UPDATE 2-Australia delays renewable energy laws to August

Thu Jun 18, 2009 6:31am BST
 
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* Australian renewable energy laws delayed

* Vote a precursor to emissions trading legislation

* Industry says delay to cause job losses, uncertainty

By James Grubel

CANBERRA, June 18 (Reuters) - Australian laws to promote up to $22 billion of renewable energy investment were postponed until August on Thursday, angering the industry and government, which is struggling to pass its climate change agenda.

In a likely precursor to the outcome for the government's emissions trading scheme, parliament's opposition-dominated upper house Senate voted to delay the renewable energy laws until August, dashing government hopes of passing the laws next week.

The long-awaited legislation sets a 20 percent target for renewable energy by 2020 in Australia's coal-reliant electricity supply, and would unlock up to $22 billion worth of investment in solar and wind projects.

"Clean energy companies around Australia will now put hiring plans on hold and in some cases be forced to start shedding staff," said Clean Energy Council Chief Executive Matthew Warren, adding the laws should have been passed a year ago.

Power companies closely watching the legislation include Origin Energy Ltd (ORG.AX), AGL Energy (AGK.AX), TRUenergy, owned by Hong Kong-based CLP Holdings (0002.HK) and Pacific Hydro, owned by a group of Australian pension funds.  Continued...

 

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