Renewable energy ‘Silicon Valley’: Hunter region jobs boost if Rudd ensures a ‘just transition’ for workers

Written by the Centre of Full Employment and Equity (CofFEE) at the University of Newcastle, and commissioned by Greenpeace, ‘A Just Transition to a Renewable Energy Economy in the Hunter Region’ finds major benefits in shifting from coal-fired power to a renewable energy economy, using the Hunter and adjacent Wyong region as a case study. Although there has been analysis of how renewables can replace coal-fired generation by 2030, there has been no modeling of the affect of this on jobs, until now.

The report finds that a shift from coal-fired power generation to a clean renewables ‘Silicon Valley’ in the Hunter/Wyong region would create between 7,500 and 14,300 new jobs: a net gain of between 3,900 and 10,700 jobs. These would be secure and well-paid jobs in the research, design, manufacture, installation, maintenance and export of renewable energy and energy efficiency technologies. If the Hunter/Wyong region was developed into a renewables ’Silicon Valley’, this would also revitalise the region’s manufacturing industry, creating many thousands of jobs in NSW.

Six of NSW’s eight coal-fired power stations are located in the Hunter region. They contribute 40% of the state’s and 11% of Australia’s greenhouse pollution. Therefore a phasing out of coal-fired power would represent a major step forward in reducing Australia’s emissions. In addition to this massive climate benefit, replacing coal-fired power with renewables and gas generation would create more jobs, and, due to the nature of renewable energy generation, these jobs would be local.

“Coal is not a sustainable industry. Coal power will be more expensive in the future and renewable energy will become cost competitive, yet the Rudd Government has not yet put any policies on the table to help those working in coal-fired power generation gain employment in lucrative renewables industries such as wind, solar, geothermal and associated manufacturing,” said Stephen Campbell, head of campaigns at Greenpeace.

“These industries are currently employing thousands of people overseas yet the Government’s solution for coal affected industries and communities to date seems to be to rely on unproven and expensive ‘clean coal’ technologies. The Hunter case study could be applied to other coal communities, such as in Queensland and Victoria, to assess the potential for these regions to make a just transition from coal-fired power to renewable energy hubs.”

Bill Mitchell, Professor of Economics and Director of CofFEE, said: "The number of potential quality, high skilled employment opportunities that we have identified could transform the Hunter region into a innovative renewable energy hub. While the phasing out of coal-fired electricity generation will be hard in the short- to medium-term the opportunities that are available in renewable energy will underpin a prosperous future for the Hunter."

"It is essential that state and federal governments implement new policies to smooth the  transformation of the Hunter labour market from coal-fired power to renewable energy. Employment guarantees and new training programmes are required and should be integrated into broader industry initiatives to encourage investment in renewable energy."

Campbell said: “The Garnaut Review on climate change, which reports back on the 4th July, should be recommending an energy revolution for Australia. This means Prime Minister Rudd must start responsibly phasing out coal-fired power and replacing it with renewable energy.

“It isn’t a black and white choice between action on climate change and jobs in coal communities. It is up to the government to ensure workers in coal regions, such as the Hunter, Latrobe and in Queensland, are not adversely affected by the shift from coal to renewables. They must be guaranteed a ‘just transition’ away from coal.”

Graham Brown, a retired coal miner from the Hunter region backed the report’s findings: “Renewable energy is the way of the future. We've got the potential in the Hunter Valley for wind. We've got plenty of sun. We can retrofit our power stations if we spend the money. The future's bright. It doesn't matter what the coal industry says renewables have passed the point of no return and they will continue to advance. The technology's already there, we don't have to wait 20 years for it. We need a mechanism in place - a transition mechanism. We don’t want local communities to miss the opportunities by being locked into unsustainable coal.”