Tuesday, 26 January 2010

United energy plan call

Monday 18/1/2010 Page: 2

SOME of Australia's big green energy players have called on the Federal Government to remove solar hot water heaters from a scheme that entices investment in renewable power. After last months failure at Copenhagen to secure a binding global accord on cutting carbon, the companies have taken aim at Australia's renewable energy target (RET). The target requires 20% of Australia's power to be renewable by 2020. But the scheme came under fire after a $1600 solar hot water subsidy flooded the market with renewable energy certificates from domestic water heaters, causing the certificates' value almost to halve.

In a submission to a Council of Australian Governments inquiry, companies including AGL Energy, Pacific Hydro and wind turbine makers Vestas and Suzlon call for hot water heaters to be removed from the scheme. Industry estimates put the total value of RET driven investment at up to $30 billion. The group called for state-based energy efficiency schemes to be joined in a single national scheme.