CWP Renewables investing huge money in wind farms as the Hunter energy transition surges forward

CWP Renewables has already developed huge wind farms in NSW totalling $1.5 billion in value, placing it among the biggest renewable-energy developers in the country.

It is now looking to employ more people to meet the demand of the renewable revolution.

The company, owned by Swiss-based global private equity firm Partners Group, has strong financial backing.

Partners Group has US$127 billion in assets and has invested more than US$170 billion since 1996.

CWP Renewables head of development Ed Mounsey said the company's work involved identifying, developing, financing, constructing and operating renewable energy projects.

The development side of the business is run from the Newcastle office, which has been operating since 2008.

"We've grown our Newcastle team to 25 people and are looking to grow further over the next 12 months to really capture the transition opportunity," Mr Mounsey said.

The company's wind farm projects are on land around Glen Innes, Mudgee, Yass, Dubbo, Wellington, Gundagai and the Snowy Mountains. It also has approval for a solar farm and battery storage project in the New England region.

The company is working on new projects in several NSW renewable energy zones [REZs]. The NSW government established these zones in the Hunter-Central Coast, New England, Central-West Orana, South-West and Illawarra.

The Newcastle Herald reported in February that more than $100 billion of renewable generation and storage plans had been lodged for the Hunter-Central Coast REZ.

More than 80 projects were registered, after the government called for expressions of interest.

They covered onshore and offshore wind energy, solar power, large-scale batteries and pumped hydro projects.

"We certainly submitted our interest, capability and a range of project opportunities we've been looking at in the Hunter-Central Coast REZ," Mr Mounsey said.

He said it was no surprise the expression of interest process had exceeded expectations, given the Hunter was an energy powerhouse.

He added that the government's decision to establish REZs "gives the industry long-term certainty".

"It allows us to invest and develop at scale over a longer-term horizon, not just at a project-by-project level."

Importantly, it enables companies such as CWPR to set a longer-term program of investment in the regions.

"That's something that's been lacking in the sector," Mr Mounsey said.

"It's a huge opportunity for the Hunter and other REZs to participate in the supply chain. That will flow into the transition of jobs and skills."

In establishing REZs, the government said it had pinpointed areas for "modern-day power stations".

"The government is planning the enabling infrastructure, being new transmission-line connections," Mr Mounsey said.

Transmission lines were traditionally connected to areas with fossil-fuel generation and deposits. New connections are needed to areas with renewable resources.

Mr Mounsey said a big part of CWPR's preparation for the REZ involved "building strong networks in the regions with existing industry, companies and service providers".

He said there were some but limited opportunities for greenfield development for renewables in the Hunter, but "huge opportunity in brownfield projects and supply-chain networks".

"Certainly, offshore wind is also in the thinking of the state and federal governments."

The federal government passed legislation last November to enable offshore wind farms to be built in Australian waters for the first time. The Offshore Electricity Infrastructure bill also allows for wave and tidal power, along with emerging technologies like ocean thermal energy.

Companies like CWPR are now waiting for the government to define the process for development in the offshore energy sector.

As for its onshore projects, CWPR has already built the $588 million 270-megawatt Sapphire Wind Farm near Glen Innes. It has 75 turbines that power 135,000 average homes a year.

It also built the 135-megawatt Crudine Ridge Wind Farm 45 kilometres south of Mudgee, with 37 wind turbines at a height of 160 metres.

It can power 55,000 typical NSW homes a year. That project is now operational.

The 243-megawatt Bango Wind Farm, north of Yass, has 46 wind turbines that stand 200 metres tall. Construction on this project is set to be complete this year.

"It's partially commissioned with the balance to come online at the end of this year," Mr Mounsey said.

The Uungula Wind Farm is approved, with construction due to begin mid-year. It's planned to be over 400 megawatt and based in the Central-West Orana REZ. It's expected to power about 200,000 average NSW homes.

The Spicers Creek Wind Farm, based in the Dubbo area, is in the early stages of development.

When built to capacity, it will become the largest wind farm in NSW, "somewhere in the order of twice the size of Uungula".

The Jeremiah Wind Farm near Gundagai is also being planned at about 350 megawatts.

Mr Mounsey said a "strong social licence" was needed for these projects.

"We aim to bring the community along with us and ensure the jobs are there," he said.

"Our projects have direct benefit to the community through construction spend and jobs. Benefits to the community also come with road upgrades for construction," he said.

Long-term operational jobs come with the wind farms, but these are fewer than during construction.

Mr Mounsey said CWPR was pursuing "relationships and activities with TAFE and in regional areas".

The company aimed to ensure the skills needed for construction and operation of renewable energy projects were available locally.

"We see the need for closer ties with the education sector, TAFE and university," he said.

"We have also introduced an Indigenous scholarship with the University of Newcastle as part of our reconciliation action plan."

Mr Mounsey said corporations were increasingly driving the market for renewable energy.

Supermarket giant Woolworths is one example of a corporation seeking to meet its net zero target.

"In recent times, we've contracted with companies like Woolworths and Nestle," he said.

"And the Sapphire Wind Farm provides power to the City of Newcastle."

The City of Newcastle said in 2019 that it was the first council in NSW to "move to 100 per cent renewable electricity".

It struck a 10-year "power purchase agreement" with energy retailer Flow Power "for the equivalent of all the city's operational needs from the Sapphire Wind Farm in the New England region".

With the rise of renewables, coal-fired power stations are closing earlier than expected and raising fears about blackouts.

Nevertheless, regulators say Australia is making progress on grid stability issues.

"The transition certainly needs to be managed to avoid those circumstances [blackouts]. Without doubt, we're transitioning to a renewable-based power system," Mr Mounsey said.

"We see wind doing a lot of the heavy lifting in that future supply mix."

Solar, hydro and short-term energy storage in batteries are part of the mix.

"We also see a role for firming generation to fill the gaps with the variable supply of renewables. Renewables are variable by their nature.

"There's an increasing role for renewable gases [such as biogas, biomethane, green hydrogen and synthetic natural gas]."

The Global Wind Energy Council has reported that the global wind industry built 93 gigawatts of new capacity in 2020, a 53 per cent increase on the previous year.

"But this growth is not sufficient to ensure the world achieves net zero by 2050. The world needs to be installing wind power three times faster over the next decade in order to stay on a net zero pathway and avoid the worst impacts of climate change," it stated.

The recycling of wind turbines is on the agenda in the renewable sector, amid concerns about them going to landfill at the end of their lives.

Renew Economy has estimated that by 2050, 43 million tonnes of decommissioned turbine blades will reach their end of life and need to be managed through the global waste stream.

"It's worth pointing out that up to 90 per cent of the other components of a wind turbine are recyclable."

The world's first fully recyclable wind turbine blades were made in a factory in Denmark last year for installation at an offshore wind farm in the German North Sea.

This was considered to be a big step towards renewable energy company Siemens Gamesa's goal of making wind turbines fully recyclable by 2040.

Mr Mounsey said recycling was on CWPR's agenda.

"Environmentally sustainable procurement, recycling commitments and life-cycle analyses are at the forefront of our thinking, as well as how we can enhance domestic products.

"We're trying to lead that thinking in our supply chains."