The Clean Energy Council Response to the Government’s Flood Plan

The flood levy plan from the Government includes cuts to tge current Solar Flagship scheme.

Spending cuts

The Government will make $2.8 billion in spending cuts, with the funding to go towards the recovery and reconstruction effort, including:

• Not proceeding with the Cleaner Car Rebate Scheme
• Abolishing the Green Car Innovation Fund
• Reducing and deferring spending on the Carbon Capture and Storage Flagships and Solar Flagships programs and the Global Carbon Capture and Storage Institute
• Abolishing the Capital Development Pool from 1 January 2012
• Discontinuing funding for the Australian Learning and Teaching Council
• Reducing the National Rent Affordability Scheme dwelling target
• Redirecting funds from the Priority Regional Infrastructure Program and Building Better Regional Cities Program
• Capping annual claims under the Liquefied Petroleum Gas (LPG) Vehicle Scheme
• Capping funding for the Renewable Energy Bonus Scheme – Solar Hot Water Rebate
• Not proceeding with Round 2 of the Green Start Program
• Capping funding for the Solar Homes and Communities Plan

The clean energy council’s response to the flood levy plan from the Government.

Government’s flood plan a renewable energy wash-out

It makes no sense to fund the clean-up of the worst floods in Australia’s history by cutting investment in climate change solutions, according to the Clean Energy Council, the peak industry body for renewable energy and energy efficiency.

Clean Energy Council Chief Executive Matthew Warren said the Gillard Government was in danger of losing its way on delivering an effective climate change strategy for Australia by assuming a carbon price, currently under negotiation, will be the “silver bullet” to address the problem.

“The reality is that climatic events like the recent floods are likely to become more severe and frequent with the impacts of climate change,” Mr Warren said.

“Cutting funding for clean energy projects that will ultimately mitigate this impact is as bizarre as it is counterproductive.”

The cuts announced by Prime Minister Julia Gillard at the National Press Club yesterday included reductions in funding to renewable energy initiatives such as the Solar Flagships Program, the Renewable Energy Bonus Scheme which supports solar hot water systems, and the Solar Homes and Communities Plan.

“Solar hot water systems are among the most efficient and effective ways for Australian households to reduce their power bills. Rebuilding in flood affected areas is a perfect opportunity to use more clean energy like this to reduce greenhouse emissions.

“Australia has the potential to be a world leader in developing affordable large scale solar energy. We need more investment in its development, not less. Yet Labor’s own Solar Flagships program to accelerate development of this technology has already been trimmed – twice – before the program has even started.”

Mr Warren said a comprehensive response to climate change requires a price on carbon, support for energy efficiency and investment into clean energy generation to deliver affordable clean energy at scale as quickly as possible.

“The Government has a choice – it can either build a cleaner economy, or it can continue to add carbon risk and investment uncertainty.”

Full Article: http://bit.ly/fdNlsE

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Germany to Trim Solar Power Subsidies

Germany plans to bring forward it’s subsidy changes. Even so a total solar power capacity increase of 3.6 gigawatts is impressive.

BERLIN (AP) — Germany’s government and an industry group said Thursday they have agreed to trim solar power subsidies by up to 15 percent this year as demand thrives in the country, a leading producer and user of the renewable energy source.

High demand for solar energy equipment has driven down costs, making it possible to move up planned subsidy cuts without curbing the sector’s growth, Environment Minister Norbert Roettgen said.

“We want a reliable expansion of solar energy, but we also want to use the potential for cost reduction,” Roettgen told journalists in Berlin.

Germany has been heavily subsidizing solar power and other renewable energies since 2000, prompting an industry boom.

Guenther Cramer, who heads Germany’s solar industry association, said a subsidy cut planned for 2012 will be advanced to this July so long as officials are confident that this year’s sales of photovoltaic devices will top 3.5 gigawatts of capacity — about half last year’s level.

The industry hopes to reduce costs so that it will no longer need any subsidies from 2017, Cramer said.

The companies want to increase solar energy’s share in Germany’s overall energy production from about 2 percent now to 10 percent by 2020, taking capacity to 70 gigawatts, Cramer added.

Currently, power grid owners are obliged by law to buy solar power well above market prices at 29 euro cents (39 U.S. cents) per kilowatt hour — providing a strong incentive to households and companies to install photovoltaic devices.

Grid owners, however, mostly pass on to consumers the extra cost of buying solar energy. The overall cost for consumers totaled an estimated euro13 billion last year.

Roettgen defended the subsidies for the country’s solar energy sector — which faces increasingly stiff competition from China — as a model for successful economic programs.

“If you want to keep costs in check while ensuring photovoltaic’s further expansion, then this is the best way,” Roettgen said.

Cramer’s industry group says the solar sector now employs 130,000 people in Germany.

The planned subsidy changes, which still need parliamentary approval, foresee a reduction between 3 and 15 percent by July depending on the industry’s sales volume, and a further decrease from next year.

Germany’s solar industry, a leading producer of photovoltaic devices in the world, hopes to improve its competitiveness and boost its exports, the industry group’s mangaging director Carsten Koernig said.

“Asian producers are serious competitors now. The government in China is doing a lot in that regard, they have (subsidy) programs worth billions,” Koernig said.

Full Article: http://bloom.bg/fxJoL1