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Rudd promises 20% renewable energy target for 2020

A federal Labor government would use the Mandatory Renewable Energy Target (MRET) scheme to ensure at least 20% of Australia's electricity is generated from renewable sources by 2020, Labor announced today. It would then expect to see MRET begin to be phased out from 2020.

A Labor government would set a 2020 MRET target of generating 45,000 gigawatt hours (GWh) a year from renewables, the policy statement says. When coupled with about 15,000 GWh of existing (pre-1997) renewable capacity, this would deliver 60,000GWh of power generated by renewable sources.

This would be enough to power about seven and a half million homes and would equate to generating 20% of the nation's power from renewables, the policy says.

The move trumps last month's announcement by Prime Minister John Howard of a 2020 Clean Energy Target of 30,000GWh on top of the existing 15,000GWh (see related article).

However, Labor's policy statement makes it clear the party does not regard MRET as a permanent fixture. From 2020, it should begin to be phased out "as emissions trading matures and prices become sufficient" to provide adequate support for renewables, it says.

MRET currently only has a 2010 target of generating 9,500GWh of new renewable energy. Renewables projects already operating or planned will deliver this, and consequently MRET is no longer providing any incentive for new renewable energy generation projects.

On September 23, Prime Minister John Howard announced the Coalition would introduce an MRET-style Clean Energy Target scheme with a 2020 target of generating 30,000GWh of electricity from new (1997 onwards) renewable energy and low emission technology sources. But Opposition Leader Kevin Rudd and shadow environment minister Peter Garrett today dismissed the Coalition's Clean Energy Target as simply consolidating existing state targets and leaving the way open for nuclear power.

Modelling indicated Labor's 20% renewables target would "have a negligible impact on real GDP when compared to a carbon price alone," Rudd and Garrett said.

The policy also says Labor would:

  • work with states and territories to fold state and territory schemes into the new federal scheme;
  • work through the Council of Australian Governments (COAG) to get a consistent national approach on feed-in tariffs that pay owners of small-scale solar PV installations a premium price for power they sell back to the grid; and
  • use revenue from the sale of emissions permits to ensure poorer households are not disadvantaged by higher energy prices.

Labor's 2020 Target For a Renewable Energy Future: Election 2007 Policy Document (ALP, October 30, 2007)

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