Location: Wellington Shire, Victoria
Population: 45,639 (2021 Census)
Main communities: Sale, Yarram, Port Albert
Fast facts:
- This Gippsland region local government area was created in 1994 through the amalgamation of several shires and covers nearly 11,000km²
- Home to important agricultural industries, particularly grazing and dairy farming, but also a major gas processing plant
- Tourism is also a key industry in the local area
The net zero transition is well and truly underway in the Wellington Shire, with the region earmarked to host the Star of the South offshore windfarm, which has the potential to supply up to 20% of Victoria’s electricity needs.
STRATEGIC INITIATIVES FOR NET ZERO TRANSITION
Wellington Shire Council has committed to a two-part approach to tackling climate change, this includes committing to limit carbon and greenhouse gas emissions, and community adaptation to build resilience against the effects of climate change.
These goals are further articulated in Wellington Shire Council’s Sustainability Strategy which outlines five pillars to combat climate change. These pillars look at community resilience to and recovery from climatic events, low carbon economies to mitigate emissions, protecting the natural environment, striving for a circular economy to reduce waste and carbon footprints, and environmental stewardship to ensure sustainability practices are embedded in all citizens, business and service provider practices.
CONTEXT
Wellington Shire, situated adjacent to Latrobe City, has a long history associated with Exxon Mobil’s Longford gas and oil plant, 20 kilometres from Sale, the largest population centre in the shire. The company’s onshore and offshore operations have provided jobs to local people and gas to Victoria since 1969. As such, the shire and its community have had a long history associated with fossil fuel production.
NET ZERO
In recent years, the Wellington Shire Council has developed a deeper comprehension of the evolving landscape of energy within both local and global contexts. This understanding encompasses the transition away from traditional fossil fuel sources towards more sustainable alternatives, aimed at reducing greenhouse gas emissions. At a local level, there is growing acceptance that oil resources offshore in Bass Straight have been depleted over time and several facilities have ceased operating, with key player Exxon Mobil winding down its production.
In addition, Wellington Shire was included in the state government’s support for addressing potential economic and social impact following the closure of the Engie-operated Hazelwood power station and coal mine in Morwell in March 2017. This included access to direct funding for infrastructure, employment, support for local businesses — particularly within supply chains —and encouragement of new businesses to establish locally. It also involved access to support for growing lead industries in the district including new energy opportunities, collaboration on tourism and value adding in agriculture, working through already established peak bodies.
As the transition package demonstrated benefits and positive outcomes and as new energy investors both locally and internationally emerged, the council began to recognise and understand the importance and potential of changes underway that will contribute to net zero.
DRIVERS
The closure of the Hazelwood mine in March 2017 and the anticipated closure of the Yallourn mine in 2028 have been strong signals to the wider Gippsland community that change is happening. The region is also of interest to a multitude companies, investors and governments with the area’s skilled workforce, grid and transmissions access and favourable production conditions seen as desirable.
By 2021, Wellington Shire Council had included in its 2021- 2025 Strategic Plan five priority areas, including dealing with climate change and making an economic transition. This was a significant shift from planning 10 years earlier.
The Victorian State Government’s emissions targets and associated plan for renewable energy production and transmission infrastructure are playing an important role in sparking optimism and future thinking in Wellington Shire. A Renewable Energy Zone has been established in Gippsland, which covers the Latrobe Valley and Wellington Shire. Due to local conditions, offshore wind energy production and onshore solar and wind are a focus.
Significant funding committed by the Victorian Government for a locally based and comprehensive transition approach, which includes support for innovation activity, has been identified as an important factor in shifting attitudes and committing to change. As a result, the benefits of renewable energy, including reducing costs and supporting the environment, were identified early. Local knowledge and buy-in was also established, particularly with the Wellington Shire Council, and geothermal heating and solar are now utilised in the region.
DEVELOPMENT
Early steps are being taken to support emerging opportunities, with a particular focus on supporting local businesses that are early adopters and pursuing new ventures. Wellington Shire Council is encouraging these businesses through incentives, publicity, showcasing at public forums, networking opportunities, and support on planning and service requirements. This has grown confidence in decision-making for early exploration and action.
The purchase of marginal land for wind and solar generation in the region, resulted in local businesses realising the potential of renewable energy. This helped in managing the ‘social licence’ associated with renewable projects. Local businesses sought external investment partners to explore related energy opportunities, such as high fuel cell hydrogen for transportation companies and utilising landfill for fertiliser. Importantly, these activities were aligned to wider regional interests.
The early arrival of international investors, particularly a consortium of Danish interests behind the Star of the South offshore wind project, was seen as a significant step for large-scale development with direct opportunity for councils like Wellington Shire. The role of state government in supporting early investigations of this potential and committing seed funding was a crucial step in achieving further commitment from the consortium. From a council perspective, the careful, genuine and sophisticated work undertaken by Star of the South to build trust and understanding across the community has played a critical role in the project’s progression.
In 2023, Star of the South applied for a feasibility licence, which, if successful, will enable the project to further progress. If developed to its full potential, Star of the South is expected to generate 2.2 GW of energy powering around 1.2 million homes. The project has the potential to impact the long-term future of Gippsland and have flow on effects for the nation. Barry Beach Marine Terminal and Port Anthony have been identified as potential options for the project’s Gippsland Operations Base. These already established ports have existing facilities, suitable water depths and are close to the proposed project site.
The conditions that have been established locally have been important to the project’s progress to date. The international knowledge and experience Star of the South brings from Europe, where offshore wind technology has been operating for decades, has assisted the project’s credibility locally. Importantly, its careful and dedicated work to learn about, consider and understand the local context, people and history during scoping has paved the way for locally supported activity now underway. Star of the South’s local team regularly meet with local government, Traditional Owners, state agencies, unions, community advocates and businesses to map the potential for supply chain, employment and local procurement opportunities.
This engagement, relationship and partnership building is ongoing and the employment of a team of local people, who are well-known, respected and care about their community, has over time built wide support for and confidence in the importance of this project for the future of the region. The genuine participation and direction setting across sectors to progress the project is evidence of the successful approach taken and the shift that can occur in sentiment and support through times of major industry and social disruption.
SUCCESS FACTORS
While the closure of local coal mines was difficult at the time, negative impacts associated have been largely mitigated by a four-year state funded transition plan. It encouraged and supported local action over time to grow the ambition and capacity required for the complex work of the transition to net zero. Research to map out the future of the region has been undertaken, including in the Wellington Shire Council’s Renewable Energy Impact and Readiness Study, completed in early 2023. That study identified the role of the council was to:
- Promote and advocate opportunities for local business and training priorities.
- Coordinate and partner with government and other agencies for planning and approvals.
- Strategise policy and planning land use, housing and services.
- Engage and communicate with business and community to build awareness and knowledge.
CAPABILITIES
It is clear that the net zero transition is well underway in Wellington Shire off the back of localised, significant, historical, industry disruption and a set of conditions that have assisted progress to date. It is important that the Wellington Shire Council has recognised it will take time, expertise, knowledge building, capacity and collaboration to manage the transition to net zero.
It has resulted in the council taking a more public lead and advocacy role, in recognition that the complex nature of new technology, changing employment skills and business practices will require cross sector and industry collaboration. It has recognised that new positions and ways of working with others is needed. Feedback from the council’s partner organisations has indicated that this change has been most welcome and necessary. It still has its core work to be done in readiness for new infrastructure and planning requirements with liveability requirements such as planned housing and accommodation which is challenging given to scale of potential projects and new technology application.
FUTURE STEPS
It is apparent across the Wellington Shire Council area, there are high levels of confidence in government support for the transition and the potential for scalability, specialisation and diversification. Work on forecasting and planning for the future is well underway and it is acknowledged that a cross-industry approach is required.
There are several challenges associated with the work undertaken in the transition space to date. The most common is the time required to develop and get approval for renewable energy projects, both big and small.
For small entrepreneurs, there are risks associated with early investment and finding suitable partnerships with co-investors. This is both a capability and policy issue and requires a balance between industry led development and government support. Early adopters often feel pressure - they want to be successful, not over-invest and provide confidence to the wider community. Smaller businesses also have limited capacity to navigate funding requirements, which can disadvantage them against larger corporates.
Renewable energy projects also often take a long time to come to fruition and require specialists in certain development stages. For some big projects, this can amount to 10 years plus.
This case study is an excerpt from the Towards Net Zero: Empowering Regional Communities report, which was released in August 2024, under the Intergovernmental Shared Inquiry Program.
This report was funded by the Australian Government, in conjunction with the NSW, Queensland, South Australian and Western Australian Governments.