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The head of the nation’s top renewable energy group has urged legislators to reject a proposal to pay coal and gas-fired power stations to keep operating in order to avoid the shock of sudden closures.
Powering Australian Renewables (PowAR) – a consortium of power giant AGL, the Future Fund and the Queensland Investment Corporation – is the latest clean-energy developer to speak out against a contentious recommendation by the nation’s Energy Security Board that could see fossil fuel generators paid to guarantee future capacity.
A consortium of power giant AGL, the Future Fund and the Queensland Investment Corporation this week takes control of Tilt Renewables’ Australian wind and solar farms.Credit:Joe Armao
Chief executive Geoff Dutaillis warned the move would deter the very investment needed for a smooth transition to a zero-emissions grid. He told The Age and The Sydney Morning Herald there were better ways to redesign the market and support renewables during periods when weather conditions were unfavourable.
“The sun doesn’t always shine, the wind doesn’t always blow; there will be renewable droughts,” Mr Dutaillis said.
“If we get a diverse pool of resources and an interconnected system linking Queensland, NSW, Victoria, and South Australia properly – and, dare I say, even Tasmania – we will have a diverse, resilient system which allows us to use resources from different parts of the country cost-effectively.”
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Last week, the Energy Security Board sent its final recommendations for a redesign of the energy market to the national Cabinet. The recommendations include a “capacity mechanism” to pay power generators to guarantee they can dispatch power when required. State and federal ministers are expected to decide on the rule changes within months.
PowAR on Tuesday will become Australia’s largest operator of renewable energy when it assumes control of Tilt Renewables’ wind and solar operations across the country following a $2.7 billion takeover deal earlier this year.
Mr Dutaillis said the consortium was eager to realise the full potential of Tilt’s outstanding development pipeline of energy projects, including more than 3500 megawatts of wind, solar, battery storage and peaking capacity.