Greens push to boost renewable energy target to 90%

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Greens push to boost renewable energy target to 90%

Date
July 1, 2013 – 1:49PM
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The Greens have launched a pitch to increase Australia’s renewable energy target to 90 per cent by 2030 and tip an extra $20 billion into Australia’s clean energy finance corporation, but have rejected an earlier move to an emissions trading scheme being considered by cabinet.

Speaking on Monday morning, Greens leader Christine Milne said the minor party wanted to see all of Australia’s electricity come from renewable energy sources as soon as possible.

She said the first step should be to increase Australia’s renewable energy target to 90 per cent by the end of the next decade. The target is currently set to ensure 20 per cent of Australia’s electricity comes from renewables by 2020.

A study by the Australian Energy Market Operator released in April found moving to 100 per cent renewable energy was technically feasible, but would come with costs and significant challenges.

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It found moving to an 100 per cent renewable energy system would cost $219 billion to $338 billion and require wholesale electricity prices to double from current rates. The operator did not compare these costs with other future scenarios including business as usual.

Asked whether a move to 90 per cent renewables in effectively 15 years was realistic, Ms Milne said: ”When the the 20 per cent renewable energy target was set for 2020, people said it was way ambitious, it wouldn’t be able to be achieved.

”But once you put in place a roadmap then the technology development and business got behind it and you have seen the roll out very fast.”

The Greens also want the Clean Energy Finance Corporation – which was set up as part of a deal between Labor and the Greens on carbon pricing – to received an extra $20 billion over ten years.

That would lift its overall funding to the finance corporation to $30 billion. Senator Milne said the Greens proposed the extra money would come from borrowing – which would sit off the government’s budget – and would detail how to pay for the interest on the extra money in its yet to be released election policy costings.

The finance corporation on Monday announced its second deal, investing $50 million to help New Zealand government-owned Meridian Energy to refinance its debt in the MacArthur wind farm in south-west Victoria. The debt refinancing came ahead of Meridian selling its share in Macarthur to Malaysian energy company Malakoff Corp.

The Coalition has vowed to scrap the finance corporation alongside the carbon price, and says it will not honour any contracts its signs between now and the election.

Speaking in Melbourne, Senator Milne also criticised considerations by Labor on ending the carbon price’s three-year fixed tax period early and moving quicker to an emissions trading scheme with a floating price and international linkages.

The move has been largely backed by industry, who says the current carbon tax price of $24.15 a tonne is out of kilter with lower international prices at around $6 and resulting in higher the necessary costs.

But new Climate Change Minister Mark Butler conceded to Fairfax Media on Sunday that moving earlier to an emissions trading would also have budget implications that need to be considered, with revenue expected to fall by billions of dollars.

Senator Milne said in considering the move Prime Minister Kevin Rudd was making a populist pitch to business groups such as the Australian Industry Group by making it cheaper for companies to pollute.

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Read more: http://www.smh.com.au/opinion/political-news/greens-push-to-boost-renewable-energy-target-to-90-20130701-2p6nk.html#ixzz2Xlpvv39X

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