Wind sector powers on

Manufacturers’ Monthly
August, 2007 Page: 8

THE drive towards alternative energy sources is opening new opportunities for manufacturing firms, with manufacturers of equipment for electricity generation from wind turbines recording solid growth. "The wind energy industry has established itself as a stable business, with a strong base of manufacturing companies," Dominique La Fontaine, CEO of the Australian Wind Energy Association (Auswind) told Manufacturers' Monthly.

Several years ago, we were seeing that most turbine components were imported, but now the greater share of fabrication is done in Australia. "There are now major factories in Victoria, Tasmania and South Australia that manufacture a wide range of components, plus many smaller firms that produce specialist parts," she said.

According to Auswind, there is currently 817MW of installed wind energy capacity in Australia, which translates roughly to about 600 turbines. A further 6755MW of capacity is proposed, with the biggest growth areas being the coastal regions of Victoria and South Australia. But, says La Fontaine, industry growth has shown signs of stalling since 2006, when the Commonwealth's government's Mandatory Renewable Energy Target (MRET), which required energy retailers to purchase a small proportion of electricity from non-traditional sources, was met.

There has been no national successor to the MRET, although the state government in Victoria has set a target, NSW is developing legislation, and several other states have announced their intention to introduce targets or other schemes to encourage the development of alternative energy sources. The projects of the state governments, either in place or planned, are positive, La Fontaine says. "But for purposes of consistency and breadth, there really needs to be a national scheme.

"Auswind has recently been engaged in discussions on this - with representatives from both sides of the political fence - and we are hopeful that something will be done." Steve Garner, MD of Keppel Prince Engineering, a firm which manufactures wind turbine towers, agrees that a target scheme from Canberra would be welcome. "A measure of government support is needed if wind is going to be competitive with coal, especially here in Victoria," Garner said. "Already, there is a good manufacturing side developing. The only places where towers and components are imported are where there are no local manufacturers with the required know-how.

"But the expertise base is growing, and a lot of metal fabrication firms are starting to look at the diversification opportunities presented by the wind energy industry." Keppel Prince Engineering has, Garner estimates, built about 250 towers in the past six years. When the company saw opportunities in the wind energy sector, it began by building tower shells and internal components, and diversified into the construction of tower foundations.

The company is now moving into tower erection and, increasingly, ongoing maintenance. Keppel Prince Engineering has also entered into a contract arrangement with global wind energy firm Vestas to manufacture blades. A thriving export market for blades is also developing: Garner notes that about 300 blades were sent overseas by the company last year, mainly to NZ.

At present, there is no formal training in manufacturing or maintenance relating to wind energy. Keppel Prince Engineering initially obtained expertise through a German partner, but now its staff training in the area is conducted internally, with experienced people training newcomers. "We see wind energy as a growth area for this company," Garner told Manufacturers' Monthly. "In fact, I think that Portland, here in western Victoria, could become a real hub for renewable energy, both on the manufacturing and research side, not only for wind but for other alternative energy sources as well. There is a lot of hands-on knowledge being developed here," Garner said.

La Fontaine also points to the longterm possibilities offered by the industry's development, noting that Australia's good base of technology raises the prospect of exports to energy- hungry Asian markets. She acknowledges that some wind farm proposals have met with strong community opposition, mainly based on the visual impact of turbines on the landscape.

"People who oppose a turbine in their area are, of course, entitled to their views. For their part, wind farm developers have to be willing to take account of community concerns, and engage in proper consultation," she said. "Auswind is currently developing a compliance plan for the industry, and we hope that that will go a long way in dealing with these issues. "But there are many communities that have been very supportive of the wind energy industry. For example, the Ararat Rural City council, in western Victoria, is currently developing a Renewable Energy Park, and they are actively seeking manufacturers working in the wind energy sector, to supply both Victoria and South Australia."