Govt 'must act' to reduce cost of low-emission technologies

7th Feb 2012

The government needs to play its part in reducing carbon emissions by driving down the cost of low-emission technologies such as solar panels, a new report has suggested.

No easy choices: which way to Australia's energy future? has been compiled by the Grattan Institute and indicates that electricity needs to be produced at a reasonable price.

This is one of the ways in which the country can help meet its carbon emission targets and ensure the security of its electricity supply, the study indicated.

Tony Wood, the Grattan Institute's energy program director, explained that governments have had to introduce new policies that will help support the carbon pricing scheme.

"Carbon pricing will help to make low-emission technologies competitive, but in the long run it is not nearly enough," he commented.

The institute has pinpointed seven technologies that are capable of generating electricity with near-zero emissions and that have the potential for large-scale deployment over the next four decades.

These are wind, solar power, concentrating solar thermal, geothermal, carbon capture and storage, bioenergy and nuclear power.

However, there are still a number of obstacles standing in the way of these technologies reaching their potential, mainly because they cannot be delivered at an acceptable cost to the public.

"How governments should step in is an acute intellectual and policy challenge. Yet Australia's move to a low-carbon future will be too expensive unless they do," commented Mr Wood.

Responding to the report, Beyond Zero Emissions has pointed out a number of flaws in its conclusions, saying that they could potentially mislead consumers.

One of its main criticisms is that solar electricity was being directly compared to fossil fuel electricity, which are not available in the same market conditions.

Solar energy is currently competing in the retail market, while fossil fuel energy is available through wholesale.

Matthew Wright, executive director of the organisation, said: "We do not expect a suburban Woolworths to compete with food prices at the Footscray Wholesale Fruit and Veg market.

"Yet this is what the Grattan Institute has done by ignoring the differences between the wholesale and retail electricity markets."

Over the past two years, a significant cost reduction has been seen in the price of rooftop solar panels, Mr Wright emphasised, which marks a stark contrast to the considerable rise in gas prices.

He also criticised the report for suggesting that feed-in tariffs will distort the market and be less effective than a carbon pricing strategy in driving the uptake of renewables.

Posted by Mike Peacock

 

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal
 To get your quotes, please enter your postcode: