Vestas Australia Wind Technology will close its Portand turbine blade factory at the end of the year. The company's interim financial report points the finger at government policy.
"The factory is not of a sufficient size to ensure satisfactory profitability, and the market outlook for Australia makes it impossible to expand the facility," it said.
Jorn Hammer, Vestas Asia-Pacific senior vice president, says Australian governments have not set up an economic environment where the wind industry can be profitable in Australia.
However, the GM of Vestas' neighbour Keppel Prince, which makes towers for the turbines, told the ABC that Vestas was simply making the wrong the type of blade, with the market moving away from the 40m model to larger ones.
But both the Business Council for Sustainable Energy and Victoria's Jennings laid the blame at the foot of the Federal Government. Jennings says the Commonwealth has not expanded its Mandatory Renewable Energy Target beyond its "pitiful" level of 2% of all energy generated.
He called on it to follow Victoria's lead by strengthening the target to encourage more companies to invest in renewable energy projects. Hammer would welcome the shift.
"We have the view that if the government steps up the plate and puts the necessary security for a long-term market in place we'll have another look at the market," he told AAP.
Jennings also attacked the National Greenhouse and Energy Reporting Bill 2007 announced last week, saying it threatens state-based renewable energy targets rather than works with them.
The Clean Energy Council today urged both the Federal Government and the Federal Opposition to announce a policy framework that delivers 20% renewable energy by 2020 – following the decision by Vestas to shift its Portland manufacturing plant overseas.
