Antinuclear

Worldwide investment in wind farms, solar photovoltaics and other clean energy sources jumped 16 per cent last year to $US310 billion ($383 billion), or more than five times the tally of a decade earlier. Solar investments accounted for almost half the total.

China led the way, with investment soaring almost one-third to $US89.5 billion, while US investment gained 8 per cent to $US51.8 billion, and Brazil’s almost doubled to $US7.9 billion.

Australia, though, went the other way, with investment sinking 35 per cent to $US3.7 billion. BNEF said the amount was the “lowest since 2009, as wind and solar project developers delayed decisions while they awaited the government’s response to its Renewable Energy Target review”.

The Australian tally in fact masks a much steeper dive for large-scale renewable plants as small-scale solar PV largely held its own in 2014 even as state-based support schemes were wound back further.

“Four wind farms are currently under construction, but these signed contracts before the last RET review,” said Darren Gladman, the acting policy director for the Clean Energy Council.

“No more projects in the country have imminent construction plans.

“Australia is not just at risk of falling behind the rest of the world on renewable energy, we have already slipped off the back of the wave. We have some of the best sun, wind and waves in the world, but this new research shows that we are squandering some of our huge natural advantages.”

Fairfax Media sought comment from Industry Minister Ian Macfarlane, who has sought to cut the country’s renewable energy target from the current goal of 41 terawatt-hours annually by 2020 to as low as 27tWh.

So far, the Senate has blocked such a move but uncertainty over whether and when the goal will be reset has made it almost impossible to raise financing for new projects………..http://www.smh.com.au/business/renewable-investment-dives-in-australia-bucking-global-trend-20150109-12kqhk.html

An analysis by the CEC says the ongoing impasse will continue to wreak more than $400 million of damage every year to renewable energy projects already operating.

CEC Chief Executive Kane Thornton said the RET had delivered $10 billion worth of investment in large-scale projects to date; investments made in good faith that the legislated target would continue unchanged.

“A breakdown in that bipartisanship has had a material impact on the market confidence in the policy and is affecting the revenue that flows to those projects,” Mr Thornton said.

“We are staring down the barrel of job losses, business closures, negative financial effects on the $10 billion of renewable energy projects already operating, and a halt in the development of new large-scale renewable energy projects across the country.”

Referring to 2014 as a dark year for large scale renewables, Mr. Thornton points out more than $2 billion was invested in 2013, but the first three quarters of this year has seen a comparatively paltry $238 million invested – directly the result of the Federal Government’s apparent determination to gut the RET.

“If the government is genuine about its intent to resolve the current political impasse, move beyond its previous position and support a target that delivers a strong future for renewable energy in Australia, we would encourage Labor to return to negotiations,” said Mr. Thornton.n November, the ALP walked away from negotiations with the Federal Government that would have resulted in the dilution of the RET.

The CEC briefing paper “Lost opportunity and big costs: The impact of an unresolved RET review” can be downloaded here.

A very recent example of the impact the situation is having is in the NSW Southern Tablelands where a fourth generation farmer had hit tough times – and wind turbines were to be his saviour. However, with the continuing RET uncertainty,the farmer may still have to sell his property – one that has been in his family for four generations. This particular situation goes beyond this single farmer’s woes, with jobs and investment in the local region also at stake.

In October, a major wind turbine tower manufacturer in Victoria announced  it will be shedding 100 jobs; partly due to the RET situation.

Even where concessions have been made concerning the RET, there still appears to be a great deal of devil in the detail. Yesterday, ClimateSpectator reported Environment Minister Hunt’s office communicated that “solar up to 100kw is proposed to stay in the SRES due to the red tape that would be involved if it moved into the LRET.”

There had been fears commercial solar would be lumped in with the large-scale target. Even this good news came with a potential barb. It’s unclear if up-front deeming will remain; i.e. whether the full government subsidy will continue to be made available upfront when a system is installed; rather than incrementally as the power is generated – as is the case with projects under the LRET

The slide in investment has seen China consolidate its position as the world’s renewable energy powerhouse, according to the Climate Council Report, Lagging Behind: Australia and the Global Response to Climate Change.

“Investment that could be coming to Australia is instead going overseas to countries that are moving to a renewables energy future,” report’s co-author, Professor Tim Flannery said. “Unfortunately the lack of federal government commitment to renewable energy is hurting the industry.”

Australia has come under pressure to cut its carbon emissions deeper after the European Union last week agreed on a new target of 40 per cent by 2030.

The agreement, labelled by the EU as a new global standard, also includes a 27 per cent target for renewable energy by 2030. The coalition government has said it will consider a new post-2020 target in early 2015 before a United Nations conference in Paris, where a new commitment will be discussed and possibly settled.

Prof Flannery said over the past year investment in Australian renewable energy projects dropped 70 per cent, while China installed more renewable energy capacity than fossil fuels in 2013. Continue reading →