The Australian Government is about to announce it has reached an agreement with the Opposition that will mean wind energy has to increase by about a factor of three by 2020 – a threefold increase in 5 years!
“In-principle deal struck on Australia’s Renewable Energy Target
The government and Labor have reached an in-principle deal on the Renewable Energy Target that should be cemented early next week.
At a meeting in Melbourne today Industry Minister Ian Macfarlane, Environment Minister Greg Hunt and opposition environment spokesman Mark Butler agreed on a large-scale RET target of 33,000GWh.
A deal is subject to cabinet and shadow cabinet approval and the backing of their respective partyrooms.
The in-principle agreement ends months of deadlock over the future of the RET scheme, which currently has a large-scale target of 41,000GWh.
A review of the scheme every two years by the Climate Change Authority will be maintained under the terms of the agreement put on the table today.
Mr Hunt said a large-scale RET at 33,000GWh would produce a 23.5 per cent renewable energy target.
Regulations around small-scale solar schemes will remain unchanged.
Federal cabinet last night agreed to seek a deal with Labor after a growing push for a deal at 33,000GWh from its own ranks, with several backbenchers publicly speaking out in favour of that level. The government last month issued a ‘final offer’’ on the RET that would see the large-scale target to 2020 reduced from 41,000GWh by 2020 to 32,000GWh.
However, Labor backed a Clean Energy Council compromise at 33,500GWh. More recently, the CEC has signalled it would consider 33,000GWh amid growing support within the Coalition backbench for a deal at this level.
Business groups including the Australian Chamber of Commerce and Industry, the Australian Industry Group and the Business Council of Australia are calling for a deal on the RET at 33,000GWh.
When the RET was originally implemented with bipartisan support, it was established at 41,000GWh, representing 20 per cent of electricity in 2020. However, falling electricity consumption meant the 41,000GWh target represented a larger share, prompting calls for it to change to a “true” 20 per cent.
The government and Labor have faced calls from both the renewables sector and energy-¬intensive industries to resolve the impasse.
The stalemate has led to a collapse in investment in renewable energy and concerned energy-intensive industries, particularly the aluminium sector, which will pay $80 million in RET charges this year unless it receives a full exemption from the scheme in any deal between the parties.”
http://www.theaustralian.com.au/national-affairs/climate/in-principle-deal-struck-on-australias-renewable-energy-target/