Australia: Tilting at Windmills

Australia = Coal Country

Traditionally, Renewables in Australia face a difficult position. The country is one of the largest coal exporters in the world and draws its own energy up to 80% out of this raw material. The remaining 20% of electricity are generated mainly by gas and hydroelectric power, which still accounts for the largest proportion of renewable energy. According to Reuters, the stake of wind power in the electricity mix is only 4%, the stakes of solar power move even lower.

In order to promote the development of renewable energy in the country the ruling Labour government established the Clean Energy Finance Corporation (CEFC) in 2012 which task is similar to that of a green bank: spur investments in renewable energy projects. This year, the CEFC has a fortune of 10 billion Australian dollars to be invested into various projects.

The currently ruling conservative Coalition government under Prime Minister Tony Abbott (see photo, ©Department of Foreign Affairs and Trade website – www.dfat.gov.au via Wikimedia Commons) has never been fond of the CEFC. In his former role as opposition leader Abbott argued against the establishment of the CEFC. Since he came to power, there have been two attempts to stop the financing of the fund, but both failed due to lack of majorities in the Australian Senate.

War on renewable energy

The opposition already called these trials of Abbott a “war on renewable energy”. The conservative politician is said to be close to the coal industry. In 2009 he was even tempted to put climate change into perspective – a statement he later tried to tone down. Abbott doesn't hold back that he's not a fan of wind power, however. In Australian radio he recently called turbines “visually horrible” and “ugly” – an opinion shared by some more ministers of his cabinet.

Last weekend Abbott rang a new round in his 'tilting at windmills': He gave the instruction to the CEFC not to invest in wind farms and small-scale solar projects in the future anymore. According to the Guardian Abbott told reporters in Darwin: “Our policy is to abolish the CEFC but in the meantime it should focus on solar and emerging technologies as was originally intended. This is a government that supports renewables, but obviously we want to support renewables at the same time as putting downward pressure on power prices.”

In the future, solar energy will only be supported in large dimensions, projects such as solar cells on rooftops won't get any more support – and that's coming from a country where the estimated potential for solar energy is considered very high. According to the webpage of the CEFC, last year alone 25% of their budget was invested into wind energy projects, however.

Sharp criticism by the opposition

What exactly is meant by “new emerging technologies”, was not explained. Given these cuts the opposition couldn't contain biting criticism: Labour Party leader Bill Shorten speculated to the press “the only thing the CEFC can invest in is flying saucers”. Mark Butler (see photo; ©By User Takver (Flickr - source) via Wikimedia Commons), the former Minister for Climate Change and Environment, also found harsh words: “How a prime minister and treasurer [Joe Hockey] can so blatantly undermine thousands of Australian jobs and billions of dollars in investment is beyond comprehension. Tony Abbott is abusing his office and the cabinet process by pursuing his own anti-wind ideology, enlisting fellow wind haters like Joe Hockey to help bring down a whole industry.“

Renewable Energy Associations are appalled

The various renewable energy associations reacted in horror at the government's announcement. According to Bloomberg, Andrew Bray of the Australian Wind Alliance accused Abbott of “hammering in the final nail to the coffin of wind-energy investment himself“.

Clean Energy Council CEO Kane Thornton stressed for the Guardian that it has always been the primary focus of the CEFC to finance new technologies, rather than more commercial renewable energy such as wind, but „reports today of an overt directive preventing CEFC from investing in wind reinforces a growing perception that renewable energy investors are not welcome in Australia. In the midst of a global race to attract investment and jobs in renewable energy, Australia has just thrown another weight in its own saddle bag.“

Australian Solar Council Chief John Grimes said the industry is “finished” under these circumstances and alleged an act of revenge, because Abbott's attempts to abolish the fund have failed. Simon Corbell, Environment Minister of the Australian Capital Territory (ACT), a region surrounding the capital of Canberra reacted in a similarly harsh way: He told the Canberra Times, the Australian Prime Minister was “public enemy No. 1” when it comes to renewable energy. The statement was a “kick in the guts” and is hindering future investments into a sector whose potential is far from being exhausted.

Outlook for the Climate Summit

Half a year before the important Climate Summit in Paris, the whole affair blatantly shows that far from all industrial nations are united in the fight against climate change. Australia is one of the world's biggest producers of CO2, but is also in grave need to give up tilting against windmills – literally. Because even Don Quixote had to realize that this is a hopeless campaign.