Should Australia be attracting Investment in Clean Energy From Europe? Carolyn ABELA REBISCOUL 22 April 2013, Melbourne

Transcription

1 Should Australia be attracting Investment in Clean Energy From Europe? Carolyn ABELA REBISCOUL 22 April 2013, Melbourne

2 Austrade and How We Help Investors

3 Austrade s Investment Network Australia means opportunities

4 How we assist investors The Australian Trade Commission, in cooperation with State and Territory governments, provides free and confidential assistance National coordination of Australian government investment services Information on the Australian business and regulatory environment Market intelligence and investment opportunities Identification of suitable investment locations and partners in Australia Advice on Australian government programs and approval processes

5 Why Foreign Investors Choose Australia - A Growth Story Australia s economic resilience and strong growth create opportunities in a safe, lower risk environment.

6 Australia is a globally significant economy US$1.5 Trillion GDP Australia means opportunities

7 Australia ranked as the fifth most resilient economy in the world Australia means opportunities

8 Australia GDP the highest expected growth among major advanced economy Australia means opportunities

9 Australia s level of public sector debt is among the lowest Australia means opportunities

10 Foreign Direct Investment

11 Inward Investment Global FDI Stock World 20,438,199 EU 7,275,662 (35.6%) USA 3,509,359 (17.2%) UK 1,198,870 (5.87%) China (HK) 1,138,365 (5.6%) France 963,792 (4.7%) Germany 713,706 (3.5%) Australia 499,663 (2.5%) World 21,168,489 EU 9,198,832 (43.5%) USA 4,499,962 (21.3%) UK 1,731,095 (8.2%) Germany 1,441,611 (6.8%) China (HK) 1,045,920 (4.9%) France 1,372,676 (6.5%) Australia 385,470 (1.8%) Outward Investment Source: UNCTAD, million USD, 2011

12 Australia is a top destination for Foreign Direct Investment Australia means opportunities

13 Focus on European FDI to Australia Western Europe: 33.7% of foreign direct investment +30% on In 2009 there were an estimated 2,400 EU companies with a presence in Australia, with a total estimated turnover of almost A$270 billion or just over 14% of total sales in Australia, employing an estimated 500,000 people in Australia, and allowing for the flow-on (multiplier) effects, were responsible for generating more than 1.4 million jobs, directly or indirectly, or just over 12% of the Australian workforce. (EU Infocentre Australia) Australia means opportunities

14 FDI into Australia continues to grow across major sectors Australia means opportunities

15 Stock Value (AS$ Billion) FDI into Australia continues to grow across major sectors Foreign Direct Investment by Major Sector Transport & Communication Finance & insurance Mining Wholesale & Retail trade Manufacturing Sources: Australian Bureau of Statistics International Investment Position, Australia: Supplementary Statistics, 2011 (released 3 Dec 2012); Austrade Australia means opportunities

16 Attracting Foreign Investment from Europe The example of French investment to Australia

17 France Population: 63 million Three major industries in France: Agriculture, at 1.8% Manufacturing, Industry accounted for 20.2% Services, at 78.0% GDP: US$ 2,580.4 billion Projected GDP growth: 0.9% (2014) France attracted 26.5 billion euro of FDI in 2011.

18 France in the World France is the second-largest consumer market in Europe after Germany and the fifth-largest economy in the world, with a GDP of US$2,751 billion in France is home to 32 of the Global 500 companies. There are 558 French owned entities in Australia, with around 240 mother companies (ASIC).

19 French Companies in the World In 2012, 85% of the increase in turnover of the CAC 40 companies was achieved internationally. Year Turnover within France Turnover outside of France Total Turnover AUD$ m % Total AUD$ m % Total AUD$ m % % % % % % % %

20 French Companies: Citizens of the World Sector Africa and the Middle East Changes in Annual Turnover 2010 / 2011 USA Asia and Oceania Europe (outside France) France The Rest of the World % of Total Activity Energy 15 % 16 % 33 % 6 % 3 % 13 % 8 % Industrials 3 % 19 % 30 % 13 % 7 % 9 % 13 % and Materials Health and Consumer Goods NA 10 % 33 % 2 % -1 % 12 % 6 % Services 7 % 5 % 101 % 1 % -2 % -1 % 0 % Finance 3 % -46 % 15 % -4 % 1 % 56 % -4 % Technology NA 8 % -9 % 0 % 2 % 18 % 1 % Total by Geographic Region 8 % 4 % 26 % 5 % 2 % 15 % 6 %

21 French Global 500 Companies in Australia Turnover USD France 2,115,311 Air France-KLM Group 34,001 Alstom 27,417 AXA 142,712 BNP Paribas 127,460 Bouygues 45,669 Carrefour 121,734 Christian Dior 34,244 CNP Assurances 51,521 Credit Agricole 105,156 Danone 26,861 Fonciere Euris 48,748 France Telecom 62,955 GDF Suez 126,076 Groupe Auchan 61,699 Groupe BPCE 75,082 La Poste 34,268 Lafarge 22,970 Electricite de France 90,806 L'Oreal 28,286 Michelin 28,809 Peugeot 83,305 Renault 59,272 Saint-Gobain 58,560 Sanofi 48,746 Schneider Electric 31,128 SNCF 45,587 Societe Generale 98,463 Sodexo 22,262 Total 231,580 Veolia Environnement 48,486 Vinci 51,385 Vivendi 40,063 Australia means opportunities

22 France and Australia Australian FDI in France: AUD 491m France s FDI in Australia: AUD 6,777m There are just under 600 registered French FDI projects with the FIRB. 136 French FDI projects were approved by the FIRB in , totalling a value of 4,048 A$m.

23 Schneider Electric, sustaining growth with a global approach Their annual turnover has grown 15% in To support a sustainable development platform SE is already largely present in the new economies in Asia, Africa, the Middle East, Latin America, Mexico, Eastern Europe and Russia. In 2011 the principle acquisitions of the group were in Spain, China, Brazil, and India.

24 Vallourec, an embedded international presence to continue stable growth. Saw a growth in annual turnover of 19% in Only 9% of turnover was generated within France. Consequently, 14% is generated in Germany, 7% in the rest of the EU, 19% in Asia and the Middle East, 21% in South America, and 26% in North America. In 2011 Vallourec targeted external growth through expanding and reinforcing its international productive capacity in Brazil, the US, China and the Middle East.

25 Safran, accelerating growth through expanding international operations. Expansions in security in India and the United States have seen Safran consolidate its position as a global leader in biometric solutions. Stable growth across all geographic regions (the EU, North America, Brazil, China, India or Russia) in the aeronautic equipment sector has been paralleled by continued growth in France to further expand production.

26 BNP Paribas, Seen a growth of 70% of their turnover outside of France. Present in the US, Turkey, the South Mediterranean Basin, Africa, and Asia. In China, strong growth has helped regular contribution to the Bank of Nanjing. In 2011, BNP Paribas increased by 20% the capital of their partner Orient Commercial Bank.

27 Attracting Investment from the European Clean Energy Sector

28 Trends in Renewable Energy FDI Increasing levels of global energy consumption Fastest sector growth for volume of FDI projects six-fold increase from 2003 to Represents 11% of global FDI (2011) FDI in renewable energy including engines and turbines and solar components feeding the sector: est.us$91bn (est. US$77bn) Renewable energy leading sector investment around the world 1 st in Europe, 2 nd in North America, 4 th in Latin America. Source: fdimarkets 2012, the FDi report 2012, Global Greenfield Investment Trends Australia means opportunities

29 Trends To date: Green incentive packages around the world, including Australia driving growth Going forward: Fastest ROI trough energy efficiency and the race for a solution energy storage and grid integration, innovation offshore wind, Evs R&D to improve efficiency in each source technology, most R&D going to solar and wind Further consolidation and and new market entrants From oil & gas : Total & Repsol Insurance: MunichRe and Axa Private Equity Insurance New countries building investment pipeline: France Pension funds increasingly at ease to invest in wind assets Source: GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2012, UNEP< Bloomberg NEF and REN21 Renewables 2012, Global Status Report

30 Trends Cities & local Governments worldwide also have active policies, plans, or targets for renewable energy and climate change mitigation. 2/3 of world s largest cities with more than half of them planning to increase their uptake of renewable energy (including Australia ) Little systematic linking of energy efficiency and renewable energy in the policy arena to date, but countries are beginning to wake up to the importance of tapping their potential synergies. Source: GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2012, UNEP< Bloomberg NEF and REN21 Renewables 2012, Global Status Report

31 Renewables displacing power generation investment in conventional fossil fuels? Source: GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT 2012, UNEP< Bloomberg NEF Australia means opportunities

32 Renewable Energy experiencing the highest growth in FDI worldwide New clean energy incentive schemes dispersing investment potential around the world Competing investment locations bidding for limited corporate resources (funding and HR) Australia means opportunities

33 Europe still co-leading Investment League in Clean Energy Top 10 USD investment 2012 China 65.1 USA 35.6 Germany 22.8 Japan 16.3 Rest of EU Italy 14.7 UK 8.3 India 6.9 South Africa 5.5 Brazil 5.3 Country Growth Rate South Africa 226% Japan 46% Italy 35% China 35% Turkey 26% Australia 26% Rest of EU-27 13% Germany 11% UK 6% Canada 5% Australia means opportunities

34 So who s investing and who s receiving renewable energy FDI? Top 10 source and destination countries for renewable energy FDI in 2011 Source: fdimarkets, the FDi report 2012, Global Greenfield Investment Trends Australia means opportunities

35 Competitive stimulus beckoning investors worldwide

36 Competitive stimulus beckoning investors worldwide status 2009

37 Country Focus: Germany Source: Bloomberg New Energy Finance for the PEW Charitable Trusts, 2013

38 Country Focus: Spain Source: Bloomberg New Energy Finance for the PEW Charitable Trusts, 2013

39 Country Focus: UK Source: Bloomberg New Energy Finance for the PEW Charitable Trusts, 2013

40 Country Focus: Other EU-27 Source: Bloomberg New Energy Finance for the PEW Charitable Trusts, 2013

41 Successful Industry Development: Some Clean Energy Value Chains in Europe Thin Film Silicon CEM Raw materials Cells monolithic Integration & modules Balance of Plant Project Development Installation Solar Thermal Turbines & engines Receivers Design &Integration Mirrors and Heliostats Engineering Project Development Offshore Wind Turbines Wind Substations Foundations Cables Project Development Construction/Installation Vessels O&M Power generators Onshore Wind Bearings Gearboxes Generators Blades Turbines Project Dev. Construction Installation Power Generators Operations & Maintenance

42 Clean Technology in Australia An industry poised for growth Government policies Carbon price RET 20% by 2020 R&D Tax offset $10 billion Clean Energy Finance Corp $3.2 billion Renewable Energy Agency $1.2 billion Clean Technology Program Abundant and diverse resources 90% of land absorbs over 1,950 KWh of sunlight per metre per year Non-volcanic geothermal resources with temps up to 280ºC Strong westerly winds up to 10 mps in southern Australia Wave energy capacity estimated at 170,000 MW Australia means opportunities

43 Clean Energy in Australia Drivers Policy settings Natural resource conditions Rising energy and electricity prices Low sovereign risk Possible barriers to investment Internal competition for funding Policy settings and variation Power purchase agreements Grid access Australian cost base construction & operation Market size critical volumes for economies of scale and sufficient local demand Access to sufficient funding Adoption curve Australia means opportunities

44 Clean Energy in Australia Existing European Investors Fotowattio, Abengoa Solar, Acciona Solar, RES, Q-Cells, Areva RE, Schneider Electric, Dalkia, GDF Suez, EDP, Union FENOSA, Australia means opportunities

45 Conclusion The EU is the world s largest recipient and source of FDI The EU also leads in the overall investment flows related to clean energy Its experience and expertise make it an obvious source of FDI to any country seeking to attract investment to this sector. Global competition requires benchmarking and efforts to curb investment barriers Investment is competing to locate around the world Australia means opportunities

46 Thank you for your attention Carolyn ABELA REBISCOUL Clean Energy Leader and Investment Manager, Western Europe Australian Trade Commission (Austrade) 4 rue Jean Rey, Paris Cedex 15, France T +33 (0) Carolyn.Abela@austrade.gov.au

47 Q&A