The government of Victoria, Australia announced plans to introduce a feed-in tariff (FIT) to boost its electricity supply from large scale-solar power to 5% by 2020.
Specific details concerning FIT pricing levels were not given, but the FIT will assist in the development of solar power by paying
large-scale facilities extra money for feeding the renewable power they
generate back into the grid above what they would normally receive on
the open market.
Victoria Premier John Brumby said the initiative should lead to between A$1.5 and A$2 billion in new solar investment and the establishment of between five and 10 large solar plants.
Brumby said additional solar will allow Victoria to have up to 25% of its power from renewable energy by 2020.
Victoria, which hopes to become known as the "solar state" has set an interim target of generating 500GWh of solar power by 2014.
Environment and Climate Change Minister Gavin Jennings said the solar incentive plans also include action to support
medium scale solar energy. Victoria alread has a FIT for residential solar power.
Brumby made the announcement while visting a test facility for the solar company Silex. The Victoria government is contributing A$50 million towards an A$450 million large-scale solar project being developed by Silex.
Referring to the country's ongoing attempts to
create a carbon trading system, Brumby said, “A price on carbon is necessary to deliver the very deep reductions in emissions we need, but we need to forge ahead and tackle climate change through measures such as these.”
