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Australian Business Council for Sustainable Energy attacks SA Govt for lack of mandatory renewable energy targets; state “free-riding” on mandates in neighbouring jurisidictions

Posted by gmarkets on 22 September, 2007

The South Australia Government has been attacked by the nation’s leading advocate for sustainable energy over a lack of mandatory renewable energy targets in the state, reported The Advertiser (3/8/2007, p.31).

BCSE slams Govt green claims: The 280-member Australian Business Council for Sustainable Energy (BCSE) had poured scorn on Premier Mike Rann, accusing him of claiming credit for renewable energy investment in SA, despite other states and the Federal Government being responsible.

Laws elsewhere boost SA green points: This was because other states, notably Victoria and NSW, and the Commonwealth require electricity retailers to buy a certain percentage of their electricity from renewable sources, such as wind farms, and surrender certificates they get when they buy the electricity. SA has no such system in place, the council argued.

No need for laws, Rann claims: But Rann said mandatory targets would increase prices by about 10 per cent for South Australians and were unnecessary because other policy initiatives were in place. However, BCSE executive director Ric Brazzale said the structure of the renewable energy market meant an interstate retailer could use an SA wind farm to get its renewable energy certificate, without having to invest in more wind farms. If SA had mandatory targets, there would have to be more investment in renewable energy, he said.

SA free-loads on renewables: While SA’s Climate Change and Greenhouse Emissions Reduction Act (2007) included renewable energy targets of 20 per cent by 2014, the council said the targets were not mandatory. ” . . . none of the investment in renewable power projects in SA can be attributed to the renewable energy target of the Rann Government,” Brazzale said. “The SA Government runs the risk of being seen as free-riding on the policies of other governments.”

The Advertiser, 3/8/2007, p. 31

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