Wong sets price for renewable energy producers

PENNY Wong today moved to encourage smaller renewable energy projects by guaranteeing $40 per megawatt hour of electricity.

PENNY Wong today moved to encourage smaller renewable energy projects by guaranteeing $40 per megawatt hour of electricity.

But the climate change minister admitted changes to the renewable energy target scheme would cost consumers an extra $3 to $4 annually.

Senator Wong said the changes would give certainty to small producers who have difficulty establishing economically viable projects.

``These changes are expected to deliver more renewable energy than the original 20 per cent target and will ensure we build the clean energy future Australia needs,'' she said in a statement.

Under planned changes to take effect from January 2011, the scheme will be split into two parts, one for large-scale projects and a second for small-scale technologies such as solar panels and solar hot water systems.

- with AAP

Senator Wong was reluctant to nominate by how much the target would be exceeded, saying that depended on the take-up by households.

Large-scale projects will deliver about 41,000 kilowatt hours, the "vast majority" of the 2020 target (45,850 kilowatt hours).

“What that will deliver is certainty to the large-scale market,” Senator Wong said, adding the change aimed to drive investment.

Parliament will need to approve the changes.