The Renewable Energy Target policy analysis from ROAM Consulting is the most extensive modelling conducted on the scheme to date.
The report shows that future power prices will be lower with the Renewable Energy Target (RET) in place than they would be if it was removed.
Removing the RET would mean Australian households would pay more than half a billion dollars extra for electricity in 2020, and up to $1.4 billion more each year beyond that.
The report's key findings
- Each Australian household will pay over $50 more for electricity in 2020 if the Renewable Energy Target is dispensed with. The total cost would be half a billion dollars extra for electricity in 2020 and up to $1.4 billion extra each year beyond that if the policy is removed.
- The Renewable Energy Target will generate approximately 18,400 new jobs by 2020 if retained in its current form. This is made up of 9700 jobs in large-scale technologies such as wind power and bioenergy and 8700 in household systems such as solar power and solar hot water.
- In addition to the $20 billion of investment already generated, the Renewable Energy Target will drive a further $14.5 billion of investment in large-scale renewable energy out to 2020, as well as many billions more in household renewable energy such as solar power. If the policy is removed, most of this simply won’t happen.
- Removing the Renewable Energy Target means more of Australia’s electricity will come from coal and increasingly expensive gas-fired power, forcing up both power prices and emissions. For the Federal Government to meet its target of reducing emissions by 5 per cent, it would need to find an extra 34.7 million tonnes of emissions abatement from other sectors.
- Due to reduced demand for electricity, the report estimates that renewable energy will deliver 22.6 per cent of the electricity consumed in Australia in 2020 as a result of the Renewable Energy Target’s current policy settings.