This week the Coalition Government agreed to replace the energy target with a National Energy Guarantee.

The guarantee requires retailers to use a percentage of electricity from dispatchable areas including coal and gas, batteries or pumped hydro.

Speaking from Canberra, Senator Polley said the government’s move away from the Clean Energy Target was a victory for coal. 

She claimed the decision would affect the state’s energy industry.

“Tasmania has always led the way and I saw great potential for Tasmania to be a renewable powerhouse,” she said. 

“In terms of investment into new renewable energy, thost jobs won't be created now.”

She said it proved Malcolm Turnbull “really is out of touch”, and said “Tony Abbott is running the agenda on this”.

Senator Polley said the move would lower confidence in the investment of Tasmania’s renewable infrastructure. 

“There is a real direct threat to Tasmania's economy and job opportunities,” she said.

Liberal Senator Jonathon Duniam said the policy would bring relief to people’s energy bills. 

“The government has announced a plan, formulated by energy experts, which will assist in bringing down power prices, ensure that we have a reliable energy supply and that meets international obligations,” he said.

“Contrast that with Labor who have a policy which will see $66 billion paid to energy companies in subsidies and is guaranteed to drive up power prices.”

Senator Polley said it was a “slap in the face” to tell people their power bills would be lowered under the guarantee.

“He [Mr Turnbull] thinks he can con Tasmanians into believing their power bills are going to go down - they've done no modelling,” she said.

"I'm totally confused as to why he has gone down this path."

She said the Prime Minister’s decision was “undermining” his announcement in April about investing in Hydro Tasmania.