Australia agrees renewables deal after 2-year debate

The Australian Government has reached a Renewable Energy Target deal after nearly two-years of political debate and the country will aim for 33,000 GWh by 2020.

The deal was agreed on Monday and is already facing criticism after the ruling Coalition failed to include a two-year formal review of progress as part of the deal.

The 33,000 GWh target also falls significantly short of the 41,000 GWh that was being campaigned for by experts and some officials.

Instead of a formal review, the opposing Labor Party agreed to allow the Clean Energy Regulator to monitor the target with annual statements on progress.

The new deal means that the amount of new large-scale renewable energy to be installed between now and 2020 has been reduced from about 8,500 MW to 5,500 MW.

Prime Minister Tony Abbott has been criticised for his climate and environmental policies and Labor’s environmental spokesperson said that Abbott (pictured) has carried out a “reckless attack” on the renewable energy industry.

Analysts have estimated that the Australian renewable energy industry has suffered a 90 per cent drop in investments and job losses in the thousands, over the current administrations tenure.

Matthew Warren, chief executive of the Energy Supply Association of Australia, explained that his lobby found banks’ interest in new renewable energy generation was weak when approached in December 2014.

Warren said: “The banks’ view late last year was that they still think with the chronic oversupply in the market it’s hard to see returns on any new investment, whether it’s new thermal generation or new renewables.”