Antinuclear

“……. An uncertain futureThe RET has come under much scrutiny in recent months as the federal government attempts to wind it back. This has also seen the government — both federal and state — take a negative approach to policy measures that promote more renewable energy in the energy system.

The result is that many proposed projects that factored in income from the RET have been put on hold, due to the uncertainty of their future income. In the shadow of this uncertainty, finding finance for projects is also a major issue as financiers become more wary.

As stated in the RET review, its objectives are to “encourage the additional generation of electricity from renewable sources; reduce greenhouse gas emissions in the electricity sector; and ensure that renewable energy sources are ecologically sustainable”.

Still, the government’s opinion is that with surplus electricity generation (and decreasing demand) the only future value of the target is to help Australia meet its emissions reduction target of 5% below 2000 levels by 2020.

Therefore, the financial incentives that could drive investment in renewable energy infrastructure are instead being utilised for other key government initiatives.

While the legislation to repeal the RET has failed to pass through the Senate, it still isn’t clear what funding will be available for future projects.

The federal vs state policy divide

While the RET and Emission Reduction Fund are federal, other incentives to promote deployment – such as feed-in tariffs for solar rooftops – have been left to the states.

This is further complicated as legislation is divided between departments. For example on a federal level legislation is divided between the industry and environment departments, so nobody has outright responsibility.

While the federal government has completed its review of the RET, no decision has yet been made in relation to what action should be taken moving forward. It is unlikely that anything will happen soon with the current difficulties getting legislation through the senate, and the public outcry opposing change to the RET from those that control the votes.

It is here that the Australian Renewable Energy Agency (ARENA) and Clean Energy Finance Corporation (CEFC) have filled the void. Similar to the RET, the federal government has tried to wind back their operations…….

The uncertain future of new renewable energy projects will continue until there is greater assurance in relation to the policy measures currently in place. A more robust emissions policy could strengthen the sector, and allow us to strive for more clean energy generation.

At the end of the day, developers need surety that policy decisions will not affect the future financial viability of their projects. Until then they will continue to sit on the fence and wait – to the detriment of the renewable energy sector as a whole. https://theconversation.com/why-has-investment-in-renewable-energy-projects-stalled-34197