Winds of change in Asia plan

Hobart Mercury
Wednesday 8/4/2009 Page: 17

HYDRO Tasmania's wind energy arm Roaring 40s has abandoned its plans to become Asia's leading renewable energy business with the sale of its overseas assets. The company, a joint venture between Hydro Tasmania and China Light and Power (CLP), yesterday announced it would sell its Chinese and Indian assets to CLP Group outright for $A163 million.

Hydro Tasmania invested $67.8 million in Roaring 40s' Asian projects. Its $81.5 million share of the expected total sale price represents a return of 1.2 tunes its investment. The company said it would focus on opportunities closer to home as prospects for renewable energy were better under the Rudd Government.

Roaring 40s will continue to operate in Australia as a 50-50 joint venture between Hydro Tasmania and CLP Group, operating windfarms at Woolnorth in Tasmania totalling 140MW, a 50% share in the 66MW Cathedral Rocks Windfarm in South Australia. and with further development projects planned. Hydro Tasmania chairman David Crean said the Federal Government's support for renewable energy options meant onshore developments were more attractive.

"The Roaring 40s joint venture was created in 2005 as a result of the previous federal government not extending the mandatory renewable energy target and significant investment opportunities in Asia," Dr Crean said. "The prospects for renewable energy in Australia have changed for the better.

"There is genuine support for the renewable energy sector and the time is right to focus the expertise built up overseas back in the Australian market. "Today's announcement represents the culmination of 12 months of work reviewing the joint venture. "From Hydro Tasmania's perspective, the sale price represents an excellent return on our investment of the past three years," Dr Crean said.