Fed Govt’s renewable energy targets deemed too low by industry

Government renewable energy incentives insufficient: Brazzale
said REC prices had to be $35 and above to sustain the industry.
Industry figures say they can survive thanks to long-term purchasing
contracts or because prices are still strong enough to remain viable.
However, others are looking overseas due to insufficient incentives.

Power stations earn RECs to meet Government’s low targets: Power
stations classed by the Government as renewable energy sources can earn
one REC for each megawatt hour of energy produced. They can sell these
RECs to wholesale energy buyers, who use them to prove they are buying
more renewable energy – thus helping to meet the Government’s renewable
energy targets, which the industry says are too low.

150 megawatts needed to reach low target: Another factor is a
council study that concluded only 150 megawatts from grid-connected
projects would be needed for a mandatory 2010 renewable energy target.

Pacific Hydro postpones wind-power projects due to REC price fall:
Wind and water-power producer Pacific Hydro is hoping for an emissions
trading scheme to start by 2010 to boost profits. It said the fall in
RECs had caused it to postpone some wind-power projects.

Pacific Hydro looks outside Aust for greater return on $1b investment:
The company has almost $1 billion to invest over five years but it
might look at areas ranging from Chile to Fiji and North America for a
greater return on investment.

The Advertiser, 11/1/2006, p. 51

Source: Erisk – www.erisk.net 

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