The development of new renewable energy projects around Ballarat and Victoria will stall unless further incentives and confidence is given to the sector, industry leaders and environment groups say.
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Environment Victoria has forecast no new renewable projects will come online between 2022 and 2025, according to Victorian government modelling.
The group is calling for the state government to launch a new series of Victorian Renewable Energy Target auctions to provide confidence to the sector to invest in new projects.
Environment Victoria campaigns manager Nicholas Aberle said renewable energy had the potential to be an 'incredible' driver of economic recovery, but the industry was facing collapse without government support.
The business as usual approach is just not acceptable.
- Michael Poulton, Committee for Ballarat
"The first and only VRET auction in 2018 drove six new wind and solar projects, as well as new manufacturing and local employment opportunities particularly for regional communities," he said.
"A new series of VRET auctions is urgently needed to unlock new renewable industry opportunities in the next few years."
Ballarat-based company Direct Wind Services specialises in the installation, service and maintenance of wind farms and employs around 30 technicians.
Owner Aubrey Chapman said his company would look to other states, such as Queensland for new employment opportunities as renewable energy policies have driven growth in that state.
"Without continued support for new renewable energy projects from the government in Victoria, the opportunities for Victorian based businesses like ours will be limited," he said.
"Increased investment through a new Victorian Renewable Energy Target auction series could allow the company to keep more employees in Victoria rather than relocating staff or hiring interstate."
In June 2020, Victoria had 22 renewable energy projects either in construction or due to start soon, comprising nine solar and 13 wind projects that provide more than 4000 jobs.
But government modelling indicates this growth will stall within two years.
The reverse auction system previously used by the state government involved signing a contract that guaranteed a consistent rate for energy produced by wind and solar over a fifteen year period.
When energy prices are low, the government agrees to top up the payment made to renewable energy companies, when prices are high the renewable energy company pays the government the difference.
This provides certainty to get new projects off the ground.
Read more about how the reverse auction system works here.
West Wind chief executive Tobias Geiger said market uncertainty for an Australian economic recovery had made investors more wary and risk averse.
"That is where a renewable energy target backed by a reverse auction scheme as Victoria did in 2018 can be very helpful because it takes that risk away on that side and will help accelerate those projects," he said.
"If it was available we could probably build a lot of the wind farm a lot quicker than we otherwise could.
"What that means in terms of jobs is you would have way more people out on the construction site to deliver the wind farm in a time frame of say three years rather than drag that out over five or six years."
RELATED COVERAGE: Ballarat group continues call for Victorian Emission Reduction Targets
Committee for Ballarat chief executive Michael Poulton said committee was continuing to talk with business and community about its strategic priority to make Ballarat carbon neutral and driven by 100 per cent renewable energy.
"The business as usual approach is just not acceptable," he said.
"What we have to do as part of COVID recovery and a new energy future is to invest in renewable energy projects now."
Mr Poulton said Committee for Ballarat was calling on the state government to change regulatory systems to allow for localised energy generation and distribution.
"We are trying to reduce the cost of electricity, incentivise new businesses and create new jobs, we are trying to provide resilience to supply and take carbon out of the atmosphere," he said.
"We have to keep coming back to that and say government, there is amazing support for this from both a business perspective because they see reduced costs and from a community perspective because they see the importance of taking carbon out of the atmosphere."
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