Sender: WESTWIND ENERGY PTY LTD
ABN 94 109 132 201
Address:
Office 5, Level l , Nexus Centre,
1 2 - 1 4 Prince Street,
Gisborne Vic 3437
Tel: 03 5421 9999
Fax: 03 5428 3 100
Contact: Tobias Geiger
To: The Hon. Lily D'Ambrosio MLA
Minster for Energy and Resources
Victorian Government
Melbourne
By email: renewable.energy@ecodev.vic.gov.au
Wednesday, 30 September 2015
Dear Minister,
WestWind Energy - Submission to
the Victorian Renewable Energy
Roadmap
Thank you for the opportunity to provide this submission to the Victorian Renewable Energy
Roadmap (Roadmap). WestWind Energy Pty Ltd (WestWind) welcomes and supports the
principles outlined in the Roadmap, in particular the commitments of the Victorian
Government to grow renewable energy and to open Victoria up to additional renewable
energy investment.
Introduction
WestWind is an Australian company dedicated to the development, construction and
operation of renewable energy based electricity generation facilities, in particular wind
energy projects. WestWind is part of the broader WestWind Group of Companies that is
headquartered in Germany. WestWind has followed the invitation of State and Federal
governments to establish in Victoria in 2004 .
Since 2004 WestWind has had 235 wind turbines approved in the Ballarat region of Victoria
(equivalent to approximately 641 megawatts of installed capacity). These projects include
the:

Mt Mercer Wind Farm, constructed and operated by Meridian Energy Australia;

Lal Lal Wind Farm, approved in April 2009; and

Moorabool Wind Farm, approved in October 2010.
WestWind also has an early stage development pipeline of wind, solar and battery storage
projects. Over the years, well in excess of $18 million has been invested by WestWind into
the Victorian economy and we have yet to reach our full potential. The realisation of the
approved projects alone represents an investment volume of close to $1 billion over the next
three years.
Economic benefits of our projects
A 2012 study by SKM on the economic benefits of windfarms in Australia found that, for
every 50 MW in capacity, a windfarm delivered the following benefits:

direct employment of up to 48 construction workers, with each worker spending
approximately

$25,000 in the local area in shops, restaurants, hotels and other services – a total of
up to $1.2 million;

direct permanent employment of around five staff – a total annual input of $125,000
spent in the local economy;

indirect employment during the construction phase of approximately 160 people
locally, 504 state jobs and 795 nationwide jobs; and

up to $250,000 per year for farmers in land rental income and $80,000 on
community projects each year.
Based on these figures the investment our company has made to date on our approved
Victorian wind energy projects would lead to:

direct employment of 432 construction workers spending up to $10.8 million locally;

direct employment of 45 permanent staff spending $1.125 million locally every year;

indirect employment during the construction phase of approximately 1,440 people
locally,4,536 in Victoria and 7,155 nationally;

up to $2.25 million per annum for farmers in land rental income and up to $720,000
on community projects each year; and

council rates of app. $650,000 per annum.
Response to Victoria's Renewable Energy
Roadmap
The need for strong targets
The Victorian Government's aim to produce 20% of Victoria's electricity from renewable
sources by 2020 is welcomed (Section 1.5). However, it is submitted that strong ambitious
targets should be established out to 2050 to provide the certainty needed for a strong local
and national renewable energy industry; an industry that operates in the energy sector,
which typically has investment horizons of 25 years and more.
To live up to its aspirations and be a responsible government in an increasingly carbon
constraint world, we submit that

100% of Victoria's electricity is to come from renewable sources by 2050 and

50% of Victoria's electricity is to come from renewable sources by 2030.
Furthermore, such targets should be enshrined in legislation to ensure they are not just
aspirational and subject to constant political profiteering.
Meeting these targets could be facilitated in a number of ways. For instance,

the ACT's wind energy auction, that enabled projects to bid for long term feed-in
tariff entitlements, resulted in one of the lowest power purchase agreements (for all
forms of electricity generation) ever being entered into.

Additionally a supplementary VRET could be investigated to help soften the impact of
a reduced federal LRET.

The direct government purchase of renewable energy could also assist in meeting
these targets.

A measured feed-in tariff to support smaller, mostly local and community driven
projects (perhaps up to 10MW).
Furthermore, to address the urgency of climate change, consideration should be given to
targets and associated mechanisms which directly facilitate fossil fuel generation to leave
the national electricity network.
The need for a strong federal RET
The Victorian Government's intention to advocate for a strong federal RET is also welcomed
(Section 3.1). Companies like ours would not have invested in Australia, would not employ
permanent staff here and would not bring extensive know how from overseas without the
RET.
Investments in renewable energy projects have been substantially undermined by ongoing
policy uncertainty around the RET. This has been resolved in part, through the removal of
biannual reviews. However, this is offset by our developed economy reducing its actual
target for renewable energy!
A strong federal RET and further reforms to planning requirements will enable Victoria to
take a leading role in the development of renewable energy projects. Lack of Federal action
on renewables should not be seen to be an excuse to do nothing. We note that Victoria led
the way with a strong VRET when the Federal target was at 2% and this was one of the
deciding factors for our company to establish in Victoria.
Wind farm planning laws
Planning laws introduced by the previous State government resulted in our development
pipeline being 'parked' for four years, with the associated job losses. It is no surprise that
WestWind welcomes some of the reforms made to Victorian planning laws (Section 3.2). In
particular, the reduction in the required setback distance from two kilometres to one
kilometre (unless consent is obtained). However, we respectfully submit that planning laws
still do not align with the election and policy commitments of the Victorian Government.
Specifically, government should consider acting on the following points:

Blanket bans remain. These bans prohibit the development of wind energy from
parts of Victoria - including high wind speed areas. These bans put one of our
projects in the Macedon Ranges Shire on halt indefinitely;

Expiry times. Planning permits have not provided enough time for projects to
commence or complete their developments. While permits can be extended, the
process contains an element of uncertainty which concerns potential investors. Expiry
times should be significantly expanded for wind energy permits; and

Amending permits. Making changes to existing planning permits can be complex
where the permits have been issued by the Minister for Planning. A streamlined
approach is provided for Council issued permits (no third party appeal rights)
however this does not apply to the majority of wind farm permits which were issued
by the Minister. This means that minor changes to permits will often require public
notice and full planning panel hearings to consider submissions. This comes with
significant costs, which are to be borne by developers and creates significant
uncertainty for potential investors. We note the need for an appropriate level of
community engagement and consultation. However, there is a need for greater
flexibility to enable reasonable changes to be made to existing wind energy permits
without unnecessary investment uncertainty, delays and associated expenses.
Government use of renewable energy
WestWind would support the Victorian government in purchasing electricity from renewable
energy sources. This has worked well in the past and we note the role of the Melbourne
Water tender in facilitating the MacArthur and Oaklands Hill Wind Farms. Similar models
could be rolled out to other large government electricity users. In our view this would also
send a positive message to the corporate sector.
I hope the above comments are helpful to you in the preparation of the plan and we happily
offer our further assistance.
Yours sincerely,
Tobias Geiger
MANAGING DIRECTOR