The Australian Wind Energy Association

Clean Power. Clean Air.

Australian Wind Energy Market

UpdateAndrew Richards

President, Auswind

EWEC 06Athens

Growth and development of the Australian wind energy

industry

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Installed MW

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2005

Australian wind energy capacity:

cumulative growth 2001-2005

Current industry statusInstalled megawatts 708

Average number of Australian households powered by wind energy

301,490

Number of wind farms (2 or more turbines) 28

Annual greenhouse gas emissions displaced by total projects

2.8 million tonnes CO2

Equivalent number of cars off the road each year by total projects

651,720

Landholder lease payments $A2.2 million

Operations and maintenance costs $A17.8 million

Total capital investment $A1.2 billion

Manufacturing jobs 345

Construction jobs 374

Operations, maintenance & administration jobs 120

Other jobs (project development, engineering and finance) 157

Competitive Market

In Australia, wind energy projects create two commodities: energy and renewable energy certificates (RECs)

Both are subject to a national, open access, highly competitive market

Australia produces some of the cheapest wind energy in the world (but competing against very cheap coal)

Changing Australian marketplace: 2005-06

Sale of Southern Hydro to Australian Gas Light (AGL) for $A1.425 billion

Takeover battle between Investment Funds Management and Acciona for Pacific Hydro

Babcock and Brown Wind Partners launched “cleantech” fund

Hydro Tasmania and CLP Power Asia embarked on joint venture – Roaring 40s Renewable Energy Pty Ltd

Alinta positioning to take a great role in the sector

Framework of Australian governments

AUSTRALIAN FEDERAL GOVERNMENT(national climate change policy and energy strategy)

STATE GOVERNMENTS(energy utilities, state energy strategy, state climate change policy, planning authority)

LOCAL GOVERNMENTS(some planning authority, community consultation, local development plans)

Australian Government Initiatives

Primary market growth: the Mandatory Renewable Energy Target (MRET) 2% target by 2010

1998 National Greenhouse Strategy $1.8 billion climate change strategy

Renewable Energy Action Agenda Target of annual renewable energy sales of $4 billion per

annum by 2010 2004 White Paper on Energy and the

Environment

Asia-Pacific Partnership on Clean Development and

Climate Partnership announced in 2005 and inaugural

meeting held in January 2006 Australian Government committed $25 million for

renewable energy projects over 5 years 4 of the 6 nations are already part of the top 10

wind energy nations in the world 5 of the 6 nations are expected to unlock major

wind energy potential by 2020 Potential for renewable energy alliances with

partnership nations

Council of Australian Governments

Recently launched its Plan for Collaborative Action on Climate Change.

Agreed the need to “reassess the Australian Agenda with a view to extending agreement on policy principles, planning faster more ambitions transition to sustainable low emissions and lifestyles and setting and agenda for action.”

Specifically asked for; the completion by end 2006 of a national framework for the take

up of renewable and low emission technologies, the completion by mid 2006 of an acceleration of existing work

by Ministerial Councils on emissions reporting and development options for strengthened reporting approaches.

State policy leaders

Victoria 10% renewable energy target by 2010 1000 MW by 2006 Market-based renewable energy scheme by January

2007 Wind Energy Support Package Renewable Energy Support Fund

South Australia 20% renewable energy target by 2014 (increased in

2006 from 15% Australian leader of wind and solar power generation

by 2014

Current development

Close to 6,000 MW of wind energy projects in feasibility stages of development

These projects collectively generate: $10 billion in capital investment $19 million in landholder lease payments approximately 8,000 jobs enough electricity for more than three million

households