Satisfactory Essays
Article Sturmer, J. 2014, ‘First Solar reconsiders Australian investments amid ‘uncertainty’ over Renewable Energy Target’, ABC News, 08 April, viewed 20 April 2014, Summary This article features American based Solar Photovoltaic (PV) manufacturer First Solar’s reconsiderations to future investments in Australia due to the uncertain regulatory environment for Renewable Energy Target (RET) (Sturmer 2014). The change in political governance resulted in uncertainty for future solar plants investments. The upcoming review of RET is directed at the impact of RET on home and industry power bills. As outlook for First Solar is bleak for the next 5 years, management is considering if returns of further investments is worth the risk undertaken (Sturmer 2014). Application of concepts Australia is a strong state with political stability and was ranked 154th over 165 countries in the 2009 Political Instability Index measured by Economist Intelligence Unit (Economist 2009). However, regulatory uncertainty remains as great issue for businesses in solar industry (The Climate Institute 2006, p.6). Policies uncertainties translate into additional risk borne by firms which are likely to increase the cost of managing investments in Australia for First Solar (Blyth et al. 2007). The RET served as an enabler in solar industry due to the legal obligation it has on liable entities, to purchase a certain amount of Renewable Energy Certificates annually (Clean Energy Regulator 2014). Additionally, Australian Renewable Energy Agency funded $166.7 million out of $450 million for First Solar’s collaborated project with AGL (First Solar 2013). The subsidies pr... ... middle of paper ...> The Climate Institute 2006, Climate Change: Risks and Opportunities for Australian Business, The Climate Institute, Sydney, viewed 28 April 2014, Wawryk, A.S. 2014, ‘Australian Federal Election 2013: Implications for Mining, Energy and Natural Resources’, Journal of Energy & Natural Resources Law, vol. 32, no. 1, pp. 81-103, viewed 25 April 2014, ProQuest Central, 1507840584. White, W., Lunnan, A., Nybakk, E. and Kulisic, B. 2013, ‘The role of government in renewable energy: The importance of policy consistency’, Biomass and Bioenergy, vol. 57, pp. 97-105, viewed 30 April 2014, ScienceDirect, doi: 10.1016/S0961-9534(12)00533-8.
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