The proposed National Energy Guarantee program will see solar and wind investments go down if PM Malcolm Turnbull overlooks the stricter 2030 emissions reduction target as reported by PV Magazine.
The program faced instant criticism for its lack of ambition after ditching its plans to extend and build on the present Renewable Energy Target.
On the other hand, the Labor Party has argued that a 50% RET by the year 2030 will be enough to continue with the present momentum for renewables deployment. If the government fails to focus on its plans, private investments in utility-scale solar and wind projects will suffer and could miss valuable opportunities.
The NEG could be an effective and innovative policy mechanism, but if the target is weak it will deliver less.
Kobad Bhavnagi, BNEF Australia
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