Renewable Energy Target: Pacific Hydro sale underlines 'importance' of RET resolution

The federal Member for Wannon, Dan Tehan, says the sale of Pacific Hydro highlights how important it is for the Renewable Energy Target (RET) to be resolved.

Last week, global funds manager Industry Funds Management, put the renewable energy company, which has wind farm projects in south-west Victoria, up for sale.

The firm appointed the Bank of America Merrill Lynch and Credit Suisse to explore its options.

While the company would not specify whether the RET was a factor, Mr Tehan says its decision revealed the need to reach an agreement.

"To me it just highlights the importance of us reaching agreement on the Renewable Energy Target," he said.

"Obviously the Government and the Opposition are very close to reaching a compromise.

The Government and Opposition are at loggerheads over the proposal, which mandates that 20 per cent of Australia's energy must come from renewable sources by 2020.

Labor and the Clean Energy Council want to cut the target to 33,500 gigawatt hours, while the Government will not accept anything above 32,000.

Mr Tehan said jobs needed to be a strong focus in the outcome.

"I'm quietly confident that in the next few weeks that we will see a resolution as long as everyone is prepared to put jobs first, jobs at the forefront of the outcome," he said.

He said Industry Funds Management had the right to pursue its options.

"In the end these are commercial decisions for the businesses involved and they have every right to decide to do these things if they think that's in their best commercial interest," he said.