Government Endorsement Of CCA RET Review Recommendations
Leading renewable energy business, Infigen Energy (ASX: IFN) has welcomed the Commonwealth Government’s acceptance of all of the Climate Change Authority’s (CCA) recommendations in relation to the Large-scale Renewable Energy Target (LRET).
Infigen Energy congratulates the Government on seeking to deliver regulatory certainty that is essential for new investment in renewable energy.
It is reassuring to see the Government is following the recommendations of the CCA that are based on independent economic modelling. That modelling showed that lowering the LRET, as promoted by companies with deep vested gas interests, would result in a “lose-lose-lose” outcome for investment, emissions reductions and cost to consumers.
Australia stands to gain some $18 billion of investment and 10,000 jobs over the next decade from wind energy projects generated as a result of the LRET, in addition to $4.25 billion of investment and 1,700 jobs already created in the industry.
The Government has noted the CCA’s advice that reducing the legislated LRET target of 41,000 gigawatt hours would increase carbon pollution by 119 million tonnes over the life of the scheme. The highly successful scheme will speed up the adoption of renewable energy technologies and help smooth the transition to a clean energy future.
Most importantly, Infigen Energy would like to reinforce that as a market based mechanism, the scheme will build renewable energy at least cost if, and only if, there is confidence the LRET target will not change. Furthermore, the average consumer will not see their electricity bills reduced through a lowering of the LRET target.
Infigen Energy’s Managing Director Miles George said, “Contrary to claims that clean technology like wind pushes electricity prices up, it has been clearly demonstrated in South Australia that the wholesale cost of electricity has actually reduced as a result of wind energy deployment.”