Clean Energy Finance Corporation (CEFC) chief executive Oliver Yates says uncertainty around the Renewable Energy Target (RET) has deterred investment into wind power.
"In the last 12 months there hasn't been a renewable energy project financed in Australia because of RET uncertainty, that hasn't been financed without the assistance of the CEFC," Mr Yates said.
His comments follow news that the Government has directed the $10 billion so-called green bank not to invest in wind or rooftop solar projects.
Prime Minister Tony Abbott wants to abolish the CEFC and said it was not useful for the CEFC to invest in established technologies.
"While the CEFC exists, what we believe it should be doing is investing in new and emerging technologies, certainly not existing wind farms," Mr Abbott said.
Mr Yates disagrees, saying that although wind technology is established "our job wasn't just technology, our job is to ensure finance is available".
"Our job is one of a future fund, we're investing taxpayers' money so we can't deploy a lot of money into very risky, new-stage ventures," Mr Yates said.
He said it was difficult for the big banks to invest in long-term wind projects when there was policy uncertainty around the future of the RET. But he said when the CEFC backs a project it encourages other investors to do so.
"I think that's part of the confidence we've been able to bring to the market, we've been able to draw in international investors who've come along because they've said 'well if the government bank (the CEFC) is there, they understand the technology, they understand the market and they understand the policy risk so if it's good enough for them it should be good enough for the commercial banks'," he said.
Over the past two years the CEFC has invested more than $1.4 billion, which it said had triggered a further $2.2 billion injection by other investors.
"If our portfolio had to be related to pure emerging technologies then it would obviously end up being of higher risk," Mr Yates said.
"So it's a real choice for the Government and the ministers to decide where they want us to play."
Most recently the CEFC invested $15 million in remote solar and storage.
Other investments for 2014-2015 include:
- $238 million in energy efficiency projects
- $199 million in solar
- $37 million in wind
- $10 million in waste-to-energy (bioenergy)
Mr Yates said under the Government's direction, some wind projects would struggle to find investors.
"There will be farming areas that will be denied the ability to diversify — there are very large projects out the back of Broken Hill, in Silverton, that might not be able to get finance or have difficulty getting finance," he said.
When built and operational, the projects in which the CEFC has invested are expected to abate 4.2 million tonnes of CO2 annually at a cost of $2.40 per tonne, according the CEFC.
The CEFC is seeking legal advice about the changes as it waits for the Government to decide and deliver a final mandate.
No comments:
Post a Comment