Releasing the finding of its review of the RET yesterday, the CEC said that while it acknowledged an RET would put upward pressure on electricity prices, it made sense for the RET to remain unchanged given an expected drop in power demand.
Its reasoning was that it would now cost less to meet the 20% threshold if the overall energy demand was lower.
If current projections hold, it said, the mix of renewable energy in the overall energy mix would reach 26% by the end of the decade.
The council said the decision would supply certainty to green businesses and power generators.
"The uncertainty created by this review process has made it a challenging year for many parts of the industry, and financing major projects has been difficult due to the associated policy instability," chief executive Kane Thornton said.
"Every review of this policy to date has found that the Renewable Energy Target is the most efficient, cost-effective and proven way to deliver more clean energy for Australia. It is no surprise that this has been confirmed again by the Climate Change Authority.
"The Renewable Energy Target is already a major economic driver, with leading consultancy SKM MMA projecting it will unlock more than $35 billion in investment over the life of the policy if it is left to work as designed.
However, he conceded that if the coalition government were to be installed at the next election, then it would be entirely possible that the RET be rolled back.
The CEC said the RET would add 4.5% to the average household bill.
The decision is a blow to companies such as Origin Energy, who have been especially vocal about reducing the RET in light of the decreased overall demand.
