Antinuclear

Australian government missing the bus on renewable energy development?

Two-thirds of this investment would need to be in wind energy, for which no federal funding provision has been made so far. In fact, government funding allocated to proposed renewable capacity is negligible when compared to the total amount of capital necessary. …..Without clear and stable long-term incentives from policymakers for financiers to invest, Australia’s renewable energy reality may fall significantly short of all predictions.

Australia: renewable energy investment will grow strongly in the coming years,  IStock Analyst May 27, 2011 (Source: Datamonitor)According to the energy market research firm Bloomberg New Energy Finance, Australia’s policies will encourage at least A$36bn of new investment by 2020. This is based on the government’s target to produce 20% of electricity from renewable sources by 2020.

While the predictions match Datamonitor’s research findings, questions remain over the private sector’s willingness to commit funds.
Driven by Australia’s large-scale renewable energy target (LRET) and consumer demand for small-scale solar photovoltaics (PV), Bloomberg New Energy Finance’s model suggests that following lower levels in 2011, investment will pick up strongly and maintain levels of around A$4bn annually from 2012 onwards, reaching a cumulative value of A$36bn by 2020.

Further, detailed estimates of renewable generating capacity suggest that by 2020 Australia will be home to 11.9GW of wind energy, 4.3GW of large-scale PV, and 1GW of thermal solar, as well as 3.3GW of rooftop PV owned by households and businesses.
These forecasts correspond well with Datamonitor’s research report “Renewable Energy in Australia” (January 2011, EN00003-001), which found that around A$45bn of private investment will be required to install the 20GW of renewable energy capacity that is currently under development. Two-thirds of this investment would need to be in wind energy, for which no federal funding provision has been made so far. In fact, government funding allocated to proposed renewable capacity is negligible when compared to the total amount of capital necessary. …..
Although the government is continuing to prepare for an emissions trading system to reduce carbon emissions which is set to start in 2015, there remains considerable opposition to such an initiative. Without clear and stable long-term incentives from policymakers for financiers to invest, Australia’s renewable energy reality may fall significantly short of all predictions.
Australia: renewable energy investment will grow strongly in the coming years

May 28, 2011 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, energy