Infigen Energy welcomes CCA draft RET Review recommendations
26 October 2012
Leading renewable energy business, Infigen Energy (ASX: IFN) has welcomed the draft recommendations of the Climate Change Authority’s (CCA) review of Australia’s Renewable Energy Target (RET).
If implemented, the draft recommendations will redress the regulatory uncertainty and unpredictability that has hamstrung the Australian renewable energy industry for the last few years. Infigen Energy appreciates the diligent work undertaken by the CCA in assessing the merits of each submission and producing draft recommendations that are designed to provide increased regulatory certainty for investment in large scale renewable energy generation projects in Australia.
The key draft recommendations that underpin the delivery of the Renewable Energy Target are:
- No change to the large-scale renewable energy target before 2020;
- No change to the annual targets between now and 2020;
- No change to the shortfall price – with scope for upward revision if required to meet the target; and
- Reviews to take place every 4 years instead of every 2 years.
With all interested groups having had an opportunity to make a submission, and in light of the draft recommendations calling for minor changes, Infigen Energy looks forward to the final report confirming the CCA’s draft recommendations.
Infigen Energy’s Managing Director Miles George said, “Despite the significant lobbying efforts of those with vested interests in seeing the RET amended, reduced or scrapped, the Climate Change Authority has done a professional job in delivering draft recommendations congruent with the intent of the original legislation and the national interest.”
The review was always about assessing the efficacy of the RET in achieving its stated objectives. The CCA’s draft recommendations acknowledge that by and large these objectives are being met,” he said.
The CCA identified that an adjustment to the target to reflect the current electricity demand forecast would deliver less than 4 percent in total savings. It further assessed that this was insufficient to offset the higher cost of capital that would be demanded by investors in the sector should further regulatory uncertainty be introduced.
“We look forward to the final report confirming the CCA’s draft recommendations and the Government endorsing the recommendations,” Mr. George said.