ANALYSTS' VIEWS-Australia's renewable energy target law

CANBERRA, Aug 20 - Australia passed laws on Thursday mandating the generation of 20 percent of its electricity from renewable energy, which could unleash up to $22 billion in investments to the sector.

The renewable energy laws set a statutory target of 9,500 gigawatt-hours (GWh) from renewable electricity sources in 2010, increasing to 45,000 GWh in 2020.

The legislation is generally viewed as a step in the right direction, although some analysts think the measure comes too little too late.

Here are some views on the new law:

JENNY COSGROVE, ANALYST FOR WILSON HTM, AUSTRALIA

"Generally, it's a good piece of legislation in support of renewable energy. One of the expectations is that the new target will be filled relatively quickly. The generation that derives the certificates will be filled by 2013 or 2014, and the certificates all allocated out by that point, committed to specific projects. In itself, it's not a bad thing but one of the implications of that is that the existing renewable technology will take the bulk of the credits, leaving little for emerging renewable technology and that will include wave and geothermal or the large-scale base solar photovoltaic."

MURIEL WATT, CHAIRMAN OF THE AUSTRALIAN PV ASSOCIATION

"We don't like the government introduction of compensation or exemption for heavy electricity users for trade-exposed industries. We think it's just a way of saying the biggest polluters of the country are getting exemptions yet again. And the cost, the rest of the society will have to pay."

"All our trading countries have large renewable targets anyway so I don't know why they feel they are going to be compromised by having local targets."

CHARLES YONTS, SOLAR ANALYST FOR CLSA ASIA-PACIFIC, HONG KONG:

"The pasage of the bill is positive, though it's unlikely to make Australia a major market for solar. It's too small. Had Australia implemented the programme in 2004 or 2006 even, then potentially it could have a big impact. But in reality, given the overall size now of the global solar market, Australia is unlikely to become a significant market. It's (solar sector) relatively small, and it's a little too late for Australia. It built up a lot of solar technology and did a lot of the groundwork, but then everyone moved to China."

JEREMY HIGGS, MANAGING DIRECTOR, ENVIRONMENTAL INVESTMENT SERVICES ASIA, HONG KONG:

"The legislation is very positive and way overdue. All these environmental legislations and regulations are being enacted as we go along, supporting the first steps along a road which is necessarily going to be a long journey. These are just stones being laid in the foundation. And certainly 20 percent of Australia's energy to be generated from renewable sources by 2020 is a very positive foundation and step to build upon."

"The solution to the problems that we have, the pollution and emissions, they're not going to be solved in six months time, or a year's time. It's a long period of time and what I think we expect is that this hopefully will be the first important legislation, but won't necessarily be the last."