RES may leave Australia if RET is cut - report

Oct 30, 2014 - Renewable Energy Systems Ltd (RES) may quit its Australian operations if the government cuts the Renewable Energy Target (RET) to the proposed "real" 20% of demand, the Australian Broadcasting Corp (ABC) said today.

The UK-based company, which has several wind projects in the state of Victoria, is likely to abandon them, RES’ head of development Annette Deveson told the news agency. The wind farms are planned for Ararat, Murra Warra and Penshurst.

When Australia launched its RET regime, the 20% renewables target by 2020 was calculated to be equal to 41,000 GWh annually. In February, the government appointed global warming skeptic Dick Warburton to review the scheme so as it corresponds to falling power demand. Last week, the country's ruling party proposed to cut the RET to around 26,000-27,000 GWh, which it calculates is the real 20% of demand. The opposition Labour Party did not accept the proposal and negotiations are currently ongoing.

The government’s proposal to cut the RET, however, is likely to hurt the whole industry, Deveson told the ABC, pointing out that the reduction will kill about 64%of the industry.

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