Tony Abbott Sets His Sights on Destroying Solar Subsidies
Any hope that Australian Prime Minister Tony Abbott had relaxed his opposition to renewable energy have been dashed. With a final decision expected by the end of the month, the Australian Financial Review reports that Mr Abbott has requested the Renewable Energy Target (RET) review board focus its attention on scrapping the clean energy scheme.
Less than two weeks ago Mr Abbott hinted at his intentions saying, “While energy reform begins with the carbon tax repeal and some work with the Renewable Energy Target, it doesn’t stop there.”
Removing the renewable energy target would eliminate current subsidies for rooftop solar panel systems and ensure a substantial pipeline of large-scale solar and wind projects grind to a halt.
Analysis commissioned by The Climate Institute suggests that weakening the current target would deliver a further $10 billion in profits to coal and gas-fired power plants without delivering cheaper electricity to customers.
Although a review of the renewable energy target was required by legislation, Mr Abbott had already dismantled the Climate-Change Authority and hand-picked his own board stacked with climate change-sceptics and invested interests from the coal and gas industries.
Even then, their internal modelling showed that under the RET consumers would experience short-term pain but long-term gain.
From the RET review’s *own modelling*. By 2030, bills will be $91 LOWER due to the RET: https://t.co/5CJJLznlGA pic.twitter.com/lglKtRrlQo
— Ketan Joshi (@KetanJ0) August 17, 2014
Figures suggest that scrapping the renewable energy target is unlikely to be in consumers long-term interest, however the revised modelling is sure to spin the data beyond all recognition and hand the PM something palatable that he can sell to the public, and more importantly to the Senate.
To avoid a gridlock in the Senate, the Coalition requires the support of criss-benchers to pass legislation, particularly the three Palmer United Party representatives. PUP have stated that retaining the RET was their top priority, and that making any changes to it would require a renewed mandate in the form of an election.
Treasurer Joe Hockey is understood to have spent the last few weeks criss-crossing the country visiting the backbenchers, possibly brokering deals and ensuring support for the anti-renewable push.
August has a lot in store for the future of renewable energy and rooftop solar power systems, more than ever those interested in solar panels would be wise to speak to a solar consultant.
