RET deal to save Tasmanian company Bell Bay Aluminium $10m in power costs

Tasmania's major industrials have won a full exemption from the Renewable Energy Target (RET) under a deal struck between the major parties over the scheme's future.

The Federal Government and Labor agreed to lower the target, meaning 33,000 gigawatt hours of Australia's electricity will be from renewable sources by 2020, down from the previous target of 41,000GWh.

Under the deal, trade-exposed industries such as aluminium production are fully exempt from the target.

Bell Bay Aluminium, in the state's north, estimated the agreement would save the company $8-10 million a year in energy costs.

It estimated the scheme had cost more than $48 million since being introduced in 2001.

The company urged Federal Parliament to quickly pass legislation enacting the agreement.

Tasmania's Minerals and Energy Council chief Wayne Bould said the agreement shored up the future of the major company.

"One of our largest cornerstone businesses in Tasmania is Bell Bay Aluminium," he said.

"They're highly dependent on power input and it provides them with some certainty going forward and I think a reflection of that is they've recently committed to expand their processing facilities at Bell Bay."

Liberal Bass MP Andrew Nikolic said he lobbied hard for the exemption to provide more security for the 1,500 direct and indirect Tasmanian jobs supported by Bell Bay Aluminium.

"Bell Bay Aluminium is an important part of the Tasmanian economy and I know first-hand the committed efforts made to keep the smelter viable," he said.