Environment

May 4, 2010

Clean energy sector bets everything on RET legislation after demise of CPRS

Abandoning an emissions trading scheme has frozen the renewable energy market and the Government’s “flawed” clean energy targets are stifling investment in large-scale projects like wind farms and solar generation.

Jason Whittaker — Former <em>Crikey</em> editor and publisher

Jason Whittaker

Former Crikey editor and publisher

Shadow Minister for Energy and Resources Ian MacFarlane spoke this morning at the Clean Energy Council’s national conference in Adelaide, the first gathering of industry leaders since the Government announced it was abandoning its push to introduce its Carbon Pollution Reduction Scheme.

4 comments

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4 thoughts on “Clean energy sector bets everything on RET legislation after demise of CPRS

  1. LizzieA01

    It is important that the structuring of this legislation is done correctly – it is the second “fix” that the Rudd government have undertaken on this scheme, so getting it right this time is paramount.

  2. EnergyPedant

    Current economics

    Black Energy Price + REC < Cost to build wind farm
    $35/MWh + $40/MWh Cost to build wind farm

    $35/MWh + $25/MWh + $40/MWh > $110/MWh

    This is not quite right since the REC price inversely depends on the Carbon price

    The problem is residential solar panels earning 5x certificates, commercial heat pumps and an over-build in the wind sector meaning that the REC price doesn’t depend on directly on electricity prices.

    The future renewable energy target requires a massive increase from about 2015 onwards. The problem for the wind industry (amongst others) is that for now the market as currently setup is over-supplied and no-one gets to build anything.

  3. Roger Clifton

    Alternative energy suppliers may get some reassurance from the Commonwealth’s new-found capacity to tax mineral resources across the country.

    It would be particularly helpful, if the Commonwealth announced that carbon-containing minerals would be taxed at a higher rate. It wouldn’t matter that that rate be infinitesimally greater than for other minerals: it would be enough to flag that a Carbon Tax had been established.

    Later political process could inch it upwards, eventually allowing the alternative energy suppliers to demonstrate their profitability relative to coal and gas.

  4. Dr Strangelove

    They wouldn’t have to have gone back a second time if the LibLabs just supported the Greens amendment to the original legislation that did exactly that – put solar hot water schemes into a different target and remove the 5x effect on solar panels.

    Strewth.

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