Labor will deliver 9 gigawatts of new renewable energy
By 2030 Michael Daley and Labor will deliver 9 gigawatts of renewable energy for NSW.
Labor will deliver:
- 6 gigawatts of renewable energy through reverse auctions;
- 2 gigawatts of renewable energy through roof-top solar panels; and
- 1 gigawatt of renewable energy by creating a new State Owned Corporation.
Labor’s plans to deliver new renewable energy through roof-top solar panels will:
- Help an additional 500,000 households install roof-top solar panels, taking NSW to over 1 million solar households; and
- Help these households save up to $1000 per year on their electricity bills.
Labor’s plans to deliver new renewable energy through reverse auctions and a new State Owned Corporation will:
- Create enough renewable energy to power more than 3 million homes - equivalent to the current number of NSW homes;
- Put downward pressure on household electricity bills;
- Create up to 13,485 jobs;
- Supply up to nearly 27 per cent of the current demand for electricity in NSW;
- Create $9.5 billion of new infrastructure investment; and
- Create an additional $5 billion of economic benefits.8
Labor’s plan will be the largest investment in renewable energy in the history of NSW.
Reducing greenhouse gases to tackle climate change
Labor’s plan will reduce greenhouse gas emissions by 15 million tonnes per year. This is:
- 14 per cent of current emissions from NSW;9 and
- Equivalent to taking 4.9 million cars off the road - more than the total number of cars currently on the road in NSW (4.2 million).10
Labor will deliver new reverse auctions
Michael Daley and Labor will build 6 gigawatts of new, renewable energy through reverse auctions.
Labor will deliver this commitment through multiple rounds of reverse auctions. Some rounds will be technology specific (for example, focusing on wind or solar), while other rounds will be technology neutral.
The size, content and timing of each auction round will be developed following consultation with:
- The Australian Energy Market Operator;
- Industry; and
Labor will ensure sufficient storage capacity is developed to:
- Ensure the supply of energy is reliable; and
- Ensure energy is available to households and businesses when they need it.
Labor’s commitment will provide long-term certainty and encourage investment in renewable energy in NSW.
What is a reverse auction?
A reverse auction involves six phases:
- The State Government invites bids for renewable energy projects from developers, in accordance with the reverse auction specifications developed for that round.
- Developers of renewable energy projects nominate the lowest price they are willing to accept for energy generated by their proposed project. This occurs through a competitive tender process.
- The bids are assessed by the State Government to ensure they meet all applicable criteria.
- The winning bidder is selected on the basis of price and other requirements, including local manufacturing content and quality jobs.
- The State Government signs a contract that guarantees the price agreed, providing certainty for the project.
- The certainty provided by the State Government contract helps the developer of the project secure financing at reasonable rates and ensures the project is built.
Experience in other jurisdictions shows that this approach delivers lower prices for electricity and reductions in carbon pollution.
Labor will create a new State Owned Corporation to deliver renewable energy
Labor will establish a new State Owned Corporation to deliver:
- 1 gigawatt of renewable energy generation; and
- Energy storage projects.
This State Owned Corporation will:
- Create jobs and opportunities for apprentices and trainees;
- Give all citizens of NSW a stake in our state’s renewable energy future;
- Place the interests of consumers ahead of the need to generate higher profits;
- Complement activities in the energy market by providing investment certainty for businesses which supply renewable energy technologies, such as solar panels and wind turbines; and
- Help to reverse some of the negative consequences of the Liberals and Nationals privatisation agenda.
Labor will help 500,000 households install rooftop solar power
Labor will support 500,000 households to install roof-top solar power over the next 10 years.
Labor’s Solar Homes program will:
- Help families reduce their electricity bills;
- Increase the supply of clean energy in NSW; and
- Take the equivalent of 1 million cars off the road.
Under Labor’s Solar Homes program, owner-occupied households in NSW with a combined income of $180,000 or less will be eligible for a rebate if they install a roof-top solar energy system. This rebate will be capped at $2,200 per household.
On average, families who install roof-top solar power could expect to save up to $1000 per year off their electricity bills.
Labor’s Solar Homes policy will eventually create a “virtual” power plant that will generate 2 gigawatts of additional power once fully installed.
Based on current take-up rates for household solar power, Labor’s Solar Homes program could mean that an extra 1 million homes will be powered by solar energy by the end of the next decade.
Labor’s Solar Homes program will be phased in, beginning in the 2019-2020 financial year. This will help to ensure an orderly rollout of the program.
To ensure the safe installation of solar panels, the program will also support workforce development, training and accreditation of electricians who will install the panels.
Labor will ensure this infrastructure will only be installed by accredited solar installers, using approved products, to ensure the best possible safety standards.
Labor will introduce a Solar Industry Guarantee
Labor will introduce a Solar Industry Guarantee to support the solar industry in NSW.
The growth of the solar energy sector in NSW will create jobs:
- Installing solar panels; and
- Maintaining solar panels and solar energy farms.
The growth of the solar energy sector can also create opportunities for new manufacturing jobs.
Labor’s Solar Industry Guarantee will allow businesses who manufacture or assemble solar technology locally to enter into long-term supply agreements with the new State Owned Corporation. Labor will work to extend these long term supply agreements to companies participating in the reverse auction process. This will:
- Provide certainty for solar industry businesses to hire new workers;
- Help businesses in the solar industry secure financing;
- Ensure the NSW Government provides support to local businesses as a reliable customer; and
- Assist the solar industry in NSW to grow so that it can expand into other Australian states and overseas.
Labor will make TAFE free for renewable energy sector courses
Labor will make TAFE courses relevant to the renewable energy sector free.
Labor has committed to provide 600,000 free places in TAFE courses relevant to sectors of the economy experiencing skills shortages.
Labor’s plan will make courses relevant to electrical trades, construction and renewable energy free.
Labor will also require 20 per cent of work on major NSW Government construction projects be allocated to a combination of:
- Indigenous Australians; and
- People who have been long term unemployed.
Labor will deliver clean and cheaper energy.
1 Privatisation in NSW: a timeline and key sources, NSW Parliamentary Research Service, June 2017, p. 9
2 Restoring electricity affordability and Australia’s competitive advantage, Australian Competition and Consumer Commission, June 2018, Fig 1.10 (adjusted for inflation over 10 year period).
3 Australia’s retail electricity markets: who is serving whom?, CME and Mark Intell, August 2018, p. 24
4 The Costs of Market Experiments, The Australia Institute, January 2019, p. 4
5 Evidence of Associate Professor Bruce Mountain, Evidence to the NSW Parliamentary Select Committee on Electricity Supply, Demand and Prices in NSW, 18 June 2017, p. 40
6 Electricity Prices: Consumers get short-end of ‘big stick’, The Australia Institute, 18 January 2019
7 Based on the average annual household use in NSW of 5.25-6.2Mwh/annum.
8 Based on: Modelling of the Victorian renewable energy target scheme scenarios, prepared for the Victorian Department of Environment, Land, Water and Planning, EY, 18 September 2017
9 Emissions in NSW, Office of Environment and Heritage, November 2016
10 Motor Vehicle Census, Australian Bureau of Statistics, 27 July 2018