Infigen welcomes Prime Minister’s call for higher renewable energy target
29 September 2016
Infigen Energy was pleased to note Prime Minister Malcolm Turnbull’s call for a higher national renewable energy target.
Mr Turnbull said that he has asked the Energy Minister, Josh Frydenberg, to bring the state Energy Ministers together in what will be a precursor to his discussion with the Premiers to ensure that we move towards a single harmonised national renewable energy target.
Mr Frydenberg said the new target will be the priority at the upcoming Council of Australian Governments (COAG) Energy Council and will seek to harmonise across the states and the Commonwealth a single renewable energy target going forward.
With Victoria and Queensland setting ambitious renewable targets, and with the ACT already incentivising the investment that will make it 100% renewable by 2020, Infigen looks forward to a harmonisation that results in a stronger and longer national renewable energy target.
Retaining investor confidence in the sector will be critical to delivering on new ambitious targets. Having only recently legislated new increasing annual targets to 2020, only upward adjustment or no change to these interim targets will retain that confidence. Retaining that confidence also requires a smooth transition that takes proper account of the economics of existing investments and contract arrangements.
We also encourage the COAG Energy Council to consider how certain elements of the state based schemes, such as contracts for difference written by the states, can be incorporated into a new national target. The states’ objective in writing these contracts is to attract economic activity and jobs to their communities. They play an important role and supplement long term contracts offered by liable parties that underpin investment to meet the Large-scale Renewable Energy Target.
Infigen Energy congratulates Prime Minister Turnbull and Minister Frydenberg for their leadership in this area. It is pleasing to see real momentum building towards implementing policies that can help Australia deliver on its Paris climate change commitments. While further policies will be required to decarbonise the electricity sector, this is a positive start.
For further information please contact:
General Manager, Strategy & Corporate Affairs
Manager, ESG & Investor Relations
Tel +61 2 8031 9900
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