The review commissioned by Australia’s conservative Liberal-National government of the Renewable Energy Target (RET) has come under further scrutiny, with questions being asked about a consultancy firm hired to advise the panel.
An inquiry has been told ACIL Allen won the sole government contract to advise the RET review despite cheaper proposals from competing firms.
AAP Newsagency reports the government has asked the review to consider the appropriateness of the bipartisan clean energy scheme and its impact on power prices.
The RET mandates that 20 per cent of all electricity come from renewable sources by 2020, but critics, including members of the government, have called for this to be reduced or scrapped.
AAP reports a senior public servant involved with the review admitted ACIL Allen’s pitch was not the cheapest but said it did represent the best value for money out of the nine firms that tendered.
“They were found to have submitted the best proposal in response to the request of the electricity market work,” first assistant secretary Brad Archer told an upper house Senate estimates committee hearing.
“It’s not exclusively about price,” Mr Archer told the committee.
AAP reports ACIL Allen’s extensive modelling work for the traditional fossil fuel based energy market has led some renewable power supporters to ask questions.
Australian Greens Party committee member Senator Scott Ludlam asked how “analysts for the coal industry” could be expected to deliver fair advice.
“Does it worry you that they might tilt or kink their models in favour of black power generators?” he asked.
The inquiry also heard that stakeholders were not happy with the review’s decision not to consider any scenarios with a carbon price or emissions reduction policy until 2030.
Mr Archer said the panel was actively considering including such modelling in the review process.
AAP reports it is not the first time the review process has come under scrutiny.
The government was heavily criticised over its decision to appoint Dick Warburton, a former head of Manufacturing Australia and sceptic of man-made climate change, to head the panel.