Funding cuts upset industry

Summaries - Australian Financial Review
29 January 2011, Page: 8

Following the Federal Government's decision to cut funding to green programs, with $250 million to but cut or deferred from a solar program, the solar power industry said key projects may be cancelled or curtailed and a major opportunity for the nation to reduce its carbon impact may be hurt. Chief executive of the Australian Solar Energy Society John Grimes says a major opportunity for Australia in decarbonising its electricity sector will be prejudiced by the decision.

The government has taken $250 million away from the utility scale solar flagships program to help pay for reconstruction after the floods. Two residential solar schemes were also hit with caps placed on them costing $225 million. The industry believes it has not received the policy support from the Labor Party.

Managing director of renewable power company CBD Energy Gerry McGowan said the move further shows the government's shallow commitment to renewables. The view of Steve Loxton, chief executive of Transfield Services Infrastructure Fund, is that the decisions may further diminish the confidence of the finance sector in government initiatives designed to support long-term investment in the renewable energy sector.

The $1.5 billion solar flagships scheme, designed to create commercial-scale solar power facilities, has also had a funding cut. Renewable power group Infigen Energy has bid in the solar flagship scheme as part of a consortium with China's Suntech Power Holdings in the first round of funding.