Energy stance comes at a price

The Australian, Page: 4
Monday, 17 July 2006

POWER bills will rise in Victoria and hundreds more wind turbines will be dotted across the state as the Bracks Government goes it alone on its renewable energy program. Under a compromise deal with the power industry, the Government will today announce plans to have a 10 per cent renewable energy target by 2016, six years later than its initial goal of 2010. The Victorian program is based on the Howard Government's mandated renewable energy target scheme, which forces power retailers to buy specified amounts of renewable energy and spread the extra cost across their customers. Victorian Energy Industries and Resources Minister Theo Theophanous said the state scheme would require retailers to buy a minimum of 10 per cent renewable energy by 2016, up from the current 4 per cent.

Mr Theophanous said an extra 3274 gigawatt hours would be created over the life of the scheme, allowing for the establishment of about 500 more wind turbines across the state. Household electricity bills would rise by about $1 a month from 2008, and the Government said the rise would be offset by recent cuts to power bills. Mr Theophanous said the scheme would lead to the creation of 2200 jobs and would save 27 million tonnes of greenhouse gas-the environmental equivalent of removing every car from Victoria's roads for two years. The wind energy sector welcomed the scheme yesterday, despite pushing for an earlier introductory date of between 2012 and 2014. It is believed the coal generators had lobbied for a start date of 2018. "We think it's a step in the right direction," said Dominique La Fontaine, the chief executive of the Australian Wind Energy Association.

"It's the first state government to introduce a market mechanism. It's going to give us some incentive to invest beyond the federal MRET scheme." Ms La Fontaine urged the Howard Government to further action on renewable energy. The renewable energy program is a key plank of the $100 million Environmental Sustainability Action Statement that will be released today by Premier Steve Bracks.

The statement will include plans to purchase 150 hybrid cars for the state Government's vehicle fleet. Drivers of government vehicles will be required to fill up with ethanol-blended petrol when it is available. Environment Minister John Thwaites said the Government wanted to lead by example, because hybrid vehicles used about half as much fuel per kilometre as a comparable-sized regular car. Today's statement will include a $4.5 million allowance to combat pollution of the Yarra River, smart energy meters for households, increased levies on waste going to landfill, new controls on trail bikes and training programs in energy and water efficiency for trades workers.