AAP


The federal government will not be reducing the renewable energy target (RET), saying it would damage investor certainty and do little to cut household power prices.


The Climate Change Authority (CCA) in December recommended retention of the RET with no changes, including the aim of ensuring 20 per cent of Australia's electricity comes from renewable sources by 2020.


But there is strong evidence the target will be well exceeded, which critics warn will unnecessarily drive up retail power bills.


Climate Change Minister Greg Combet said detailed modelling had shown even if the fixed gigawatt-hour target were reduced, benefits to households and energy consumers would be "negligible".


But it would also lead to an additional 119 million tonnes of greenhouse gas emissions, he said.


In handing down the government's official response to the CCA review on Thursday, Mr Combet said the biggest argument against cutting the RET was that it would damage investor confidence.


"If you're an investor ... in the renewable energy sector you want some certainty about these policy settings," he told reporters in Canberra.


The government's decision to leave the RET on hold means the 20 per cent target has become the baseline, leaving the door open for an even bigger role for clean energy in Australia's future power mix.