Tuesday 25 April 2006

Big Shot

The Australian
Page: 20 Tuesday, 25 April 2006

AUSTRALIA'S membership in the Asia Pacific Climate Partnership is already paying off, with one solar company negotiating contracts worth more than $1 billion. Solar Systems chief Dave Holland, an industry delegate on the renewableenergy taskforce-one of eight established under the climate alliance known as AP6-said the meeting in California last week had exceeded all expectations. Mr Holland, pictured, will lead a solar energy industry delegation to China at the invitation of government officials. The small Melbourne-based company also looks likely to clinch a lucrative deal to roll out 150 megawatt solar power stations in China, India and the US.

Details of the deal were discussed during bilateral side talks between Australian renewable energy industry delegates and the Chinese government delegation. ''We had some reasonably detailed discussions with the Chinese government delegation about what that would involve, '' Mr Holland said. ''We expect the projects across the regions to be worth more than $1 billion in solar power infrastructure. ''In Australia, coal-fired power is so cheap it is difficult for solar power to compete because of more expensive production costs.

But in China, a new tariff system requiring all electricity retailers to buy a certain amount of renewable energy at a set price is encouraging greater take-up of clean energy. China will acquire an additional 2000 megawatts of renewable electricity every year. The Solar Systems deal is likely to involve manufacturing the photovoltaic panels in China. The bilateral talks with China are also expected to lead to lucrative contracts for the wind and hydro energy industries.

Pacific Hydro chief executive officer Rob Grant said Chinese officials expressed an interest in greater foreign investment, to build up their budding wind energy industry. ''I think it's fair to say that the potential in that market for wind and hydro is enormous, '' Mr Grant said. The AP6 taskforces have agreed to complete action plans identifying suitable markets across member nations for deploying low emission and clean energy technology by August. The alliance between Japan, Australia, the US, India, South Korea and China was forged last year and has been touted as an alternative to the Kyoto Protocol.

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