Australia - Regulatory developments key to wind energy growth

Fitch Ratings says today in its report entitled "Australian Wind Energy - Gusty Growth", that the growth in Australian wind energy has benefitted from favourable regulatory policies and incentives. Although wind generation has grown rapidly between 2000 and 2009, Australia still has a very small share of the world's wind power capacity.

"While wind energy is expected to increase its share of the generation mix, regulatory uncertainty remains a key threat to its future growth rate," said Sajal Kishore, Director in Fitch's Energy & Utilities team. "The proposed changes to the national renewable energy target scheme are a key issue for 2010," adds Mr. Kishore.

The growth of the wind energy sector in Australia has also benefitted from: the increasing proven nature of wind turbine technology; economies of scale through larger wind farms; technological improvements; and cost competitiveness of wind energy, compared to competing forms of renewable energy.

In "Australian Wind Energy - Gusty Growth", released today, Fitch analyses the growth and surveys both completed projects and those under construction at end-2009, the main drivers for this rapid growth, and the factors constraining wind energy development.

"Additional investment in increased flexibility and expansion of the electricity network will also be required to support future wind energy growth," adds Mr. Kishore.

For more information please contact Trevor Sievert at ts@windfair.net