RET has the potential to deliver $18.7 billion more in investment, report shows

Australia’s 20% Renewable Energy Target (RET) has delivered $18.5 billion in investment with the potential for $18.7 billion more, according to an independent report from strategic consultancy SKM MMA.

The report, ’Benefits of the Renewable Energy Target to Australia’s Energy Markets and Economy’, shows the policy has delivered a reduction in fossil-fuel power generation since its introduction in 2001.

The Climate Change Authority is conducting a review of the Renewable Energy Target, which will be completed by the end of the year. Some energy companies have called for the RET to be scaled back, the Clean Energy Council (CEC) has said.

Since being introduced in 2001 and increased in 2009, the policy has reduced carbon emissions and helped suppress wholesale electricity prices, CEC Chief Executive David Green said.

“The report shows that, if left unchanged, the Renewable Energy Target will result in 12% less coal-fired generation and 13% less gas-fired generation between now and 2030, with no reliability or security of supply issues identified,” Green said.

Green said the SKM MMA report further demonstrates that clean energy can help protect Australia against fossil fuel price shocks.

“Retaining the current Renewable Energy Target will also mean we can meet the bulk of our target for reducing carbon emissions with renewable energy projects right here in Australia, supporting local jobs in regional areas,” Green said.

“The policy is part of a transition towards a cleaner and smarter energy system that encourages energy efficiency and renewables. But all this is under threat if governments succumb to pressure to tinker with or drop the Renewable Energy Target.

“We are confident the review will recognise the effectiveness of the current policy and the need for stability to provide investors with the confidence they need to commit funds to improving Australia’s economic security,” he said.

The full report is available here.