Antinuclear

 Renewable energy set to boom after ‘two-year drought’

Renewable energy is on the cusp of a long-awaited boom on a doubling in certificate prices.

The Turnbull government’s support for the goal of getting about 23.5 per cent of Australia’s electricity from renewable sources by 2020 has sparked a rise in the prices of renewable energy certificates and fresh M&A talk across the sector.

Infigen Energy managing director Miles George says that after a “two-year drought” in investment in the sector, interest has surged over the last six months thanks to the changed government rhetoric on the sector under Prime Minister Malcolm Turnbull, which has built confidence around the revised 2020 target for renewables.

The revised target of 33,000 gigawatt-hours of renewable energy supply by 2020 was cut from 41 GWh after the lengthy review that concluded last June.

Together with Infigen’s improved balance sheet after the $US274 million ($383 million) sale of its US business, the changes have sparked interest from third parties, both in individual projects in the wind energy player’s portfolio, as well as broader corporate interest, Mr George said………..

Players from other parts of the sector such as pipeline owner APA Group are also looking to grow their exposure to renewables.

Prices for large-scale renewable generation certificates or LGCs, which help underpin new renewables projects under the RET legislation, have surged from about $38 a year ago to more than $80, and are set to remain strong, with forward prices of $82 to $85 for the 2016-18 financial years.

With wholesale power prices also on the rise, prices are becoming supportive of new projects, while renewed interest on contracting for renewable power is emerging among the big three electricity retailers to meet their obligations under the RET after a few years on the sidelines……….http://www.afr.com/business/energy/renewable-energy-set-to-boom-after-twoyear-drought-20160229-gn6zob#ixzz41v2Gz4lY

March 4, 2016 - Posted by Christina Macpherson | General News