ACT to go 100% renewable by 2020

ACT Minister for the Environment and Climate Change Simon Corbell has dropped a bombshell, stating today that the ACT Government is committing to a target of 100% renewable energy by 2020.

The announcement comes less than nine months after the territory committed to 100% renewable energy by 2025, with a 90% target by 2020. According to Corbell, the current renewable energy auction process would have made this more than achievable, as well as affordable.

“Taking the extra step to 100% at this time lets us take advantage of favourable market conditions to lock in great long-term prices for Canberrans,” he said. “It also ensures we can meet our emission reduction targets if the Commonwealth’s policy framework for its Renewable Energy Target continues to falter.”

To meet the new target, the government will expand its large-scale renewable energy auction process from 109 to 200 MW, with additional capacity to be awarded subject to the value for money of the proposals brought forward. Corbell said, “Adding an extra 91 MW of renewables to our current auction process will allow us to take advantage of the record low prices and significant local investment we have achieved in our recent auctions.”

The ACT’s feed-in tariff legislation will also need to be changed in order to accommodate the extra capacity required to meet the new target.

The move will result in higher electricity bills, with Corbell conceding that households can expect a peak increase of $5.50 per week in 2020 (or $286 for the year). However, he noted that bills will decline after this point and that the cost will be largely offset by energy savings from mandated energy-efficiency measures.

According to Corbell, the government’s reverse auction process has driven down the price of wind and solar energy to record lows. These reductions mean that the latest estimated price for 100% renewables is in line with the estimates set out for achieving 90% renewables.

“I am confident we can reach this highly ambitious target in the next four years, which will certainly place the territory at the forefront of the renewable energy target rankings,” he said. “The target will demonstrate to industry, business and the community our community’s commitment to tackling greenhouse gas emissions by embracing new clean energy technology.”