AGL postpones A$2 billion wind projects

AUSTRALIA: Australia’s largest renewables developer, AGL Energy, is cancelling A$2 billion of wind projects as a result of the government’s energy policy.

AGL said the creation of the Renewable Energy Certificate (REC) trading market, in response to the lack of a price, had led to a collapse in certificate prices. As a result, future wind farm investment was not financially viable.

The company said the situation would remain until after 2014 or 2015. AGL chief executive Michael Fraser said the company would not commit to future wind projects until the REC market started to recover.

This is not the first time AGL has threatened to postpone its wind projects. In January last year, AGL said it planned to axe A$1 billion of planned developments.

It relented when the government said it planned to split the scheme into separate strands aimed at small- and large-scale projects from January 2011.

AGL is still planning to go ahead with the 420MW Macarthur wind farm in Victoria, which it jointly owns with New Zealand company Meridian Energy.