Canberra’s uncertain commitment to meet the renewable energy target (RET) by 2020 has shaken investors in large scale energy projects, particularly wind farms, in the New England area this week.
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Both the Sapphire and White Rock wind farms between Glen Innes and Inverell are two of the state’s largest projected renewable energy investments, that could include up to 159 and 119 turbines respectively upon completion.
State MP Adam Marshall said federal uncertainty could take wind from the proverbial sail.
“I’m not sure where the federal government will land eventually on a renewable energy target,” he said this week.
“On the NSW level we are fully committed to it with our own renewable energy action plan, which complemented the federal RET and that has seen millions of dollars flow into supporting the renewable sector in NSW.”
Last week, Fairfax Media reported the federal government was seeking Labor support to roll back the RET from 20 per cent of the state’s current energy usage, approximately 41,000 gigawatt hours sourced from renewable alternatives by 2020, to a “real 20 per cent” of around 27,000 gigawatt hours based on projected energy usage rates by the RET deadline.
“I’ve noticed across our region, since the whole discussion about rolling back the RET began that a lot of investors are getting very shaky about pushing through with their projects in this region,” Mr Marshall said.
The potential rollback in the federal RET could see the state lose up to $2.5 billion in renewable energy investment.
“That’s certainly a fear that I hold,” Mr Marshall said.
Nonetheless he said, prior to discussions on a potential RET slash, NSW was shaping up to comfortably meet its 2020 deadline with the assistance of large-scale renewable energy projects in the New England.
Mr Marhsall said he would prefer to see a set gigawatt figure as part of the state’s RET to do away with percentage debates.
“For us in NSW, it would be 41,000 gigawatt hours. That is 20 per cent on current usage,” he said.
On the other side of renewable energy debates, Mr Marshall said protecting industry jobs from cuts to meet RET deadlines was a case balancing the ledger.
“It’s a classic example of when you advantage one side of the ledger you disadvantage the other,” he said. “It is very important that we do progress ahead with renewables very vigorously but also sensibly.”