FORGIVE my cynicism regarding reported comments from Andrew Nikolic, (Examiner, September 1) that the federal government is not out to destroy the renewable energy industry.
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The evidence would suggest that they are in fact looking after their mates in the coal and gas power generation game.
Mr Nikolic claims that renewable energy will force up energy prices.
What he doesn't say is that that research was commissioned by big business and the coal and gas lobby.
It makes two rather heroic assumptions; firstly that the cost of wind farms won't fall over time, (highly unlikely) and secondly that the price of gas for gas fired generators won't rise much, (it already has risen a lot).
He also doesn't mention the other research commissioned by the renewable energy target review itself that demolished the argument that renewable energy adds to living costs .
It is the current generators who are to blame for the high costs of energy.
They have over invested in capacity when demand has been falling.
To cover up their bad calls they have increased prices to protect their returns when in a free market prices should fall.
They have also known for a long time that the competition from renewable was coming and now they seek to stop them.
Corporate welfare at its best.
If the renewable energy sector is decimated Mr Nikolic and the federal government may bear a heavy responsibility for undermining one of Tasmania's best prospects for future economic growth and much needed revenue.
— MALCOLM REID, Trevallyn.
