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Preface

The Allen Consulting Group was commissioned by SEDA to analyse the impact of sustainable energy opportunities on jobs in NSW. A Steering Committee was established by SEDA to oversee the preparation of the report. In addition to SEDA representatives, members of the Committee included the:

• Australian Workers’ Union;·
• Construction Forestry Mining & Energy Union;·
• Electrical Trades Union;·
• Transport Workers Union;·
• Labor Council;·
• Department of State and Regional Development;·
• Country Energy;·
• ANZ Infrastructure Services; and·
• Australian Business Ltd.

The Terms of Reference for this Report were agreed in consultation with the Steering Committee. 

Around the world, energy markets are beginning to respond to the risk of climate change through both voluntary and regulated measures. Although the cost of renewable sources of energy is not yet competitive with conventional, carbon-intensive alternatives, a clear downward pressure on costs for wind, solar, and biomass has been identified. At the same time, significant opportunities exist to address energy supply pressure by managing down demand. Demand management offers positive investment returns, but take-up is limited due to information and other barriers.

Australian governments are likely to continue to promote greenhouse gas emission reductions and increases in renewable energy sources. Like in any other competitive market, those states positioned with the most experience in lowest cost technologies, will have the best chance of attracting investment and jobs. To lead in competitiveness in sustainable energy technologies, NSW needs to promote demand management and renewable technologies so that the NSW sustainable energy industry ("SEI") can progress down its various learning curves ahead of other States. Already, Victoria and South Australia are developing an advantage in wind and Queensland has a clear advantage in biomass. But these are early days in SEI development and long-term competitiveness is not yet determined.

A number of scenarios have been modelled in the report that reflect the kind of policies that could deliver an SEI competitive advantage and new energy sector jobs for NSW. As Australian Business Ltd. the many case studies included in this report indicate, there are numerous examples of successful similar initiatives around the world.

The challenge for NSW is to continue to support the sustainable energy industry in order to maintain the State’s competitiveness in this dynamic and rapidly growing industry. The outcomes of the modelling undertaken as part of this report indicate that, to promote the competitiveness of the SEI and support SEI investment and jobs, it is necessary to attack the barriers to market development and facilitate the move by new technologies down their learning and cost curves.