The Abbott government has promised to be mindful of sovereign risk issues and investor certainty as it embarks on its review of the renewable energy target.
Environment Minister Greg Hunt and Industry Minister Ian Macfarlane on Monday said the review would assess the scheme's progress, its impact on power prices and contribution to cutting emissions.
But they would not speculate on whether the RET, which mandates that 20 per cent of all electricity come from renewable sources by 2020, could be revised down or scrapped altogether.
The government has already announced an energy white paper to explore ways of lowering power prices.
"We are a government that is unashamedly doing our best to take pressure off manufacturing and households through anything which can lower electricity prices," Mr Hunt told reporters in Canberra.
Demand for electricity is falling in Australia but bills remain high, with some blaming the RET for putting pressure on domestic power prices.
Mr Hunt said the impact of the RET on energy bills had been "minor" compared with the carbon tax - maybe even just three per cent - but the review would get to the bottom of the real cost.
The industry insists the RET has actually lowered wholesale energy prices, and welcomes a review to debunk myths it's responsible for price increases.
"The clean energy industry is keen to show the huge positive impact of a stable target," Clean Energy Council chief executive David Green said in a statement.
The clean energy industry has been rattled by policy changes and ongoing speculation about the RET in recent years, with uncertainty spooking investors and stalling projects.
Around $10 billion has been invested in clean energy in the past decade, with some forecasts it could grow to $18 billion by 2020.
Mr Hunt said the government supported the growth of a strong renewable energy sector, and the terms of reference expressly dealt with potential sovereign risk issues arising from the RET review, which will report back to the government by the middle of the year
He also indicated this review - which was legislated to occur this year and thus not a surprise - would be the last for some time.
Greenpeace Australia has objected to the appointment of Dick Warburton as the review chair, branding him a "climate sceptic" and calling for a fair process.
