The federal cabinet has agreed to compromise on the deal related to renewable energy target, as this will pave the path for a bipartisan deal to break the investment drought that was a result of a 12 month long political impasse. However, after these long months of political arguments and the decreased quantity of renewable power needed to compromise the policy signify that the biggest beneficiaries that will emerge are wind farms. Since these wind farms are completely opposed by some coalition MPs.
As per the figures, the Renewable Energy Target or RE needs around 41,000 giga watt hours of energy which can be delivered from renewable energy sources such as solar, wind, hydro, geothermal, etc. by the end of 2020. This has been in limbo after the government commissioned a self professed weather skeptic took a review in the last year during February.
This review recommended that the RED should be cut down; however following the fierce industry criticism the cabinet requested the environment minister Greg Hunt along with the industry minister Macfarlane to come to bipartisan agreement with the Labor sector to permit continued investment in the field without any fear of policy change.
Furthermore, the labor and the renewable energy industry also insisted on the target to be in the range of mid to high 30,000 giga watt hours. Nevertheless, after the government refused to move from its stand of about 26,000 giga watts past year, the Labor stepped away from the talks.
The cabinet is expected to tick off this deal soon. Also, the industry is insisting on placing no barriers to build the required capacity of renewable energy providers.