Michael Ottaviano, Managing Director of Carnegie Wave, has called for a compromise on reduction for renewable energy target (RET) of 20 percent by 2020.
The target of 41.000 GW/h of clean electricity by 2020 set by RET scheme would represent more than 20 percent of Australia’s electricity needs, due to the decrease in the electricity demand over the past five years.
Because of the fall in the demand, RET of 20 percent of electricity generation by 2020 is deterring banks from granting funds to renewable energy projects, the West Australian, news provider of general, business and sport news, reports.
According to the West Australian, the Government and industry are seeking the target to be scaled back to about 27.000 GW/h in order to avoid oversupplying the market and to attract investments.
Michael Ottaviano advocates the compromise between the RET by 2020 and the proposal made by the Government and industry.
“There is probably a very rational case to say that the… should be adjusted to take into account that shortfall in forecast consumption but to ratchet it right back to this ‘real 20 per cent’ forecast is simply too dramatic and too much of a change,” Michael Ottaviano was quoted as saying by West Australian.
Matthew Warren, Electricity Supply Association CEO, said that regardless of the change in RET, the banks would not lend money to renewable energy project as long as the demand for the electricity stays subdued.
Image: Carnegie Wave/Illustration