Aussie RET review puts at stake 600-MW wind scheme - report

Oct 30, 2014 - The ongoing uncertainty in Australia is threatening the development of Germany-based Senvion’s 600-MW Ceres wind scheme in South Australia, managing director Chris Judd said.

In an interview with the Australian Broadcasting Corporation (ABC), published on Thursday, Judd said it was a "furphy" for the local government to claim its Renewable Energy Target (RET) commitment has not changed. He pointed out that a “real 20%” target was not mentioned in the initial legislation as investors need certainty. According to Judd, the renewable energy industry is currently at a standstill after the government in February initiated a review of the scheme, the goal of which is renewables to account for 20% of Australia’s total power by 2020.

Last week, the country's ruling party launched a proposal to cut the RET to a "real" 20% of demand for large-scale projects, or around 26,000-27,000 GWh, from 41,000 GWh previously. The opposition Labour Party did not accept the proposal and negotiations are currently ongoing.

Senvion, part of Indian wind turbine maker Suzlon Energy (BOM:532667), plans to install 197 turbines on South Australia's Yorke Peninsula. It gained government approval for the AUD-1.5-billion (USD 1.3bn/EUR 1bn) scheme in February.

(AUD 1.0 = USD 0.877/EUR 0.696)

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