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Braking wind in Australia: A critical evaluation of the renewable energy target

  • Valentine, Scott
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    This paper provides a critical evaluation of Australia's new Renewable Energy Target (RET) program with respect to its capacity to support wind power development. Four structural flaws associated with the RET which undermine its effectiveness as a catalyst for technological change in the electricity sector are discussed: (i) the inclusion of waste coal mine gas (WCMG) as an eligible fuel source which acts as an indirect coal industry subsidy, (ii) program duration which is too short and ill-structured, (iii) a multiplier that is well-intended to support small-scale renewable technologies but which creates "phantom capacity", and (iv) the capped target of 45,000Â GWh which will stymie long-term wind power market investment. The paper concludes with recommendations which stress the importance of passing effective Carbon Pollution Renewable Scheme (CPRS) legislation to offset the weaknesses associated with the RET. If an effective CPRS cannot be implemented, the paper recommends that amendments be made to the RET to (i) remove WCMG from the list of approved alternative energy sources, and (ii) extend the RET targets to reach 120,000Â GWh by 2030.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-4YK8979-4/2/9efd5ed3482bb624a71c5da4eb5c8697
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 7 (July)
    Pages: 3668-3675

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3668-3675
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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    1. Kann, Shayle, 2009. "Overcoming barriers to wind project finance in Australia," Energy Policy, Elsevier, vol. 37(8), pages 3139-3148, August.
    2. Owen, Anthony D., 2009. "The inquiry into electricity supply in New South Wales," Energy Policy, Elsevier, vol. 37(2), pages 570-576, February.
    3. Schläpfer, August, 2009. "Hidden biases in Australian energy policy," Renewable Energy, Elsevier, vol. 34(2), pages 456-460.
    4. MacGill, Iain & Outhred, Hugh & Nolles, Karel, 2006. "Some design lessons from market-based greenhouse gas regulation in the restructured Australian electricity industry," Energy Policy, Elsevier, vol. 34(1), pages 11-25, January.
    5. Saddler, Hugh & Diesendorf, Mark & Denniss, Richard, 2007. "Clean energy scenarios for Australia," Energy Policy, Elsevier, vol. 35(2), pages 1245-1256, February.
    6. Sovacool, Benjamin K., 2008. "Valuing the greenhouse gas emissions from nuclear power: A critical survey," Energy Policy, Elsevier, vol. 36(8), pages 2940-2953, August.
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