Hundreds of thousands of Australians who opted in to a government scheme to buy electricity from renewable energy sources, would be left high and dry if a recommendation from the Abbott-mandated Review into the Renewable Energy Target (RET) was adopted, an industry group has warned.
The federal government’s GreenPower Program invites households and businesses to voluntarily pay extra for “green power” to increase the percentage of renewable electricity generated above government-mandated targets.
The RET review, which was handed to the government late last week, has recommended that these voluntary renewable energy electricity purchases now be included within the mandated annual RET targets.
The Alternative Technology Association (ATA) warned on Thursday that to go ahead with the recommendation would see the scheme, with 600,000 existing customers in Australia, quickly lose consumer support and collapse.
“GreenPower will basically collapse overnight if the federal government chooses to adopt this recommendation,” said ATA policy and research manager Damien Moyse.
“This scheme exists to provide a way for people who wish to go beyond the mandated targets and achieve up to 100% of their electricity consumption from renewable energy.
“If this additional amount is simply rolled into a fixed target that is going to be delivered anyway, irrespective of what choices any individual makes, then the incentive to buy GreenPower in the first place is completely eroded,” Moyse said.
“The members of the Warburton RET Review panel clearly did not understand the purpose and operational issues associated with GreenPower.”
Concern about the impact of this particular RET Review recommendation has coincided with an admission on Tuesday from Western Australian energy retailer Synergy, that money from WA participants in the GreenPower scheme had not been spent on suitable carbon offsets or renewable energy development in the company’s home market since 2008.
Synergy customers like Barbara Frey, from Mandurah to the south of Perth, have responded angrily.
“I’m furious about this. Like me, the majority of West Australians love renewable energy; no surprise that Mandurah was in the top 5 suburbs in Australia with the most solar PV.
“The attraction of investing in the Earthfriendly program was the opportunity to contribute to a clean energy future for WA. …yet Synergy tells me that they’ve been spending my premium elsewhere…. since 2010.
“Don’t they get it? People like me want to invest in renewable energy, and recognise that part of the cost of transition involves retiring assets that no longer serve the wellbeing and interests of the community. How hard does it have to be?”
In 2013, GreenPower purchases resulted in $80 million invested in Australia’s renewable energy industry.
“Hundreds of thousands of Australians have been voting with their wallets over the past 13 years for more renewable energy by buying GreenPower,” Moyse said. “It shows a widespread commitment for clean energy in this country.”
Moyse has caled on the government to respect the wishes of 600,000 GreenPower customers and leave the arrangements separate to annual targets under the RET.