Monday, 18 May 2015

Government, Labor reach breakthrough in negotiations over renewable energy target deal

Extract from ABC News

Updated 14 minutes ago

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The Federal Government and Labor have reached a bipartisan deal on changes to the renewable energy target (RET), ending a long-running dispute over the future of the scheme.
The two parties met in Melbourne this morning and agreed to lower the RET from 41,000 gigawatt hours to 33,000, to fully exempt trade-exposed industries from the target and to scrap the two-yearly reviews.
The Clean Energy Regulator will instead provide an annual statement to Parliament and the Government of the day on progress towards the target, what impact it is having on electricity prices, and whether the scheme is at risk of default.
Environment Minister Greg Hunt said after months of negotiations, the two parties had achieved certainty for the renewable energy sector and protected jobs in trade-exposed industries.
"We think we have found a better way, which suits the needs of all parties and in particular the transparency requirements so as we can see progress towards the target ... see any implications for electricity prices ... and Australians can be kept up to date," he said.
The target was originally intended to ensure that 20 per cent of Australia's energy comes from renewable sources by 2020 which, at the time, equated to 41,000 gigawatt hours.
Mr Hunt said even though that figure was now being reduced to 33,000 gigawatt hours, Australia was on track to exceed that target.
"It's an effective renewable energy target of 23.5 per cent," he said.

"So there is a very significant task. There is an enormous opportunity for the renewable sector going forward."

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