Clean energy policy is today's problem

Auswind Media Release
Thursday 22 February 2007

The Australian wind energy industry today called on political leaders and policy makers to focus on the clean energy solutions for today - and not be distracted by hoped-for solutions, which can't be proved for decades.

Auswind CEO, Dominique La Fontaine, said that the National Generator Forum report attempts to analyse what might happen to several technologies that are not yet even a technical reality, let alone able to be costed. Sadly the report has chosen to largely ignore the commercial reality of mature clean energy technologies like wind energy which can make real reductions in Australia's emissions immediately.

"To assert that nuclear energy and CCS* coal will need lesser price signals than wind energy implies that these technologies will be cheaper than wind energy in 2020. "Ziggy Switkowski's own report quotes US studies where estimates for nuclear power range from A$75 - 105/MWh." The Zwitkowski report goes on to explain that if the challenges of construction of so called 'First of a Kind' nuclear plants can be overcome, then it's possible that these costs could reduce to A$40- however these "settled down costs are yet to be proven in practice"

"Modelling the costs and subsequent investment incentives for energy technologies that even the Government's own report cannot be definitive about is not a firm basis for clean energy policy deliberations.

"Right now wind energy often sells at less than $80/ MWh, and with the effect of economies of scale and technological advances, that figure could easily be $65/MWh or less by 2020.

"The NGF report assumes a steep learning curve for 'clean' coal and 'safe' nuclear but it is unclear whether the fact that wind energy has been installed for over 20 years and continues to make efficiency savings from technology improvement has been accounted for. This is not to mention the cost savings from larger more efficient turbines that can be installed on existing sites to increase energy output. Again, this is not just a possibility, it is happening around the world today and the costs are known.

"While the report says that the "availability of certain technologies was limited by the location of resources... for example wind was limited on a regional basis to levels provided by the industry', this was not referenced and Auswind was not consulted about the report."

Australia's energy policy should be focused on what we know Australia can do today to begin real emission reduction from the stationary energy sector, using wind and other zero emission technologies that are currently available and have transparent costs. Industry should also be consulted closely, rather than relying on external consultants who are not expert in these areas.

"Government should not pick technology winners. The decision about the most cost efficient clean energy technology should be left to the market. Wind power and many other renewable energy sources are ready to compete against these other potential solutions on a level playing field.

"The Australian economy must begin a sensible transition to internationally acceptable emission levels. The implications of hoping for the deployment of energy technologies that are not proven in either a technological, commercial or regulatory sense, are serious indeed.

"The greater deployment of existing, proven, clean, zero emission technologies like wind should commence right now, using any one of, or a combination of the policy mechanisms that are well understood and can be costed using real data.

Auswind maintains that the market should be left to decide which zero emission technologies will best serve the nation's needs, and that can only happen through the use of a market mechanism which creates a level playing field.

"The NGF report does show that an emissions trading approach requires a significant carbon price to drive technology change. Internationally, the countries that have become involved in emissions trading have also implemented specific targets for renewably energy technologies because they acknowledge that it will be some time before the price of carbon alone will stimulate deployment of mature clean energy technologies like wind. Australia can't afford to wait for emissions trading to bring about cleaner generation in 2030."

*CCS - Carbon Capture and Storage