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$100 Million Energy Credit Market Ignored

Announcement posted by CleanTech Sydney 11 Apr 2011

Sydney, 11 April 2011

Australia's $100 million per year state-based energy saving schemes are ignored by both investors and policy makers. The market will grow to approximately $200 million next year and governments have mandated it to grow for many years.

Australia's $100 million pa mandated energy efficiency market is totally ignored by investors and policy makers. Theses state-based markets are growing rapidly and will approach $200 million next year. In NSW the Energy Savings Scheme requires the creation of 1.5 million "Energy Savings Credits" aka ESCs for this year and growing to 3 million credits per annum by 2014. The Victorian Energy Efficiency Target promoted as the Energy Saver Incentive requires 2.7 million credits currently and is likely to double to 5 million credits annually within months.

"It is unusual that there is not more interest from investors and large energy users" says James McElhinney, a Director of Carbon and Energy Reductions Pty Ltd, a company that creates both VEETS and ESCs .

In Victoria, the Essential Services Commission host a regular public forum to assist organisations interested in the VEETS market. The NSW communication program is not yet as structured as Victoria.

There is an additional South Australian program called the Residential Energy Efficiency Scheme (REES) which has a unique direct funding model where both Victoria and NSW creates a 'tradable financial instrument". In SA, the energy retailer directly pay other companies to undertake prescribed energy saving activities at a fixed price.

The NSW government is committed to improving the market with more robust communications and increasing the number organisation involved.

There are many very large opportunities to create new products and services based upon the energy credit market. Liquidity of the market is always an issue. A lack of supply of credits is a problem and with the growth of the market it may get worst before it gets better.

Opportunities abound for innovative organisations.