Antinuclear

Shutting down the RET would bring to an end a $20 billion industry, cost thousands of jobs and force household and business bills to soar. But that is what the government has wanted from the beginning. It appointed a panel composed of climate sceptics, pro-nuclear advocates and fossil fuel lobbyists.

Killing the RET would satisfy the right-wing ideologues and deep-lined antipathy to renewable energy within the Abbott government. The AFR also confirms what has long been suspected: that Environment Minister Greg Hunt and Industry Minister Ian Macfarlane have been effectively sidelined from the process, despite the issue crossing into their portfolios.

The PM’s office has had carriage of the project since the start, and his intentions have long been clear. The secretarial support has been housed within Abbott’s office — and within reach of his principal business advisers, including climate sceptic and renewables opponent Maurice Newman and Abbott’s own energy adviser, former AGL executive Sarah McNamara.

Government insiders who have worked on the RET Review say the intent of the review has always been to cut the current 41,000GWh Renewable Energy Target to a maximum of 25,000GWh (what might be called a “true” 20% target), and possibly close it to new entrants altogether.

There were glimmers of hope that the RET could be retained, particularly when the panel’s own modeling dismissed the two major arguments to drop the target  …….

A report released today by consulting firm Jacobs, on behalf of The Climate Institute, Australian Conservation Foundation and WWF Australia, says that the biggest beneficiaries to dumping the RET would be the fossil fuel generators. The Jacobs report suggested $8 billion in additional profits to coal-fired generators out to 2030 and an extra $2 billion to gas generators. The big three retailers, AGL Energy, Origin Energy and EnergyAustralia, would be the biggest beneficiaries………

Whether the Abbott government finally agrees with a scaled back target or an effective closure, any changes seem likely to be blocked in the Senate, where the Palmer United Party has promised to side with Labor and the Greens.

But it matters not. The large-scale renewable energy industry has already ground to a halt. No new projects have reached financial closure since the election of the Abbott government, and the Abbott government knows that even by doing nothing  — apart from allowing continued uncertainty — no new projects will come to market.

Households will also be affected. They have so far contributed $12 billion of the $18 billion invested in renewables over recent years, initially driven by generous feed — in tariffs and then as a hedge against rising electricity prices once those tariffs were removed. The government, though, can remove some of those remaining incentives that defray the upfront cost of the system, without needing legislative changes. Industry experts say that could cause the rooftop solar market to fall by one-third or even half, with the loss of thousands of jobs.

Meanwhile, state governments — with huge vested interests in state-owned networks and generators — continue to act against renewables. The Western Australian government is even canvassing importing coal from Indonesia rather than moving to develop renewable energy projects at home, while in Queensland, businesses have been hit by a whopping $500-a-day service charge (essentially to read the meter) to dissuade them from installing solar………

ome international groups, such as US solar developer Recurrent Energy, have already packed up. Others, including Goldwind and Trina, have warned of the potential fallout, while Australian groups Pacific Hydro and Infigen Energy are directing their efforts overseas.

The Australian Solar Council echoed the CEC remarks. It is taking its “Save Solar” campaign to marginal electorates, with the first stop at the northern Brisbane seat of Petrie, held by the LNP’s Luke Howarth, this Thursday. The ability to make solar a potent political issue  — many marginal electorates boast more than 20% solar penetration — appears to be their last resort.

“Solar saves money, creates jobs and shifts votes. The Abbott government is about to find out how much Australians love solar and the Renewable Energy Target,” American Solar Council CEO John Grimes said. http://www.smartcompany.com.au/growth/economy/43378-why-the-renewable-energy-target-never-stood-a-chance.html#