The Industry Capability Network (ICN) is a not-for-profit service that helps Australian and New Zealand industries participate in national and global supply chains, and maximise their involvement in projects. The Network recently turned its attention to increasing the level of Australian supplier involvement in the clean energy industry.

The ICN’s National Sector Manager for Clean Technology, Rob McCullagh, was appointed after the Network received funding from the Federal Government to establish stronger assistance for the Australian construction and manufacturing industries to participate in clean energy development.

Promoting Australia

A key step in expanding Australia’s clean energy industry is promoting the attractiveness of the Australian landscape for international companies to begin developing their projects here, says Mr McCullagh.

“We have great natural resources in Australia, such as the best waves and tides in the world and our solar resources, so we need to promote our environment as a supplier as well as our manufacturers,” he notes.

“There’s a huge opportunity in Australia and New Zealand to develop testing facilities – not just building clean energy products, but using our resources as test centres, there’s a real appetite for this internationally.”

Mr McCullagh says this could open the door for technology transfer from competitor nations, and new licensing opportunities, creating a better business case for Australia to become a clean energy hub.

The ICN works with Enterprise Connect and Austrade to maximise these kinds of promotional opportunities by reviewing businesses and readying them for involvement on the international stage, with export-ready, cost-competitive international standards.

Mr McCullagh has worked on some interesting cases recently, including securing local tower manufacturing for the Suzlon-manufactured turbines at the Capital Wind Farm developed by Infigen Energy in New South Wales, and redirecting cabling orders for the Macarthur Wind Farm by AGL Energy and Meridian Energy in Victoria to a local supplier.

“If we can get involved nice and early on in the project, we can ask the right questions and work out if there are suppliers here in Australia who meet the proponents’ requirements. Nine times out of ten, when somebody says ‘nobody supplies this in Australia’, we’ve been able to find an Australia company that does it,” Mr McCullagh says.

Networking can help

In his role at the ICN, Mr McCullagh spends his time travelling Australia, talking with clean energy industry stakeholders – from project proponents and major multinational companies, to peak bodies, small businesses and local councils – to ascertain the opportunities available for Australian organisations to participate in clean energy projects.

“There are a number of ways we can convey those opportunities to the industry – we have a powerful, free online tool called Project Gateway, and a clean technology directory which is like a sub-set of Project Gateway. Through this, we can post opportunities, take company registrations and expressions of interest, and post work packages and event news,” Mr McCullagh explains.

“What that allows us to do is to be an extra set of hands for the project proponents, so that our phone can ring rather than theirs; we can do pre-qualifications for them, so that the companies we nominate are credible, and have the capability and capacity to do the job specified.”

Mr McCullagh says that in 2012 wind and solar energy will be the dominant sectors for clean energy construction and manufacturing, but he notes that wave and tidal energy projects will also hold opportunities for greater industry collaboration – and he says that bioenergy and waste-to-energy are priorities for the year ahead.

“At the ICN, we try and work where possible with research organisations so that we can get a sense of what will be ‘the next big thing’ in clean energy and then alert the industry to position themselves for those opportunities,” he says.

Clearer skies?

Mr McCullagh predicts there are “tough times ahead” for Australia’s solar installers. He encourages companies involved in Australian solar to diversify while cash flow is available and to look at areas where complementary services can be provided, such as electrical work.

“Extend those skills that are portable for manufacturing and fabrication, and talk to the ICN to register your capabilities in our database, because then we can position you for opportunities,” Mr McCullagh notes.

While Australian companies may not be able to counter the incursion of German- or Chinese-made solar panels, Mr McCullagh says that they can position themselves with a point of difference on quality, and keep pushing for improved government assistance.

“What I’d like to see happen at a government level is further emphasis on value for money throughout the life of solar products, where a premium paid by buying an Australian product would be more than offset by the long-term benefits – which is what ‘value for money determination’ is also meant to factor in.

“Australian industries still have a place here to manufacture components, it’s just that we’ve got to work at the right end of the market. I don’t think low-cost mass production of products is an option, we need to look at niche and high-end.”

Mr McCullagh contends that greater competition in the solar sector could be achieved through the buying power of public funds, instead of through private investment, which could help build a suitable demand profile for the use of solar power in public infrastructure.

“The eggs-in-the-one-basket approach is going to mean tough times for installers. Try and get as much diversity in your business model as you can, and use the ICN as an extremely low-cost resource to help you find and participate in work.”