Wind power ruined due to price hit
Solar power February 14th, 2011Due to a collapse in the prices of the renewable energy certificates, about $1.5 billion worth investment in wind farms has completely been ruined. And there is no idea about when a revised schedule for the next month will reinstate the prices to a viable level.
The NSW Sugar Milling Co-operative, nation’s biggest baseload renewable energy generator, gets receivership by February if the prices paid for RECs almost becomes twice within next three months. Renewable energy projects like wind farms and solar schemes are granted allowance by RECs. And if generate power above a baseline set by the Office of Renewable Energy Regulator, they receive one certificate for each megawatt of power.
Under the government’s Renewable Energy Target scheme, which aims at having nation’s 20 percent solar power produced by renewable means by 2020, presently requires energy retailers to buy large number of RECs.
The current commerce of RECs is at about $28.40 – down 20 percent on their $36 mark in October and well below the $45-$50 needed to furnish new wind farm investments and maintain the fedility of the NSW Sugar operation.
The price fall is due to a satiety in RECs issued to households which have taken advantage of government-subsidised Solar panels installations.