Wind the winner in RET deal, but other technologies may struggle
20 August 2009
The Federal Government's final plan to deliver 20 per cent renewable energy by 2020 was a well-timed boost for the wind industry, but may not benefit as much other promising renewable energy technologies.
Allens Arthur Robinson (Allens) Partner Grant Anderson said the Federal Government's ability yesterday to broker an agreement with the Federal Opposition over the 20% Renewable Energy Target (RET) opened the doors to up to $20 billion worth of renewable energy projects, many of them wind based, that had been parked for some time while awaiting policy certainty.
'There are a number of wind energy projects that are currently in the early stages of development that have been developed in anticipation of an expanded RET, and these will be the first to benefit from the new RET,' Mr Anderson said.
'There is also a long pipeline of new wind energy projects yet to be developed and projects that have been put on hold pending the expansion of the RET. The RET will therefore stimulate an enormous expansion in investment in wind energy projects.'
However, part of the deal between the Government and Opposition saw a demand for special consideration for emerging technologies, such as tidal, hot rocks, biomass and solar thermal, dropped.
'This is of concern for emerging renewable technologies as by the time that they are ready to be deployed on a commercial scale the revenue stream created by the RET may no longer be available,' Mr Anderson said.
'If this eventuates, then the development of these emerging technologies may be impeded.
'The ability to bank renewable energy certificates, and for small renewable generation units such as rooftop solar panels to generate multiple certificates for each megawatt hour of generation, may also deplete the market for any renewable energy certificates that are created by these technologies.
Ends
For further information, please contact:
- Jason SilveriiSenior Corporate Affairs Manager,
Melbourne
Ph: +61 3 9613 8014
Jason.Silverii@allens.com.au
Notes for editors.
Allens Arthur Robinson has staff in 14 cities and eight countries across the Asia Pacific.