A bipartisan deal - agreed to last month after a lengthy political stalemate that hamstrung the clean energy sector - will slash the target from 41,000 gigawatt hours to 33,000.
What is the Renewable Energy Target?
- The Renewable Energy Target, or RET, is designed to encourage investment in renewable energy such as solar and wind, to reduce carbon emissions.
- It requires 20 per cent of all power to come from renewable energy by 2020.
- The previous target of 41,000 gigawatt hours of large scale renewable energy like wind farms was based on 2010 energy levels but energy demand has fallen.
- If targets aren't reached fines are imposed on energy companies and potentially passed onto consumers.
- The political impasse was over establishing a pared-backed target.
Final deal
- Target of 33,000GWh.
- No change to roof-top solar program.
- Exemption for exemption for emissions-intensive, trade-exposed sectors like aluminium
- Wood waste burning included as a renewable source
- Clean Energy Regulator monitoring the scheme with annual statements on its costs and progress in place of two-yearly reviews
- Establish wind farm commissioner and a scientific committee to research wind turbines as part of a crossbench deal to get the votes to include wood waste burning.
What the parties wanted
Government
- To reduce target to 27,000GWh.
- Compromised to 32,000GWh and insisted that was the final offer.
- Cabinet approved a move to 33,000GWh in May after two coalition MPs spoke out in favour and peak business groups backed that figure.
Labor
- Offered target in mid-to-high 30,000s.
- Later backed clean energy industry's compromise of 33,500GWh.
- Accepted 33,000GWh.
- Exclusion of wood waste burning as renewable source.
Australian Greens
- Wanted to keep the original target of 41,000GWh.
- Exclusion of wood waste burning as renewable source.
- States and territories to be able to legislate their own renewable energy certificate schemes.
