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Renewable Energy Target under pressure

13, July 2012

The reality of rising electricity bills, driven increasingly by the folly of the Renewable Energy Target, will prove a continuing headache for the government and opposition who both originally supported the scheme.

Bipartisan support for the RET has striking similarities to the bipartisan support for the 2008 Emissions Trading Scheme.  They both seemed like a good idea when first proposed, they both increase the price of energy to ordinary Australians and both are clumsy policy.

The Coalition’s support for the ETS collapsed in part due to the Nationals refusal to support it and a strong backlash from Liberal voters in the last week of November 2009 which culminated in a change of leaders for the opposition.

Discontent with the RET in the Coalition party room is likely to grow as the community becomes aware of the extent further electricity prices rises are driven by the policy.

The Australian editorialises that the support of both major political parties for the current renewable energy target of 20 per cent by 2020 is a sign that economically rational energy policy is not the forte of either the Gillard government or the opposition.  The Australian Financial Review also rails against the costly green power mess that needs untangling

Meanwhile Ray Evans and Dr Tom Quirck examine in detail the costs of renewable energy

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