A Renewable Guarantee for NSW - or lose our wind power
Monday, 14 November 2005 10:00
"The NSW Government should not let the opportunity for new green industry and jobs pass by. NSW can do even better than the recent Victorian 10% renewables announcement. We have an impressive range of new projects on the drawing board that could be built in the next five years if we introduce a Renewable Guarantee," said Ben Pearson from Greenpeace.
"If these go ahead they would generate more than $3 billion of investment in NSW and more than 2000 jobs, and give more than 1,500MW of renewable electricity capacity," Mr. Pearson continued.
"Giving a Renewable Guarantee is like taking out an insurance policy for NSW consumers. It means a significant supply of clean energy without greenhouse pollution, at the lowest costs." said Don Henry of the Australian Conservation Foundation.
NSW is being left out of the renewable revolution with most renewable developments going to South Australia, Victoria and Tasmania.
New renewable energy projects are not viable without the green electricity market which was provided by the Commonwealth Government's Mandatory Renewable Energy Target. This has now been filled up, five years early. Without expansion of the market, the industry will have to go elsewhere.
"The NSW government needs to step in where the Commonwealth has failed. NSW needs a Renewable Guarantee of 15% by 2012 and 25% by 2020. The impact on consumers would be negligible, adding about $15 per year to the average household bill in 2012." said Jeff Angel of Total Environment Centre.
"A Renewable Guarantee would mean enough market growth to support manufacturing facilities for key renewable energy technologies. We urge Premier Iemma to act now."
BACKGROUND INFORMATION
* A Renewable Guarantee for NSW of 15% of electricity by 2012 and 25% by 2020 builds on existing renewable capacity of 8%, meaning NSW would gain an additional 7% by 2015. This growth will enable NSW to meet emissions targets at least cost.
* Without urgent action, 3 approved wind power projects In NSW will not get built, despite being announced by the NSW government. Unless a new market mechanism is found the industry will be forced to leave the state.
* There are renewable energy projects in NSW for nearly 1500 MW, representing $3 billion worth of investment in NSW which may be lost to the state, and representing more than 2000 new jobs.
* NSW has been left out of most of the new renewable energy development as it has gone to South Australia, Victoria and Tasmania. There is currently only 17 MW of wind power in NSW compared to 252 MW in South Australia, 104 MW in Victoria, and 67MW in Tasmania.
* However, there is an impressive range of potential new projects (1,400MW) slated for NSW that could be built in the next 6 years (see over). These would mean thousands of jobs and over $3 billion of investment in NSW, much of it in regional areas.
* The Commonwealth Government established the Mandatory Renewable Energy Target (MRET) in 2000, requiring electricity retailers to buy an additional 2% of electricity renewable energy by 2010. This was intended to increase the percentage of Australian electricity from renewable energy to 12.5% by 2010.
* The MRET target is almost full, five years early. New renewable energy projects are not viable without the incentive provided by MRET or a similar mechanism.
* The percentage of renewable energy in Australia's electricity mix is in fact declining due to increasing demand for electricity. If federal and state policies do not change, the percentage of energy coming from renewable sources will be roughly 10% by 2010, and 8% by 2020.
* Australia produces some of the cheapest wind power in the world and costs are falling. However, the lack of environmental or health taxes means the current price is higher than coal fired electricity. A Renewable Guarantee of 25% for Australia would bring down the costs to equal fossil fuel generation by 2020.
For further information
Contact
:
Jane Castle or Jeff Angel
Phone
:
61 2 9299 5599
Email
:
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WWW
:
http://www.tec.org.au/
