28 January 2021

 

Australia-ASEAN Power Link Project Development Agreement – Northern

Territory Benefits Background

The Northern Territory Government and Sun Cable are signing a landmark Project Development Agreement that will see the Northern Territory house one of the world’s largest renewable energy systems. Sun Cable is developing the Australia-ASEAN Power Link (AAPL), a world-leading renewable electricity transmission system that will bring major long-term benefits to the Territory.

 

The AAPL will create a global step change in the renewable energy market – making it possible to generate, store and transmit renewable electricity at scale – in the Territory and overseas.

 

The Territory and Sun Cable are forming a partnership that will have immediate and long-term benefits for Territorians (outlined below). The AAPL will have a project lifespan of 70 years.

 

1. The Territory is delivering on its promise of net zero carbon emissions by 20, simultaneously delivering long term economic growth for the Territory.

 

Housing this project in the Territory will enable the growth and diversification of new and existing industries, support long term efficiencies and create new revenue streams for the Territory.

Affordable, dispatchable renewable electricity is an enabler for new industries, and the modernisation of existing industries, including renewable energy powered manufacturing, minerals processing and data centres.

 

The Australia-ASEAN Power Link project offers significant opportunities for the Northern Territory to make deep cuts in its emissions intensity by decoupling economic growth from carbon pollution. Sun Cable’s modelling suggests that, with an 800MW supply from Sun Cable, the NT economy may be able to reduce emissions intensity of economic activity by up to 30%. This would take the Territory’s emissions intensity from 0.61 kg / $GSP to 0.41 kg / $GSP, while still fulfilling its goal of reaching a gross state product of AUD40bn by 2030.

 

This will help the Northern Territory achieve its ambition to grow its manufacturing sector while achieving its goal of zero net carbon emissions by 20. It will also contribute to a global reduction in greenhouse gas emissions and aspirations of ASEAN countries to move to electricity generated by renewable energies.

1. The Northern Territory will become the global home of one the world’s largest renewable energy systems

    

   To build and operate the AAPL, Sun Cable is committing significant resources to the Territory, giving the Territory a substantial competitive advantage in the region.

    

   Sun Cable will invest resources in the Territory, signalling the importance of the Territory in this global renewable energy project. These commitments by Sun Cable include:

    

   1. opening its project headquarters in Darwin, with a significant number of employees engaged in regional and corporate functions, located and residing permanently in Darwin.

       

   2. having senior personnel responsible for the delivery and operation of the Project Sites residing in the Territory.

       

   3. locating the system control functions and infrastructure for the Northern Territory located Project Infrastructure in the Territory.

       

2. Sun Cable will establish a renewable centre of excellence in the Territory

    

   The Renewable Centre of Excellence will be located in the Northern Territory and will draw on existing solar, electricity and infrastructure expertise in the Territory. This will grow the Territory into a world- leading centre of renewable innovation.

    

   The Renewable Centre of Excellence will include:

    

   1. partnering with a university for research and development in the Northern Territory

       

   2. working with the Territory to expand research, commercial development and investment opportunities between Australia, Indonesia and Singapore

       

   3. training opportunities for Territorians, including Aboriginal people, to grow and develop skills, focusing on areas where there are skills gaps, as identified by the Sun Cable Territory Benefit Plan, and by working in close collaboration with the Northern Territory Government.

 

The Territory will receive significant local benefits from the AAPL, with a focus on jobs and social and economic growth

 

1. The AAPL will employ 1,0 construction jobs and 3 ongoing and operation roles.

    

2. Sun Cable has already hired more than a dozen Northern Territory businesses across different industries, including environmental regulation, ecological surveys, geotechnical survey, hydrology, architecture, legal, strategic communication and maintenance.

    

3. Sun Cable acknowledges that the Territory’s goal is to maximise the local benefit of projects during all project phases, including local workforce development, regional and Aboriginal economic and community development and local business participation.

    

4. Accordingly, Sun Cable will prepare a Territory Benefit Plan in accordance with the Territory Benefit Policy and report on it annually to the Territory.

    

5. To the extent that it is commercially and practically feasible, Sun Cable will import goods required for the AAPL through the Darwin port.

For Media Enquiries please contact: Jane Munday, True North Strategic Communication on 0427 880 083.