Wind power remains the most popular option in renewable energy technologies according to a report into investment in the sector.
BCI Economics says $5.2 billion was spent in 2010-11, with the bulk of the investment in New South Wales, Victoria and South Australia.
Report Author Franziska Mey says the number of solar PV panels on home rooves grew rapidly, but no large scale commercial projects have got off the ground.
Ms Mey say unlike wind power projects which offer a strong return on investment, large scale solar projects are struggling to secure investment funds.
“The incentives and the funding is still not that secure.
“And you also have the problem of securing a purchasing agreement which means you can find somebody you can actually sell the power too.”
Both the Federal Government and the Opposition have agreed on renewable energy targets (RET) so all power generated in Australia by 2020 must come from renewable sources.
The Clean Energy Finance Corporation and Low Carbon Australia are two financing arms set up help business achieve this renewable energy target,
And the ultimate aim of the carbon tax is to drive investment in energy generation from renewable sources.
Ms Mey says Australia has some of the best renewable power sources in the world to draw on.
“There are strong favourable environmental conditions for the production of energy from solar, wind, geothermal and hydro.
“And hydropower is the most mature renewable energy source Australia, providing most of the renewable energy currently generated.”
However, she says renewables are still struggling to gain ground against fossil fuels and they still need public incentives.
“But the price declines in renewable energy technologies, which applies especially to solar PV, will bring the competitiveness in hand.
“We have seen solar PV already reach grid parity in some parts of Australia, and Australia is one of the first countries in the world where this has happened.
“And grid parity means that the cost of producing energy from solar PV equates to the cost of retail electricity.
“So with the price declines of the technologies and the increasing electricity prices, it will not only be a question of incentives and government funding, but it will be commonly accepted that, if you want to decrease your own electricity bill, then you are going to install a solar panel on your roof top.’
Franziska Mey says it’s expected that within the next 20 years, renewables will provide 6 gigawatts of energy,
“But that depends on government commitment and investment activities.
“And the problems that exist are connection to the (power) grid, availability of developers, purchase agreements etc.
“It’s hard to make a definite prediction, but when we look at the world wide purchase of renewable energies, Australia has to, and will, keep pace.’
