CWP Renewables - the company behind the Boco Rock Wind Farm - said Prime Minister Tony Abbott's directive to stop investment in wind farms was a blow to projects in regional Australia.
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Mr Abbott - who has previously labelled wind farms as "visually awful" and "noisy" - said at the weekend he wanted the Clean Energy Finance Corporation (CEFC) abolished.
"But while it exists, we believe we should be investing in new and emerging technology - certainly not existing wind farms," Mr Abbott told reporters in Darwin on Sunday.
The Prime Minister's statement comes at a crucial time for the second stage of the Boco Rock project at Nimmitabel.
Boco Rock Wind Farm community liaison representative Siobhan Isherwood said stage two was fully approved, shovel ready, and only awaiting financing before construction could start.
Ms Isherwood said that while the government's stance would not directly stall stage two, it would however send a signal to investors that could affect any wind project in Australia.
“The recent resolution of the Renewable Energy Target (RET) negotiations provided renewed bi-partisan support for renewable energy projects," Ms Isherwood said.
"That delivered much needed investor confidence and certainty.
"It sent the message to the rest of the world that Australia is open for business in an industry which has been booming in other countries.”
But now the $10billion CEFC, which invests in a range of clean energy technologies including wind energy, was "under attack", Ms Isherwood said.
"The draft directive that went to the CEFC over the weekend to remove wind energy from that portfolio muddies the waters and re-introduces uncertainty," she said.
"We’ll see this issue develop further, but in the meantime, investment, projects and regional development stall once again."
Stage one of the Boco Rock project provided jobs in the Bombala district and spin-offs for many businesses including cafes.
Bombala's Linga Longa coffee lounge and deli was one of the businesses to benefit.
Owner Debbie Gaunson told the Bombala Times on Tuesday that during the 4-5-month construction stage she opened the doors of her Maybe Street business earlier to provide breakfast for workers driving through town.
Ms Gaunson also provided takeaway meals to the construction site.
"Business was very good last year," she said.
"It would be terrific if stage two went ahead," she said.
The project also provided a lucrative fillip for the Port of Eden through which all the wind farm components were shipped.
Ms Isherwood said wind farms were a cost effective, competitive source of clean energy that played a major role in meeting the 2020 RET.
"It is a shame to see these lowest-cost renewable energy projects continue to be undermined," she said.
TIMELINE
- The Boco Rock Wind Farm project was launched in the Nimmitabel Memorial Hall on August 27, 2013.
- Excavation for the wind turbine foundations began in November 2013.
- Delivery of wind turbine components for the 67 wind turbines began in April 2014 and were delivered by road from the Port of Eden to the Nimmitabel site.
- Installation of the wind turbines began in May 2014.
- Wind turbines began generating energy for commissioning purposes from September 2014.
- Construction was completed in December 2014.