Antinuclear

In a move that will pressure Prime Minister Tony Abbott to retain Australia’s goal of producing at least 20 per cent of all electricity from renewable sources by 2020, the Australian Industry Group has urged the government not to abolish or drastically cut the target.

AIG, which represents more than 60,000 businesses, said the RET had lowered wholesale power prices and there would be little benefit to consumers if the target was lowered.

The comments are in contrast to statements Mr Abbott made last year that the RET was causing electricity price rises at a time when Australia ought to be ”an affordable energy superpower”. There are growing fears that the government plans to scale back the target after Australia’s flagship clean energy development agency – the Australian Renewable Energy Agency – was axed in last week’s budget.

In a submission to the government’s review of the RET, the AIG said unwinding the target would require major compensation to businesses that had already made significant investments in renewable energy. It said this would have to come via the federal budget or ”an ongoing payment by electricity retailers – and ultimately energy users – in a closed, grandfathered version of the RET”.

AIG chief executive Innes Willox said on Tuesday that neither deep cuts in the target nor abolishing the RET altogether would deliver ”overall benefits to energy users”……..

The industry group’s submission is critical of the continued upheaval of Australia’s climate and energy policies and the lack of detail surrounding the implementation of the government’s emissions reduction fund to cut carbon emissions.

Read more: http://www.smh.com.au/federal-politics/political-news/reducing-renewable-energy-target-wont-lead-to-cut-in-power-prices-aig-warns-20140520-38mms.html#ixzz32NoLiU4y