professional Details ....................................................................................................................... 1 1.2 Area of Expertise ........................................................................................................................... 1 1.3 Instructions ................................................................................................................................... 1 2 Subject Site and Surrounding Area .............................................................................. 4 2.1 Site Context ................................................................................................................................... 4 2.2 Surrounding Area .......................................................................................................................... 4 3 Tatura East Solar Farm – Economic Benefits Assessment ............................................. 7 3.1 Greater Shepparton Economic Overview ....................................................................................... 7 3.2 Construction Phase Economic Benefits .......................................................................................... 9 3.3 Operational Phase Economic Benefits ......................................................................................... 11 3.4 Environmental Benefits ............................................................................................................... 13 3.5 Community Benefits .................................................................................................................... 13 3.6 Conclusions ................................................................................................................................. 13 4 Aggregate Economic Benefits of Four Proposed Solar Farms in Greater Shepparton ... 15 4.1 Overview of Projects.................................................................................................................... 15 4.2 Aggregate Construction Phase Economic Benefits ....................................................................... 16 4.3 Aggregate Operational Phase Benefits ......................................................................................... 17 4.4 Aggregate Environmental Benefits............................................................................................... 17 4.5 Conclusions ................................................................................................................................. 17 5 Agricultural Impacts ................................................................................................. 19 5.1 Value of the Agricultural Sector ................................................................................................... 19 5.2 Loss of Irrigated Farming Land ..................................................................................................... 20 5.3 Creation of a Micro Climate ......................................................................................................... 20 5.4 Host Landowners ......................................................................................................................... 20 5.4 Conclusions ................................................................................................................................. 21 6 Response to Submissions ......................................................................................... 22 7 Net Community Benefit Assessment ......................................................................... 23 7.1 Tatura East Solar Farm – Net Community Benefit Assessment ..................................................... 23 7.2 Aggregated Solar Farms – Net Community Benefit Assessment ................................................... 24 8 Summary of Key Findings ......................................................................................... 26 GREA TER SHEPPARTON PERMI T APPLICATION NOS 20 17‐162, 2017‐274, 20 17‐301 AND 2017‐344 LAND: 610 FERGUSON R OAD, TATURA EAST VIC 3616 (APPLICATION 20 1 7 ‐ 1 6 2 ) EXPERT WITNESS STATE M E N T 1 INTRODUCTION 1.1 Professional Details 1.1 My name is John Patrick Noronha and I practice as a Director and Senior Economist at Essential Economics Pty Ltd of 96 Pelham Street, Carlton. 1.2 I hold the degrees of Master of Economics from the University of London and Bachelor of Economics and Politics (Honours) from the University of Plymouth. A copy of my CV is attached to this statement. 1.2 Area of Expertise 1.3 My area of professional expertise is urban economics, with a focus on the economic impacts of infrastructure projects – including renewable energy projects. 1.4 My opinions expressed herein are, to the context relevant, made by me in reliance upon my above expertise. 1.3 Instructions 1.5 I have been instructed in this matter by Norton Rose Fulbright, lawyers acting on behalf of CleanGen, the proponent for the proposed Tatura East Solar Farm (the ‘Project’). 1.6 My instructions in this matter are as follows: (1) Review the Application and the background materials in your brief; (2) Confer with instructing solicitors and counsel where necessary; (3) Prepare an expert report that addresses the following matters: (a) the economic value of agriculture within the region; (b) the economic value of renewable energy at a project, local and regional level (identifying direct and indirect economic benefits); (c) how the loss of agricultural land resulting from all four developments could impact the catchment’s economy; (d) whether any net economic benefit resulting from the proposed Project would outweigh any impact on agriculture, with supporting reasons; (e) whether any net economic benefit resulting from the Applications would outweigh any impact on agriculture, with supporting reasons; and Essential Economics Pty Ltd 1 GREA TER SHEPPARTON PERMI T APPLICATION NOS 20 17‐162, 2017‐274, 20 17‐301 AND 2017‐344 LAND: 610 FERGUSON R OAD, TATURA EAST VIC 3616 (APPLICATION 20 1 7 ‐ 1 6 2 ) EXPERT WITNESS STATE M E N T (f) a response to issues raised by submissions to the Application, to the extent relevant to your area of expertise. (4) Attend an expert witness conference in relation to the topic of agricultural economics; (5) Following the expert conference, prepare a brief statement that highlights the points of agreement and disagreement between the experts; (6) Appear at the Panel Hearing on 16 May 2018 in Shepparton for the purpose of presenting your expert opinion concerning economic matters; and (7) If required, attend other days of the Panel Hearing. 1.7 In preparing this statement: (a) I have been instructed by Norton Rose Fulbright that, as a witness giving evidence (by report, or otherwise) in a proceeding as an expert, I have a duty to assist the Panel and that this duty overrides any obligation that I may have to any party to the proceeding or to any person who is liable for my fee or expenses in this matter; (b) I have neither received nor accepted any instructions to adopt or reject any particular opinion in preparing this report; (c) I have made all the enquiries which I believe are desirable and appropriate and that no matters of significance which I regard as relevant have, to my knowledge, been withheld from the Panel; (d) I have considered the relevant documents disclosed by the parties to the proceeding and other documents sourced in preparation of this Evidence Statement, which are listed as follows: - Greater Shepparton City Council, Minutes Ordinary Council Meeting, 20 February 218 - IBISWorld Industry Report A0159, Hay and Other Cropping in Australia, IBISWorld, November 2017 - Kerang Solar Farm Loss Factor Impact Analysis – DigSilent Pacific, August 2013 - Shepparton Solar Farm Planning Permit Application – GHD, October 2017 - Solar Farm Development Town Planning Report, 1090 Lemnos North Road, Congupna – Spiire, November 2017 - Solar Farm Development Town Planning Report, 235 Victoria Road, Tallygaroopna – Spiire, November 2017 - Tatura East Solar Farm Planning Application Version 2 – CleanGen June 2017 Essential Economics Pty Ltd 2 GREA TER SHEPPARTON PERMI T APPLICATION NOS 20 17‐162, 2017‐274, 20 17‐301 AND 2017‐344 LAND: 610 FERGUSON R OAD, TATURA EAST VIC 3616 (APPLICATION 20 1 7 ‐ 1 6 2 ) EXPERT WITNESS STATE M