Monday, February 13, 2012

Australia:

Funding Flow Short-Circuits Companies (AdelaideNow.com)

Renewable energy companies are facing tougher competition for Federal dollars with the State Government abolishing support for local projects.

Under Premier Jay Weatherill, South Australia's Renewable Energy Fund was cut last year, with $11.7 million of its $20 million not spent and lost to industry.

No new announcements about funding avenues have been made.

In comparison, the Victorian Government boosted its funding to progress low-emission energy technologies to market by $41 million in its 2011-12 budget, to a total of $82 million.

The Climate Change department established by Premier Rann in SA has also disappeared.

Minister for Mineral Resources and Energy Tom Koutsantonis said the "core elements" of Renewables SA would "continue to function with the recently formed Department for Manufacturing, Innovation, Trade, Resources and Energy."

Renewables SA's job would be to "foster investment through case management." And to "assist investors (in accessing) Commonwealth Grants such as the Renewable Energy Certificate Scheme".

With no funding kitty to progress renewable energy development there are concerns the Commonwealth will turn to other states showing more commitment to the industry.

Australian Geothermal Energy Association chief executive Susan Jeanes said the renewable energy industry had been given a clear message from the Commonwealth Government that it would be looking to fund renewable energy projects where the states also made a contribution.

"We're concerned," Ms Jeanes said.

"I think SA should be talking to the Commonwealth to make sure they are both on the same page.

"In Victoria they have a large fund for renewable energy projects, the last thing we want is to lose funding to interstate."

Former Premier Mike Rann established the Renewable Energy Fund, Renewables SA and the Commissioner for Renewable Energy in mid 2009 when he announced an increase to the state's renewable energy production target to 33 per cent by 2020.

One scheme that has suddenly ended was the $1 million in grants offered in 2010 to kick start community owned and operated solar farms.

A note on the Renewables SA website said the "expression of interest for the design and implementation of community solar farms" were no longer needed after the Treasurer announced the end of the Renewable Energy Fund on December 16.

"As the announcement occurred mid-way through the tender process, parties should assume that the funding will no longer be made available."

Mr Koutsantonis wasn't available for interview, nor was the head of Renewables SA Tim O'Loughlin.

But in an emailed response, Mr Koutsantonis said: "The Weatherill Government is committed to the State's renewable energy targets. South Australia has long held the reputation as the nation's best destination for investment in renewables."

"Renewables investment will also be a key focus of Invest in SA."

Clean Energy Council acting chief executive Kane Thornton said the SA Government still seemed committed to renewable energy through regulation but agreed that "money talks". "Money talks to a degree but planning policy is a big one these days," he said.

"They seem committed through working through good policy."

KPMG national leader for Renewables Mathew Herring said the SA Government was supportive and advanced in facilitating any renewable energy projects in terms of regulation and approval.

"They just don't have the money on the table, we need to work out a mechanism for dealing with that when competing with other states for federal funding," he said.

Opposition sustainability and climate change spokesman Steven Marshall said Mr Rann's renewable energy strategy announcement late last year seemed a "last ditch effort to ensure the government made a commitment to this sector" after he left office.

"The government now seems to be saying we are cash strapped at the moment so we will just pass the buck to the Feds," he said.

"There's no certainty for the industry, these things are announced and then they are dropped . . there has got to be certainty."