The Federal Government has shifted its position in order to reach a deal on the Renewable Energy Target (RET) with the Labour Party, the CEC announced on 8th May.
The CEC’s Chief Executive, Kane Thornton, said that the government’s review of the Renewable Energy Target (RET) had dragged on for more than 14 months. This in turn had the effect of freezing investment in major projects, causing hundreds of jobs to be lost and causing frustration that extended well beyond the renewable energy industry.
“The government has been prepared to move to a target of 33,000 gigawatt-hours (GWh) by 2020, something the Labor party previously indicated it would accept in order to resolve the current crisis” said Mr Thornton. “This is a pleasing development and clearly indicates that the end is in sight. The renewable energy sector would reluctantly accept a resolution of the RET at a target level of 33,000 GWh of large-scale renewable energy by 2020, along with the removal of legislated reviews, an unchanged small-scale scheme and the continuation and increased focus on initiatives to deliver technology diversity.”
However, Mr Thornton is seriously concerned that the government is proposing to retain the two-yearly reviews of the scheme. The industry had been given repeated assurances that these would be removed, given that they are the root cause of the crisis that the industry is facing. A deal that guarantees another review in 2016 could be a death warrant for the industry.
“The government also proposed the inclusion of native forest wood waste, something the Clean Energy Council does not support unless it can be verified as coming from sustainably managed forests” Thornton added. “It is important these matters are resolved quickly and that a clear bipartisan deal is landed as quickly as possible, to restore the bipartisanship necessary for the sector’s future. A messy negotiation on the floor of Parliament will not give investors the confidence to commit billions of dollars to new renewable energy investment.”
The CEC is hopeful that common sense will prevail and that the two major parties will be able to sit down and quickly resolve the crisis. The Federal Government and the Labour Party are very close to a common position and no-one in the industry is happy about the prospect of a reduced target for large-scale renewable energy. It believes that it is time to put the issue to rest and start focusing on providing longer-term certainty to the sector beyond 2020 and 2030.
Additionally, any resolution to the current deadlock needs to recognise the importance of a broad diversity of technologies, including a commitment to the retention of the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC).
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