Wind power report hot air: Verve

State-owned electricity generator Verve Energy has dismissed any possibility that a scathing report into the effectiveness of renewable energy policies will have an effect on its iconic Albany wind farm expansion.

Last week, WA’s economic watchdog said policies to encourage green power such as solar panels were badly flawed and might drive up household electricity bills without good reason.

In a potentially explosive report, the Economic Regulation Authority called for a rethink on the subsidies enjoyed by the green energy sector and backed a price on carbon as an efficient way to influence markets.

While the report was particularly severe on the arrangements for rooftop solar panels, it also criticised the way handouts were given to wind farms.

The ERA also said the cost of upgrading transmission lines to deal with the erratic power supply associated with solar panels and wind farms was not factored in.

“Incentives for wind generation are overly generous and new wind generators do not face the costs they are likely to impose on others,” the ERA report said.

“These schemes are likely to result in inefficient investment and a distortion in prices, which represents a cost to consumers.”

Verve said the findings of the report would have no bearing on the timing or scope of its Albany wind farm expansion, which is due to be completed in early 2012.

A Verve spokesman said that while green energy sources were not suitable in all scenarios they could be deployed effectively in certain circumstances, such as the Albany wind farm.

The project will see six 2.3 megawatt turbines added to the existing 12 units, taking capacity to 35.4MW.

It will lift the proportion of Albany’s electricity needs sourced from renewable options from about 50 per cent to as much as 80 per cent.