This report argues that future power prices will be lower with the Renewable Energy Target in place than they would be if it was removed.
ROAM Consulting has conducted industry consultation, modelling, and detailed analysis to investigate the impact of Australia’s Renewable Energy Target (RET) on the electricity market and retail bills.
Three scenarios were modelled:
- A Business as Usual (BAU) scenario, where the RET continues as legislated;
- A No RET scenario, where the RET is repealed, with only existing and financially committed projects being covered by the scheme;
- An increased and extended RET scenario, where the RET is increased to a 30% by 2030 target and extended to 2040.
ROAM’s modelling, supported by industry consultation, shows that the legislated Large-scale Renewable Energy Target (LRET) can be met under the BAU scenario. Furthermore, both RET scenarios result in lower net electricity costs to consumers in the medium- to long-term.