APA, the listed infrastructure company that makes most of its money from building and operating gas pipelines, has warned that the ongoing uncertainty around federal energy policy will kill any new investment in wind and solar farms.
APA owns the Emu Down wind farm in Western Australia and recently completed the neighbouring Emu Downs solar farm, the first co-located facility in the state.
It has also completed the Darling Downs solar farm in Queensland, and expects to complete the Badgingarra wind and solar facility in W.A. later this year.
However, CEO Mick McCormack warned on Wednesday that there will be no further investment because of the heightened risk around energy policy.
“we will continue to look at renewable energy,” McCormack told analysts in a conference call. “But changing the (company’s) risk curve to match the uncertainty in the market is unlikely.
“We like renewable energy, it gives us consistent risk return profiles …. and if we can replicate those we certainly will be investing under a clearer policy framework.”
McCormack later told RenewEconomy in an interview that the company has a “great appetite” for new investment in wind and solar.
Giles Parkinson is founder and editor of Renew Economy, and is also the founder of One Step Off The Grid and founder/editor of The Driven. Giles has been a journalist for 35 years and is a former business and deputy editor of the Australian Financial Review.
