Antinuclear

$billions of investment money on hold due to Federal Opposition’s anti renewables policies

Political Uncertainty Puts Billions in Renewables on Hold Design Build, by  By Marc Howe  3 June 13 Uncertainty surrounding environmental policy in the wake of a likely Coalition victory this September has obscured the outlook for renewable energy and led to billions in potential investment being placed on hold.

The Federal Election, slated for September 14, appears increasingly likely to usher in a Coalition government, whose policies could be a setback for Australia’s decade-long shift toward clean renewable energy.

A key issue will be the fate of Labor’s controversial carbon trading scheme should the Coalition be elected. The policy provides a pivotal boost to renewables by striving to reduce greenhouse gas emissions, yet the coalition has pledged “in blood” that it will cancel the carbon tax.

The Coalition has also said that it will cut power costs, pointing to the abundance of cheap coal in Australia, and reconsider renewable energy policy.The uncertainty surrounding the fate of the carbon tax and the policy environment for renewable energy has impeded many projects in a $20 billion pipeline of investment.

“We don’t see any clear long-term policy direction on the climate or energy sector from the opposition,” says Nathan Fabian, of Australia’s Investor Group on Climate Change.

“Until that is clear, capital is sitting on the sidelines.” The Investor Group on Climate Change represents a group of institutional investors located in Australasia, including pensions funds and major international banks, with around $900 billion in funds under its management……

The development of Australia’s renewable energy sector could also be hampered by the efforts of established power suppliers such as Origin Energy and EnergyAustralia, who are currently pushing for the Renewable Energy Target (RET) and carbon tax to be scaled back or scrapped completely. Earlier this year, Origin’s Grant King launched a attack against the the government’s green energy policy, saying the RET would further increase power costs to the detriment of end consumers.

Members of the renewable energy sector such as Infigen managing director Miles George say the opposition of leading energy companies to RET is motivated by self-interest and, in Origin’s case, the desire to protect billions of dollars in gas investments. http://designbuildsource.com.au/political-uncertainty-puts-billions-in-renewables

June 3, 2013 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, energy