Carbon policy indecision creates ‘investment strike’ in renewables in Australia

via NOT A LOT OF PEOPLE KNOW THAT
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By Paul Homewood

h/t Patsy Lacey

The BBC article about record solar power, that I posted on earlier, contained the usual whinge about cuts in support for solar (translation – subsidies).

Hannah Martin, head of energy for Greenpeace in the UK, said: "Today’s new record is a reminder of what the UK could achieve if our government reversed its cuts to support for solar.

"All around the world, solar power keeps beating new records as costs come down and power generation goes up."

As I have repeatedly pointed out, why do they need subsidising, when the costs are claimed to be so low.

According to the Guardian report below, solar cannot even stand on its own two feet in Australia:

The uncertainty of Australia’s carbon policy is causing reduced investment, including in renewable energy, regulators have told a parliamentary committee.

Officials from the Australian Energy Market Commission told the standing committee on the environment and energy on Friday that an emissions intensity scheme was the best solution to end uncertainty because it was technology neutral and could respond to variables such as high gas prices.

The evidence echoes the warning of Australia’s chief scientist, Alan Finkel, that investment has stalled and his support for an EIS in a preliminary report before his major review of Australia’s climate policy, which he is due to complete by mid 2017.

Labor and the Greens have said the evidence shows increased power prices are not leading to investment to improve supply or manage demand because of an “investment strike” caused by government policies.

Anne Pearson, the chief executive of the AEMC, said the electricity sector was in transition and needed policy certainty for investment decisions.

“That certainty won’t come until there’s some certainty in emissions policy,” she said.

A senior director, Richard Owens, said the AEMC tried to drive investment but “we seem to be seeing there’s a lot of uncertainty for businesses”. That would last “until they know what policy on climate change will be adopted to meet 2030 and 2050 targets”.

“If you are thinking of entering the market for solar power and storage, a large-scale solar provider, or pumped hydro, or as a gas power station … it’s very hard to know if you’ll make money [until emissions policy is decided].”

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If solar power cannot make money in Australia’s sunshine, it never will in Britain.