The Federal Government is moving its review of the Renewable Energy Target into full-swing, releasing the terms of reference and announcing who will lead the inquiry.

Former Reserve Bank board member Dick Warburton will take charge of the review into the impact of clean energy expenditure on power prices in Australia.

It is expected that the outcome of the review will be a basis for significant adjustment or total removal of the target numbers.

The review of efforts to reduce impacts on the environment and its climate will be led by one of Australia’s most prominent economists.

The findings of the RET review will inform the Energy White Paper process, setting the nation’s new direction on power supplies and costs.

Insiders reportedly say the Government would seize on an opportunity to dismantle the RET entirely.

“One of the things we want to do with this review is establish the actual cost of renewable energy and of the other schemes that the states have put in place - there is at the moment a blurring of what costs what,” Industry Minister Ian MacFarlane said.

“The role of panel will be to clearly enunciate what renewable scheme is contributing how many dollars to each individual and each industry's bill.”

The terms of reference are geared to measure the RET in three ways; first, against the initial objective, secondly, in terms of investment certainty and finally, checks of the scheme's relationship to electricity prices.

“We are a government that is unashamedly doing our best to take pressure off manufacturing and households through anything that can lower electricity prices,” Environment Minister Greg hunt said while announcing the review.

Currently, the RET scheme is ensuring that 20 per cent of Australia's electricity will come from sources such as wind and solar by 2020. If it is met, the target would generate 41,000 gigawatt-hours of renewable energy in the coming years.

Despite the RET being set up to combat the measurable effects of man-made climate change, it will be chaired by a banker not fully convinced that is what is happening.

“I say the science is not settled. I'm not saying it's wrong. I've never said it's wrong, but I don't believe it's settled,” Warburton told the ABC in 2011.

“Well I am a sceptic. I've never moved away from that. I've always been sceptical,” he said.

The Climate Change Authority, which is not sceptical of climate change, conducted a review of the RET in 2012. It recommended the government keep the target or even consider an increase.

Now, with the Climate Change Authority being shut down by the Federal Government, a duplicate review by a new panel is expected to return with a different result.

In an interview this week with the ABC, the Clean Energy Council's Kane Thornton said; “The Renewable Energy Target is working and should be left alone to do its job.”

Labor frontbencher Anthony Albanese said; “They made it very clear; Greg Hunt staked his reputation on the maintenance of the renewable energy target... it's important for jobs. It's important in terms of positioning Australia as a clean energy economy into the future.”

Greens Senator Sarah Hanson-Young said; “We still have the Greens in the Senate and we'll be doing everything we can to stop the removal of the RET in the Parliament.”



Renewable Energy Target Review - Terms of Reference