Wind farms fan regional growth

Australian
Thursday 9/7/2009 Page: 30

MY favourites among the infrastructure developments that inspire property hotspots are windfarms. Wind farms cost hundreds of millions to create, they generate jobs as well as electricity and they're a majestic symbol of the battle against global warming.

Despite the many sleepless nights spent by members of the Howard government fretting about the fate of the Orange-Bellied Parrot (then environment minister Ian Campbell blocked a $220 million windfarm in 2006 by pretending concern about a threat to birds), I can't see anyone or anything that gets hurt from the development of windfarms.

Unlike coal-fired power stations, desalination plants, goldmines and multi-lane highways, they don't displace anyone, pollute or contaminate anything, leave great ugly scars in landscapes or pump greenhouse gases into the atmosphere. Farmers struggling with prolonged drought have been rescued by collecting rent from the builders of windfarms. They contribute a growing share of our energy needs without damaging the planet and they provide tangible benefits to local economies.

Given the growing world focus on climate change, and the Rudd government's apparent determination to do something about it, sustainable energy creation has a big future in Australia. The advancement of big projects of this nature is starting to take on the look of a boom industry with consequences for real estate. Emerging hotspots include the southwest of Victoria, parts of rural South Australia, Kingaroy in Queensland and Broken Hill in NSW.

SA leads the Australian market, with about 1000MW of projects to be in place by the end of next year. SA is a major centre for windfarm development on a world scale. Only Denmark has a greater proportion of electricity generated by wind, according to the Essential Services Commission of SA.

AGL has created a nest of economic activity in the midnorth of SA, about 200km north of Adelaide, with benefits for towns such as Hallett and Jamestown. One windfarm is completed, another is nearing completion, a third is about to start construction and a fourth is a possibility. The combined development costs of the first three windfarms are more than $700 million and AGL expects to be operating 232 wind turbines in SA, with a combined capacity of 460MW, by 2011.

According to AGL, wind is the fastest growing global renewable energy resource, with a projected average growth rate to 2012 of 20% a year. Victoria, Tasmania and SA are also considered to have good wind resources. But AGL's plans for its largest windfarm are targeted at country near Kingaroy in Queensland.

The $1 billion Coopers Gap windfarm will create 200 turbine towers on 12,000ha of grazing land, generating enough energy to power 320,000 homes. It is expected to start construction next year for completion by 2012. Together with other economic activity, including a new coal mine, it is set to make Kingaroy a substantial regional centre for a wide agricultural area a property hotspot.

Victoria, too, is on the brink of a big expansion in windfarms. Approvals have been granted for 21 new farms, on top of 13 already in operation. Their installation will reportedly triple the amount of power generated by wind over the next two years, saving tens of millions of tonnes of greenhouse gases. In coming years, windfarms will attract investment of between $3bn and $4bn in Victoria, creating new jobs and economic activity.

Also proposed is a $2bn windfarm due to start construction early next year on the Mundi Mundi Plains northwest of Broken Hill. Epuron, a subsidiary of German renewable energy group Conergy AG, is the proponent. Macquarie Bank's investment arm signed on as an equal partner in the development early in 2008. The windfarm will have 500 wind turbines spread over 450sgkm and at full capacity it will produce 100MW enough power for 400,000 homes.

Epuron says the operation and maintenance of the windfarm is expected to create between 50 and 100 direct jobs, with an injection of at least $15m a year into the local economy. Early in June the NSW government announced planning approval for the project. Lands Minister Tony Kelly says graziers who own the land where the turbines will be sited will receive upfront income and also long-term income.