The Australian Financial Review recently revealed the the Federal government is intent on abolishing the Renewable Energy Target (RET). What does this mean? 1 Million Women explains.
What is the Renewable Energy Target?
The Climate Institute explains:
"The Renewable Energy Target is a bipartisan policy designed to reduce carbon pollution from the electricity sector and build Australia's renewable energy industry. The Target is working, but several big power companies and industry associations are calling for it to be cut or even abolished altogether."
A report from the Clean Energy council shows future power prices will be lower with the (RET) in place than they would be if it was removed.
The report's key findings on the RET and what it means for Australians:
- Each Australian household will pay over $50 more for electricity in 2020 if the Renewable Energy Target is dispensed with. The total cost would be half a billion dollars extra for electricity in 2020 and up to $1.4 billion extra each year beyond that if the policy is removed.
- The Renewable Energy Target will generate approximately 18,400 new jobs by 2020 if retained in its current form. This is made up of 9700 jobs in large-scale technologies such as wind power and bioenergy and 8700 in household systems such as solar power and solar hot water.
- In addition to the $20 billion of investment already generated, the Renewable Energy Target will drive a further $14.5 billion of investment in large-scale renewable energy out to 2020, as well as many billions more in household renewable energy such as solar power. If the policy is removed, most of this simply won't happen.
- Removing the Renewable Energy Target means more of Australia's electricity will come from coal and increasingly expensive gas-fired power, forcing up both power prices and emissions. For the Federal Government to meet its target of reducing emissions by 5 per cent, it would need to find an extra 34.7 million tonnes of emissions abatement from other sectors.
- Due to reduced demand for electricity, the report estimates that renewable energy will deliver 22.6 per cent of the electricity consumed in Australia in 2020 as a result of the Renewable Energy Target's current policy settings.
While it was originally claimed the RET would simply be scaled back by the federal government, a government sourced told the Australian Financial Review that "it was now 'more likely' the RET will be abolished under a so-called 'closed to new entrants scenario' in which existing contracts only would be honoured."
" 71 percent of Australians support the renewable energy target as it is or want it strengthened. Abolishing the renewable energy target has no public support, which was why Abbott had to promise to keep it before the 2013 election." - The Guardian
If the RET is terminated, who will reap the benefits?
In an independent study released by the The Climate Institute explains:
- $8 billion additional profit to coal and $2 billion to gas generators (net present value of future profits 2015-2030).This includes $2 billion in extra profit for EnergyAustralia, $1.5 billion for Origin and $1 billion for AGL.
- No decline in electricity prices: in fact, they could increase slightly (an average $30 increase to the annual household power bill, with most of this increase taking place after 2020). This is consistent with modelling commissioned by the Government and studies conducted independently by leading economic analysts.
- Additional carbon pollution of about 150 million tonnes to 2030 (equivalent to adding nearly 4 million cars to the road) with additional pollution costs of over $14 billion.
- Loss of $8 billion in investment in new renewable capacity, with New South Wales and South Australia each standing to lose over $2 billion in foregone investment.
What can we do to save the RET?
- From Solar Citizens , add your name.
SIGN AND SHARE the biggest petition for solar and solar jobs ever seen in Australia: http://www.solarcitizens.org.au/protecttheret
- From Australian Conservation Foundation , Tell the big three to clean up their act!
Send an email to the Boards of the big three, telling them to clean up their act and show their support for the Renewable Energy Target.
https://secure.action.org.au/page/speakout/RET?js=false
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