The Central Highlands region stands to be the big winner from the Victorian government’s ambitious new emissions target, which aims to slash the state’s emissions by 15-20 per cent on 2005 levels by 2020.
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The target, which stipulates 25 per cent of energy production comes from renewable sources by 2020, puts the region in the box seat as the potential home of wind energy for the state.
Melbourne Energy Institute deputy director Dr Roger Dargaville said while wind power cannot completely replace the outgoing Hazelwood coal power station, it will be the preferred method for reaching the state and federal renewable energy targets.
“The incentive at the moment (from renewable energy targets) is to get the cheapest form of generation and put out the biggest hours,” Dr Dargaville said.
“At the moment wind is the cheapest form of zero-carbon electricity and we know there are terrific wind resources in the (Central Highlands) area.”
It comes after renewable energy giant WestWind announced its plan to propose a 200-240-turbine farm near Rokewood last week, which if given the green light would be the biggest of its kind in the southern hemisphere.
Driven by recent power outages in renewable energy leader South Australia, government leaders including Treasurer Scott Morrison and Nationals leader Barnaby Joyce have pledged their support for coal’s continued presence in the nation’s energy mix.
The Minerals Council of Australia has also championed ‘clean coal’ with carbon capture storage technology as a viable investment option as older coal-fired plants such as Hazelwood leave the grid.
However, power giants such as Energy Australia, which operates the coal-fired Yallourn plant in the Latrobe Valley, have called for bi-partisan commitment around renewable investment.
Ed McManus, chief executive of clean energy provider Powershop which manages Hepburn Wind, said investors were already driving the shift to renewables by refusing to invest in old technology.
“What is happening is the four big coal-fired power stations in Victoria are coming to the end of their lives, and they either need to be refurbished or we need to find alternatives,” Mr McManus said.