Sector Board Plan Flashcards
Board’s requirements under the Act
(1) As soon as practicable after the commencement of this section, the Minister is to establish a board for the NSW renewable energy sector, in particular in relation to the operation of the sector and the manufacture and construction of infrastructure in the sector.
(2) The board is to consist of—
(a) persons appointed by the Minister, including at least 1 person representing each of the following groups—
(i) manufacturers of steel, aluminium and other similar materials,
(ii) the metal fabrication industry,
(iii) the Australian Workers’ Union,
(iv) the Electrical Trades Union,
(v) the Australian Manufacturing Workers’ Union,
(vi) the Construction, Forestry, Maritime, Mining and Energy Union (Mining and Energy Division)
(vii) employers in the electricity, manufacturing and construction sectors,
(viii) persons involved in the planning, design, construction and operation of generation infrastructure,
(ix) NSW electricity customers, and
(b) the Energy Corporation, and
(c) other persons appointed by the Minister.
(3) The Minister is to appoint as joint chairperson of the board—
(a) one person appointed under subsection (2)(a)(iii)–(vi), and
(b) one person appointed under subsection (2)(a)(ix).
(4) The board has the following functions—
(a) to prepare and provide to the Minister a plan for the NSW renewable energy sector, in particular in relation to the operation of the sector and the manufacture and construction of infrastructure in the sector.
(b) to monitor and review the plan and make recommendations to the Minister about the implementation of the plan,
(c) to report to the Minister on another matter if requested by Parliament by resolution of both Houses of Parliament.
(5) The board is to meet at least once every 6 months.
(6) The board is to provide to the Minister a report on the board’s activities—
(a) by 31 March 2021, and
(b) by 30 June 2021, and
(c) by 30 June of each following financial year.
(7) The regulations may make further provision for or with respect to the membership, procedures and functions of the board, including the terms and condition of appointment of members
Explain the timing around the Board’s review to get into AEMO’s Q4 tender
The Board has agreed to review its plan and develop a ratchet mechanism to increase the recommended minimum requirements in the Board’s plan over time. If the plan is amended as a result of the review, the Board aims for the revised plan to be published prior to AEMO Services’ Q4 2023 tender. To meet this deadline, the Board must provide the revised plan to IPART and the Minister for review and approval by early June 2023.
What is the impact of the Board’s recommended local content minimum requirements?
Benefit for NSW: net economic benefits is $520 million. And $1.324b net economic benefit of stretch goals.
Jobs created: 13,400 FTE from 2020 - 2041.
Impact on retail electricity bills in NSW (weighted average)
- residential: 0.3%
- small business: 0.3%
- Medium commercial and industrial (0.4%)
- Large commercial and industrial (0.4%)
What is the impact of the Board’s recommended local content minimum requirements?
Benefit for NSW: net economic benefits is $520 million. And $1.324b net economic benefit of stretch goals.
Jobs created: 13,400 FTE from 2020 - 2041.
Impact on retail electricity bills in NSW (weighted average)
- residential: 0.3%
- small business: 0.3%
- Medium commercial and industrial (0.4%)
- Large commercial and industrial (0.4%)
What does the Board’s plan recommend minimum requirements for?
Supply chain inputs
Investment and innovation in the supply chain
Employment, skills and knowledge transfer
First Nations participation plan
Fair and ethical practice
Environmentally sustainable procurement
How does the Board’s plan take effect?
The Board’s plan approved by the Minister for
Energy, following a recommendation by the
Regulator (IPART)
The Minister and the NSW Consumer Trustee,
AEMO Services, take the plan into account when
exercising functions under the Electricity
How has the Board’s plan been implemented in generation, storage, firming and network projects under the Roadmap? (via the Consumer Trustee)
Proponents required to prepare Industry and Aboriginal
Participation Plans covering 4 sections:
Section 1: Opportunities to supply goods and services, local
content commitments, local supply chain investment and
innovation commitments and supporting strategies and actions
*
Section 2: Employment and workforce development
commitments and supporting strategies and actions
*
Section 3: First Nations participation
* Section 4:
Commitments towards environmentally
sustainable procurement throughout the supply chain
Proponents expected to submit an IAPP that demonstrates
commitments towards achieving baseline requirements and
stretch goals (see following slides).
How has the Board’s recommendations been implemented regarding EnergCo (network projects)
The Central West Orana Renewable Energy Zone (REZ) is Australia’s first REZ.EnergyCo is running a competitive tender process to appoint a Network Operator to design, build, finance, operate and maintain the REZ network infrastructure.
The CWO REZ Industry and Aboriginal Participation Plan
(IAPP) is prepared and implemented by the Network Operator. The IAPP will address the Board’s plan and First Nations Guidelines issued by the Minister.
What are LCRs?
Local content requirement are the proportion of costs of local materials, labour and indirect costs as a of proportion to project contract value.
Local content means:
*goods produced by local industry
*services supplied by local industry
construction activities carried out by local industry.
- LCR applies to local content from Australia and New Zealand.
For supply chain inputs , local content requirements apply to:
* the development phase
* operations and maintenance phase.
For supply chain inputs,
local content requirements have been applied across five
technology areas.
*Wind
*Solar
*Pumped Hydro
*Battery Storage
*Network Projects
LCRs also apply to steel products and
components for the five technology areas listed above.
What are baseline local content requirements?
Baseline requirements refer to the proportion of goods and
services procured from or value added in Australia and New
Zealand as a % of total project contract value that proponents
must meet for LCR.
There is baseline requirements for wind, solar, pumped hydro, battery storage, network projects for development phase, operation and maintainance phase, and steel products and components using locally milled steel.
Relationship between supplier, manufacturers, OEMs, assemblers and developers.
Suppliers provide raw materials/components to manufacturer.
Manufacturer produces the product.
OEMs are original equipment manufactures, often making components that are used in other products.
Assemblers assemble the final product.
Developers identify and pursue new renewable projects and oversee planning to commissioning, who can work with all players to ensure supply chain operates efficiently to deliver the final product.
