Australian Emissions Trading Scheme Puts Another Windfarm on Hold

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Researched by Industrial Info Resources (Sugar Land, Texas)--Electricity generator Roaring 40s (Hobart, Australia) recently confirmed that the construction of the Musselroe windfarm has been placed on hold because of issues surrounding Australia's Renewable Energy Certificate (REC) system. For additional information, see January 14, 2010, article - Council of Australian Governments Reviews Solar Renewable Energy Credits.

The problem stems from the "phantom credits" that are eligible to domestic solar hot water systems and heat pumps. These systems receive five credits for each megawatt-hour actually produced, whereas commercial generators would receive only one credit. This has created a glut in the market for renewable energy certificates. The current spot price for an REC is A$35.10 (US$31).

Windfarm developers would like to see the Renewable Energy Target amended to reduce the impact that solar hot water heaters are having on the price of RECs.

At the Musselroe windfarm, activities valued at A$20 million (US$17.9 million) have begun, including the construction of roads, establishment of hardstands, excavation for turbine foundations, clearing for the control building, and erection of wind-monitoring masts.

Roaring 40s is not the only windfarm developer that has decided to put projects on hold. Pacific Hydro (Melbourne, Australia) has stalled development on five of their windfarms, including the Crowlands windfarm in Western Victoria.

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