The Property Council of Australia has provided comments to the Victorian Competition and Efficiency Commission (VCEC) in response to its inquiry into the design of Victoria’s electricity feed-in tariffs.
The research report produced for the Property Council by Net Balance establishes a case for business feed-in tariffs for commercial property owners in Victoria. It features real-life case examples of investment decisions undertaken by commercial building owners in Victoria.
The report covered:
· How buildings will be impacted by the carbon price in terms of their operational expenditure in the current regulatory environment; and,
· The benefits a feed-in tariff (respective to various rates and lengths of time) will have on an owner’s operational expenditure as their building adjusts to the carbon price.
In light of the national carbon price beginning on 1 July 2012, well designed feed-in tariffs will help Victorians adapt to a low carbon economy through investing in a well-balanced energy portfolio. This is particularly important for safeguarding Victoria’s competitiveness given its heavy reliance on carbon intensive brown coal.
The Property Council has long advocated the use of feed-in tariffs for all Victorians. According to the overseas experience, feed-in tariff schemes increase the use of renewable energy, reduce greenhouse gas emissions and relieve pressures on the electricity grid. They have also proven to create employment in the sustainability sector and increase public awareness of green technology.