Union Fenosa Delays Windfarms Amid Uncertainty Over Australia's Renewable Energy Target

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Researched by Industrial Info Resources Australia (Perth, Australia)--Several windfarm developers have delayed construction projects in Australia due to uncertainty about the Renewable Energy Target (RET), which is now under review by the Australian federal government. A wave of new windfarms that are due to come online in the next couple of years have been put hold and are in a state of flux.

Union Fenosa Australia Pty Limited (New South Wales, Australia) has delayed three of its windfarms in Victoria, which have received all the approvals, due to inability to secure a power retailer.

Union Fenosa has struggled to find power purchasers for its $400 million Ryan Corner windfarm and Hawkesdale windfarm near Port Fairy in southwest Victoria, because of the uncertainty of renewable energy pricing. The company is concerned, as the planning permits for the project are scheduled to expire by end of 2014.

"The entire industry is frozen at the moment, and it's very frustrating," said Thomas Mitchell, the legal manager for Union Fenosa Wind Australia.

Union Fenosa has received approvals for both the 67-turbine Ryan Corner project and the 31-turbine Hawkesdale project, which would produce 134 megawatts (MW) of electricity. However, if the permits expire, the size of the windfarms could be drastically reduced because of the legislation, which would allow area landowners to vote against the turbines within a two-kilometer radius of their homes. Union Fenosa plans to renew the planning permits for these projects.

On the same note, Union Fenosa had deferred construction of the 60-MW Tarrone windfarm, which did not meet the 2-kilometer legislation rule.

Union Fenosa's windfarm portfolio includes four active windfarm projects in Victoria, including Ryan Corner and Hawkesdale, and three windfarms in New South Wales.

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