By Tristan Edis
While the investment of financial capital is greatest when a renewable energy project is built, considerable resources have been invested by both companies and individuals in building up a pipeline of projects, intellectual capital, skills and supporting infrastructure capable of delivering the target as currently legislated.
Now, if your government is indeed genuine about Australia doing its fair share in a global effort to decarbonise electricity supply, you need to recognise this requires upfront capital investment in projects costing hundreds of millions apiece.
The review panel suggests that with demand having declined substantially it is necessary to reduce the level of the target because it is inducing new power supply into an already oversupplied market.
This has involved considerable investments by both domestic and international investors and, indeed, a large number of individuals who have dedicated their careers – often at considerable sacrifice – to successful achievement of this goal. 2) and expansion and adjustments to the scheme have been passed not just by Labor, but also Coalition parliamentarians.
Meanwhile, we can assure you that abolishing the target or cutting it to a ‘real 20 per cent’ will shatter the confidence of the investors who are looking to construct the low carbon power infrastructure Australia requires in the future.
Almost all the power generation capacity in Australia owned by the private sector (more than 20 gigawatts) was purchased by its current owners after 2007 when the expansion of the RET became official government policy.
Yesterday in the article, Reading Dick Warburton's mind, I imagined what was likely to be the findings of the Warburton Renewable Energy Target Review based on the available indicators.
The official policy of this government is that you agree with Labor on the need for Australia, in conjunction with countries overseas, to substantially reduce greenhouse emissions to contain global warming to around 2 degrees above pre-industrial levels.
Read more here: Business Spectator