The Business Council of Australia says the government should scale back the target to a point where renewable energy will account for a ''true'' 20 per cent of Australia's electricity generation by 2020. In a submission to the Abbott government's review of the target, the council also calls for the scheme to cease in 2030.

The 17-page submission describes the target as ''poor public policy'' that is ''no longer relevant to Australia's circumstances''.

It blames the target for contributing to higher power prices, claiming it ''distorts'' the electricity market and makes it harder for companies to supply reliable service and prices.

The council's submission contrasts to last month's submission from the Australian Industry Group, which pressured Prime Minister Tony Abbott to retain the targets and argued that reducing the target would not lead to a fall in power prices.