Australia: About turn in energy policy could unlock billions in wind investment

The Rudd government’s decision to exclude solar panels and water heaters from Australia’s large-scale renewable market has been welcomed by Pacific Hydro and AGL, who had put on hold wind farm projects worth over AUD6bn. Their decision, which was made as a result of the price of renewable energy certificates dropping from AUD60/MWh to around AUD35/MWh, could now be reversed as the government’s move is expected to help return the value of the certificates back to their previous levels.

Pacific Hydro currently has AUD1.7bn or 560MW of projects at an advanced stage and another AUD1.2bn (400MW) in the pipeline. AGL has an estimated 1365MW or AUD3bn of wind projects in the pipeline, including the AUD800m 365MW Macarthur windfarm in western Victoria, which if it were to materialise, would be the largest wind farm in the country.

The government’s about-face on this issue is thought to be the result of significant lobbying from the wind industry, including meetings between Vestas’ Ditlev Engel and Climate Change Minister Penny Wong (The Australian).