Abolishing renewable target will increase electricity costs: report

By David Mark

The Federal Opposition says uncertainty over the future of the RET is undermining business confidence. “We have … billions of dollars of investment in renewable energy based on clear government policy, a policy which had been bipartisan,” opposition treasury spokesman Chris Bowen said.

A report commissioned by green groups has found that abolishing the Renewable Energy Target (RET) will increase profits to electricity companies by more than $10 billion.

Australian Conservation Foundation chief economist Dugald Murray says companies that own coal-fired power stations stand to increase profits by $9 billion between 2015 and 2030 if the RET is abolished.

The calculations are essentially based on increased market share with the wholesale price going up because companies are not competing as much with the renewable energy generators who can operate at a lower cost.

“The real winners are not households, but the companies that own the fossil fuel generators. They stand to reap … [additional] profit if the RET is reduced and even more if it’s abolished,” he said.

Read more here: ABC


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