Australia’s new large scale industry of renewable energy has recently reached an investment freeze, and only one project was able to secure any finance in duration of the past six months in between political uncertainty, according to the New Energy Finance, Bloomberg.
This lone project was the first in three month of the year 2015 and was only worth US$6.6 million and will be following a complete drought during the month of December quarter, according to BNEF. This lone venture was a floating solar PV plant which was under development in Jamestown, South of Australia headed by Infratech Industries.
However, during this year in March the investment was recorded at US$206.9 million which was around 90 per cent lesser than what was recorded in the last 12 months, according to the consultancy firm.
According to BNEF, the investments are stifled by policy uncertainty which has continued for duration of over 13 months since the Abbott government’s review was declared on 17 of February in 2014. Hence, the Australian large scale clean energy industry has now practically become an uninvestable one due to the ongoing uncertainty which has been caused as a result of the government’s review.
So, the pressure continues to be on the Abbott government that compromised over its plan to cut down the current 2020 target by over one-fifth to 32,000 giga watt hours every year by the decade’s end. However, the renewable energy industry, labor, and business groups settled on a decrease by 33,500 giga watt hours in a bid to solve this impasse with the government.