No money for new energy technology

Australian
Wednesday 20/6/2007 Page: 6

A TARGET of drawing 10 per cent of NSW energy needs from renewable sources is likely to be set out in draft legislation to be introduced next week, but the lemma Government yesterday failed to invest in the technology required to produce it. Instead, it earmarked $2.9 billion for investment in electricity infrastructure, with most of it committed to upgrading the ageing power distribution network, including substations and highvoltage transmission lines. A further $500 million will be spent on upgrading existing coalfired power plants and $300 million will go towards a 600mW gas-fired power station on the central coast.

Government sources said next week's draft bill would put into place the state's commitment to Mandatory Renewable Energy Targets reaching 10 per cent in three years and 15 per cent of power consumed by 2020. This would allow NSW to import renewable energy from other states to meet these targets, although South Australia and Victoria also have their own mandatory targets in place. The targets are not as ambitious as for other states, with NSW already sourcing about 6.1 per cent of its electricity from renewable sources, most of this from the Snowy hydro scheme.

Renewable Energy Generators Australia chief executive Susan Jeanes yesterday welcomed new draft legislation as the best mechanism to stimulate expansion of the industry. "While it's always important to invest in renewable energy, at this stage it's more important for the industry to get the legislation through which sets up a market for the development of new projects," Ms Jeanes said.

Business has expressed concern about the looming conflict between establishing a national emissions trading scheme, flagged earlier this month by John Howard, and investment in research and development of new technologies. Adding to the concerns are different state-based Mandatory Renewable Energy Targets. The Prime Minister's Emissions Trading Task Group report said all mandatory target schemes should be "wound up over time, and new ones forestalled".

The NSW Government will proceed with its $310 million Climate Change Fund to encourage families and businesses to save water and energy by providing rebates for rainwater tanks, solar hot water systems and energy-efficient insulation. The budget also set aside $5 million for accessing satellite imagery to better track illegal land-clearing and waste-dumping.