Liberals plan to scrap green energy targets

The Age
Friday 18th, 2006

PLANS for a Mandatory Renewable Energy Target for electricity retailers would be scrapped by a state Liberal government. Last night Opposition energy spokesman Philip Davis said that, if elected, his party would repeal legislation for a Victorian Renewable Energy Target scheme announced by the Government.

The scheme would require electricity retailers to meet 10 per cent of their power from renewable sources by 2016. Speaking at the Victorian Employers' Chamber of Commerce and Industry's energy forum, Mr Davis said a Liberal Government would turn its attention towards cleaner ways of burning brown coal.

'Any significant greenhouse gas abatement produced in Victoria will come as a consequence of adopting new technologies in the brown coal sector," Mr Davis said. "The only way Victoria can maintain its low-cost-power competitive advantage is to invest in that sector." He rejected suggestions that the Liberals were walking away from renewable energy, but said any role it would play in meeting Victoria's energy needs in the future would be "marginal".

With the Government having the majority in both houses, the legislation is set to pass, possibly as early as next week. But Mr Davis said companies thinking of investing in renewable sources needed to know the risks. "I do this to ensure that industry has no uncertainty and will make no investment decision based on this flawed policy," he said.

Energy Minister Theo Theophanous said the decision was "appalling" and compared it to the Liberals previous plan to reverse tolls on EastLink. Mr Theophanous said he did not believe that the Liberals would break promises to companies that had already announced their intention to invest in wind farms: For the legislation to be repealed, a Liberal government would almost certainly need to rely on the support of the minor parties, which are likely to hold the balance of power in the upper house after the next election.

Greens energy spokesman Louis Delacretaz said his party would not vote to dismantle the legislation. But Nationals energy spokesman Peter Hall said his party would vote to repeal the renewable energy scheme. VECCI chief executive Neil Coulson said he welcomed debate on the scheme, but business needed certainty if it were to invest in the sector.