Reports yesterday claim the government has ditched the review, headed by businessman and climate sceptic Dick Warburton, which called for large and small-scale renewable projects to either be scrapped or phased out. 

Talks between the government and Labor to save the target have begun after both sides agreed to exempt struggling aluminium smelters from the RET costs.

The damning Warburton review threw the south-west’s renewable industry into a tailspin, with Portland wind tower maker Keppel Prince and wind farm developers signalling the end of their businesses. 

The RET mandates a 20 per cent green energy target, or 41,000 gigawatt hours, by 2020.

The government is remaining tightlipped as it starts negotiations. 

A spokeswoman for Industry Minister Ian McFarlane refused to comment on “the specifics of the RET review ahead of the next discussions with the opposition”. 

The RET has major implications for Portland Aluminium, which uses 10 per cent of Victoria’s energy supply. 

Wannon MP Dan Tehan said the Alcoa managed smelter is facing severe costs from the target. 

“The risk was the RET would cost them $10 million by 2017,” Mr Tehan said.

“I’m thrilled, we now have the Labor party, the Clean Energy Council and 25 Coalition backbench MPs all recognising the special impost of the RET on aluminium smelters.

“What I support is that we can get an outcome all sides can agree on.” 

In August wind tower maker Keppel Prince said it could be forced to lay off up to 150 workers if the Warburton recommendations were followed.

Australian Wind Alliance national co-ordinator Andrew Bray said wind investment had dropped by 70 per cent since the review started last year. 

“Australia’s meant to be open for business. The government must act decisively to renew confidence in the viability of renewables,” Mr Bray said.