Hobart Mercury
Saturday 6/2/2010 Page: 17
THE $400 million Musselroe windfarm project has been placed on ice, its fate dependent on the Federal Government's renewable energy policy. Roaring 40s, a joint venture between Hydro Tasmania and China Light and Power, has so far spent $35 million on the project at Cape Portland, in the state's North-East. Energy and Resources Minister David Llewellyn said yesterday the development would be delayed.
"There will be a downturn in activity and expenditure in the short term until the investment climate improves," Mr Llewellyn said. "Roaring 40s continues to work on refining the capital costs to ensure that the project will be viable and profitable when the expected turnaround in renewable energy certificate prices occurs. "There is some minor work continuing on site as part of a considerable investment in the project over the past year."
Opposition energy spokesman Peter Gutwein said he had been told that all site work would cease next Friday. Mr Gutwein said the Rudd Government's policy on solar rebates had caused the price of renewable energy certificates to plummet to about $30. The Musselroe project is believed to need a REC price of about $50 to be viable. Government sources said a review of the REC target scheme was being conducted and the issue would be considered at the next Council of Australian Governments meeting.
Mr Gutwein said the North-East desperately needed employment. "Jobs would be generated in the construction phase and local engineering firms were expecting to be building the major wind towers," he said. "If it doesn't go ahead jobs, investment and confidence will be affected." Mr Gutwein said the State Government was too scared to take on the Federal Government. Mr Llewellyn said there were no new wind projects anywhere in Australia.
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