Renewable energy projects under threat

Vanguard September 2014 p.5
Bill F.

Pandering to the climate warming deniers and the fossil fuel industries, the Abbott government has set up a review into the Renewable Energy Target (RET), scaring the wits out of companies investing in renewable energy.

The RET was designed to “encourage investment in new large-scale renewable power stations and the installation of new small-scale systems, such as solar photovoltaic (PV) and hot water systems in households. The Renewable Energy Target also aims to ensure that at least 20% of Australia's electricity supply will come from renewable sources by 2020.” This means that 41,000 gigawatt hours of electricity must come from renewable energy sources by 2020. 

The review is headed by former Reserve Bank board member and climate warming denier Dick Warburton, whom Abbott has asked to look at scrapping the target altogether.

Several companies already committed to investment in renewable energy have shed workers and cut back on their plans due to the uncertainty.

Silex Systems was prepared to invest $420 million in a 2,000-dish solar farm near Mildura in Victoria, capable of producing enough electricity to power 30,000 homes. This will not go ahead and the company will instead look at a smaller project.

In South Australia, Pacific Hyrdo has axed a projected 42 turbine windfarm at Keyneton, north-east of Adelaide, while Senvion Australia’s proposed $1.5 billion wind farm near Ardrossan on the Yorke Peninsula may not go ahead, despite State Government approval in February this year.

Senvion manager Chris Judd sad, “We're having significant impact on emissions, we're driving down wholesale prices, we're creating significant jobs in the order of tens of thousands of people, and investment to the tune of tens of billions of dollars in this sector… Tens of thousands of people, their jobs, their livelihoods would be in a dire position as a consequence.”

Acting chief executive of the Clean Energy Council Kane Thornton said the Warburton review had affected confidence.

“The industry is basically on hold because of the uncertainty of the review ... It’s also affecting mature businesses like Pacific Hydro and Hydro Tasmania and there’s no question it makes it harder for the newer companies as well…You'd have to be pretty reckless to make a decision that ultimately doesn’t save anyone any money on their power bills, is at distinct odds with what 99% of people have asked for and will seriously damage investments and put people out of jobs.”

Mr Thornton said 21,000 people were employed in the renewable energy sector. If the target was slashed many businesses would close and thousands of people would lose their jobs, he said.