Summoning the energy

Sydney Morning Herald, Page: 10
Monday, 15 May 2006

WE KNOW that coal-generated electricity is bad for the environment, but apparently we do not care. That is the conclusion to be drawn from the Federal Government's lack of enthusiasm for new wind farms. The Government, and particularly the Environment Minister, Ian Campbell, have already drawn criticism for caving in to local opposition, and using the ludicrous pretence of saving the endangered orange-bellied parrot to veto a proposed wind farm in Victoria. Now another developer has warned the Government's opposition extends wider: it is dragging its feet on helping new wind farms set up.

Australian is uniquely placed to lead the world in alternative energy. It has an abundance of sunlight for solar power, a large coastline for wave energy and the space for wind farms. More importantly, it has the proven scientific and technical know-how to innovate. Australian has, for example, been a leader in developing photovoltaic cells to convert sunlight to electricity.

Renewable energy costs more than energy from traditional sources, but the cost is looking increasingly modest when experts talk seriously of a $US100 a barrel oil price - and increasingly urgent in a world growing steadily warmer. Since 2001, the Federal Government has required electricity suppliers to obtain 2 per cent of power for the FBA 010 national grid from renewable sources. That created a market which encouraged private firms to develop wind farms. So successful has the scheme been that the 2 per cent target has been reached - and the Government is unwilling to raise it.

Other countries are not so tardy. Germany aims to produce 12 per cent of its energy from renewable sources by 2010, Britain 10 per cent by 2010 and 20 per cent by 2020. Of course those countries do not have Australian's huge reserves of cheap coal. And there is the rub.

Generating energy from wind, though the cheapest renewable energy source, is still more expensive than burning coal. As the Government's policy has worked, the renewable energy industry has moved from being the dream of idealists to an everyday reality. It is now an industry like any other, with private firms competing to make profits, and running up against other community interests, including those of neighbouring landholders. That is not an ideal turning sour - it is simply the future becoming the present.

Some projects will be well-designed and run, and will succeed. Others will fail. That is not an argument against renewable energy: it is here to stay. It is time for the Federal Government to get behind it, and raise the target.