Is Tony Abbott being forced to waver in his anti-renewable energy fervor?
Government might give ground on renewable energy target, SMH September 7, 2014 Tom Arup and Lisa Cox Confidence is growing that a workable deal could be salvaged on Australia’s renewable energy target with suggestions the Abbott government will give ground amid a backlash from industry and backbench MPs.
After intense lobbying in Canberra last week members of the renewable energy industry left the nation’s capital buoyed that the government’s attack on clean energy appeared to be in retreat.
They found a Coalition backbench increasingly agitated about the fallout of ending support for renewables and fears too harsh a stance could create another unnecessary distraction like the now-abandoned reforms to section 18C of the racial discrimination act.
The negative response to the Warburton review of the target, released last month, was also viewed as having hurt the cause of those looking to axe the scheme.
That review – headed by businessman and climate change sceptic Dick Warburton – recommended Australia’s target to have at least 20 per cent of electricity come from renewable sources by 2020 be either closed to new projects or scaled back dramatically on the basis of yearly reviews.
But those options have been largely dismissed as unattractive, even within government. And Coalition sources also said the political argument that the target pushed up household electricity prices was “largely dead” thanks to modelling commissioned for the review that found bills would in fact fall from 2021 if it was kept.
Big energy companies, who want the target scaled back to reflect falling electricity demand (an option dubbed “real 20 per cent”), have also been left privately confused at the review panel’s recommendation to tack on yearly reviews to that option, which is regarded as unworkable due to business needs for greater certainty.
Senior Coalition figures are now flagging they will have to try cut a deal with Labor, which wants little or no change to the target.
But without bipartisan support, the political cloud hanging over the industry will continue, and investment dollars for new wind and solar farms, that have ground halt, will not return……….
While the government is still pursuing changes to the target for large-scale projects, it has rejected the Warburton review’s recommendation that support for rooftop solar be closed immediately. But phasing it out more quickly remains under consideration.
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