Media Release

Peter Gutwein MP
Shadow Minister for Energy

Monday 28th December 2009

Llewellyn confirms doubts over financial viability of Musselroe wind farm

Energy Minister David Llewellyn has finally conceded what the Tasmanian Liberals have been saying for months now – the financial viability of the Musselroe wind farm is not guaranteed.

The Energy Minister David Llewellyn confirmed yesterday that the financial viability of the Musselroe wind farm was not yet certain, yet when I asked questions about this very matter in Parliament recently all I got was stonewalling and assurances that there was nothing to worry about.

What is most concerning is the fact that it appears that even though $30 million of taxpayer’s funds has already been spent on the project, the Government want to press on and continue to spend more despite the fact that the project may not be commercially viable, as a result of the low price of Renewable Energy Certificates.

Over recent months that spot-price for RECs has declined from over $50 to less than $30, and even the Federal Minister Penny Wong has admitted to being concerned about this decline.

It appears that if prices for RECs don’t improve that the Musselroe wind farm could turn into a $30 million-plus white elephant.

Minister Llewellyn needs to urgently outline what discussions – if any - he is having with the Federal Government about this collapse in the price for RECs, and how to address it.

The Tasmanian Liberals want Musselroe to succeed but only the very foolhardy– or this State Government – would plough ahead with construction without knowing whether the project will actually be able to financially sustain itself.