Coalition woos ALP as RET talks go nowhere

The Coalition is considering a deal with Labor to settle the new Renewable Energy Target.

The Coalition is considering a deal with Labor to settle the new ­Renewable Energy Target after crossbench senators demanded that at least a quarter of future subsidies be set aside for solar, geothermal and new hydro-electricity.

The federal government had been hopeful of winning support for its revised RET without needing votes from Labor or the Greens.

But negotiations with crossbenchers have stalled over demands that future wind farm developments must be restricted.

The federal government has been reluctant to agree to the crossbench demands because its energy white paper commits it to be “technology neutral” in future energy policy.

Cabinet is expected to consider whether to compromise with Labor and agree on a 33,000GWh cap for the new RET when it meets in Canberra tomorrow.

It is unclear whether the deal being offered by crossbench senators will be discussed.

Independent senators have told the federal government they hold grave concerns about possible health impacts from wind farm developments following evidence last month to a Senate committee hearing in Portland, Victoria. A total of 347 submissions have been received by the Senate committee into wind farms and health that will hold its next meeting in Cairns on May 18.

The Australian revealed last month that Family First senator Bob Day has asked Tony Abbott to delay any decision on the RET until after the Senate inquiry has completed its hearings.

But other crossbench senators believe a lengthy delay would be unacceptable to the federal government and are instead pushing for a deal that would restrict the number of wind farms that could be built.

Under the deal proposed by crossbench senators at least 8000 GWh would be reserved for solar, geothermal and new hydro-electricity projects.

As a result, the federal government invited Labor to return to the negotiating table.

Liberal backbencher Dan Tehan appealed last week for both sides to compromise to protect jobs in aluminium and wind farm construction in his electorate.

His appeal infuriated opponents of wind farms but was seen as a signal that the Coalition may be ready to compromise.

A spokesman for federal Environment Minister Greg Hunt said yesterday the government was waiting for Labor to return to talks.

Labor has backed a compromise from the Clean Energy Council, which would cut the large-scale RET from 41,000-GWh by 2020 to 33,500GWh, but the government’s final offer remains at 32,000GWh.

Mr Tehan said 33,000GWh might be an acceptable compromise, a figure that Opposition Leader Bill Shorten said would be acceptable to Labor.