Is $15 a year really too much to pay for renewable energy?
Source: The Conversation, 11 February 2014
Australia’s Renewable Energy Target looks likely to be weakened or even axed, with the Prime Minister saying the scheme needs to be reviewed because it is causing “pretty significant price pressure”.
But does $15 a year sound like a “pretty significant” cost to you?
According to the last national review of the Renewable Energy Target, $15 a year from now to 2031 is all that an average Australian household would save if we scrapped our national scheme to drive extra investment in renewable power.
That review - by the independent Climate Change Authority, with economic modelling by global consultants Sinclair Knight Merz - was completed just over a year ago, in December 2012.
Yet that very recent finding hasn’t stopped the federal government setting up a new Renewable Energy Target review, with Mr Abbott saying last week that the review would “consider the impact of the renewable energy target on power prices”.
Already there have been front page reports of rifts within the government about the scheme’s future.
Some, including Nationals Senator Ron Boswell, want to scrap the renewables target entirely, while others, including Environment Minister Greg Hunt, say they are “committed to keeping the RET because of the pre-election commitment and it’s been an effective way of reducing emissions”.
So just what is the Renewable Energy Target? And what does it really cost an average Australian household - not just now, but in the future - according to the reviews and reports done on it before?
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