Reports that the Abbott government is pushing his Renewable Energy Target Review panel to abolish the 20 per cent by 2020 target have triggered an angry response from industry and green groups, warning of the risk to billions of investment dollars, to jobs and to the nation’s solar and wind energy markets.
As reported on RenewEconomy yesterday, a front page story in the Australian Financial Review on Monday reported that the RET Review panel – headed up by noted climate “sckeptic” Dick Warburton – had been “instructed” by Tony Abbott to look into ways for the scheme to be folded.
But while the Coalition’s finance minister, Mathias Cormann, has denied that the government has made any decision to abolish the RET, the report suggesting the opposite in the AFR has galvinised an industry that has been expecting the worst.
“This is a line in the sand moment for the solar industry,” said Australian Solar Council CEO John Grimes. “If the Government goes ahead with its plans to axe the RET, demand for solar will fall 40-50 per cent straight away.”
The ASC, which has launched a Save Solar Campaign in response to the news, also warns that it would cause thousands of Australians to lose their jobs, as “hundreds, if not thousands” of small businesses shut up shop.
“Big solar projects will be stopped dead in their tracks,” said Grimes on Monday, calling for donations to the campaign. “Australia will fail to take advantage of being the sunburnt country.”
The Clean Energy Council also responded to the news, branding the reported push to abolish the RET a “reckless” idea, and “economic vandalism”.
“The Australian public has again shown its overwhelming support for renewable energy through this review, in addition to the fact that over 4 million Australians already live or work under a solar power system,” acting CEC chief Kane Thornton said.
“Any proposal to slash the RET would therefore be out of touch with 99 per cent of the community, particularly when the review’s own economic modelling shows that slashing the policy would result in no savings on power bills. ”
The Investor Group on Climate Change also issued a response on Tuesday saying any change to the RET would put billions of dollars of renewable energy investment at risk and reduce the superannuation returns of millions of Australians.
“If the Government seeks to weaken the RET, Australia will continue its move from being one of the most advanced markets for low carbon investment in the world, to being dead dog last,” said IGCC chief Nathan Fabian.
“Renewable energy investments with long-term horizons of over 20 years were undertaken on the basis that the RET was here to stay,” Fabian said.
Chris Judd, head of Senvion Australia – which has invested over $2.5 billion in 18 wind farms nationwide – said there were problems with 
Australia’s power network, but having too much renewables wasn’t one of them.
“Australia is at an energy crossroads, with gas set to double or triple in price, concern over shale mining and how to treat energy intensive industries; these are all critical issues that need to be addressed with a broader vision for energy,” Judd said.
“The whole point of the RET was to drive Australia’s transition to a less polluting energy market over a long period of time – so the transition was smooth and without any shocks.
“Any change to that position – which the Coalition went to the polls on in 2013 – would be pulling the rug out from under business.”
Community Power Agency calls on supporters of community renewables to contact the Prime Minister’s office today to register their opposition to the plans to abolish or just wind-back the RET – both moves it says would be “devastating” to community energy projects.
Even the Australian Sugar Milling Council has issued a response, with CEO Dominic Nolan describing the RET as “critical for current and future investment”, providing a level of certainty and confidence, vital for the industry’s future.
“Australia exports 80% of the raw sugar we produce and almost all sugar is priced openly on the global market; we live and die on our ability to compete internationally and our performance on cost of production,” Nolan said in a media release on Tuesday.
“Significant wind back or removal of RET would put the Australian sugar industry at a disadvantage against international competitors who have major revenue sources through diversification supported by a positive government policy framework in renewables and other bio-products,” the release said.
“Australian sugar mills have invested $300 million over the past 5 years, with more than $1 billion to invest in coming years – but only on the basis that there is a strong, credible Renewable Energy Target intact,” Nolan said.
“The RET was introduced and expanded with bipartisan support. Our investment brings accompanying regional development, industry security and a boost to regional economies.
“We must return to clear and broad support to allow investment to continue and ensure genuine competition in the electricity market”.
Mark Cavanagh, Manager of MC Solar said in a submission: “If the RET is abolished I will close my doors, and my remaining eight staff (two of them are over 50) will be unemployed. I urge you to consider the impact abolishing the RET will have to small businesses who are doing great things for our country.
Australian Greens leader Christine Milne also weighed in: “You have to ask why would Tony Abbott want to destroy investment? Why would he want to destroy jobs? Why would he want to make power more expensive for households? There’s one very clear answer.
“It’s because his mates at the big end of town, in the coal industry in particular, can’t cope with the competition from renewable energy.”
