Australia Senate delays renewable energy laws

CANBERRA (Reuters) - The Australian parliament's upper house Senate on Thursday postponed a debate on renewable energy laws until at least August, dashing government hopes of passing the laws by the end of June.

The laws, which set a 20 percent target for renewable energy use by 2020 in Australia's coal-reliant electricity supply, would unlock up to $22 billion worth of investment in solar and wind projects.

The government and Greens opposed the delay, saying the move would undermine investment in Australia's renewable energy sector and would lead to job losses.

"The people who are pushing for this delay are the big emitters. I want to see this legislation through, I want to give certainty to the renewable energy industry that they have got their target," Greens Senator Christine Milne told parliament.

Independent Senator Steve Fielding successfully moved that the laws be sent to a Senate inquiry, to report back by August 12, to examine the impact on big business.

He was supported by fellow independent Nick Xenophon and the conservative opposition parties, who said the government had forced their hand by linking industry assistance to the separate emissions trading laws.

The renewable energy laws set a statutory target of 9,500 gigawatt-hours (GWh) from renewable electricity sources in 2010, increasing to 45,000 GWh in 2020.

Renewable sources provide only 6.5 percent of Australia's current energy needs, with the rest generated from coal, oil and gas, making the country one of the worst per capita polluters.

The government also faces a Senate roadblock with its plans to introduce an emissions trading scheme by July 2011, with that package of bills facing near certain defeat in the Senate next week.

(Reporting by James Grubel; Editing by James Thornhill)