Hydro Tasmania, Australia’s leading renewable energy business, has welcomed the Federal Government’s announcement to enhance the Renewable Energy Target (RET).

By addressing these critical policy issues, the RET can now unlock the massive renewable energy potential around Australia.

Senior Advisor Renewable Energy Policy Kane Thornton said that while Hydro Tasmania awaited further detail about how the enhanced scheme will operate, preliminary analysis suggested the Government’s approach to separate small-scale technology from large-scale renewable energy projects should ensure a strong incentive for all renewable energy projects.

The generous incentive for small-scale technology over the past year had resulted in the REC price falling to a level which could not support large-scale renewable energy projects.

“Today’s announcement should restore the integrity of the RET and ensure renewable energy projects are now more commercially viable,” Mr Thornton said.

“The Federal Government is to be commended for listening to industry and now taking decisive action to address those concerns. However, the required legislation will need to be supported by both houses of Parliament and Hydro Tasmania urges all political parties to work to ensure this essential legislative amendment is passed as quickly as possible.”

Hydro Tasmania looks forward to working with the Federal Government through the forthcoming consultation phase to ensure the enhanced scheme delivers the renewable energy projects Australia needs.

Legislation for the enhanced RET, which can provide long-term investor certainty and deliver a higher Renewable Energy Certificate (REC) price, is critical. This will remove a significant barrier to the $400m Musselroe wind farm in north east Tasmania which is being developed by Roaring 40s – a 50-50 joint venture between Hydro Tasmania and CLP.

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