Hydro Tasmania has welcomed the Federal Government’s progress towards implementing the Carbon Pollution Reduction Scheme (CPRS) as a key platform in Australia’s challenge to reduce its greenhouse gas emission footprint.
Chief Executive Officer Vince Hawksworth said a CPRS with a strong emissions cap informed by the latest climate science was essential to Australia contributing to a meaningful response, and to mitigate against the most negative impacts of climate change.
“In Tasmania, the ongoing drought provides a clear demonstration of the potential future climate impacts” Mr Hawksworth said. “Clearly the potential ramifications on Tasmania’s energy security as well as our natural environment are significant.
“The CPRS will provide a framework to achieve the long-term investment certainty necessary for businesses to begin investing in cleaner technology and drive Australia’s transition to a lower carbon economy.”
Mr Hawksworth said that until such time as the CPRS was fully established and the full cost of carbon factored into the wholesale electricity market, other complementary measures would be required, and this is recognised by the Rudd Government in confirming the 20 per cent renewable energy target and accelerated deployment of the renewable energy fund.
“The Federal Government’s expanded Renewable Energy Target (RET) designed to deliver 20 per cent renewable energy by 2020 is essential,” he said.
“The expanded RET is complementary to the CPRS and will be necessary until such time as the CPRS matures and reflects the full cost of carbon. The expanded RET will ensure the immediate deployment of additional renewable energy projects, including upgrades and refurbishment to existing renewable energy generation assets.”
Mr Hawksworth said Hydro Tasmania had a strong pipeline of projects with a potential investment value of up to $400 million that will increase the overall level of renewable energy generation in Tasmania as well as new projects on mainland Australia, particularly through Roaring 40s – a 50-50 joint venture between Hydro Tasmania and CLP.
“We have already announced a project to identify and potentially develop - under the right market conditions - an additional 1000GWh of capability from the Hydro Tasmania generation system,” he said.
“The 1000GWh project will make a significant contribution towards Hydro Tasmania’s objective to become carbon neutral by 2012. The expanded RET will provide incentive for improvements in the efficiency of the existing hydro generation and options for greater diversity of renewable energy generation technologies, further protecting Tasmania from the ongoing impacts of drought.
“Unlocking this and other vast renewable energy investments can be achieved quickly and easily by simply expanding the existing RET scheme and providing the investment certainty necessary.
“The expanded RET will be essential for realising these projects until an emissions trading scheme is fully implemented and a sufficient carbon price is reached, which may take some time.”
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