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Australia renewable power campaign sets 10% target
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AUSTRALIA: November 1, 2001


MELBOURNE - Australia's target for renewable energy use by 2010 should be raised to 10 percent, generator Pacific Hydro Ltd and renewable energy lobby groups said this week.


Australia currently requires power retailers to source an extra two percent of their energy from renewable power by 2010, equating to 9,500 gigawatt hours, as it grapples to reduce rising greenhouse gas emissions.

But Pacific Hydro, which is expanding in wind generation in Australia, the Australian EcoGeneration Association and the Australian Conservation Foundation said the target should be raised to 10 percent, equating to 35,500 gigawatt hours.

"This is consistent with other countries around the world. Many countries are looking to double or even quadruple their target," Pacific Hydro chief operating officer Roy Adair told reporters.

The groups plan to leaflet marginal electorates mainly in Adelaide and Melbourne ahead of the November 10 Federal election on the importance of Australia ratifying the Kyoto Protocol on climate change and raising use of renewables.

The Opposition Australian Labor Party has said it would ratify Kyoto and review the target, while the minor Australian Democrats and Australian Greens parties both favor increasing the target.

Adair said Australia's wind generation capacity could be increased from just over 100 megawatts to an easily achievable 15,000 megawatts if the target was raised.

"Germany is talking about 24,000 megawatts by 2010 and they haven't got anything like the wind regime or coastal areas that we have," he said.

Pacific Hydro this year opened the 18.3 MW Codrington windfarm and has plans for about 3,000 MW of wind generation capacity.

Adair said Australia had one of the lowest electricity generation prices among developed countries and raising the target would not affect its energy competitiveness.

The current average National Electricity Market (NEM) wholesale price was A$40 per megawatt hour, compared to the current wind generation price of A$70 percent hour, he said.

But if 10 percent of power used was wind-fired the price would rise to only A$43 per MWh.

The campaign says increasing renewable energy use would create jobs in regional areas, recognise the environmental and health costs of more high-polluting sources of energy and help Australia to meet its commitments to limit emissions.

But the Energy Users Association, which represents large-scale consumers, has said improved operation of the NEM needed to be addressed before the renewables target was raised.

"There are a whole series of question markets in the minds of customers that need to be resolved. It is premature and inappropriate to be talking about lifting the target," executive director Roman Domanski said recently.

Pacific Hydro shares were down five cents at A$4.35 at 1:10 p.m. (0210 GMT), while the broad market was down 0.4 percent.


REUTERS NEWS SERVICE

Reuters



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1 NOV 2001
ENVIRONMENT
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