industry development and job creation in australia

Industry
Development
and Job Creation
in australia
2
industry development and job creation
Industry
Development
and Job Creation
in australia
56.3% $440
local procurement
450
jobs
in construction
are expected to be provided in NSW
First Solar, AGL Energy Limited (AGL), the Australian
Renewable Energy Agency (ARENA) and the New
South Wales (NSW) Government are supporting the
delivery of Australia’s largest utility-scale solar farms
to date. Located in NSW, the Nyngan and Broken Hill
solar projects have a combined capacity of 155 MW
(AC). Together, they will generate 360,000 megawatt
hours of electricity each year, sufficient to meet the
needs of over 50,000 average homes in NSW.
The projects represent a total investment of $440
million, supported by $166.7 million of ARENA
funding and an additional $64.9 million in funding
from the NSW Government.
The scale and footprint of these projects demonstrate
that utility-scale solar is a proven, bankable source of
power generation in Australia today.
Expected to provide significant value to the region
with up to 450 direct construction jobs, the projects
will also offer scope to develop regional skills and
create more sustainable employment. The projects’
impact on regional development is highlighted in the
following ways:
• On-site jobs involved in the delivery of the projects
• Off-site jobs involved in the supply of materials for
the projects
• Off-site jobs involved in the design, management
and support of the projects
investment
4
industry development and job creation
project
overview
project details
gatton
fs O&M
nyngan
Broken hill
AMPCONTROL
SMA
Prysmian
fs corporate
Coventry
Fasteners
ABB
Wilson
Bluescope
Transformer
Deltaflex
iXL SOLAR
1
mayfield
industries
iXL SOLAR
Wilson
Transformer
Hofmann
Engineering
key statistics
Capacity/Generation:
Nyngan
Broken Hill
MW (AC)
102
53
Annual GWh (at plant boundary)
233.4
126
Nyngan (300)
AC Capacity factor (at plant boundary)
26%
27%
Broken Hill (150)
Scheduled construction start
Jan 2014
July 2014
Scheduled construction end
June 2015
Nov 2015
Peak Direct construction jobs created
300
150
Site area (ha)
460
200
Jobs Supporting Project Sites (34)
Solar Field area (ha)
250
140
First Solar O&M (4)
Number of modules (approx)
1,350,000
650,000
Number of posts (approx)
150,000
75,000
Number of inverters
154
80
Number of strings
105,000
55,000
Equivalent NSW homes powered @ 7 MWh/yr
33,300
17,000
Equivalent cars off the street
53,000
29,000
Project Construction Jobs (500)
UQ Gatton (50)
Construction:
Offsite Jobs (162+)
First Solar Corporate (25)
First Solar O&M (2)
Suppliers (135+)
Design Details:
Environmental Benefits:
Accomodation (10)
Transportation Services (10)
Catering (10)
Nyngan
Broken Hill
Owner: AGL Energy
EPC Contractor: First Solar (Australia) Pty Ltd
Size: 102MW (AC)
Estimated Completion Date: Mid 2015
Type: Ground Mount
Output: ~233GWh per year
Module Quantity: Over 1.3 million
Owner: AGL Energy
EPC Contractor: First Solar (Australia) Pty Ltd
Size: 53MW (AC)
Estimated Completion Date: Late 2015
Type: Ground Mount
Output: ~126GWh per year
Module Quantity: Over 650,000
*Based on national average data for Australian grid electricity and car emissions.
*Based on national average data for Australian grid electricity and car emissions.
6
industry development and job creation
construction
of a utility scale
solar farm
Site geotech and survey
tilt bracket installation
pcs
site preparation
folding table installation
pvcs
post installAtion
module install and
string in series
pv substation
underground cable
installation
dc wiring and
combiner box
plant testing and
commissioning
ac trenching
pcs foundations
completE
Solar Plant Component
Procurement Item
Construction Activity
Site Establishment
Offices, Fencing, Utilities
Civil Works, Delivery/Installation
Solar Modules
Modules
Module Installation
Mounting Structures
Posts, Tilt Brackets, Tables
Post/Structure Installation
DC Electrical
Combiner Boxes, DC Cable
Installation, Connection, Testing
Power Conversion
Inverter, Transformer, Skid
Delivery, Connection, Testing
AC Electrical
Switchgear, AC Cable
Delivery, Connection, Testing
Commissioning and Operation
Spare Parts
Testing, Analysis, Maintenance
8
industry development and job creation
overview
solar plant
supply chain
opportunities
First Solar is committed to supporting Australian
manufacturers and our first preference is to source materials
within Australia whenever it is viable and appropriate to do so.
Local procurement accounts for 56.3% of total procurement
spending on the Nyngan and Broken Hill projects, with over
$66 million spent on local equipment for both projects.
Local versus international procurement spending
Location
Melbourne, VIC (Head Office),
Wodonga, VIC (Manufacturing)
Employees
550
Sector focus
Utilities
Solar
Component
Transformers
Solar-Related
Jobs
~65
Total
Investment
$9-10M
Recent Events
With an increase in off-shore competition,
Wilson Transformer has embarked on a strategy to
demonstrate the benefit and value of maintaining
local expertise. Despite many low-cost global
competitors, its bid for the Nyngan and Broken Hill
work was chosen on merit based on its competitive
costs and high quality.
Breakdown of local equipment procured
7.6
43.7
%
International Procurement
Local Procurement
46.2%
“As an Australian owned company that
has been based in Geelong for over
150 years, we have had to explore
new business opportunities as local
automotive manufacturing declines.
Cables /Miscellanous
Making mounting structures for First
Solar has beengear
a natural extension
Power conversion/Switch
for our business, and we believe that
Mounting structures
Australian-made mounting systems can
be more than competitive with imports.”
56.3%
46.2%
Claude Dagescy, General Manager
IXL Solar
7.6%
.7%
46.2%
International Procurement
Local Procurement
*Excludes solar panel supply
46.2%
43.7%
Cables /Miscellanous
International Procurement
Power conversion/Switch gear
Local Procurement
Mounting structures
56.3%
Jon Retford, General Manager
Distribution Business Unit,
Wilson Transformer
IXL Group Company profile
%
56.3%
“Our contract providing transformers
and switchgear to the Nyngan and
Broken Hill solar projects represents a
significant milestone for our business
and a real boost to our manufacturing
facility in Albury-Wodonga. As an
Australian owned company with over
550 employees, opportunities like this
highlight the strength of Australian
manufacturing in an increasingly
competitive marketplace”
Wilson Transformer Company profile
Location
Geelong, VIC (Head Office & Manufacturing),
Adelaide, SA (Manufacturing)
Employees
200+
43.7%
Sector focus
Automotive
Solar
Component
Tables
Solar-Related
Jobs
40 (at peak)
Total
Investment
$25-30M
Recent Events
Historically dependant on the local automotive
industry to support its steel fabrication business,
IXL is opening a new manufacturing facility in
Adelaide in April 2014 that will produce and supply
structural components for the solar projects.
International Procur
Local Procurement
10
industry development and job creation
11
overview
solar farm
contracting
opportunities
WBHO civil and PROBUILD civil Company profileS
The total value of local subcontractor procurement for services
provided on the Nyngan and Broken Hill projects is over
$76 million. Procurement of local services will result in peak
employment of over 450 construction jobs across the two sites.
WBHO Civil
Probuild Civil
Location
Subiaco, WA
Bowen Hills, QLD
Employees
500+
150+
Sector Focus
Civil construction
Civil infrastructure
Solar
Component
Fencing and Civil Site Establishment, Structural Works (post installation), and Balance of Scope Electrical
Solar-Related
Jobs
100 local job opportunities in addition to subcontract opportunities for local companies
Total
Investment
$50-60M
Recent Events
In 2012, WBHO Civil partnered with First Solar on the
10 MW Greenough River Solar Farm. The projects at
Nyngan and Broken Hill allow WBHO Civil to continue
this partnership with First Solar as it expands the
company footprint into NSW. Breakdown of local subcontractor
services procured
1.0%
7.7%
12.5%
49.2
%
7.9
Electrical
9.9%
Structural
Civil
7.9
%
.8
%
Services
Electrical
Pre-mobilisation
Structural
Equipment
Civil
Design and Engineering
Services
Pre-mobilisation
Equipment
Services
Pre-mobilisation
11.8
.5
Structural
Civil
%
%
Electrical
%
industry development and job creation
Equipment
Design and Engineering
“Our business has traditionally
been focused on civil construction
supporting the mining and resources
sector. Working with First Solar has
given our employees the opportunity
to understand the challenges of
constructing a utility scale solar farm
and reduce cost and risk incrementally
from project to project. Projects like
the ones at Nyngan and Broken Hill
mean a lot to the communities and
provide long term infrastructure and
employment opportunities for remote
and regional Australia.”
Will Grobler, Managing Director
WBHO Civil
Probuild Civil has a strong reputation in the civil construction
industry for specialising in the high quality construction of roads,
bridges, earthworks, concrete structures and boutique projects.
Probuild Civil is now expanding into different markets, such as solar
projects, and partnering with reputable organisations to deliver
successful outcomes. project
partners
First Solar (Australia) Pty Ltd
First Solar has been engaged by AGL Energy Limited to build both the
Nyngan and Broken Hill solar projects. First Solar will provide engineering,
procurement and construction services for both sites, using its advanced
thin-film photovoltaic (PV) modules.
First Solar is a leading global provider of comprehensive PV solar systems
which use its advanced module and system technology.
The company’s integrated power plant solutions deliver an economically
attractive alternative to fossil-fuel electricity generation today. From raw
material sourcing through end-of-life module recycling, First Solar’s
renewable energy systems protect and enhance the environment.
Australian Renewable Energy Agency (ARENA)
The projects will be delivered with the support of funding from the
Commonwealth Government through the Australian Renewable Energy
Agency (ARENA).
ARENA was established by the Australian Government as an independent
authority to make renewable energy technologies more affordable and
increase the amount of renewable energy used in Australia. ARENA is
funded through to 2022 to invest in renewable energy projects, support
research and development activities and increase industry and community
knowledge about renewable energy.
For more information about ARENA, please visit: arena.gov.au/
First Solar will also maintain both projects for AGL for five years after
commercial operation starts.
For more information about First Solar, please visit: www.firstsolar.com
AGL Energy Limited
AGL Energy Limited is developing the Nyngan and Broken Hill projects as part
of, and with support from, the Australian Renewable Energy Agency (ARENA)
and the NSW Government.
Drawing on over 175 years of experience, AGL is Australia’s leading renewable
energy company and largest private owner, operator and developer of
renewable generation assets. The development of this solar project
demonstrates AGL’s commitment to renewable energy and is a natural next
step for AGL to build on its strong track record of wind, hydro and biomass
renewable generation assets.
New South Wales Government
The projects will be delivered with the support of funding from the New South
Wales Government.
The NSW Government has developed the Renewable Energy Action Plan to
guide NSW’s renewable energy development and to support the national
target of 20% renewable energy by 2020.
For more information about the NSW Government, please visit:
www.nsw.gov.au/
AGL is committed to ensuring that all of its projects are delivered in a safe,
sustainable and professional manner and that all feedback from interested
stakeholders is addressed in a timely and effective way.
For more information about AGL Energy, please visit: www.agl.com.au/
First Solar (Australia) PTY LTD
(ABN 66 141 686 946)
Level 3, 16 Spring Street
Sydney, NSW 2000
Australia +61 2 9002 7700
www.firstsolar.com

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