Page 25 - AGL Sustainability Report 2011

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Economic
Sustainability Performance Report 2011 23
Sustainable growth
Economic contribution to the community
AGL’s capability to deliver new renewable energy and
upstream gas projects is dependent on AGL adopting
a sustainable project delivery model whereby new
projects deliver economic beneft to both AGL and the
community.
Hallett wind farms economic impact assessment
AGL has five wind farm projects situated in the Hallett region of
South Australia, and as such has a significant presence in the local
community.
During FY2010, AGL engaged Sinclair Knight Merz to undertake an
assessment of the economic impact the Hallett wind farm projects
have had, and are likely to have, on the mid-north region of South
Australia. A summary of the key findings of this study was presented
in the 2010 Sustainability Report and is also presented below.
Following the completion of the AGL Hallett 5 Wind Farm, AGL is
looking to revisit the study to evaluate the final economic impact
of the projects.
AGL is continuing to use the Hallett Wind Farms Economic Impact
Assessment results to model the likely economic benefits on other
communities where wind farms are being developed.
Coal Seam Gas Housing Market Assessment
There has been some conjecture that AGL’s coal seam gas
activities have disrupted local housing markets and caused housing
prices to suffer.
During FY2011, AGL engaged RP Data Pty Limited (RP Data) to
undertake an analysis of housing markets in and around areas where
AGL is actively producing or exploring for coal seam gas, namely
Camden, the Hunter Valley and Gloucester in New South Wales and
Moranbah in Queensland.
1
The study involved an analysis of median house price movements
and the number of transactions recorded over time within each of
the areas. The results for each area were compared with a broader
benchmark region that provides a reference point for the broader
market average.
RP Data concluded that “The analysis shows that the housing
markets within each of the regions where AGL are active have
shown no discernible deviation from broader market trends.
Across each of the four operational regions studied, median price
movements and transaction volumes are generally moving in line
with the broader benchmark results”.
Note
1 Moranbah Gas Project is a joint venture between AGL and Arrow Energy, operated
by Arrow Energy.
Hallett wind farms economic impact assessment results (June 2010)
Economic impact
June 2010
On completion of Hallett 1, 2,
4 and 5
On completion of Hallett 1, 2,
3, 4 and 5
Project development and construction expenditure (total)
$800 million
$897 million
$1,065 million
Project development and construction expenditure (regional)
$88 million
$111 million
$132 million
Ongoing operational expenditure (total per year)
$25 million
$30 million
Ongoing operational expenditure (regional per year)
$12.5 million
$15 million
Ongoing annual increase to Gross Regional Product
1.15%
1.4%
Average annual direct construction employment (regional)
98 people
90 people
80 people
Average annual direct construction, manufacturing and
support employment (regional/national/international)
185 people
200 people
190 people
Total direct construction job years (regional)
450 FTE
540 FTE
640 FTE
Total direct construction, manufacturing and support job
years (regional/national/international)
850 FTE
1,000 FTE
1,200 FTE
Total direct operations jobs per year (regional)
15 people
36 people
42 people
Additional indirect job years (regional/national/international)
2,000 FTE
2,400 FTE
Note
FTE = Full-time equivalent.