Summaries - Australian Financial Review
12 September 2011, Page: 8
The renewable energy industry has questioned the West Australian government's commitment to renewable energy due to its proposal to halve incentives for some of WA's large wind-power projects. Substantial wind farm owners in WA, including projects supported by UBS, REST Superannuation fund and Macquarie Group are paid capacity credits to fuel investment in electricity generation in WA. The new rule changes are part of the government's attempts to lower the generosity of the scheme. In addition, it is to better account for the costs intermittent power supplies such as wind impose on the electricity grid and for emerging solar projects.
There are four main wind farms in WA, including mid-west Emu Downs wind farm (recently purchased by the APA Group) and the state-owned Grasmere farm. All except one unidentified plant will see their credits halved. The changes will be from next year (phasing in over six years)-this raises worries that investment in green projects in WA may take a hit and could affect the state's requirement to meet its share of the federal target to produce 20% of electricity from renewable sources by 2020.
Synergy Energy, WA's electricity retailer, stated it would not have difficulties meeting its share of that target. State Energy Minister Peter Collier said, "The proposed changes are intended to ensure that sufficient electricity generation capacity is available and able to reliably meet peak demand". WA's opposition energy minister, Kate Doust, stated, "I think that comes back to the fact that the current Premier is so obsessed with natural gas powered plants. They keep saying they support renewables but then they keep putting up barriers to prevent proper entry into the market".
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