Professor Simshauser recently spoke with EcoGeneration’s Sally Commins about AGL’s role in promoting renewable energy, the continued need for government investment in the industry and maintaining inspiration for the future.

What are some of the programs AGL has implemented that are contributing to increasing renewable energy’s role in the Australian energy mix?

AGL has long been a supporter of the Renewable Energy Target (RET) and its associated legislation and regulations, which will drive investment in renewable energy infrastructure.

In 2009, AGL opened the Bogong Hydro Power Station, which is the largest hydroelectric facility to be built on mainland Australia in 25 years. We are currently building the largest wind farm in the southern hemisphere at the Macarthur Wind Farm.

These projects, and other wind farms in South Australia in particular, have greatly contributed to the growth in renewables in the Australian energy mix, as have other activities AGL has undertaken to promote the use of green power and demand-side management activities.

When did AGL begin to focus more heavily on bringing renewable energy to the Australian market?

The turning point for AGL in becoming more focused on renewables was the acquisition of Southern Hydro in 2005. Following this major investment commitment, AGL began to increase its focus on building a broad renewables portfolio.

Do you believe that the carbon pricing mechanism will enable an increase in market-driven investment in renewable energy infrastructure?

Placing a price on carbon emissions will help accelerate the development of renewable projects because it makes them more competitive against fossil fuel-based power stations. However, the primary driver for renewable energy development remains the RET.

What is your ideal vision for renewable energy infrastructure in Australia?

My strong belief is that if you get the policy settings right, the market will deliver the infrastructure in the most efficient way. There is still a very strong role that the government can play in research and development, however. Markets, left to their own devices, have a long history of underperforming in research and development.

From an economic perspective, how best can Australia position itself in the international renewable energy market?

I do not see that Australia will develop a capital-intensive renewable technology, start manufacturing that technology, and all of a sudden begin exporting equipment. But Australia does have a genuine capability of taking technologies from around the world, and by using our highly skilled workforce and local know-how, achieving world-best performances.

I think we should stick to this strength. For more than ten years, Australian power stations have been the holder of the Guinness Book of World Records’ Most Reliable Power Station category (the current holder is Stanwell Power Station, Queensland). This is a good example of putting our advantages to best effect.

What is involved in your role as a board member of the Clean Energy Council (CEC)?

The CEC’s primary role is to develop and advocate effective policy to accelerate the development and deployment of clean energy technologies, and also has an important role as a prime source of quantitative analysis and policy advice for governments, industry and policy makers.

Like all board members, my role involves forming the organisation's strategic direction and standard director’s duties around financial management, governance and providing support to the CEC’s Chief Executive Officer, Matthew Warren.

What inspired you to become a part of the renewable energy industry?

First and foremost, I am an energy economist. No matter how you look at our industry, you can’t help but see that renewables are going to have an ever-increasing role to play. I held that view back in 2002 when the 2 per cent target commenced, and nothing I’ve seen since makes me think otherwise. As well, I’ve got young kids and I love the thought of having been involved at the sunrise of the renewable energy industry’s development.