Renewables campaign launches as Abbott heads for bunker

A new campaign to make large-scale renewable energy and rooftop solar a vibrant political issue kicked off in Brisbane on Thursday night, as key ministers in the Abbott government prepared to thrash out the government’s policy on the renewable energy target.

More than 500 people turned up for the launch of the Save Renewables campaign being co-ordinated by the Australian Solar Council, which is targeting marginal seats, particularly those with high penetrations of rooftop solar. Labor’s environment spokesman Mark Butler and Greens leader Christine Milne also spoke at the event.

This came as the Australian Financial Review reported on Friday that Prime Minister Tony Abbott will meet with Industry Minister Ian Macfarlane, whose portfolio includes energy, and Environment Minister Greg Hunt to agree on a policy position.

It does not paint a pretty picture for the renewable energy industry in Australia.

Abbott seems determined to bring the RET to a halt, at least for new entrants, and to end all subsidies. It was Abbott’s office that decided to bypass the Climate Change Authority and appoint a group of climate skeptics, pro-nuclear advocates and fossil fuel lobbyists to decide on the future of renewables.

Hunt says he supports the RET, but his actual policy position is a “real” 20 per cent target, effectively a cut of around 60 per cent from the current bipartisan fixed target of  41,000GWh. The Clean Energy Council this week outlined how disastrous this policy would be.

To add to the gloom, Hunt has coloured his views and effectively pandered to the hard right by labelling the left as being “against electricity”, and on Thursday launched an extraordinary personal attack on John Grimes, the head of the ASC, who is leading the grass-roots political campaign.

Macfarlane is said to be “in between” Abbott and Hunt. But Macfarlane has said previously he is not a fan of either wind nor solar, and nearly a decade ago, when in the same energy portfolio, decided to bring the then MRET – a Howard government initiative – to an abrupt halt despite a government appointed inquiry recommending it be expanded.

That decision by Macfarlane effectively brought production and manufacturing of renewable energy equipment in Australia to an end, and the clean energy decision warns that even a “real” 20 per cent target would devastate the industry once again, sending developers overseas, trashing jobs, and causing billions of dollars in investment to be abandoned. There is talk that some renewable energy companies may collapse because the price of certificates will drop.

The three biggest retailers and generation companies in the past week – AGL Energy, Origin Energy, and EnergyAustralia – have all confirmed that they stand to benefit from a dilution in the RET.

Analysts noted this week that every $1 increase in the megawatt hour price of electricity on the wholesale market will lift AGL Energy’s earnings by $38 million. Some forecasts suggest that the proliferation of renewables under the 41,000GWh would depress prices by around $10/MWh. A report earlier this week said the fossil fuel generators would get a $10 billion from changes to the RET

In recent days, the conservative press has been bombarded by commentary pieces calling for the RET to be axed completely. Pointedly, a decision on the RET next week will come at the same time as the Coalition renews attempts to pass legislation repealing two other key renewable energy support mechanisms, the Australian Renewable Energy Agency, and the Clean Energy Finance Corporation.

Grimes said that Thursday’s event – located at Redcliffe RSL in a “fishing village” one hour north of Brisbane, attracted more than 500 people before the doors had to be closed and people turned away.

He said the attendees included the agribusiness industry, self-funded retirees, community groups, trade unions, apprentices, solar companies, and supporters of the Labor, Greens and Palmer United Party.

“I can’t think of another issue that such people would coalesce around like this,” Grimes told RenewEconomy.

“This bodes very badly for the government. What it means is that we can go into any electorate in Australia, and cross the political divide, and unite all sections of the community under this common cause.

“People clearly said that Abbot’s radical anti-renewables agenda was not what they voted for, and definitely not what they want.”

The next stop in the campaign is the bell-weather seat of Eden Monaro, another marginal electorate held by the Coalition, and with a noted anti-renewable MP.

Grimes suggested the main problem facing the Coalition was ignorance. The local member at Redcliffe, Petrie MP Luke Howarth, did not turn up, but asked that a statement be read.

It said that changes to the RET were needed to “protect billions of dollars of taxpayers funds”. Grimes said it proved that Coalition MPs “did not have the foggiest idea what they are talking about”.

The RET does not involve taxpayer funds – unless of course, he was referring to the coal-fired generators that were built by the state government and whose revenues are most at risk from the growing penetration of renewables.