From Fairfax:
Tony Abbott has dramatically escalated his war on wind power, creating a new cabinet split and provoking a warning he is putting international investment at risk.
Fairfax Media can reveal the government has ordered the $10 billion Clean Energy Finance Corporation not to make any new investments in wind power projects.
…The decision is another blow for the multibillion-dollar wind industry, which has just started to recover from the uncertainty created by the government’s Renewable Energy Target review. Analysts say $8.7 billion is expected to be invested in wind power in the next five years, while the corporation has invested about $300 million in wind projects to date.
A major international renewable energy company told Fairfax Media the decision would add to perceptions Australia was not a safe place to do business.
And more:
According to media reports, the government’s order also applies to small-scale solar technology, such as rooftop panels. At the moment, one-third of CEFC funding goes to solar projects, most of which are small-scale.
…Prime Minister Tony Abbott believes it will provide certainty for the sector.
“But while it exists, we believe we should be investing in new and emerging technology – certainly not existing wind farms,” he told reporters in Darwin on Sunday.
Hear, hear. This is a part of Australia’s front line economic defense against the external shocks developing in Greece and China. This five cornered shield for the economy comprises:
- the Grocery Code of Conduct;
- Andrew Robb’s FTAs;
- the Q&A ban;
- development of a local flag manufacturing industry, and
- gutting renewable investment to ensure that it does not displace the Grocery Code of Conduct, FTAs of flags on Q&A.
It is model economic management.