Green energy: lots of money for little return

Western Australia, with long hours of sunshine and reliable coastal breezes, would seem ideal for green energy generation. Not so:

The State's economic watchdog has warned that policies to encourage green power such as wind farms are badly flawed and may drive up household electricity bills without good reason.

As Prime Minister Julia Gillard last night talked up the carbon tax at a community meeting at Perth Town Hall, the Economic Regulation Authority dropped a politically explosive report on the real cost and impact of renewable energy sources.

The authority called for a rethink on the subsidies enjoyed by the green energy sector and backed a price on carbon as an efficient way to influence markets.

Energy Minister Peter Collier rejected the finding on the efficiency of a carbon tax but conceded the rush for wind farms and rooftop solar panels was costing the State a fortune for negligible environmental rewards.

All West Australians pay for this green energy folly through increased electricity bills.