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BP SOLAR has refused a bailout package and will shut down Australia’s only photovoltaic energy cell plant in March.

Yesterday’s decision was greeted with disappointment by the Federal Government, with spokeswoman for Climate Change Minister Penny Wong saying it was not related to government policy.

Industry Minister Kim Carr added the British oil giant’s move was a let-down because of the “extensive amounts the Government had spent on solar technology research” and from which companies such as BP Solar had benefited.

BP Solar’s move follows a growing exodus of renewable energy enterprises including the closure of Danish wind giant Vesta’s Portland factory last year and solar thermal power plant manufacturer Ausra’s relocation from NSW to California.

Speaking from Japan, Senator Carr told BusinessDaily the Federal Government had attempted to convince BP Solar to reverse its decision but it had knocked back assistance.

“We asked them what it was that we could do to stop them shutting up shop and moving overseas, but they replied they had made up their mind,” Senator Carr said.

The company had received a commercial advantage through the government-sponsored $75 million Solar City project that subsidised rooftop solar energy panels.

But yesterday, it said no amount of government aid or policies would have reversed the decision to move its operations to where it could be closer to its silicon suppliers and ramp up production more cheaply.

However, just six months ago, BP Solar regional director Brooke Miller was quoted as saying that the company’s investment in Australian solar technology was long-term.

Yesterday, another spokesman said BP Solar’s competitors in China, India and the US had moved down the cost curve and keeping the Australian plant running was commercially uneconomic.

“Helping us move down the cost curve is not something that government policy or assistance could have helped us achieve,” BP Solar’s Chandran Vigneswaran said.

source

Posted on Tuesday, November 18th, 2008 at 3:02 pm and is filed under solar energy.
Tags: Ausra, Australia, BP Solar, Brooke Miller, California, China, climate change, CLIMATE CHANGE ADVISORY LTD, Convergenet Holdings Ltd, federal government, India, Japan, Kim Carr, oil giant, Penny Wong, photovoltaic energy cell plant, PORTLAND, Portland factory, renewable energy enterprises, Reorganization, rooftop solar energy panels, solar technology, solar technology research, solar thermal power plant manufacturer, United States, USD, Vesta, wind giant.