The Australian Capital Territory (ACT) government has decided to buy a quarter of the electricity needed for the national capital, Canberra, from wind farms in surrounding state of New South Wales.
It is the next step in the Labor-led territory government’s renewable energy push, and follows last week’s announcement of new 50-megawatt next-generation solar farm.
ABC News reports the government wants to source 200 megawatts of power from wind farms to supply 80,000 Canberra homes by 2020.
Territory environment minister Simon Corbell said reverse auctions would be held to obtain the lowest price for 20-year supply contracts, from at least two companies.
“The wind auction will abate around half a million tonnes of greenhouse gas emissions per annum and will generate about a quarter of Canberra’s electricity needs,” he said.
“This is about half of all emissions associated with residential electricity use.”
The auction will be open to generators in the capital region, such as those currently planned for, or under construction, near Bungendore, Crookwell and Collector.
Wind farms further afield can also bid, but they must be committed to investing in the region and backing local employment and research.
“Because of the Commonwealth Renewable Energy Target (RET) review, wind is currently a buyer’s market,” Mr Corbell told ABC News.
“By moving quickly, the ACT can expect lower prices now than if we were to defer the required investments to a later time.”
The government has a target of generating 90 per cent of Canberra’s energy from renewable sources by 2020.
The wind auction is expected to cost households $1.30 a week.
“Which is part of the $4 a week already announced as the cost of achieving 90 per cent renewables by 2020,” Mr Corbell said.
“For many households, this cost will be more than offset by savings from new government energy efficiency policies.”
ABC News reports Mr Corbell hopes to proceed with the auction by the middle of the year.
Liberal opposition environment spokeswoman Nicole Lawder said the government needed to explain how much the recently announced renewable energy projects were going to cost Canberra households.
“There will be a major impact on families, self-funded retirees, pensioners and many others already struggling with cost of living increases brought on by constant rises in ACT government fees and charges,” she said.
“Like many Canberrans I’m not against greener electricity, but the government needs to be honest and tell Canberrans how much it will cost overall,” she added.
