‘Coalition of common sense’ senators have concerns about target, and Jacqui Lambie could vote for changes

Senator David Leyonhjelm is counting crossbench votes for a new plan to wind back the renewable energy target (RET) after Jacqui Lambie indicated she could vote for changes if the government makes concessions over defence force pay.

A loose “coalition of common sense” independent and minor party senators have a range of different concerns about the existing RET – which requires 41,000 gigawatt hours of electricity to be sourced from renewables by 2020.

The government wants to reduce it to about 26,000 gigawatt hours but has failed to convince Labor and the Palmer United party to back changes – and Labor walked out of talks on the issue earlier this month.

Lambie, who is newly independent, having quit the PUP on Monday, has publicly advocated including existing Tasmanian hydro projects in the RET – even though it is designed to encourage only new renewable investments. She claims it is threatening 10,000 Tasmanian jobs.

She has said she will vote against all government legislation until the prime minister agrees to increase the recent below-inflation defence force pay offer. But it is possible changes to the RET could be presented as a private senator’s bill rather than as government legislation, which may allow it to bypass Lambie’s voting edict.

“I am working on an alternative crossbench proposal … it is nowhere near final but it would solve some of the problems we are facing … including the problem of hitting the penalty price,” Leyonhjelm told Guardian Australia.

“I have a plan on the table and I’m trying to get the crossbench numbers on that now.”

Liberal Democratic party senator Leyonhjelm and Family First senator Bob Day support a reduction in the RET and Day told Guardian Australia he strongly supported Lambie’s call for the inclusion of existing hydro in the scheme.

Independent senator John Madigan has supported a reduction in the RET and both he and South Australian senator Nick Xenophon have argued it has allowed for too much investment in wind power at the expense of other kinds of renewables such as geothermal.

This could leave Motoring Enthusiast senator Ricky Muir with the deciding vote on the issue. He recently recommitted to voting alongside PUP senators to oppose any changes to the scheme, but he is being heavily lobbied by all sides of the argument.

Lambie also indicated she would be open to discussions with the government about its so-far thwarted plan to abolish the Clean Energy Finance Corporation, but that has also been opposed by the two remaining PUP senators, as well as Muir and Xenophon.

“We’re having great difficulties down in Tasmania. There’s 10,000 direct and indirect jobs on the line here over the RET and the clean finance situation that we’re in, so I just want to get to the bottom of it. I’d like to see also with Tasmania that the hydro … is counted … it’s 100% renewable energy down in Tasmania and basically we’ve been getting the worst end when it comes to the RET,” Lambie said in a speech to parliament as she resigned from the PUP.

“I am now free to negotiate with the government and other members of this parliament in good faith and for the best interests of my Tasmania, for reform of the following matters: the Clean Energy Finance Corporation and the renewable energy target.”

As revealed by Guardian Australia, the same group of senators have moved to establish yet another inquiry into the alleged effects of wind farms on power prices, human health and wildlife.

The new inquiry – the latest in a long list of investigations into renewable energy and wind power – was proposed by Leyonhjelm and Day and Liberal Chris Back, all of whom have argued for the abolition of the renewable energy target, which underpins wind energy in Australia.

It is was also supported by Lambie, Xenophon and Madigan when the senate voted Monday afternoon to establish it.

The PUP leader, Clive Palmer, told Guardian Australia on Monday his two remaining senators, Dio Wang and Glenn Lazarus, would continue to oppose any changes to the RET during this parliamentary term.

“They’re firm on that one,” he said.

Palmer said he was confident PUP’s voting alliance with Ricky Muir remained intact. “We’ve still got three senators in our voting bloc.”