Financial news and data firm Bloomberg has warned the Federal Government that if it scraps Australia's renewable energy target it could cost thousands of jobs and billions of dollars in potential investment.

Australia's pledge to use renewable energy sources to produce 20 per cent of its power by 2020 is currently being reviewed by an expert panel.

The lead author of the Bloomberg report, Kobad Bhavnagri says any changes to the target would have a devastating impact on the clean energy industry.

"The current renewable energy target, as currently in place, is expected to drive about $35 billion of investment in clean energy by 2020," he said.

"If that was cut, $21 billion of that would not get spent, and if it was reduced we'd expect that about $12 billion less would be invested."

The report suggests that renewable energy sources provide a low-cost alternative to fossil fuels, and contribute to cheaper wholesale electricity prices.

Mr Bhavnagri says those benefits flow through to consumers in the form of greater competition and lower costs.

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"If you cut or reduce the renewable energy target and the amount of renewable generation in the system, there's less competition among the existing fossil fuel power generators, and also more energy will need to be supplied by coal and gas-fired generation which is expensive at the time of production," he explained.

"That puts upward pressure on wholesale electricity prices."

Even if the target ultimately remains intact, the report says uncertainty over Australia's renewable energy target, has led to a drop-off in investment within the country's renewable energy sector.

Mr Bhavnagri says investors are unsettled by the Coalition's dismantling of a number of clean energy or climate-related policies that were put in place by the previous government.

"We speak to investors and people involved in the energy industry overseas and locally," he said.

"What we can see is that all of them are very concerned and watching very closely as to what happens in Australia and, right now, aren't really prepared to make any decisions, because the policy environment is in a state of flux and high uncertainty."