Report: Vic govt rules cost wind farm jobs, $800m

According to new research released today Victoria’s conservative Liberal-National government is costing the state hundreds of jobs and hundreds of millions of dollars worth of investment in the wind farm industry.

The research by Friends of the Earth (FoE), based on modelling by Sinclair Knight Merz (SKM) for the Clean Energy Council, indicates state government wind farm regulations have stymied numerous projects in key electorates across Victoria.

wind-farm-acciona-waubraThe report says there has been an estimated loss of 490 construction and 64 ongoing jobs, while projects worth more than $864million in the past three years alone have either been lost or scrapped.

According to the research this has resulted in 11 proposed wind farms being rejected in recent years, costing jobs in the electorates of Polwarth, Gippsland South, and South Barwon (held by the government), Macedon, Bendigo West, Ripon, Williamstown and Buninyong (held by the Labor opposition).

Employment is a significant topic in Victoria, which has been hit by closures in the automotive industry, and analysis of wind farm proposals suggests some of the most volatile seats heading into this year’s state election have missed out on construction jobs.

541065-denis-napthineFoE says that means they have also missed the possibility of ongoing economic benefits because of rules preventing projects in certain areas.

The state’s conservative Liberal Premier Dr Denis Napthine has previously declared his personal love for wind farms, his south-west electorate has the largest wind energy project in the southern hemisphere.

However, government legislation has created a series of ”no go” zones around many Victorian towns, established a right of veto for people living within two kilometres of proposed turbines and made it difficult to extend or alter approved projects.

wind-farm-waubra-houseThe analysis, released today, shows:

  • Overall, wind farm restrictions have scrapped or stalled projects worth up to $864 million across the state and thwarted about $10.5 million in economic benefits that could have gone to regional communities.
  • Macedon is among the biggest losers, with three wind farms thwarted, costing a total of 229 new jobs and more than $5 million of ongoing economic benefits.
  • A seven-turbine wind farm that could have powered more than 7000 homes was rejected in Deputy Premier Peter Ryan’s Gippsland South electorate, while two were ditched in Transport Minister Terry Mulder’s Polwarth electorate.

Victorian Planning Minister Matthew GuyThe analysis was based on SKM’s estimates that suggest a typical 50 megawatt wind farm would create 48 direct jobs, five ongoing jobs in operation and maintenance, $250,000 for turbine hosts and $1.2million in flow-on benefits.

However, Victoria’s Planning Minister Matthew Guy rejected the report, saying its claims were ”ludicrous”.

Fairfax Media reports he declined to provide specific examples, but said: ”This so-called report is full of errors and denies the fact that some of these projects had valid permits but chose not to build, and others were refused permits while Labor was in government.”

As November’s poll looms, environment groups have urged the government to soften wind farm laws.

wind-turbine-houses-valueFoE spokesman Cam Walker said; “Premier Napthine understands the economic benefits of wind energy more than any other state MP.

“By showing leadership and scrapping the anti-wind laws, he can unleash investment and create jobs throughout Victoria.”

FoE called on the state government to revoke the “unprecedented” 2.0km right to veto/setback from households.

Brian-Tee-Labor-planning-spokesman-VictoriaIt said the government should revoke the arbitrary wind farm exclusion zones and let any such future zones be determined transparently, and ensure projects with existing planning approval are given extensions until they are able to begin construction.

The government said it had no plans to change the law, insisting the current rules strike the right balance.

However, Labor’s planning spokesman, Brian Tee, said the opposition was looking at softening the system.

”While regional Victoria is suffering from a jobs crisis, the state and federal Liberal governments are conspiring to make it worse by slamming the door on renewable energy investments such as wind farms,” he said.

Share it :