Economic Benefits of the Waubra and Gunning Wind Farms

pwc.com.au
ACCIONA Energy
Economic Benefits of
the Waubra and
Gunning Wind Farms
February 2012
Economic
Benefits of
the Waubra
and
Gunning
Wind
Farms
Disclaimer
This document has been prepared by PricewaterhouseCoopers (PwC) for ACCIONA Energy Oceania Pty Ltd. In
preparing this report we have only considered the circumstances of ACCIONA Energy Oceania Pty Ltd. Our
report is not appropriate for use by persons other than ACCIONA Energy Oceania Pty Ltd and we do not accept
or assume responsibility to anyone other than the ACCIONA Energy Oceania Pty Ltd in respect of our report.
This Report has been prepared for ACCIONA Energy Oceania Pty Ltd under the terms of our Engagement
Contract with ACCIONA Energy Oceania Pty Ltd.
The information, statements, statistics and commentary (together the 'Information') contained in this report
have been prepared by PwC from material provided by ACCIONA Energy Oceania Pty Ltd , and from other
industry data sources external to ACCIONA Energy Oceania Pty Ltd. PwC may at its absolute discretion, but
without being under any obligation to do so, update, amend or supplement this document.
PwC does not express an opinion as to the accuracy or completeness of the information provided, the
assumptions made by the parties that provided the information. PwC disclaims any and all liability arising from
actions taken in response to this Report.
This report does not constitute legal advice.
The Information contained in this Report has not been subjected to an Audit or otherwise verified. The
information must not be copied, reproduced, distributed, or used, in whole or in part, for any purpose other
than detailed in our Engagement Contract without the written permission of ACCIONA Energy Oceania Pty Ltd
and PwC.
ACCIONA Energy
PwC
i
Contents
Disclaimer
i
1
Glossary and Abbreviations
3
2
Executive Summary
5
3
Overview
6
4
Economic Impact of Wind Farms
Appendix A Industry Groupings
ACCIONA Energy
PwC
18
27
i
1
Glossary and
Abbreviations
Definitions
Term
Definition
Direct Employment
refers to jobs that are directly generated by the wind farm, i.e. people on
ACCIONA’s payroll.
Gross Regional
Product
is the market value of all final goods and services produced within a region in a
given period.
Gross State Product
is the market value of all final goods and services produced within a State in a
given period.
Indirect
Employment
refers to jobs generated in other business/industries as a result of supplying
inputs to the wind farm.
Industry Output
is the quantity of goods and/or services that an industry produces. To represent
this in dollar value terms the quantity produced is multiplied by the current
price values in a chosen reference year. This isolates output analysis to quantity
movements, and therefore does not take into movements in prices.
Long run
is the period of time required for the economy to return to equilibrium
following as shock. The TERM model does not explicitly quantify the long run
though it is generally taken to mean 5-10 years. Given the nature of this
investment we have used 10 years as the basis of calculating the inputs for the
model.
ACCIONA Energy
3
Abbreviations
Abbreviation
Definition
ACCIONA Energy
ACCIONA Energy Oceania Pty Ltd
B
Billion
CoPS
Centre of Policy Studies, Monash University
FTE
Full Time Equivalent
GRP
Gross Regional Product
GSP
Gross State Product
GWh
Giga Watt hour (1,000,000,000Watt hours)
M
Millions
MRET
Mandatory Renewable Energy Target
MW
Mega Watt (1,000,000 Watts)
MWh
Mega Watt hour (1,000,000 Watt hours)
NSW
New South Wales
REC
Renewable Energy Certificate
RET
Renewable Energy Target
t
Tonnes
TERM
The Enormous Regional Model
ACCIONA Energy
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2 Executive Summary
PWC has undertaken analysis of the economic impact of the construction and operation of
the Waubra wind farm in Victoria and the Gunning wind farm in NSW using The Enormous
Regional Model (TERM Model) developed by the Centre for Policy Studies (CoPS) at Monash
university to assess economic impact on the regional and state economies of these
developments.
The modelling shows the local investment of $226.5M for the construction and operation of
the Waubra wind farm will:

Increase in Central Highlands Statistical Division Gross Regional Product of $346M or
6.0%

Increase in Victorian Gross State Product of $355M or 0.2%

Increase in the Central Highlands Statistical Division industry output of $676M

Increase in the Victorian industry output of $685M

Have an employment impact in the Central Highlands Statistical Division of 1680 FTEs
or 2.7%

Have an employment impact in Victoria of 1882 FTEs
The modelling shows the local investment of $52.4M for the construction and operation of
the Gunning wind farm will:

Increase in South Eastern Statistical Division Gross Regional Product of $69.3M or
0.8%

Increase in NSW Gross State Product of $77.5M or 0.02%

Increase in the South Eastern Statistical Division industry output of $139M

Increase in the NSW industry output of $153M

Have an employment impact in the South Eastern Statistical Division of 358 FTEs or
0.4%

Have an employment impact in NSW of 397 FTEs
ACCIONA Energy
5
3 Overview
3.1
Scope of Engagement
ACCIONA Energy Oceania Pty Ltd (ACCIONA Energy) has invested significant capital in the
development and operation of wind farms in Australia. PwC has been engaged by ACCIONA
Energy to assess the economic benefits of its investments in the Waubra and Gunning wind
farms in terms of:
1. regional spread of construction and operational investments;
2. industry breakdown on investments;
3. direct and indirect jobs supported by those investments;
4. multiplier effects of those investments; and
5. benchmarking the benefits against the regional economic statistics (e.g.
unemployment rates, value of the regional economy, comparisons with projects of
similar scale).
Unless otherwise noted all of the information contained in this report has been supplied by
ACCIONA Energy.
3.2
Wind Power
As one of the lowest cost sources of renewable energy generation, wind power has an
important role to play in assisting Australia to meet its carbon reduction commitments 1 2.
There are a number of programmes to support the development of renewable energy and
help Australia meet these carbon reduction commitments. In 2009 the Federal government
expanded the Mandatory Renewable Energy Legislation (MRET) to mandate that 20% of all
electricity generation should come from renewable energy by 2020 under a renamed
Renewable Energy Target (RET) scheme. Under the RET scheme renewable energy
generators are issued with Renewable Energy Certificated (REC’s) for each MWh of
electricity generated. RECs can be surrendered to meet the generators own RET obligations
or sold to other liable participants such as electricity retailers. Should a liable participant fail
to secure sufficient REC’s they are required to pay a non tax deductable penalty of
$65/MWh. The Federal government has also introduced the Carbon Pollution Reduction
Scheme which will result in the application of a carbon price from mid 2012 which will
require the 500 largest emitters to pay $23/tonne of carbon emitted. From 2015 this scheme
will move from fixed to market based pricing.
Electricity generation from wind has been operating successfully on a commercial scale
around the world for more than 20 years. During this time more than 150,000 turbines have
1 Clean Energy Australia Report 2011, Clean Energy Council
2 Exploring community acceptance of rural wind farms in Australia: A snapshot, CSIRO
ACCIONA Energy
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been installed globally and the costs of generating electricity from wind have fallen by
approximately 80%. Wind Power is becoming more competitive with conventional forms of
energy generation3 4. Wind power is quickly becoming an important source of global energy
supply with capacity increasing 32% since 20095
There are currently 57 wind farms operating in Australia generating over 6,400GWh of
electricity, with more capacity being added each year6. As show below in Figure 1 and Figure
2, wind power accounts for ~3% of all electricity generation in Australia and 22% of Australia
existing renewable generation.
Figure 1 – Australian Electricity Generation by Source (GWh) Sept 10-Sept 11
7
7%
3%
Fossil fuel
Wind power
Other renewables
90%
3 www.Acciona.com.au
4 Exploring community acceptance of rural wind farms in Australia, CSIRO
5 ibid
6 Clean Energy Australia Report 2011, Clean Energy Council
7 ibid
ACCIONA Energy
7
Figure 2 – Australian Renewable Electricity Generation by Source (GWh) Sept 10 – Sept 11
8
2%
9%
Hydro
22%
Wind
Bio fuels
Solar
67%
As at October 2011, renewable energy accounted for only 10% of total energy generation in
Australia. Significant development of additional generation capacity will be met Australia’s
20% renewable energy target9 10. Given the cost of development, established technology and
speed of development, the development of additional wind power will be important in
meeting Australia’s commitments.
3.3
ACCIONA Energy
ACCIONA Energy is a subsidiary of ACCIONA SA, a Spanish multinational and world leader
in the construction and operation of renewable energy, water and general infrastructure.
ACCIONA SA have operations in more than 32 countries and employs more than 30,000
people globally.
The energy division of ACCIONA is one of the largest operators of renewable energy in the
world and owns of 8,184MW of renewable and cogeneration assets. ACCCIONA Energy has
been operating in Australia since 2002 as the developer, owner and operator of wind farms.
A summary of ACCIONA Energy’s current Australian portfolio is shown below in Figure 3.
8 ibid
9 Clean Energy Australia Report 2011, Clean Energy Council
10 Exploring community acceptance of rural wind farms in Australia: A snapshot, CSIRO
ACCIONA Energy
8
Figure 3 – ACCIONA Energy Australian Wind Assets
ACCIONA Energy
9
3.4
Waubra Wind Farm
At the time of its commissioning, the Waubra wind farm was the largest wind farm in
Australia. An overview of the Waubra wind farm is shown in Figure 4 below:
Figure 4 – Waubra wind farm key statistics
Waubra Wind Farm
Location
Waubra ~30km from Ballarat, Victoria
Central Highlands Division
Capacity
192MW
128 ACCIONA Wind Power 1.5MW Turbines
Town Population
(Waubra)
49411
Total Construction
Value
$450M
Australian
Construction Spend
$182M
Construction Period
2007 - 2009
Construction
Employment
200 manufacturing and installation jobs
Commissioned
July 2009
Operational
Employment
26 operation and maintenance jobs
Energy Generation
650-670 GWh (estimate)
Equivalent to the consumption of 108,000 –
111,000 homes
3.4.1 Central Highlands Statistical Division
The Waubra wind farm in located near Waubra, approximately 30km from Ballarat in the
Central Highlands Statistical Division. The key towns in the Central Highlands Statistical
Divsion include, Ballarat, Ararat and Bacchus Marsh. A map of Victoria highlighting the
Central Highlands Statistical Division is shown below in Figure 5.
11 Australian Bureau of Statistics
ACCIONA Energy
10
Figure 5 – Map of Central Highlands Statistical Division
12
The Central Highlands has a population of 156,00013 which represents approximately 3% of
the population of Victoria and 1% of the population of Australia14. Approximately 60% of the
population is based in Ballarat15. The work force is distributed with professional, trade and
management jobs being the most common as shown in Figure 6.
12 Australia Bureau of Statistics
13 Australian Bureau of Statistics (2009)
14 ibid
15 ibid
ACCIONA Energy
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% of workforce
Figure 6 – Employment in the Central Highlands Statistical Division
20
18
16
14
12
10
8
6
4
2
0
16
The Gross Regional Product (GRP) of the Central Highlands statistical division is $5733M
which represents 2.5% of the Gross State Product (GSP) of Victoria17. The total industry
output of the Central Highlands statistical division is $12,256M which is equal to 2.5% of the
Industry Output for Victoria. The highest contributor to the Industry Output is the Services
industry grouping followed by the Manufacturing industry grouping as shown in Figure 7
below. These sectors are also the two largest contributors to the Victorian economy as shown
in Figure 8 which compares the percentage contribution to Industry Output for Victoria and
the Central Highlands Statistical Division.
16 Australian Bureau of Statistics (2006 Census data)
17 TERM Model
ACCIONA Energy
12
Figure 7 – Contribution to Industry Output by Industry Grouping for the Central Highlands
Statistical Division
14
12
$B
10
8
6
4
2
0
18 19
Figure 8 – Percentage Contribution to Industry Output by Industry Grouping
60%
50%
40%
30%
20%
10%
0%
Central Highlands
Victoria
20
18 ibid
19 The TERM model produces results for industry impact for each of the 80 industries. To facilitate useful analysis of these results we have
aggregated these results into 7 industry groupings. A list of the specific industries that are included in each grouping can be found in Appendix
1.
20 Term Model
ACCIONA Energy
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3.5
Gunning Wind Farm
An overview of the Gunning wind farm is shown in Figure 9 below:
Figure 9 – Gunning Wind Farm Key Statistics
Gunning Wind Farm
Location
Privately owned ‘Walwa’ farm near Gunning,
NSW
South Eastern District
Capacity
46.5 MW
31 ACCIONA Wind Power 1.5MW Turbines
Town Population
48721
Total Construction
Value
$99.8M
Australian
Construction Spend
$33.5M
Construction Period
2010
Construction
Employment
100 manufacturing and installation jobs
Commissioned
May 2011
Operational
Employment
9 operation and maintenance jobs
Energy Generation
150-160 GWh (estimate)
Equivalent to the consumption of 25,000 –
27,000 homes
3.5.1 South Eastern Statistical Division
The Gunning wind farm in located on the privately owned Walwa farm near Gunning, in the
South Eastern statistical division of NSW. The key towns in the South Eastern Statistical
21 Australian Bureau of Statistics
ACCIONA Energy
14
Division include Goulbourn and Cooma. A map of NSW highlighting the South Eastern
Statistical Division is shown below in Figure 10
Figure 10 – Map of South Eastern Statistical Division
22
The South Eastern Statistical Division has a population of 216,00023 which represents
approximately 3% of the population of NSW and 1% of the population of Australia24. There
are a large number of smaller population centres in the South Eastern Statistical Division
with the towns of Goulbourn and Cooma representing only 14% of the population. The work
force is distributed with managers, professional and trade jobs being the most common as
shown in Figure 11.
22 Australia Bureau of Statistics
23 Australian Bureau of Statistics (2009)
24 ibid
ACCIONA Energy
15
% of workforce
Figure 11 – Employment in the South Eastern Statistical Division
20
18
16
14
12
10
8
6
4
2
0
25
The Gross Regional Product (GRP) of the South Eastern statistical division is $8,170M which
represents 2.6% of the Gross State Product (GSP) of NSW26. The total industry output of the
South Eastern statistical division is $17,366M which is equal to 2.6% of the Industry Output
for NSW. The highest contributor to the Industry Output is the Services industry grouping
followed by the Manufacturing, Construction and Trade industry groupings as shown in
Figure 12 below. These sectors are also the largest contributors to the NSW economy as
shown in Figure 13 which compares the percentage contribution to Industry Output for NSW
and the South Eastern Statistical Division.
25 Australian Bureau of Statistics (2006 Census data)
26 TERM Model
ACCIONA Energy
16
$B
Figure 12 – Contribution to Industry Output by Industry Grouping for the South Eastern
Statistical Division
20
18
16
14
12
10
8
6
4
2
0
27
Figure 13 – Percentage contribution to Industry Output by Industry Grouping
60%
50%
40%
30%
20%
10%
0%
South Eastern
NSW
28
27 TERM Model
28 ibid
ACCIONA Energy
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4 Economic Impact of Wind
Farms
4.1
Our Approach
In assessing the economic impacts of the Waubra and Gunning wind farms we have
employed a form of modelling commonly referred to as Computable General Equilibrium
(CGE) modelling. CGE modelling is a sophisticated, multi-variate computer based model
which measures the effect an investment has on the national, state/territory and/or regional
economies. CGE models recognise that complex interactions occur between (amongst other
things) investment, consumption and employment and endeavour to replicate how the
economy will behave given these interactions. PwC uses the models developed by CoPS, at
Monash University. This model framework is preferred because the inputs and assumptions
are fully and publicly documented. The Monash suite of models have enjoyed widespread use
in Australia by both the government and the private sector.
The TERM CGE model developed by CoPS at Monash University has been used to undertake
the assessments of the Waubra and Gunning wind farms. TERM is an integrated model of
Australia's statistical divisions especially suited for detailed regional analyses. The model
includes 56 regions in Australia, each modelled from the bottom-up as an economy in their
own right. It has been used in the past to analyse issues such as drought and water policy, as
well as the economy-wide benefits that flow from investment projects with a particular
regional character (for example, mining operations in the Pilbara, and the Channel
Deepening Project in Melbourne). TERM contains the following key features:
•
59 regions throughout Australia;
•
industry output for 80 industries;
•
9 occupational categories of labour;
•
employment (labour cost) by industry;
•
wages by industry;
•
price and output levels by industry, as well as some key indices (such as CPI);
•
detailed breakdowns of gross regional product (GRP) on both the expenditure and
income sides; and
•
trade flows by industry (both inter-regional domestic trade flows, and international
trade flows).
ACCIONA Energy
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4.2
Economic Impacts of Waubra Wind Farm
This section of the report presents the results of the TERM model.
The results show that the construction and operations of the Waubra wind farm has, and will
continue to have, an economic impact on the town Waubra, the Central Highlands district
and the Victorian economy.
4.2.1 Waubra Wind Farm Long Run Macro Economic Impacts
Of the $450M spent on the construction of the Waubra wind farm over the two year period
from 2007 to 2009, $182M, or ~40% was spent in Australia. For the purposes of this
modelling expertise it has been assumed that all of the spend occurred in the Central
Highlands Statistical Division. In addition there is a forecast ongoing operational
expenditure of $44.5M in net present value terms over the next 10 years.
The construction and operation of the Waubra wind farm is forecast to increase the Central
Highland’s GRP by 6.0% or $346M from $5733M to $6079M over the long run. Victoria’s
GSP is also forecasted to increase by 0.2 % or $355M from $231,045 M to $231,400M over
the same period. These results are presented below in Figure 14.
Figure 14 – Absolute Change in Victorian GSP and Central Highlands Statistical Division GRP
from construction and operation of the Waubra wind farm
400
350
300
$M
250
200
150
100
50
0
Local Spend
GRP Central
Highlands
GSP Victoria
The Central Highlands GRP has increased by 153% of the Australian spend on the Waubra
wind farm and the Victorian GSP has increased by 157% of the Australian spend on the
project. This is presented below in Figure 15.
ACCIONA Energy
19
Figure 15 – Contribution to Central Highlands GRP and Victorian GSP as a percentage of
Australian spend on the construction and operation of the Waubra wind farm
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
Central Highlands
Victoria
4.2.2 Waubra Wind Farm Employment Impacts
Both the construction and operation of the Waubra wind farm increase the employment at
both the regional and state levels. Employment in the Central Highlands is forecast to
increase by an average of 2.7% or 1,680FTE jobs sustained over the long term. Figure 16
shows the Central Highlands and Victorian employment impacts of the Waubra wind farm.
Figure 16 – Employment impacts of the Waubra wind farm
Central Highlands
Victoria
Direct
Employment
46029
46030
Employment
Impacts (FTE)
1680
1882
Ratio of jobs
creation to direct
jobs
3.7
4.1
Change in regional
Employment (%)31
2.7%
Current
unemployment32
(FTE)33
6143
29 Construction employment and 10 years of operations
30 Same as Central Highlands
31 Based on 2005/2006 as per data in TERM model
ACCIONA Energy
20
Central Highlands
Current
unemployment
(%)34
Victoria
7.4%
4.2.3 Waubra Wind Farm Industry Impacts
The construction and operations of the Waubra wind farm has implications for industries
within Victoria and the Central highlands. The Industry Output for Central Highlands
increases by 5.5% $676M from $12,256M to $12,932M and that for Victoria increases by
0.1% or $685M from $497,203M to $497,888Mover the long term.
The construction and operation of the Waubra wind farm results in an increase in the
Industry Output from both the Utility and Construction industry groupings and a minor
decrease in the Industry Output of the other sectors in the Central Highlands and no impact
at the Victorian level. Figure 17 below shows the absolute change in Industry Output by
industry grouping and Figure 18 shows the percentage change for each of the industry
groupings.
Figure 17 – Impact on Industry Output from the construction and operation of the Waubra
Wind Farm.
$800
$700
$600
$500
$M
$400
$300
$200
$100
$-$100
Utility
Construction
Other
Total
-$200
Victoria
Central Highlands
32 Australian Bureau of Statistics, 2011
33 Australian Bureau of Statistics
34 ibid
ACCIONA Energy
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Figure 18 – Percentage change in Industry Output from the construction and operation of the
Waubra wind farm.
Central Highlands
Utility35
Construction
Other
Total
Victoria
302.4%
3.4%
19.9%
0.6%
-1.0%
0.0%
5.5%
0.1%
The most significant industry impacts from the construction and operation of the Waubra
Wind Farm are found in the utility and construction industry groupings. The Central
Highlands Statistical Division output increases for both these industries is higher than that
at the state level, as a result of the modelled direct impact of the wind farm development in
the local area. The construction and operation of the Waubra Wind Farm represents a 3.4%
increase in the Victorian industry output for the utility industry grouping.
There is a minor modelled contraction in the aggregate of all other sectors brought about as a
result of a modelled appreciation in the interest rates due to the capital investment brought
into Australia for the construction of the wind farm and as a result of increased competition
for labour and materials in the Central Highlands Statistical Division. The construction and
operation of the Waubra wind farm has a positive impact on the trade at both the wholesale
and retail level within in the Central Highlands Statistical Division and in Victoria. As would
be expected with an increase in employment there are also increases in the industry output
of many services such as accommodation, schooling, health services and personal services in
the Central Highlands Statistical Division.
4.3
Economic Impacts of Gunning Wind Farm
This section of the report presents the results of the TERM model.
The results show that the construction and operations of the Gunning wind farm has, and
will continue to have an economic impact on the town of Gunning, the South Eastern
Statistical Division and the NSW economy.
4.3.1 Gunning Wind Farm Long Run Macro Economic Impacts
Of the $99.8M spent on the construction of the Gunning wind farm over the one year period
from 2010 - 2011, $33.5M, or ~34% was spent in Australia. For the purposes of this
modelling exercise it has been assumed that all of the spend occurred in the South Eastern
Statistical Division. In addition there is a forecast ongoing operational expenditure of
$18.9M in net present value terms over the next 10 years.
The construction and operation of the Gunning wind farm is forecast to increase the South
Eastern Statistical Divisions’ GRP by 0.8% or $69.3M from $8,170M to $8,239M over the
35 Significant increase as a result of very low base
ACCIONA Energy
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long run. NSW’s GSP is also forecasted to increase by 0.02 % or $77.5M from $318,495M to
$318,573M over the same period. This is presented below in Figure 19.
Figure 19 – Absolute change in Gross NSW State and South Eastern Regional Product from
construction and operation of the Gunning wind farm
90
80
70
$M
60
50
40
30
20
10
0
Local Spend
GRP South Eastern
GSP NSW
The Central Highlands regional product has increased by 132% of the Australian spend on
the Gunning wind farm and the NSW Gross State Product has increased by 148% of the
Australian spend on the project. This is presented below in Figure 20.
Figure 20 – Contribution to South Eastern GRP and NSW GSP as a percentage of Australian
Spend on the construction and operation of the Gunning wind farm
160%
140%
120%
100%
80%
60%
40%
20%
0%
South Eastern
NSW
4.3.2 Gunning Wind Farm Employment Impacts
Both the construction and operation of the Gunning wind farm increase the employment at
both the regional and state levels. Employment in the South Eastern Statistical Division is
forecast to increase by an average of 0.4% or 358 FTE jobs sustained over the long term.
ACCIONA Energy
23
Figure 21 below, shows the South Eastern Statistical Division and NSW employment impacts
for the construction and operation of the Gunning wind farm.
Figure 21 – Employment impacts of the Gunning wind farm
South Eastern
NSW
Direct
Employment
19036
19037
Employment
Impacts (FTE)
358
397
Ratio of jobs
creation to direct
jobs
1.9
2.1
Change in regional
Employment (%)38
0.4%
Current
unemployment39
(FTE)40
6150
Current
unemployment
(%)41
5.4%
4.3.3 Gunning Wind Farm Industry Impacts
The construction and operations of the Gunning wind farm has implications for industries
within NSW and the South Eastern Statistical Division. The Industry Output for South
Eastern Statistical Division increases by 0.8% or $139M from $17,366M to $17,505M and
that for NSW increases by 0.02% or $153M from $667,803M to $667,963M over the long
term.
The construction and operation of the Gunning wind farm results in an increase in the
Industry Output of both the Utility and Construction industry groupings no change in the
other industry groupings at the South Eastern Statistical Division level. Figure 22 below,
shows the impacts of the construction and operation of the Gunning wind farm on each of
these industry groupings. While Figure 23 shows the percentage change for each of the
groupings.
36 Construction employment and 10 years of operations
37 Same as South Eastern
38 Based on 2005/2006 as per data in TERM model
39 Australian Bureau of Statistics, 2011
40 ibid
41 Australian Bureau of Statistics
ACCIONA Energy
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Figure 22 – Absolute impacts on industry output from the construction and operation of the
Gunning wind farm
$180
$160
$140
$120
$M
$100
$80
$60
$40
$20
$-$20
Utility
Construction
NSW
Other
Total
South Eastern
Figure 23 – Percentage change impacts on Industry output from the construction and
operation of the Gunning wind farm
South East
NSW
Manufacturing
-0.2%
0.0%
Utility
26.4%
0.7%
Other
0.0%
0.0%
Total
0.8%
0.02%
The most significant industry impacts from the construction and operation of the Gunning
wind farm are found in the Utility and Construction industry groupings. The South Eastern
Statistical Division output increases for both these industries is higher than that at the state
level, as a result of the direct impact of the wind farm development in the local area.
While there is a minor modelled contraction in the aggregate of all other sectors brought
about as a result of a modelled appreciation in the interest rates due to the capital
investment brought into Australia for the construction of the wind farm and as a result of
increased competition for labour and materials in the South Eastern Statistical Division. The
construction and operation of the Gunning wind farm has a positive impact on the trade at
both the wholesale and retail level within in the South Eastern Statistical Division and in
NSW. As would be expected with an increase in employment there are also increases in the
industry output of many services such as accommodation, schooling, health services and
personal services in the South Eastern Statistical Division.
ACCIONA Energy
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4.4
Comparison to other projects
4.4.1 Regional Projects
There are no other major projects of similar size or scope we have identified in either the
Central Highlands or South East divisions with published economic impact reports that
could provide useful comparisons to the ACCIONA Energy wind farm developments.
4.4.2 Direct Electricity Generation Employment Impacts
It has been established that renewable energy infrastructure manufacture, construction and
maintenance create more jobs power dollar invested that conventional power generation42.
Aside from reducing the carbon emissions associated with electricity generation, ACCIONA
ENERGY wind farm developments have larger direct employment per MW of installed
capacity impacts that proposed conventional generation as shown below in Figure 24.
Figure 24 – Direct Employment for Generation Projects
0.25
FTE / MW Capcity
0.20
0.15
0.10
0.05
0.00
Combined cycle gas
plant
Gas Plant
Wind Farm
43
42 UNEP 2008
43 Department of Planning and Community Development, Yallourn CCGT Power Station
Dualgas, HRL Demonstration Project Gas Plant
ACCIONA Energy
ACCIONA Energy
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Appendix A Industry Groupings
Industry
Grains
Sheep
BeefCattle
OthLivestck
OthAgricult
ForestFishng
CoalBlack
CoalBrown
Oil
Gas
Mining
MeatProds
OtherFoodBev
TCF
OthManufact
Printing
RecrdedMedia
Publishing
PetrolChem
HumPharmac
NonMetMins
MetPrdsMach
RailwayEquip
PrefabBuildn
ElecCoalBlac
ElecCoalBrow
ElecGas
ElecOil
ElecHydro
ElecBiomass
ElecBiogas
ElecWind
ElecDist
GasSupply
WaterDrains
ResidBuildng
ConstructSrv
OtherTrade
Industry Grouping
Agriculture
Agriculture
Agriculture
Agriculture
Agriculture
Agriculture
Mining
Mining
Mining
Mining
Mining
Manufacturing
Manufacturing
Manufacturing
Manufacturing
Manufacturing
Manufacturing
Manufacturing
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Trade
Industry
RetailTrade
Restaurant
Accomodation
RoadFrght
RdPasAirRail
RailFreight
RailPass
PipeLine
OthTransport
WaterFreight
AirFreight
AirPass
TransprtSrvc
OthSrvces
Telecomms
BankFinInsur
NonBankFnanc
Insurance
SvcToFinance
SvcToInsurnc
DwellingAsst
PropOpDevlpr
ComputerSrvc
GovAdmin
Justice
Defence
SchoolEduc
PostSchEduc
OthEducation
Health
MedicalSrvc
DentalSrvc
CommunitHlth
ChildCareSrc
OthPubSrvces
FilmVideoSrv
RadioTVSrvcs
Arts
Industry Grouping
Trade
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
Services
ACCIONA Energy
27
SrvcsToArts
Sport
GamblingSrvc
PersonalSrvc
Services
Services
Services
Services
ACCIONA Energy
28