Australia scales back renewable energy target to 33,000 GWh by 2020

The Australian Parliament has passed Renewable Energy Target (RET) legislation which scales back the target from 41,000 GWh to 33,000 GWh by 2020.

The legislation has removed the two-yearly reviews of the scheme without affecting the small-scale renewable energy scheme.

According to Australia’s Clean Energy Council, major renewable projects are expected to start in the country, which would lead to more than $40bn of investment and 15,200 jobs over the life of the RET.

Clean Energy Council Chief Executive Kane Thornton: "We are disappointed about moves to introduce further red tape on the wind sector, given the stringent and robust regulatory framework already in place for wind energy in Australia.

"The industry will however work closely with the government to ensure these measures genuinely improve the regulatory framework and are developed based on credible scientific research by independent expert bodies.

"This commitment also includes a range of welcome initiatives to further support and promote solar power in Australia, and we look forward to working with government on these initiatives.

He added that with the passing of the legislation see 30-50 major renewable energy projects and hundreds of medium-sized projects will be developed in the country.

Australia had original set the renewable target of 41,000 gigawatt-hour in 2009 to cut down its dependence on fossil fuels by increasing renewable energy mix to 20%.

Energy Supply Association of Australia chief executive Matthew Warren said that due to the changes, there is now a greater chance of the scheme being able to deliver its target, but that major electricity market challenges remain.

"The RET was originally designed to complement a carbon price and merge renewables into a growing electricity market.

"With the carbon tax gone and electricity demand falling, revising the RET was sensible to allow it to work."