Aussie RET review cuts Q3 renewables spending by 78% - BNEF

Oct 6, 2014 - The renewable energy sector in Australia attracted only AUD 193 million (USD 168m/EUR 143m) in investment during the third quarter of 2014, or 78% less than a year earlier, Bloomberg New Energy Finance (BNEF) said in a new report.

The research firm explained on Thursday that the huge drop is a result of the government’s ongoing review of the Renewable Energy Target (RET) scheme, which made the country fall to the 31st spot in terms of investment from 11th previously. According to BNEF’s calculations, clean energy investment in the country year to date stands at AUD 238 million, with investment falling below that of Algeria, Thailand, Myanmar and Uruguay.

Australia aims to source 20% of its total power from renewables by 2020 under its RET programme, but several months ago the government picked global warming skeptic Dick Warburton to review the scheme. The review panel’s report, published in August, calls for either the close of the RET scheme to new entrants with large-scale projects or the adjustment to the set renewable energy share goals, among other measures threatening future green energy investments. One of the states that is seen to be most affected if the RET is abandoned is New South Wales, where about AUD 4.24 billion in projected investment would be put at risk, greens senator Lee Rhiannon pointed out recently.

Overall, July-September investment in renewable energy worldwide rose by 12% on the year to USD 55 billion (EUR 43.9bn), fuelled by a solar boom in China. Japan came second with USD 8.6 billion, or 17% more than in the third quarter of 2013, while the US ranked third with USD 7.3 billion, up from USD 5.7 billion in annual terms. Other countries where investment increased are Canada, France and India, while in Europe it dropped to USD 8.8 billion from USD 12.1 billion.

(AUD 1.0 = USD 0.872/EUR 0.696)

(USD 1.0 = EUR 0.798)

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