Renewables sector becalmed

Renewable energy may have been touted as one of the key solutions to reducing greenhouse gas emissions, but the development of renewable energy projects in Western Australia has stalled, with no major facilities coming online since 2006.

Figures from the Sustainable Energy Development Office indicate that only four small-scale renewable energy projects, adding a total 3.02 megawatts, were completed over the past 12 months.

There are currently just two small projects under construction - a 1.6MW wind farm in Kalbarri and a 1MW bioenergy facility in Shenton Park.

These projects contribute to the more than 190MW of renewable energy capacity that has been installed in WA on the main grid during the past five years.

The last major renewable energy project to come online was Griffin Energy's 80MW Emu Downs Wind Farm, in October 2006.

The absence of large-scale developments does not bode well for the state government's renewable energy target of 15 per cent by 2020, which will require the addition of nine new large wind farms or six large biomass facilities.

SEDO policy and program development senior manager, Tony Stewart, said WA was working with other state governments to increase the national target, which would provide an incentive and market certainty for developers.

"Renewable energy projects are more expensive than conventional power stations and thus need legislative certainty. Investors need to know there is a secure market for their product," he told WA Business News.

Mr Stewart said the government was currently addressing some of the administrative barriers for small projects, the approvals process among them

In the past 12 months, Synergy has contracted with two proposed renewable energy generators, including a 40MW biomass power station near Manjimup, for the supply of renewable energy.

Together with wind, bioenergy is being dubbed the greatest hope for delivering significant renewable energy capacity to the state in the short to medium term.

But with more than 200MW worth of bioenergy power in the planning stages, several projects are yet to get off the ground, or have experienced delays.

The Manjimup biomass plant's ability to deliver by the contracted date of October 2009 is in doubt, as it is still awaiting the necessary environmental and council approvals.

Western Australia Biomass Pty Ltd, the company behind the plant, was forced to find an alternative location after its original location just outside Bridgetown was blocked by strong community opposition.

Also experiencing delays are the proposed biomass plants by Great Southern Bioenergy Holdings at Mirambeena, which are aiming for financial closure within the next six months.

The proponents are planning two biomass plants, the first of which is expected to begin delivery to the market in 2011, with the second project to follow about two years later.

Beacons Consulting International managing director Cliff Jones said the economics of the projects were strong, with the value of renewable energy certificates almost trebling over the past two years.

"With the rising price of energy and the rising value of renewable energy certificates, the project is looking very robust," he said.

Mr Jones said the development of the second project relied heavily upon the government delivering a third transmission line to Albany, slated for late 2011.

Western Australian Sustainable Energy Association chief executive Dr Ray Wills said issues with infrastructure remained a major impediment to renewable energy developments.

He said Western Power was trying to improve transmission, with upgrades to power lines planned during the next few years.

Two major solar projects are also being planned for the state.

The biggest is a proposed 250MW solar thermal power station, being developed by a consortium including Worley Parsons and Western Power for either the South West or the Pilbara, with delivery planned for 2012-2013.

The second proposal, by a large Asian-based solar manufacturer, is for a series of large commercial-scale solar photovoltaic power stations.

The proponents are looking to invest between $50 million and $100 million to develop a number of power stations, generating up to 1MW, distributed across the South West grid.