Origin Energy: Renewable Energy scheme must not crowd out promising long-term technologies
ASX/Media Releases
04 Aug 2008
Following the close of submissions to the COAG Working Group on Climate Change and Water, Origin Energy today confirmed its support for the Federal Government’s commitment to increase the Renewable Energy Target (RET) to 20 per cent by 2020.
However, in supporting the expansion of the target, Origin called on the Government to ensure that technologies which are yet to mature, yet might be very promising in the long run, are given an equal chance under the scheme.
“The full objectives of the RET will not be achieved if current renewable technologies crowd out promising new and developing technologies. The lowest cost technologies today may not be the lowest cost solutions for Australia in the long run,” said Carl McCamish, Origin Energy’s Executive General Manager, Corporate Development.
“That is why Origin supports the ‘dual linear’ targets put forward in the COAG Discussion Paper, whereby the incentive to build new renewable generating plant grows at a faster rate after 2015 than it does before.”
Mr McCamish also said that it was important to see the RET in the context of the Government’s broader policy on climate change. “Along with the Carbon Pollution Reduction Scheme and a clear framework for investment in transmission, the RET scheme will be an important factor in whether companies invest in the infrastructure required to deliver carbon emissions reductions in Australia,” said Mr McCamish.
The RET should nevertheless be seen as a transitional measure to be phased out over time, he said. “The RET will help to bring forward investment in new renewable technologies that would otherwise not occur. After a certain period of time, new technologies need to be able to compete on their own.”
“In the longer term, the Carbon Pollution Reduction Scheme should be the key driver for investment in these technologies. It makes sense to gradually phase out the RET once it has achieved its objectives.”
Mr McCamish also said that any review of success of the RET should be done in conjunction with review of the Carbon Pollution Reduction Scheme. “Certainty for investors will be key to the success of the RET. Any review of the scheme once it has started should only occur at a time that is defined in advance and within parameters that are clearly laid out before the scheme starts. If the Carbon Pollution Reduction Scheme is to be reviewed in 2015, as suggested in the Green paper, then this would also be a good time for any review of the progress being made under the RET,” he added.
Origin is a leading player in solar energy in Australia. It has also invested significantly in major wind projects and in Australia’s leading hot-rock geothermal project.
For further information or for a copy of Origin’s submission to the COAG
Working Group on Climate Change and Water please contact:
Media
Michelle Hindson
Acting General Manager, Corporate Communications
Ph: 02 8345 5217
Mobile: 0414 207 049
Investors
Angus Guthrie
Manager Investor Relations
Ph: 02 8345 5558
Mobile: 0417 864 255
About Origin Energy
Origin Energy is Australasia’s leading integrated energy company focused
on gas and oil exploration and production, power generation and energy retailing.
Listed in the ASX top 25 the company has over 3,500 employees, is the largest
holder of gas reserves in eastern Australia and is the second largest energy
retailer in Australia, servicing over 3 million electricity, natural gas and
LPG accounts. Origin’s strategic positioning and portfolio of assets provides
flexibility, stability and significant opportunities for growth in the ever
changing energy industry. Origin is also the major shareholder in Contact Energy
of New Zealand. The company has a strong focus on ensuring the sustainability
of its operations, and in 2007 the company received the Ethical Investor 2007
Sustainable Company of the Year award.