The very substantial leg-up renewables has received over the last couple of years has given the industry a very solid foundation. Unfortunately it was achieved on the back of some very loose government policy intent on trying to match Greece on national debt levels.
With the whole plethora of government activities and decisions, Australia went on a drunken binge primarily at the hands of Labor governments, firstly at a state level and then at a federal level. The Liberals aren’t blameless either, while Howard and Costello were squirreling away $40 Billion into the federal coffers they were starving the states who went on a borrowing frenzy.
All of this now leaves Australia in a very precarious position, a giant hangover if you will. We all expect our elected officials bring the books back to balance but it is not going to be without pain. The problem is, if we are in pain and someone offers us some booze to ease it, we all cop out and get on the piss again. Such is the system of popularly elected governments.
Our current federal government is set to become a lame duck without control of the senate, therefore our financial situation is not likely to improve anytime soon. If Australians were responsible enough to fix the situation we would all be forcing a double dissolution election and give whoever is responsible enough the power to do the job properly, alas, we this is very unlikely.
Perhaps a military coup? Impossible. As an industry, the clean energy sector’s battle over subsidies needs to be fought and fought hard. It will definitely be lost in the short term, but the most significant thing we need to stop, is the taxing of sun and wind. This is the scariest threat to renewables.
If the government continues to leave morals out of its rescue strategy and deal only with numbers, renewables will be taxed and taxed with gusto. The leg-up we have got means that renewables can survive on their own and can continue to grow, or be it at a slower rate, on purely commercial models, only taxes or other restrictive legislation can stop this from happening.
Solar power, in particular, will continue to decrease in costs. This will be driven by exponential demand from China which has an “in your face” pollution disaster threatening the very fabric of it’s newly transformed society.
Only when Australia gets back to a stable financial situation will it be able to entertain morally-based indulgences such as climate change, after all water is not yet lapping at the steps of parliament is it?
The one thing that can bring renewables back into favour is demonstrating a financial case. This is nigh on impossible in a country which makes a bucket-load of income by exporting fossil fuels. Despite the hypocrisy, there is one thing that every person in the world needs, and needs lots of: electricity.
Australia’s solar resource, as indicated by Andrew Blakers and friends, offers up a new ‘sheeps back’ for Australia, one that won’t make us hypocrites and can really make a positive difference to the lives of millions.
So steady as she goes will no longer be an option for renewables in Australia, we need some unified leadership in this country and consistent policy that lasts more than three years. It is up to each Australian to make this happen, after all, they work for us.
