Briefing >

CLEAN ENERGY JOBS AND

INVESTMENT IN REGIONAL
AUSTRALIA
With over 200 renewable energy projects already planned for the coming years Australia is in
the beginning of a clean energy boom. These projects will deliver more than five times the total
capacity of the iconic Snowy Mountains Hydro Scheme, which took 25 years to complete.

The 20 percent by 2020 Renewable Energy Target, the Carbon Pollution Reduction Scheme
and direct multi-billion investments through the Federal Budget will, if passed by Parliament
without further weakening, provide a platform for tens of thousands of clean energy jobs across
Australia and support a cost and risk effective climate policy strategy.

CLEAN ENERGY JOBS AND INVESTMENT IN

This may allow Australia to join what the International Energy Agency (IEA) has called a global
“energy revolution”. The IEA reports that around 30 percent of new power generation capacity
installed globally in 2007 was directed towards renewable energy sources such as wind and
solar power.1 This industrial revolution has already seen global employment in renewable
energy outstrip those directly employed in oil and gas industries. In Germany, renewable jobs
outnumber jobs in car manufacturing. This trend will continue.

The Climate Institute commissioned leading energy sector consultants, McLennan Magasanik
Associates (MMA), to assess the potential contribution of renewable energy, such as wind,

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solar and bioenergy power stations, to regional employment in Australia. MMA’s analysis
covers all existing commercial renewable energy installations, as well as those which are
committed and planned. The assessment covers permanent employment (operation and
maintenance) as well as construction jobs and the contribution to other indirect jobs like
manufacturing and engineering. Where possible MMA has used information sourced from the
owners and operators of the renewable energy facilities. This provides an accurate estimate of
job numbers, drawing on the experiences of real companies working on real projects, rather
than relying just on economic modelling.

This assessment does not consider the tens of thousands of clean energy jobs that would be
created by investments in industries such as energy efficiency, small scale distributed
renewable energy such as roof top solar and lower carbon traditional energy sources (e.g. gas-
fired generation or carbon, capture and storage). This is not a final picture of all projects as
some projects may not pass appropriate planning processes and others will emerge, e.g for
example, this assessment does not consider new proposals that may emerge for large scale
solar projects under the $1.6 billion Solar Flagships project announced in the Budget.

This policy brief provides an overview of MMA’s key findings, along with some additional
analysis prepared by The Climate Institute. In summary, MMA’s analysis shows:
> MAY 2009

> Around 26,200 new jobs will be created if all planned and committed clean energy projects
go ahead. This includes almost 2,500 new permanent positions, over 15,000 construction
jobs and more than 8,600 indirect jobs in supporting sectors.

> The expanded renewable energy capacity will see over 3,600 people directly employed in
the clean energy industry on a permanent basis.

> Over $31 billion will be invested in these new clean energy projects, injecting around $10
billion into local economies in regional Australia. PAGE 1/4
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 Briefing >
TAKING STOCK: EXISTING CLEAN ENERGYJOBS
Australia currently has over eight gigawatts (GW) of commercial scale renewable energy
installed and this contributes around 8-10% of national electricity generation. Each year these
sites produce enough electricity to power 3 million average Australian homes (over 23,000
gigawatt hours – GWh - in total). While hydro remains the largest source of renewable energy,
there has been significant diversification in recent years, with more wind, biomass and solar
coming online. For example, wind capacity increased by 280 percent between June 2006 and
2
June 2007.

Currently there are over 1,200 people permanently employed in the operation and maintenance
of these existing clean energy facilities. Since the 1980, renewable energy projects have
generated over 12,000 construction jobs nationally and currently support an estimated 7,380
indirect jobs. Most of the employment to date has been concentrated in Tasmania, Queensland
and NSW, with a smaller share in Victoria, South Australia and Western Australia.

CLEAN ENERGY JOBS AND INVESTMENT IN

Box 1: International Experience – Wind Power

Despite the economic downturn, globally investments in renewable energy grew by 5 percent in 2008,
rising to a record US$155 billion.3 Much of this investment has occurred in the wind industry, creating
thousands of new jobs. Globally, it is estimated that over 400,000 people are currently employed in the
4
wind industry, with the figure forecast to reach up to 2.2 million by 2020.
> United States: In 2008, the US overtook Germany as the country with the largest installed wind power
capacity, creating around 35,000 new jobs and making it one of the few industries to generate new
employment last year. In total, the US wind industry currently provides employment to up to 85,000
5
people.

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> China: China doubled its total installed wind power capacity in 2008, making it one of the fastest
growing markets. China has become one of the leading manufacturing hubs for wind turbines,
6
generating thousands of jobs.
> Europe: It is estimated that the wind industry alone provided direct employment to over 108,000 people
in 2007, with over 12,000 new direct jobs created annually since 2002. An additional 42,000 people are
7
also employed indirectly, through wind turbine and component manufacturing.

BIGGER THAN THE SNOWY: CLEAN ENERGY PROSPECTS

MMA’s analysis shows that committed and planned clean energy projects are expected to
deliver over 12 GW of new renewable energy capacity in coming years. To put this in
perspective, the Snowy Mountain Hydro Scheme, which was built between 1949 and 1974, has
a total capacity of just 2.2 GW. Figure 1 illustrates the magnitude of new clean energy
developments in the pipeline for the coming decade, compared to previous decades.
> MAY 2009

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 Briefing >
Figure 1: Additional renewable energy installations per decade

CLEAN ENERGY JOBS AND INVESTMENT IN

While new clean energy projects are planned for all states, Western Australia is expected to
see the largest growth in renewable energy output, with generation expected to grow by close
to 350% by 2020 (see Figure 2). South Australia, Queensland and Victoria are all expected to
see renewable energy output grow by more than 200%.

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Figure 2: Projected growth in renewable energy output, by state (2010-2020)

Western Australia

South Australia

Tasmania

Victoria

ACT

New South Wales

> MAY 2009

Queensland

0% 50% 100% 150% 200% 250% 300% 350% 400%

% increase in renewable energy generation (2010-2020)

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 Briefing >
REGIONAL EMPLOYMENT
MMA’s database of committed and planned clean energy projects identifies over 26,000 new
jobs. This includes permanent jobs for operating and maintaining renewable energy facilities, as
well as jobs created during the construction phase. Based on experience, an estimate has also
been made of the likely contribution to indirect employment. A brief snapshot of MMA’s findings
is presented below.

Table 1: Clean energy jobs in existing, planned and committed renewable energy projects

Total WA SA TAS VIC NSW/ACT QLD

8 3,760
Permanent
(2,457 new) 379 788 501 764 832 496
Peak
Construction 15,088 1,381 3,798 1,303 3,582 4,089 924
9 16 030
Indirect
(8,650 new) - - - - - -
34,878
Total 1,760 4,586 1,804 4,346 4,921 1,420
(26,195 new)

CLEAN ENERGY JOBS AND INVESTMENT IN

> Permanent employment: An additional 2,457 ongoing operation and maintenance
jobs are likely to be generated nationally if all committed and planned projects go ahead.
In the short term, around 600 new permanent jobs are expected by 2015. Most of these
permanent jobs will be created in regional areas, with the bulk occurring in South
Australia, New South Wales and Victoria.
> Construction jobs: It is estimated that over 16,458 construction jobs will be generated
if all of the projects in the pipeline proceed. This includes employment for around 3,800

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construction workers between 2010 to 2015 and 7,300 jobs in the following 5 years.
> Indirect jobs: The expansion of the clean energy sector is expected to indirectly
contribute to an additional 8,650 jobs. This includes jobs in energy utilities (supplying
network and retail services), the financial sector, engineering and development services,
consultancies, and research and development bodies. Many of these jobs will be
concentrated in the capital cities.

Figure 3 shows, some clean energy hot-spots and Table 2 outlines regional job estimates.

Figure 3: Location of clean energy projects

> MAY 2009

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*
Table 2: Sub regional clean energy jobs and investment

Sub-region Permanent jobs Peak new New local

(existing and new) construction jobs expenditure
($ million, mid 2009
dollars)
Queensland
North Qld 318 530 210
Central Qld 83 - -
South East Qld 92 394 309
South West Qld 3 - -
New South Wales/ACT
North East NSW 86 210 68
Sydney GMR 44 - -
Canberra 5 - -

CLEAN ENERGY JOBS AND INVESTMENT IN

South East NSW 555 - 982
West NSW 108 1,100 485
Tasmania
North Tas 461 1,181 486
South Tas 26 76 14
Victoria

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Central Vic 184 944 562
North East Vic 87 - -
South East Vic 32 110 77
South West Vic 404 2,528 954
North West Vic 23 - -
South Australia
South East SA 497 2,858 1,202
North East SA - - -
Adelaide 15 - -
Inland SA 275 940 455
Western Australia
South West WA 366 1,381 494
Mid West WA 6 - -
> MAY 2009

North WA 7 - -

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*
Note, these figures do not include Northern Territory

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Figure 4: Constructions Jobs across Australia

New South Wales South Australia

CLEAN ENERGY JOBS AND INVESTMENT IN

Victoria Western Australia

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Queensland Tasmania

> MAY 2009

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Box 2: Other low carbon job opportunities
Smart economic stimulus packages and climate change policies can produce double or even triple
dividends – immediate job and economic growth in clean energy and climate friendly industries; efficiency
driven lower energy costs and lower carbon pollution. This study represents only a fraction of the new jobs
that will be created across a range of clean and low carbon industries. For example, recent assessments
in Australia suggest that energy efficiency policies could deliver tens of thousands of clean energy jobs:
> Consulting firm Davis Langdon calculate that retrofitting existing commercial building stock to be more
energy efficient "would create direct employment for more than 10,000 people engaged in
construction each year, which means generating almost 27,000 new jobs across the broader
10
economy."
> KPMG conclude that a multi-billion dollar national household energy efficiency program could "create
approximately 40,000 jobs over seven years by boosting the supply and demand for energy efficiency
11
products and measures."

INVESTING IN REGIONAL ECONOMIES

MMA estimates that the clean energy projects in the pipeline will require an investment of over

CLEAN ENERGY JOBS AND INVESTMENT IN

$31 billion. As shown in Table 2, while much of this investment will occur in South Australia,
NSW and Victoria, around $7.6 billion will be shared amongst the other states. MMA suggests
that up to 30 percent of this will be spent on local goods and services, injecting around $10
billion into the Australian economy if all projects go ahead. The dramatic expansion of wind
power could also generate around $19 million in annual payments to landholders where the
turbines are located.

Table 3: Estimated clean energy investment from committed and planned projects, by state and
12
technology ($2008 million)

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NSW/AC
Total WA SA TAS VIC T QLD
Biomass $1,740 $729 $87 $200 $57 $131 $536
Geotherma
l $2,122 - $2,122 - - - -
Hydro $905 - - $482 $31 $285 $107
Solar / PV $345 $21 - - $76 $246 -
Wave $36 - - - $36 - -
Wind $26,914 $1,719 $6,076 $1,884 $7,765 $7,521 $1,949
Total $32,062 $2,469 $8,285 $2,566 $7,965 $8,183 $2,592

POLICY IMPLICATIONS
On the 4th of May the Prime Minister announced stronger potential emission reduction targets
and amendments to its emissions trading scheme - the Carbon Pollution Reduction Scheme
(CPRS). In addition Australian governments have supported other critical policy moves
including:

1. the Council of Australian Government’s (COAG) support for implementing the 20

> MAY 2009

percent by 2020 Renewable Energy Target

2. key commitments to multi-billion investments low emission technology deployment and

energy efficiency in the Federal Budget, and

3. announced and pending elements of a National Energy Efficiency Strategy to be

agreed by COAG mid year.

Overall, while the proposed CPRS is far from ideal, the amended package provides an PAGE 1/4
important foundation for Australia to help achieve an effective global climate agreement that is
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in the national interest. Along with the Renewable Energy Target, and announced Budget and
recent energy efficiency improvements, there are strengthening investment signals for clean
energy and other low carbon jobs and industries.
BOOSTI

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 Briefing >
These investment signals complete a cost and risk effective strategy that the Climate Institute
13
has been advocating for some time. Australia should aim to hit 2020 with a mixed portfolio of
industrial scale clean energy solutions in operation. We need to hedge our investments in case
one or more of the promising clean energy technologies of solar, geothermal or carbon capture
and storage don’t work. The more technologies we have in the tool kit the easier it will be to
meet scientifically credible emission reduction targets

Over the next month Parliament will work through some of these proposals which could unleash
tens of thousands of jobs and tens of billions of dollars of investment in energy efficiency, solar,
wind, geothermal and carbon capture and storage jobs and industries.

The future of Australian clean energy jobs and profits is now in part in the Senate’s hands. It’s
time to stop the arguments, it is time to get to work with clean energy powering a low carbon
economic recovery and a critical jobs boost for regional Australia.

1 IEA (2008), ENERGY TECHNOLOGY PERSPECTIVES 2008: FACT SHEET – RENEWABLES, How can a shift to
renewables

CLEAN ENERGY JOBS AND INVESTMENT IN

be accelerated? International Energy Agency, Paris.
2 National Electricity Market only, equals around 10% of all new capacity. Energy Supply Association, pers comm..
3 New Energy Finance (2009), Clean Energy League Tables, available from: www.newenergyfinance.com
4 See Global Wind Energy Council (2008), Global Wind 2008 Report; and Global Wind Energy Outlook 2008.
5 Ibid.
6 Ibid.
7 European Wind Energy Association (2009), Wind at Work: Wind energy and job creation in the EU, available from:
www.ewea.org
8 Permanent jobs includes ongoing operation and maintenance and includes jobs in existing renewable energy projects.
9 Indirect jobs are only presented at a national level as many of these jobs will not necessarily be located where the project
occurs,
e.g. office works in national company head quarters. These numbers also do not include jobs that would be generated in

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other
countries by renewable energy investments in Australia.
10 Davis Langdon (2009), Retrogreening offices in Australia, the Story to create jobs, Research Report.
11 KPMG (2008), A national energy efficiency program to assist low-income households, KPMG, Brotherhood of St Laurence
and
Ecos Corporation, Melbourne. Australia.
12 Investment numbers cover the expenditure if all proposed projects where to proceed. Under the Renewable Energy
Target, not
all identified projects will required and model estimates suggest around $20 billion to $25 billion will be spent
13 See Climate Institute (2008), Making the Switch to Clean Energy, Climate Institute Policy Brief.

> MAY 2009

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