Renewable Energy Investment In Australia Way Behind Target, Analysis Finds

Fairfax - Angela Macdonald-Smith

Investment in renewable energy is running behind target. Photo: Liu Xiao

Investment in large renewable energy projects in Australia is running at just one-third of what is required to meet the 2020 Renewable Energy Target and behind countries such as Thailand and Morocco, Bloomberg New Energy Finance (BNEF) has found.
While spending on large-scale projects recovered slightly last year from the depths of the 2014 investment freeze, the $1.18 billion compares with a peak of $3.29 billion in 2010 and with the $3.6 billion a year that is needed to meet the target, the analysts said in a report on Thursday.
BNEF blamed the shortfall on a lingering lack of confidence in the RET policy last year as it was undermined by the Abbott government's review of the scheme.
Since the review was announced on February 17, 2014, only $15 million of investment has been driven by the RET policy, compared to more than $12 billion in the period prior to that and since the scheme was born in 2001, Sydney-based analysts Kobad Bhavnagri and Stephanie Allport found.

Seeking funding
The weak numbers stand as a contrast to the keen response to a $100 million funding program for large-scale solar prices from the Australian Renewable Energy Agency (ARENA), where 77 expressions of interest have been whittled down to 22 projects. Those project proponents are seeking more than three times as much funding as is on offer for projects that would cost $1.68 billion to build.
Total investment in new clean energy in Australia was $US2.97 billion ($4.3 billion) last year, a modest increase on 2014 but well down from the $US6.74 billion spent in the peak year of 2011, BNEF said in its global report.
Investment in small scale solar PV installations helped support the sector, while investment in large-scale assets "continues to stall," BNEF said. The ACT's reverse auction program for renewable projects, and grant funding from ARENA and lending from the Clean Energy Finance Corporation propped up investment, it said.
Australia's total investment in the sector placed it 12th behind other resource-intensive economies including Chile, Canada, South Africa and Brazil.
Australia's performance contrasted with the global picture, with worldwide investment in clean energy reaching a record $US329.3 billion last year, up 4 per cent on 2014. China was again the biggest investor, with a 17 per cent increase to $US110.5 billion.