WITH the Australian renewable energy market continuing to be impacted by declining demand and oversupply, an expert has questioned the Federal Government's Renewable Energy Target.
The scheme's aim is to ensure 20% of the nation's electricity comes from renewable sources by 2020.
AGL Energy head of economics, policy and sustainability Tim Nelson told the Economic Policy Analysis Program symposium at Griffith University there was already 7000 megawatts of oversupply.
"As we move towards a more renewable energy market... are the conditions we're currently seeing conducive to the more particularly large-scale renewable energy investment," he said.
"Because we've got all this extra supply, demand is falling."
The large-scale RET creates a financial incentive for the establishment or expansion of renewable energy power stations, including wind and solar farms or hydro-electric power stations.
EPAP director Alex Robson said the symposium's focus was timely as the Abbott government was expected to respond to the RET inquiry recommendations soon.
"According to recent estimates, this is a policy that will cost the Australian economy up to $28 billion and 5000 jobs," he said. - APN NEWSDESK