Top Oz renewables firms slam RET impasse as industry in limbo

Two of Australia’s largest renewable energy companies have expressed disappointment and frustration at the news that negotiations on the nation’s Renewable Energy Target have hit another political brick wall.

Sydney-based Infigen Energy (which has a total of 556.6MW of installed wind energy capacity across Australia, as well as an extensive pipeline of wind and solar developments) and Melbourne-based Pacific Hydro (which has 400MW of projects in active/advanced development across WA, SA, Victoria and NSW) both released statements on Wednesday decrying the RET impasse and calling for a swift resolution.

The Labor Party today walked away from RET negotiations after the Coalition refused to cede ground on its plans to slash the target to a “real” 20 per cent – effectively a cut from 41,000GWh to 26,000GWh, or a reduction of two-thrids of new construction over the next five years.

And while Labor’s refusal to compromise has been applauded by many in the industry, the fact remains that the large scale sector is left facing another extended period of stagnation and uncertainty.

In a statement today, Infigen Energy said the Abbott government had failed to make a case to reduce the RET, with its own Warburton review showing that the proposed 40 per cent reduction would come at the expense of electricity consumers, taxpayers, the environment and the economy, while delivering a $9 billion windfall to fossil fuel generators.

“This radical change would cut new investment by 65% and seriously damage the value of billions of dollars of existing investments made under the bipartisan supported legislation,” the statement said.

“The government noting that the current legislated target will exceed a ‘real 20%’ is not an argument for reducing the target,” said Infigen managing director Miles George.

“The target was set as a fixed number specifically to avoid arguments over percentages and moving goalposts.

“The primary consequence of reducing the target is to take money out of consumers’ pockets and put it into the pockets of old coal fired generators whose pollution damages public health and harms our environment,” he said.

“Australia’s international reputation as a safe place to invest will be seriously damaged if the government persists with this radical proposal. …Australia is being left behind on technologies and industries of the future.”

Pacific Hydro also expressed “profound disappointment” with the impasse, which it said would “prolong the devastating uncertainty for industry, and likely lead to the industry’s further demise.”

Lane Crockett, PacHydro’s executive general manager of Australia said in a statement that the “deep crisis” consuming the national renewables industry was a result of the uncertainty created by the Abbott government’s unscheduled review of the RET.

“With negotiations having failed, this lack of resolution between the parties will now only prolong the crisis, which has already resulted in the loss of hundreds of jobs, a major slump in renewable energy investment and significant industry upheaval,” Crockett said.

“Also at risk is the opportunity for Australian consumers to benefit from falling power bills from the year 2020, according to the Government’s own modelling.”

Crockett appealed to the government and opposition to come to a “sensible and swift resolution” before irreparable damage was done to the industry.

“What the industry really needs is a sensible, practical and immediate resolution of the issue, so that we can get on with what we need to do – build renewable energy projects that will benefit the environment, the economy and ultimately, consumers,” he said.

“We implore both parties to consider the impacts of not coming to a decision on the target quickly, and hope that during the course of future negotiations, both wisdom and common sense prevail.”