There’s a lot more riding on Australia’s Renewable Energy Target than just clean power, Australians taking control of their energy bills and thousands of jobs.
Last week we mentioned a risk to the retirement savings of millions of Australians should the RET be gutted or abolished.
Now its been revealed Australian banks are holding nearly $900 million worth of large scale energy certificates (LGCs) connected to the Renewable Energy Target.
The Australian states the banks include ANZ, Macquarie Group, Westpac and Commonwealth Bank; which hold 20 per cent of LGCs.
The value of these certificates has been fluctuating wildly as the argy-bargy over the RET continues. The Australian cites an example of LGCs plummeting from $30.50 per megawatt hour to $26.05 shortly after the appointment of climate-change sceptic Dick Warburton as head of the RET review. LGCs then hit a low of $22.43 in June due to uncertainty of the outcome of the review.
However, when Senator Ricky Muir weighed in on the subject of supporting renewables last week, their value reached $30.80.
Uncertainty over the future of the RET isn’t just affecting LGC value. The situation is driving investment away from Australia and the longer the situation goes on, the more difficult it will be to attract local and foreign investment back as these investors will increasingly see Australia as wishy-washy on renewables and subsequently, high risk.
Pacific Hydro recently announced plans to cut 10 per cent of its Australian workforce due to uncertainty over the carbon tax and Renewable Energy Target.
It’s quite a ridiculous situation given the amount of investment and number of jobs at risk; along with other benefits. It’s become even more incredulous in light of the the Government’s own modelling showing the RET will reduce power bills for end consumers. Even with the facts firmly established, the Government is instead choosing to perpetuate myths about the RET.
