Connect with us

Hi, what are you looking for?


Clean Power

Scrapping Australian Renewable Energy Target Bad For Consumers, Great For Utilities

Scrapping the Australian Renewable Energy Target could have catastrophic ramifications for the renewable energy industry in the country, as well as consumers and employment, all the while delivering huge profits to power companies, according to new analysis from research firm Bloomberg New Energy Finance.

The recently elected Tony Abbott/Liberal Government is reviewing the current Renewable Energy Target — a target of producing at least 20% of all electricity from renewable energy sources by 2020 — in line with the party’s absurd take on clean energy. Earlier this year, Treasurer Joe Hockey was reported as saying that the wind turbines he drives past on his way to work are “utterly offensive” but that he is powerless to close them down. Hopefully there are few — if any — budget decisions based on whether or not Joe Hockey’s view is obstructed.

According to Bloomberg New Energy Finance (BNEF), the current Renewable Energy Target is expected to drive $35 billion (AUD) of investment in clean energy, employ 25,000 workers each year in construction and operations, reduce greenhouse gas emissions from power generation by 5%, and prevent future surgest in power prices by supplying electricity for 20-25 years without ongoing fuel costs.

The catch? It will oversupply the electricity market and could place pressure on the profitability of existing electricity generators.

Heavens no! A changing market affecting the entrenched behemoths? How on Earth could we have ever seen this coming?

Compare those benefits with the changes that would follow if the Renewable Energy Target is reduced in line with the hopes of some power company proposals: a drop of $12 billion AUD in investment; a drop of 6,600 jobs; 3% higher greenhouse gas emissions; and the kicker — power prices that increase by 1% in the year 2020 for the average household, a price that will increase a further 3% by 2030.

Needless to say, if the Target is cut altogether, the figures get even worse.

“Cutting or reducing the Renewable Energy Target is likely to result in less competition among fossil-fuel power generators and strong future increases in the price of electricity,” said Kobad Bhavnagri, Bloomberg New Energy Finance’s head of Australia. “This helps to explain why many of Australia’s largest power companies are now pushing for a reduction in the target.”

The White Paper compiled by BNEF is available here, but one thing is for sure, there will need to be a tonne of pressure placed on Tony Abbott, Joe Hockey, and the Australian Liberal Government if Australia is to prevent itself falling even further behind industrialised nations in a world of changing climates — both environmental and economic.

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (, and can be found writing articles for a variety of other sites. Check me out at for more.


You May Also Like

Clean Power

One of the enduring pieces of FUD misinformation that circulates in the miasma of the internet is that wind turbines (and other materials that...

Clean Transport

Lack of knowledge on the part of support personnel leads to bureaucratic bungles and frustration for the consumer.


In this time of rapid change, that which was new, different, not normal, is now the new normal. Can we drop the title “green”...


As at the end of December 2022, there were over 27 million EVs cumulatively sold around the world over the past decade or so...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.