Antinuclear

Who benefits is the Renewable Energy Target is scaled back?

From a commercial point of view the fossil fuels sector seems to have the most to gain if the RET is scrapped or scaled back.

The Climate Institute, Australian Conservation Foundation and WWF Australia commissioned independent modelling that found weakening the RET could result in $8 billion in additional profit to coal and $2 billion to gas generators.

Renewable Energy Target: Who benefits from scaling back the scheme?NEWS.COM.AU AUGUST 30, 2014 THE renewable energy sector is powering along but not everyone seems to be happy with how successful it has been.
title=”2014-08-30T11:48:00+10:00″>So far the Federal Government has pumped $9.4 billion into supporting the Renewable Energy Target (RET) and, since 2001, the amount of electricity produced by clean energy has almost doubled.
In July, South Australia got nearly half its electricity from wind and solar, and Australians’ take-up of small-scale systems such as home solar panels, has already exceeded levels anticipated for 2020………
title=”2014-08-30T11:48:00+10:00″>There are widely differing predictions about whether electricity bills will go down or increase if the RET is scaled back. It may just stay the same.

Greens Leader Senator Christine Milne has criticised the review, headed by climate sceptic Caltex Australia chairman Dick Warburton, who has rejected suggestions his personal views coloured his work.

Senator Milne suggested the review’s recommendations reflected the fact that “clean energy is proving way too good at making coal obsolete”.

“The RET review is part of the dinosaur protection racket – an $8 billion favour for Tony Abbott’s mates in the fossil fuels sector, at the expense of clean technology,” Senator Milne said.

“To protect his big-business mates Tony Abbott got rid of the carbon price, making it free to pollute, and now he’s destroying the market for renewable energy.”
WHO BENEFITS? From a commercial point of view the fossil fuels sector seems to have the most to gain if the RET is scrapped or scaled back.

The Climate Institute, Australian Conservation Foundation and WWF Australia commissioned independent modelling that found weakening the RET could result in $8 billion in additional profit to coal and $2 billion to gas generators.

Their modelling also suggests there would be no decline in electricity prices, and they could actually increase slightly.

As noted in the expert panel’s report, the RET is making wholesale electricity prices cheaper because clean energy companies are creating more competition for coal-fired power stations. ……
enewable energy companies were not creating more demand for energy, and were instead making more money at the expense of the fossil fuels sector……….One of the aims of the RET was to ensure at least 20 per cent of Australia’s electricity came from renewable sources by 2020, but it is actually on track to achieve a 26 per cent share.This is due to cheaper prices for rooftop solar and other technology and falls in electricity demand….

….The clean industry sector has railed against scaling back the scheme, warning it would gut future investment in renewables in Australia, damage the $10 billion already committed and put 21,000 jobs at risk.Australians would also lose subsidies for installing devices such as solar hot water, panels or wind turbines. This is worth about $2500 for those installing a typical three kilowatt solar power system.

Australian National University’s Professor Andrew Blakers, said most of Australia’s fossil fuel stations would be retired over the next few decades.

“The RET target of 41,000 gigawatt hours by 2020 drives renewable energy investment at a sufficient annual rate to reach more than 90 per cent renewable electricity if continued until 2040,” he told The Conversation.

“Thus Australia has the wonderful prospect of moving to a clean electricity future at approximately zero net cost, as retiring coal and gas power stations are replaced by renewable energy.”

Infigen Energy has warned the proposed changes offered the “worst outcomes for electricity consumers”………http://www.news.com.au/technology/environment/renewable-energy-target-who-benefits-from-scaling-back-the-scheme/story-fnjww1r5-1227042169344

August 31, 2014 - Posted by Christina Macpherson | General News