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Sorry but we’ve installed too much renewable energy.
The Sustainable Energy Association of Australia challenges the notion that spending more on renewables is somehow a bad thing.
In what is reported by various media as a "blowout in the Western Australian Government's household solar subsidy scheme", no analysis has been done to consider what the benefits of the additional expenditure have created.
‘Energy Minister Peter Collier rightly points out that 76,000 WA homes now have solar panels on their roofs as "a terrific outcome",' says Professor Ray Wills, Chief Executive of the Sustainable Energy Association of Australia (SEA).
‘The solar panels are installed on homes spread across WA, and contrary to the media reports, the majority are taken up by mums and dads with kids and mortgages who are now using solar power to deliver electricity to their homes direct from their roof tops and to reduce their electricity bill,' says Prof Wills.
‘We are yet to calculate the savings that this program has bought - savings that will amount to fewer upgrades to poles and wires, has in the vast majority of cases delivered improved electricity quality and reliability, and will avoid the need for investment in new fossil-fuel based generation.'
‘We need more of this, not less.'
‘It's like suggesting there might be a problem with buying a few extra buses and hiring extra drivers to increase the frequency of public transport services - no one would have a problem with that, I'm certain,' says Prof Wills.
‘Clearly there have been problems in the management of the solar feed in tariff scheme, and as a business chamber, SEA fully expects the fiscal responsibilities of Government must be met - but it is important to note this is not a problem with the solar energy.'
Premier Colin Barnett is reported to have said that the solar panel subsidy scheme "has cost much more than was originally intended" and "demand was underestimated".
'It is unfortunate for the Premier that the Sustainable Energy Association's advice provided to Government prior to the May 2011 Budget was not heeded - in the months before the 2011 Budget, SEA advised the Government to plan to ease back the tariff.'
'That same SEA advice warned the Government that changes to subsidies need to be strategically rolled back to establish a glide path for market development, not coarsely readjusted - unfortunately that advice was not heeded either.'
'Government failed to take the advice of the industry on the changes to the feed in tariff, and the renewable energy industry continues to be plagued by Federal and State Government decisions made with inadequate consultation and that lead to boom/ bust cycles and fail to provide the conditions needed to grow the industry sustainably.'
'It is also unfortunate that the media reports exaggerate the potential ramifications of the cost of the overrun to households.'
'The fact is that renewable energy schemes have had little impact on recent electricity price rises in Western Australia, and that the cost overrun for this scheme, if they were passed on, will amount to little more than a few points of one percent on annual household energy bills,' says Prof Wills.
Sorry but we've installed too much renewable energy.
SEA Media Release - 16 May 2012
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Premier needs Liberal principles to lead competitive electricity markets.
The Sustainable Energy Association of Australia refutes the suggestion by Western Australian Premier Colin Barnett who has been reported as saying that WA's electricity market is one of the smallest in the world and retail competition for households "isn't needed and won't work."
‘Monopoly operations anywhere are a barrier to developing a free market with competitive pricing,' says Professor Ray Wills, Chief Executive of the Sustainable Energy Association of Australia (SEA).
'It is extremely disappointing that a Liberal Premier appears not to understand the Liberal principles of a free market benefiting the consumer,' says Prof Wills.
The WA Liberal Party website in its "Statement of Beliefs" spells out: "ln the creation of wealth and in competitive enterprise, consumer choice and reward for effort as the Proven means of providing prosperity for all Australians."
'If the Premier truly believes re-aggregation and monopolies deliver the best outcome in public service delivery for customers in the small market of Western Australia, then he should also end private operation of all other public service delivery. But first, perhaps he should move a motion to amend the Constitution of the Liberal Party of Australia.'
‘Energy market reforms leading to the disaggregation of Western Power in 2006 were strongly supported by industry to create a competitive market, and those reforms are not yet complete," says Prof. Wills.
‘On-going electricity price reform is eliminating mechanisms that led to subsidies for the use of fossil fuel in the generation of electricity, and an absence of cost reflective pricing that has perversely inhibited the take up of renewable energy in Western Australia,' Prof. Wills
‘Keeping Synergy and Verve as separate entities is a key reform that must not be reversed, with further reforms that encourage new business to enter a competitive market to supply Western Australia's energy needs.'
‘If the Premier was to carry out a remerger of Verve and Synergy, the likely outcome will be to re-establish barriers to market entry and be a disincentive for private sector investment in Western Australia's energy markets.'
'The best path forward is to promote future market diversity and so both security for WA energy supplies and more competitive pricing,' says Prof. Wills.
Premier needs Liberal principles to lead competitive electricity markets.
SEA Media Release - 16 May 2012
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More hot air cuts required for renewable energy surplus.
As a business chamber, the Sustainable Energy Association of Australia welcomes measures in the Federal Budget that will support private investment in a more sustainable economy for Australia.
Treasurer Wayne Swan has said the 2012 Budget is "investing in productivity and competitiveness by building on key improvements in health, education, infrastructure and clean energy."
‘SEA has been arguing for almost a decade for growth in jobs and the economy by building renewable energy projects,' says Prof. Ray Wills, SEA Chief Executive.
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Will cost of bailout of coal miner be itemised on WA household utility bills?
A report in the Australian Financial Review (AFR) yesterday (4 April 2012) suggested two Western Australian Government Enterprises, Synergy and Water Corporation, have been asked to consider contributing to a $90 million dollar bailout of the ongoing saga of the Bluewaters coal fired power station and Lanco Infratech's need for subsidies to support the project.
The AFR report "WA looks at 90 million lifeline for Indian Power Group" has highlighted the inefficiency of coal-fired power to be a viable business in WA without significant State Government subsidies that are likely to add additional impost on consumers.
As a business chamber, the Sustainable Energy Association of Australia does not endorse any state lead bailouts designed to support poor private business dealings.
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Increasing domestic electricity prices improves business case for home solar.
A new report released today by the Energy Users Association of Australia (EUAA) suggests Australian household electricity prices are amongst the highest in the world.
The report Australian Electricity Prices: an International Comparison does not document pricing for business customers.
The report states clearly that it was not possible to document a case for "commercial and industrial end-users because price data ... is not available in Australia".
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Government puts renewable industry in hot water - again.
The termination of Australia's Renewable Energy Bonus Scheme, which has provided more than A$320 million in incentives for households to switch to more energy-efficient hot-water systems, announced yesterday (28 February 2012) by the Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, is likely to have significant short-term negative impacts on solar hot water manufacturing, wholesale, retail and installation businesses across Australia as well as those businesses who supply goods and services to them.
‘Government has failed to consult with the industry on the ensuing changes, and this will have significant impacts on businesses working through the current difficult economic conditions, says Professor Ray Wills, Chief Executive of the Sustainable Energy Association of Australia (SEA - www.seaaus.com.au).
‘Sudden termination of schemes is a poor way to manage markets and will put jobs at risk - a far more controlled and fiscally responsible approach would have been to announce some scale back - say a 50% reduction - in the rebates, not to end them completely.'
‘The renewable energy industry continues to be plagued by government decisions at both Federal and State levels that lead to boom/ bust cycles and fail to provide the conditions needed to grow the industry sustainably.'
‘SEA media releases are usually longer, but continuous decisions like this are leaving me lost for words. In 2012 we should have learnt something from the poor decisions of 2011 - it appears we have not.' concludes Prof Wills.
Government puts renewable industry in hot water - again.
SEA Media Release - 29 February 2012
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Consolidated West Australian public utilities administration a good move - as long as it is quick.
· SEA welcomes move to overarching utility management by Western Australian Government.
· Enterprises can deliver new innovative integrated utility services.
· SEA says learning from water industry can help inform sustainable measures in energy.
· SEA warns move must be done swiftly and thoroughly and not piecemeal over an extended time.
The announcement by Premier Barnett yesterday (5 January 2012) of a new Public Utilities Office that will have responsibility for energy water and waste management policy been welcomed by the Sustainable Energy Association of Australia (SEA - www.seaaus.com.au).
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