Weld Australia is calling on the federal and state governments to legislate local content procurement policies.
These policies must stipulate that 60 per cent of all fabricated steel used in renewable energy projects is manufactured in Australia by local welders, according to Geoff Crittenden, CEO of Weld Australia.
He said the federal government's Capacity Investment Scheme presents a critical opportunity to bolster local economic participation in the renewable energy transition.
When it was first announced in December 2022, the federal government estimated that the scheme would drive approximately $10 billion worth of investment in renewables.
The scheme was expanded in November 2023, with the aim of unlocking $40 billion in private investment, which would add another 32 GW of capacity to the National Electricity Market.
“While the expansion of the Capacity Investment Scheme and billions in private investment are obviously welcome, it is essential that local and First Nations content requirements are incorporated into the scheme’s tenders,” Crittenden said.
“The government must commit to building sovereign manufacturing capability for renewable energy projects by legislating local content policy. The government must also mandate that all wind towers are constructed, erected and inspected according to Australian Standards.
“This will fortify domestic clean energy supply chains, boost investor confidence, and cultivate a skilled workforce for the energy transition, positioning Australia as a global renewable energy leader.
"This will create a capacity mechanism that generates a clear, long-term signal for investment by private equity and local manufacturers.”