Climate Council's Tim Flannery criticises Renewable Energy Target review panel
Updated about 3 hours agoFri 29 Aug 2014, 10:07am
PHOTO: Professor Tim Flannery says scrapping the Renewable Energy Target would be short-sighted and ineffective. (AAP)
AUDIO: Review paves way for renewable energy overhaul(AM)
The Climate Council says the panel that reviewed the Renewable Energy Target (RET) is biased and lacks credibility, and says scrapping the target would be short-sighted and ineffective.
The panel's long-awaited report suggests the scrapping of subsidies for household solar panels and water heaters, as well as closing the scheme to new companies involved in larger renewable energy projects.
Lead author of the report, company director and former Reserve Bank board member Dick Warburton, says the RET could cost $22 billion in taxpayer-funded subsidies if it continues and the money would be better spent elsewhere.
"You've got a very significant oversupply of electricity into a slowing demand of electricity and there is just no justification for spending this sort of money," he told AM.
"We don't believe that there needs to be a large scale of renewables being made into the market at a time when there is so much supply."
Have your say: What do you think of the Climate Council's reaction to the Government RET review?
But the Climate Council's Professor Tim Flannery says the authors of the report do not understand climate science.
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Dr George Crisp says research shows renewable energy is better for your health than coal-fired power generation.
"I'm not surprised, some of the people who've served in the review panel are notorious for their pro-fossil fuel interests," he said.
"But I am dismayed because that RET has survived five electoral cycles it's served the country well."
Mr Warburton denies the report's recommendations make gas and coal-fired electricity more attractive.
"No, I don’t believe it does," he said.
"I think what it does do is just levels the playing field."
Mr Warburton has also rejected criticism from Labor and The Greens that his findings are biased because he is sceptical about the link between man-made carbon dioxide and global warming.
"My thoughts are well known to many people but they had no bearing on this report whatsoever. It had no bearing on the terms of reference and it had no bearing on the report," he said.
"We looked into this with a completely open mind, we consulted with over 200 people, stakeholders, government right across the country."
Power prices will rise in the short term: Warburton
The report found significant falls in the cost of solar panels and an increase in power prices meant that "the small-scale renewable energy industry is becoming commercially viable".
In other key points, it also found:
- renewable energy generation has almost doubled under the RET;
- the RET is exerting some downward pressure on wholesale electricity prices;
- the RET has delivered a "modest level" of reductions in greenhouse emissions but is a "high cost approach" to delivering that aim.
If the report's recommendations are adopted, Mr Warburton concedes that electricity prices will rise in the short-term.
VIDEO: RET may be switched off (Lateline)
Prime Minister Tony Abbott had wanted the review to focus on pushing down power prices.
Professor Flannery says renewables will ultimately make the wholesale energy price cheaper for consumers and scrapping the RET would be short-sighted and ineffective.
"We'll damage the energy sector because we have some of the oldest and most polluting coal in any developed country, they need to be replaced within the short to medium term and the most cost-effective way of doing that is with renewables, but with the RET pulled it's going to be very difficult to see a way through," he said.
Mr Warburton says the review does not propose getting rid of the RET.
"That would have been extremely dramatic," he said.
"One could certainly argue that and we looked at that particular case but we also recognise that there are businesses that need to be supported.
"The large scale schemes certainly have much greater difficulties because their need for the subsidy is so great.
"They need something in the vicinity of 40 to 60 per cent of the subsidies just to survive. That is not a good way to run a business."
Review could kill the renewable energy industry: Infigen
Infigen is a company that owns six wind farms in Australia. Its managing director Miles George fears the review could kill renewable power.
"It is extremely unusual for a government, particularly an Australian one to change legislation in a way that damaged existing investments," he said.
"It spells the death of our industry."
VIDEO: Miles George says the RET options are a choice between being 'shot or hung' (ABC News)
Kane Thornton from the Clean Energy Council claims thousands of people would almost instantly lose their jobs if the RET is scrapped.
"Thousands of businesses around Australia would instantly be devastated and clearly many of them would shut down," he said.
Labor leader Bill Shorten is also concerned.
"I can't believe how the Liberal Government is trashing a multi-billion-dollar industry," he said.
The Australian Industry Group says all main political parties must work together on a long-term plan so companies can assess if they should still invest in wind and solar farms.
"Investors aren't going to put their money forward unless they know what the longer term policy outcomes will be," AI Group's chief executive Innes Willox said.
Industry Minister Ian Macfarlane said the Government would consider the report over the next few weeks.
But he said the RET's original aim of encouraging households to embrace solar panels has succeeded, with nearly 2 million homes installing them.
"That's certainly been achieved in spades," he said.
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http://www.abc.net.au/news/2014-08-29/climate-council-criticises-ret-review-panel/5704568
