SOLAR SCHEME CLIPPED BUT NOT ECLIPSED

Wednesday, 27 October 2010 14:25

Today’s decision by the Kenneally government to keep the gross feed-in tariff for solar power instead of buckling to the fossil fuel industry and climate change deniers who want to get rid of it, is to be commended but the reduction to a low 20c/kwh and 300MW limit will need further review, said Total Environment Centre (TEC) today.

The community's great appetite for renewables and clean energy benefits the environment and reduces future carbon costs on all consumers.  It should be encouraged.

"Today's action, however, will not curb the massive power price hikes coming down the line which are largely due to frivolous over-investment in the network system,” said Mr Angel. “The national electricity market has tailored the system to meet peak power demands, and rewards power companies for spending more, and serving greater and greater demand.  

“The best and cheapest answer to this out of control situation is energy efficiency," he added.

"We strongly urge the NSW government to introduce energy savings targets on the distributors (poles and wires) and direct them to work where there is a constraint in the system and thus create excess capacity in the existing system.  

“It's been proven to work in other countries and we are far behind in the efficiency stakes,” Mr. Angel said.