Infigen Energy boss Miles George has welcomed the “significant change” of tone on renewables in Canberra since Malcolm Turnbull ousted Tony Abbott as Australia’s Prime Minister, but has called for tougher climate measures and for the federal government to stop using taxpayer dollars to pay polluters to cut emissions.
In his speech at the ASX-listed company’s Annual General Meeting on Friday, George – whose company suffered a 23 per cent fall in its Australian revenue in 2014 – said this time a year ago, the local wind industry was fighting for its life.
“I am pleased to report that the efforts of my colleagues at Infigen and the Clean Energy Council, and the efforts of many thousands of Australians prevailed in avoiding an obliteration of our industry,” he said.
Infigen chairman Mike Hutchinson, who opened the meeting, added his own element of ‘lest we forget’.
“A lot has changed since we met last year. First, the overhang of regulatory uncertainty caused by the government’s prolonged review of the Renewable Energy Target has belatedly ended,” he said.
“We welcome the restoration of certainty, and the end of the associated governmental war on wind farms.
“But it would be remiss not to recall that the cost has been a 20 per cent reduction in the scale of the investment incentives that were previously legislated; a reduction that was made after our investments had been undertaken and in breach of firm political pre-election commitments,” Hutchinson said.
“It is no wonder that Australia’s reputation for sovereign risk declined over that period – and not merely because of Victoria’s sovereign repudiation of a major construction contract.”
George went on to add that the market had, however, been swift in its response to the change in PM – and the accompanying change in tone – and the price companies received for renewable energy had “significantly improved.”
But he also stressed that prices would need to stay at these levels – and above – “for many years” if Infigen was to recover the earnings it had lost as a result of the regulatory uncertainty that followed the 2013 election.
“On the broader issue of climate change policy,” George continued, “it is important to understand that while the costs of addressing or mitigating climate change will be substantial, that cost pales into insignificance relative to the cost of inaction.
“Australia’s Federal Budget cannot afford to pay polluters to achieve the required emissions reductions to achieve our stated targets.”
“It is only by reducing emissions through caps, or by putting a price on emissions that we can efficiently contribute towards solving this global problem,” he said.
“Governments who embrace the disruption to outdated models of generating and consuming electricity will receive backing from a business community and population who want to take action on climate change,” Miles said.
“Whatever the mix of carbon emission reduction policies that Australia adopts to achieve its 2015 commitments, the costs for our economy and consumers will be lessened with united and unwavering political support.”
