Proposed Changes to CPRS Complimentary Measures Welcomed

Australia's leading renewable energy company, Pacific Hydro, has welcomed the proposed changes to the CPRS Complimentary Measures arrangements released today by the Federal Government.  The proposed changes, if well designed and fully implemented, represent an important step towards ensuring Australia can make the transition to a low emissions economy.

 "Making appropriate adjustments to existing measures such as the 20% Renewable Energy Target (RET), ensuring that key voluntary actions such as purchasing Green Power are recognised and consumers rewarded and the proposal to look at implementing a broad based energy efficiency scheme are actions that should be applauded", said Pacific Hydro Australia Pacific General Manager, Mr Lane Crockett.

 "While details of the CPRS will remain highly contentious for many, we would encourage political parties of all persuasion to back these vitally important proposals regardless of the CPRS outcome."

 Pacific Hydro has been concerned at a number of issues with the RET legislation, such as the multiplier for solar PV and the amount of State and Federal policy cross over that has led to multiple layers of assistance for solar hot water and solar PV.  This situation has led to a significant oversupply of renewable energy certificates and the company is of the belief this has been a major contributor to the recent dramatic fall in renewable energy certificates prices.  The recently announced NSW Gross Feed-in Tariff for solar PV is expected to further exacerbate this problem.

 Pacific Hydro has long advocated for the replacement of the so called "phantom RECs" created by the solar PV multiplier, the appropriate treatment of voluntary action under the CPRS and the establishment of a national energy efficiency scheme that can accommodate various domestic technologies including solar hot water.

 "We look forward to seeing the details of these proposals.  If we can have these RET specific issues dealt with quickly and efficiently through the current COAG review, and market participants can see a consistent policy framework emerge over the coming months for energy efficiency, then it will go a long way to restoring investor confidence in the RET market."

 "We congratulate the Government and opposition, in particular Minister Penny Wong and Ian Macfarlane, for recognising these issues and for agreeing on a set of proposals that, if delivered, will greatly assist the emerging clean technology and energy efficiency industry in Australia."