More than $10 billion worth of investment has been made to date in
large-scale renewable energy in Australia. This paper explores the impact of cutting the Renewable Energy Target (RET) on those investments, and the industry as a whole.
Major Australian and global companies have made investments based on the legislated RET and the assumption that the 41,000 gigawatt-hour (GWh) target will continue to operate as legislated out to 2030. It is this fixed GWh target that provides the revenue necessary to recover the investments that have been made. If the 41,000 GWh target is reduced, existing large-scale renewable energy projects will suffer financial distress and the potential for financial failure.
This briefing paper explores the legislated RET, investments made under the policy and the impact of any changes to the target - including moving to a so-called 'real' 20 per cent.