Important Role of Utility Scale Renewable Energy Recognised by Energy Ministers

Leading Australian renewable energy company, Pacific Hydro, said it was encouraged that the Ministerial Council on Energy (MCE) had recognised the important role of utility scale renewable energy in Australia's transition to a cleaner energy future.

Agreeing with statements in the MCE communiqué released after last Friday's meeting, Pacific Hydro General Manager Australia/Pacific, Mr Lane Crockett, said he was pleased that energy ministers had noted the importance of ensuring the design of the expanded Renewable Energy Target (RET) facilitates investment in utility scale renewable energy projects.

"In the absence of a price on carbon, the RET remains the centrepiece of Australia's response to tackle rising emissions in Australia so it is essential that the design of the scheme provides the right conditions to secure investment", said Mr Crockett.

Pacific Hydro remains concerned about some aspects of the current design of the RET which, in combination with additional, overlapping state based subsidies for solar PV and solar hot water, is undermining the market.

Despite the well intentioned efforts of state and federal governments in Australia, Pacific Hydro is of the view that the investment environment for utility scale renewable energy investment in both Chile and Brazil continues to be preferable to Australia which has resulted in Pacific Hydro progressively deploying Australian staff to operations in these countries over the last 12 months.

"Australia has a fantastic opportunity to progress  a range of  utility scale renewable energy technologies including solar thermal, geothermal and wind energy projects, but none of this investment can take place until the RET market is fixed", added Mr Crockett.

Pacific Hydro remains a strong supporter of the overall approach of the Rudd Government to address climate change and, as part of a major Australian clean technology delegation in Copenhagen, will be doing all that it can to attract international investors to Australia.

"The RET can begin the heavy lifting that will kick-start Australia's transition to a low carbon energy future which will make the job of an Emissions Trading Scheme easier when it is inevitably introduced", said Mr Crockett.

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 Media contacts: Andrew Richards 0409 364 484 / Emily Wood 0421 042 121