There has been so much talk of the RET review – with politician’s opinions flying around everywhere – it can be hard to keep up. Bloomberg New Energy Finance has details the facts of what would happen if the RET was scrapped as well as if it remains untouched. Pure and simple.

Scenario One – Abolishing the RET

• Around $20 billion worth of renewable investments will not go through.
• Between 7 000 and 11 000 jobs will be lost in the wind and solar industries each year.
• Wholesale electricity costs will rise with no other significant decrease to compensate so power prices will continue to rise exorbitantly.
• Big power companies will receive an extra $6-$12 billion in revenue prices from 2015 – 2020.

Scenario Two – RET left untouched

• Increase clean energy investments by $35 billion by 2020.
• Create 25 000 jobs each year with construction and operations/maintenance.
• Reduce power generation emissions by 5%.
• Prevent future price rises by producing electricity, without any fuel costs, for 20-25 years.
• Save the average household $44 per year on electricity bills, increasing to $142 in 2020.

It is clear that if the RET is abolished, the only winners would be big fossil fuel based power companies.
“Governments and power companies that stand to profit handsomely from abolition of the scheme have so far only talked about the costs. But that’s like only talking about the costs of buying a new house and forgetting that you don’t have to pay rent anymore,” said Kobad Bhavnagri, Bloomberg New Energy Finance’s head of Australia.
Bloomberg’s analysis, Modelling Options For Australia’s RET Review, can be downloaded here.