Renewable energy projects in Australia are already being cut and suspended as a result of the two major parties’ plan to completely dissolve the Australian Renewable Energy Agency (ARENA) based on a report released by The Guardian.
With the announcement from the Australian Stock Exchange this week, Geodynamics announced that they are suspending two large biogas projects in Goulburn, New South Wales and in Mindarra, Western Australia. The company told investors that they are doing so because of the uncertainty surrounding getting grants or funding for any projects in the future.
The company also stated that without any grant funding, these two projects will not meet the targeted ROI. As a result and with consultation from their customers, work on the projects has been suspended until there is a possible flow of funds or grant availability. If the cuts to ARENA push through, Geodynamics will have to cancel the projects. The company also calculated the value of the projects if suspended will be $4.69 million.
The Coalition Australian political party announced that it would save about $1.3 billion by removing the power of ARENA to provide grants and funding and completely abolishing the agency. The cuts are now part of the omnibus bill the government will introduce to Parliament, which contains all the budget savings agreed to before the election by both parties.
190 members of Australia’s solar research community signed an open letter requesting both parties to not go ahead with the ARENA cut.
Featured Image Credit: Green Prophet