Wind farm go-ahead as energy laws pass

Adelaide Advertiser
Friday 25/6/2010 Page: 76

AGL Energy plans to fast-track its Macarthur wind farm project in southwestern Victoria, following changes to the Renewable Energy Target (RET) scheme approved by the Senate. The Government's changes provided greater investment certainty for the renewable industry, AGL Energy said yesterday. The RET is designed to ensure 20% of Australia's electricity comes from renewable energy sources by 2020.

The Renewable Energy (Electricity) Amendment Bill has split the RET into two parts from January 1 next year. A Large-scale Renewable Energy Target (LRET) covers projects such as wind farms, commercial solar and geothermal. A Small-scale Renewable Energy Scheme (SRES) provides a set level of support for small-scale technologies such as solar panels and solar hot-water systems.

"The Renewable Energy Target enhancements passed by the Parliament will provide a clear benefit to large-scale renewable energy projects and households wanting to play their part in tackling climate change," Climate Change Minister Penny Wong said.

Clean Energy Council chief executive Matthew Warren said the reforms would unlock more than $20 billion in investment in major generation projects, while creating a stable growth path for householdscale technologies. The Bill passed the Senate on Wednesday night and now returns to the Lower House.

AGL Energy managing director Michael Fraser said it would give industry the certainty to make long-term investment decisions such as the Macarthur wind farm. "With our joint venture partner Meridian Energy, AGL Energy plans to fast track the final approvals for the development of the Macarthur wind farm which, when completed, will be one of the largest in the southern hemisphere," he said. The Macarthur wind farm will have a generating capacity of 450MW, enough to power about 250,000 households.

As well as splitting the target into large and small systems, several amendments were passed. A mechanism was introduced so that if a glut of renewable energy certificates are created from small sources in the next six months, targets can be tweaked in the short term to retain demand and therefore investment certainty. The Climate Change Minister will be given independent advice on pricing of renewable energy certificates from small-scale sources. The Government will consult on regulations about the effect of changes in solar panel costs.

The Opposition successfully moved an amendment so that only small electric heat pumps - of less than 425 litres - can attract certificates. The Greens failed to stop certificates being issued for power generated from burning native forest timber with Greens Leader Bob Brown accusing Senator Wong of supporting forest destruction. Senator Wong said only genuine waste from sustainable forestry operations would be eligible.