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Socio-Economic Considerations
Berrimal Wind Farm, 2013
Version 3
Socio-Economic
Considerations Berrimal Wind Farm, November 2013
ACCIONA Energy Oceanía Pty Ltd
ABN 98 102 345 719
Level 12, Freshwater Place, 2 Southbank
Boulevard
Southbank VIC 3006 Australia
Tel: +61 3 9027 1000
Fax: +61 3 9027 1001
Web: www.acciona.com
Author: Tracey Ward and Iain Lawrie
File name: Socio Economic Assessment-
Berrimal
Document version: Version 3
Last saved: 3 December 2013
http://www.acciona.com/
Berrimal Wind Farm Socio Economic Considerations 2013
4
Table of Contents
Table of Contents 4
1 Overview 5
2 Buloke Shire socio-economic characteristics 6
2.1 Demographics 6
2.2 Labour force characteristics 8
2.3 Demographic and labour force summary 8
3 Projected Employment and Economic Opportunities 9
4 Projected Direct Economic Benefits 11
5 Anticipated socio-economic benefits 13
5.1 Economic Impact Assessment- Waubra and Gunning Wind Farms 13
5.2 Economic Impact- Generic Assumptions 14
6 Conclusions 16
7 References 17
Berrimal Wind Farm Socio Economic Considerations 2013
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1 Overview
Construction of a large scale wind energy facility has the potential for considerable
influence on the socio-economic structure of its host rural locality. This report provides a
summary of the potential socio-economic implications associated with the proposed
Berrimal Wind Farm, located in the Buloke Shire in north western Victoria.
The report provides this summary through consideration of:
Key existing socio-economic indicators and trends present in the Buloke Shire.
This has been undertaken utilising Australian Bureau of Statistics (ABS) census
data, with associated commentary on implications for future economic growth in
the Shire;
Anticipated numbers, duration and range of employment opportunities presented
by the construction of the Berrimal wind farm;
Direct economic benefits flowing from rates, landowner payments and proposed
neighbourhood enhancement and local sponsorship programs; and
The socio-economic outcomes in communities where comparable wind energy
developments have been constructed
The Berrimal Wind farm has the potential to bring significant investment and local
employment opportunity to the Buloke Shire. Whilst the Buloke Shire and immediate
surrounding shires are not equipped to provide the project with the significant
manufacturing of high value equipment to be constructed (turbine blades, nacelles and
towers), the Shire is well equipped to provide substantial support services and
employment. It is anticipated this will result in a considerable benefit to the Shire,
peaking during the construction period, but present throughout the operation of the
development.
Berrimal Wind Farm Socio Economic Considerations 2013
6
2 Buloke Shire socio-economic characteristics
2.1 Demographics
The Buloke Shire is located in north-western Victoria, between 210 and 360 kilometres
north-west of Melbourne, covering an area of 8,000 km2. Figure 1, below shows the
location of the Berrimal Wind Farm in relation to the Buloke Shire township of Charlton.
It is noted that the local service towns of Wedderburn and St Arnaud are located outside
the Buloke Shire in the Loddon and Northern Grampians Shires respectively.
The shire’s largest town, Donald, with a population of approximately 1400, is located
approximately 40km north west of the site, see below for regional map.
Figure 1 Regional map, Berrimal Wind Farm
Berrimal Wind Farm Socio Economic Considerations 2013
7
Based on the 2011 ABS Census, the Buloke Shire is home to an estimated 6,388 people
residing in 3282 households. The Shire is thus one of Victoria’s most sparsely populated
municipalities.
Comparing the 2006 and 2011 ABS Census data, Table 1 below provides an assessment
of the population characteristics and trends of the Shire. Table 1 shows a small, but
defined decline in the Shire’s population between 2006 and 2011.
Table 1: Buloke Shire Population Trends1
Buloke Shire 2006 2011 Change
Population
(excluding o/s
visitors)
6852 6388 -464 (6.7%)
These trends are forecast to continue, with the Victorian Government’s Regional
Development Victoria, Buloke Economic Snapshot additionally projecting that the Shire’s
population is expected to further decrease by 6% by 2031. There is also projected to be
a positive increase in the 65+ age group over this period2.
At the 2011 census, the Buloke Shire had more people in the 50-85+ age ranges (47%
of the shire population) compared to the average in all other regional Victorian areas.
Additionally, in the period 2006-2011, there was a decrease in the numbers of ‘Parents
and Homebuilders’ and ‘Young Workforce’ categories in the ABS census results, indicating
that families have moved out of the area or have joined the ‘Older Workers and Pre
Retirees’ category.
1 Australian Bureau of Statistics, Census of Population and Housing 2006 and 2011. Compiled and presented in
profile.id, the population experts, sourced from Buloke Shire website www.buloke.vic.gov.au retrieved 25
November 2013
2 Department of Planning and Community Development, (2012), Buloke Economic Snapshot, Regional
Development Victoria.
http://www.abs.gov.au/censushttp://www.buloke.vic.gov.au/
Berrimal Wind Farm Socio Economic Considerations 2013
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2.2 Labour force characteristics
The Buloke Shire’s labour force participation at the 2011 census was 54.3%, somewhat
lower than the regional Victorian average of 58.2%. Agriculture, specifically grain
production, is the primary source of income and employment in the area. Other forms of
farming, education, retail, community service sectors and light industry also provide the
balance of employment.
Census data identifies a decreasing employment base in the shire, with 151 fewer
persons employed in 2011 compared to 2006. Over the same period, the number of
unemployed showed an increase of 15 persons. The relatively small increase in the
number of unemployed compared to the reduction in total employment may reflect an
increased number of people entering retirement, working mothers leaving work to care
for children, or a broader trend of population drift away from the shire.
The Buloke Shire’s economy is dominated by agriculture, employing 818 people or 30.0%
of the workforce. This is considerably higher that the Victorian regional average of 7.8%.
The agriculture sector also recorded the largest change between the 2006 and 2011
census, with 140 fewer people employed in this category in 2011.
2.3 Demographic and labour force summary
The Buloke Shire demographic and economic conditions are summarised by:
A low population base, dispersed over a large geographic area;
A general lack in economic diversity compared to the broader regional Victorian
economy, with activity highly reliant on the agricultural sector;
Declining employment in the agricultural sector, likely resulting in the concurrent
fall in overall shire population; and
A projection that these trends will continue in the coming decades.
In this context, the Berrimal wind farm offers a small, but material potential for
diversification in the shire’s economy. This diversification may assist in slowing the
negative trend in the shire’s demographic and labour market conditions.
Berrimal Wind Farm Socio Economic Considerations 2013
9
3 Projected Employment and Economic
Opportunities
The Berrimal Wind Farm is projected to require a peak construction workforce of 80-100
staff. Ongoing, the project will require the full time employment of between 5 and 10
staff. These staff, in turn, will spend a proportion of their wages back into the local
economy, further supporting local services and business.
During the construction phase of the project, the Berrimal Wind Farm will require the
services and contractors in the following areas:
Catering and accommodation;
Civil and electrical technicians;
Local haulage;
Cement manufacture and processing;
Road materials haulage and application;
Cleaning;
Fencing;
Landscaping;
Fleet hire;
Uniform and personal protective equipment (PPE); and
Ancillary support and clerical services.
Wherever possible, ACCIONA Energy will endeavour to source labour and services locally.
Whilst providers within the Buloke shire have the capacity to provide many of the above
services, wind farm construction will require certain specialist services not readily
supplied by the local economy, or not supplied at the scale required for the project. It is
anticipated therefore that adjacent local government areas will derive benefit from the
provision of services- in particular the Loddon and Northern Grampians through the
service towns of Wedderburn and St Arnaud.
Likewise, substantial infrastructure and specialist services will not be able to be sourced
from within the broader region. In particular, wind turbine generators, blades, towers (if
steel construction employed) and cables will not be able to be sourced from the regional
economy of north west Victoria.
Berrimal Wind Farm Socio Economic Considerations 2013
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The Buloke Shire will however have capacity and opportunity to benefit significantly from
the supply of ancillary support services and local labour. To ensure local contractors and
service providers have the best opportunity to be involved with the project, ACCIONA
Energy will continue to engage closely with the Buloke and adjacent shires, along with
the Industry Capability Network. The Berrimal wind farm will likely be established as a
‘gateway project’ with the Industry Capability Network, providing a structured approach
to ensuring local contractors with relevant capabilities have the opportunity to be
involved in the project. As with other ACCIONA Energy wind farm sites, a database of
local contractors and service providers will concurrently be maintained.
Local contractors can contact ACCIONA Energy by email on [email protected] or
by calling the freecall community hotline, on 1800 283 550.
mailto:[email protected]
Berrimal Wind Farm Socio Economic Considerations 2013
11
4 Projected Direct Economic Benefits
In addition to providing employment in the local area during the construction and
operational phases of the project, the development will deliver additional direct economic
benefits. These include:
Additional rates revenue to the Buloke Shire
Based on the standard Victorian local government wind farm rates agreement,
the Berrimal Wind Farm will contribute over $140,000 annually (from project
operational commencement, indexed to CPI) in rates to the Buloke Shire. This
would form a substantial increase in the shire’s commercial rates revenue base,
and may potentially provide an opportunity to limit the extent of rates increases
on other shire ratepayers.
Revenue to host landowners
Two landowners have agreed to a lease agreement with ACCIONA Energy to host
turbines and supporting infrastructure for the Berrimal Wind Farm. These
agreements have been reaches on a commercial basis, with landowners able to
continue on-going agricultural use of the land with negligible impact on the
agricultural capacity of their properties.
Community Benefit Fund
ACCIONA Energy is strongly committed to ensuring local communities in the
vicinity of its projects share in the benefits of renewable energy projects. At
Berrimal, a Community Benefit Fund is envisaged, commencing at the beginning
of project operation with a sum of approximately $35,000 per annum (indexed to
CPI). The structure of the fund will be developed in consultation with the local
community in the coming months and prior to construction commencing. It is
envisaged a committee will be established to oversee the responsible distribution
of funds under a terms of reference. These terms of reference will be focused on
ensuring an equitable distribution of funds to appropriate neighbourhood
improvements and projects- potentially on both private freehold and public lands.
Local Sponsorship Program
In addition to the Community Benefit Fund, ACCIONA Energy will provide an
annual local sponsorship allocation, commencing at the beginning of project
operation. It is envisaged this allocation will commence at approximately $15,000
per annum (indexed to CPI). The program will have a focus on community
facilities and the needs in adjoining service towns nearby to the project.
Berrimal Wind Farm Socio Economic Considerations 2013
12
Wages
The annual wages for permanent staff located at the Berrimal farm operations
and maintenance facility will be several hundred thousand dollars. With staff
permanently located on site, these staff will likely reside locally, resulting in a
substantial portion of this wages pool flowing into the local economy on an
ongoing basis. This wages estimate excludes wages involved with supporting
contractors and service providers.
Berrimal Wind Farm Socio Economic Considerations 2013
13
5 Anticipated socio-economic benefits
A number of detailed post operational economic analyses have been undertaken following
the construction and operation of wind farms in south eastern Australia. These analyses
provide a reasonable basis on which to form projections for the likely benefits from the
development of a project such as the Berrimal wind farm.
5.1 Economic Impact Assessment- Waubra and Gunning Wind Farms
ACCIONA Energy engaged Price Waterhouse Coopers (PWC) to undertake an economic
assessment of the benefits resulting from the Waubra and Gunning wind farms. The
Waubra wind farm, at 128 turbines and a maximum generation output of 192 MW is
substantially larger in scale than the proposed Berrimal development. At 31 turbines and
46.5MW, the Gunning wind farm on the southern tablelands of NSW is somewhat smaller
in scale than the proposed Berrimal development.
Waubra
The PWC modelling shows the local investment of $226.5M for the construction and
operation of the Waubra wind farm will:
Result in an increase in the Victorian Central Highlands Statistical Division Gross
Regional Product of $346M or 6.0%;
Increase the Victorian Gross State Product by $355M or 0.2%;
Increase the Central Highlands Statistical Division industry output by $676M ;
Increase the Victorian industry output by $685M;
Have an employment impact in the Central Highlands Statistical Division of 1680
FTEs or 2.7%; and
Have an overall employment impact in Victoria of 1882 FTEs
Gunning
The PWC modelling shows the local investment of $52.4M for the construction and
operation of the Gunning wind farm will:
Result in an increase in the South Eastern NSW Statistical Division Gross Regional
Product of $69.3M or 0.8%;
Increase the NSW Gross State Product by $77.5M or 0.02%;
Berrimal Wind Farm Socio Economic Considerations 2013
14
Increase the South Eastern Statistical Division industry output by $139M;
Increase the NSW industry output by$153M;
Have an employment impact in the South Eastern Statistical Division of 358 FTEs or
0.4%; and
Have an overall employment impact in NSW of 397 FTEs.
5.2 Economic Impact- Generic Assumptions
Consistent with the assessments for the Waubra and Gunning projects, the Clean Energy
Council engaged SKM consulting to develop a generic model for the likely economic
benefit flowing to a community from a 50MW scale wind energy project.
The SKM report identified that such a project would likely lead to:
Personal local expenditure of $25,000 per annum by each construction force
employee;
Expenditure of $875,000 spent locally on accommodation, food and other
services, equating to approximately $1.2 million per year flowing into hotels,
shops, restaurants and other local service providers;
An increase in construction jobs during the development phase of the project
which is estimated at 48 local/ regional positions and 160 indirect positions based
on a 50MW wind farm;
The creation of 5 maintenance positions, with 12 positions accounting for indirect
positions during the operational phase of the project, equating to an influx of
$125,000 annually;
An increase in income to farmers annually for turbine leasing, averaging up to
$250,000 which has flow on effects for the local community; and
An increase in community contribution totalling up to $80,000 per annum for
some wind farm projects, for the life of the project.
SKM additionally prepared a report on behalf of AGL to assess the economic impact of the
Hallett wind farms, located in South Australia’s mid north. Whilst the Hallett projects are
collectively larger by some margin to the proposed Berrimal project, they provide a
useful reference point for the impacts of a project located some distance from a
dominant service town (a role played by Ballarat and Goulburn respectively for ACCIONA
Energy’s Waubra and Gunning projects). The SKM report identified the following
quantitative and qualitative trends:
Berrimal Wind Farm Socio Economic Considerations 2013
15
The population in the Goyder Shire had been contracting, which may otherwise
have continued as the population base undermined the economic viability of
certain services, leading to further reductions in population
The Hallett Wind Farms were projected to maintain the current population by
providing short and long term employment opportunities; and
The Hallett Wind Farms could also theoretically reduce regional unemployment by
15-17%.
Since construction of the project, there has been:
Evidence of strong local business support for the Hallett project;
A significant increase in sales over the construction period for local
accommodation and food services providers;
Employment of local contractors directly in the wind farms’ construction, and
A more buoyant business environment in the region’s towns as a result of the
additional people and expenditure in the region lasting beyond the immediate
construction phase
Berrimal Wind Farm Socio Economic Considerations 2013
16
6 Conclusions
The Berrimal wind farm is expected to bring significant economic and social benefits to
Buloke and surrounding shires. Census and other Government data clearly indicate the
Buloke Shire has a number of long term economic and social challenges presented by a
falling population and heavy reliance on the agricultural sector. The Berrimal project will
provide a substantial additional economic focus in the shire, independent of, but
complimentary to, ongoing agricultural activities.
In summary, the project will:
Generate a construction peak workforce of 80-100 jobs;
Provide 5-10 ongoing full time positions on site;
Provide a diversified income for host landowners;
Provide a substantial increase in the Buloke Shire’s limited rates base;
Result in the establishment of a Community Benefit Fund to share the benefits of
the project with the immediate community surrounding the development, for the
operational life of the project; and
Result in the establishment of a local sponsorship program, supporting local
services operating within nearby service towns to the site for the life of the
project.
The PWC and SKM reports clearly identify substantial benefits flowing to communities
hosting wind energy facilities. With a declining population and associated economic
challenges, the Buloke Shire is potentially better placed than many to enjoy the uplift
associated with additional economic activity.
Berrimal Wind Farm Socio Economic Considerations 2013
17
7 References
Australian Bureau of Statistics, (2006 and 2011) Census of Population and
Housing http://profile.id.com.au/buloke/population.
Buloke Shire Council: www.buloke.vic.gov.au.
Clean Energy Council, (July 2012), Wind Farm Investment, Employment and
Carbon Abatement in Australia, [email protected].
Department of Planning and Community Development, (2012), Buloke Economic
Snapshot, Regional Development Victoria.
PricewaterhouseCoopers, (2012), Economic Benefits of the Waubra and Gunning
Wind Farms: Melbourne: ACCIONA Energy.
SKM Consulting, (2012), Benefits of Wind Energy in Australia, Melbourne: Clean
Energy Council.
SKM Consulting,(2010), Economic Impact Assessment of the Hallett Wind Farms,
Sydney: AGL Ltd.
http://www.buloke.vic.gov.au/