Canberra's energy policies were criticized by AGL Energy for delaying its green power proposal, stating that it may threaten Australia's reputation as a suitable place for investments.

AGL chief executive Michael Fraser told media that it will push for a renewable energy target (RET) despite complaints by the industry that companies will operate in a policy vacuum after delaying emissions trading since last week.

The AGL chief warns the parliament of a "very serious consequences" if it fails to pass a rectification on the RET, which asks for a 20 per cent of all power to come from renewable sources by 2020. The scheme was renewed in March after grants for solar heaters went into a slump, slowing down investments in wind farms.

Still, the revisions were not yet passed, putting a halt on all renewable energy projects and its final investments. Failure to implement them before the election will cause grave consequences for jobs, investment and industry confidence.

"Following the deferral of the introduction of the CPRS [carbon pollution reduction scheme], stability and certainty are not the first words that come to mind in relation to investors viewing the Australian power generation sector,'' Mr Fraser says.

Mr. Fraser adds that passing the RET reforms quickly will restore industry confidence or else global players will seek investments elsewhere.