RPT-FACTBOX-Australia's expanding renewable energy market

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HONG KONG, June 23 (Reuters) - Australia passed laws to overhaul its renewable energy scheme on Wednesday, in a move that could help unlock investments in stalled wind and solar energy projects. [ID:nSGE65M01N]

Australia wants a fifth of its electricity to come from renewable energy by 2020.

The new laws split the renewable energy scheme in two, for the small-scale household market and for larger generation projects. The new arrangements start in January 2011.

Australian wind power generators and commercial solar and geothermal developers will benefit the most from the revised scheme as the government seeks to generate about 41,000 gigawatt-hours of renewable power from large-scale power projects by 2020.

Here are some facts about Australia's renewable energy sector:

RENEWABLE ENERGY SYSTEMS

* The new laws would drive investment for wind power, which could account for the bulk of the 11 gigawatts (GW) of clean energy projects expected to go onstream by 2020.

* Australia has just under 2,000 megawatts of installed wind power generating capacity, though it has the potential to expand nearly five-fold over the next 10 years.

* Solar power holds promise in a country known for its sunshine. Australia's solar credits programme, which will subsidise the cost of households installing 1.5-kilowatt solar power systems, and subsidised tariffs, should help boost demand. The country installed 66 megawatts of solar power in 2009.

For a PDF package of stories on Asia's solar industry, click: r.reuters.com/zap72m

* Australia may see increased investment in geothermal power, which taps heat trapped in granite 3 km or more below the earth's surface to run turbines and generate power. Studies suggest that Australia's hot fractured rock geothermal energy could provide up to 2.2 GW of base-load capacity, or up to 40 percent of the country's renewable target, entailing investment of about A$12 billion.

* A rush to deploy proven technologies will come at the expense of geothermal and other emerging technologies, including concentrated solar power and ocean energy, which require time and huge capital to develop.

WINNERS FROM EXPANDED TARGET

* The best direct exposure to renewable energy is wind companies such as Infigen Energy (IFN.AX), the largest owner of wind power in Australia, said analysts.

* Other companies with exposure to wind projects include Transfield Services Infrastructure TSI.ZX, Viridis Clean Energy VIR.AX, and Roaring 40s, which is jointly owned by Hydro Tasmania and Hong Kong-listed CLP Holdings (0002.HK). [ID:nSGE64I0G1]

Epuron, a unit of Germany's solar company Conergy CGYG.DE is another long-term and large wind asset owner. [ID:nSGE64I0G1] [ID:nSYD469456]

* AGL Energy (AGK.AX) and Orgin Energy (ORG.AX) should also benefit. As Australia's largest power retailers, their interest in developing renewable energy, among others, is to offset their liabilities to purchase renewable energy certificates or RECs. The companies own among the country's largest development pipelines for wind farms.

* The solar segment has solar cell technology firms Silex Systems 6679.Q and Dyesol (DYE.AX). Other solar technology companies include CBD Energy (CBD.AX) and Solco (SOO.AX).

GEOTHERMAL, WAVE POWER

* Geothermal carries great growth potential. Geodynamics (GDY.AX) with a market capitalisation of over A$109 million is the leader of the pack of about 9 companies in the sector, most with a capitalisation of less than A$20 million.

* Exposure to energy efficiency projects is through Quantum Energy (QTM.AX) which makes solar energy heating products, or Environmental Group ESL.AX which focuses on clean water solutions.

Other efficiency firms include AnaeCo (ANQ.AX) which recyles waste, and Bluglass (BLG.AX) which produces high-efficiency devices such as light emitting diodes. Environmental Clean Technologies (ESI.AX) refines brown coal into lower-carbon emitting fossil fuel.

* Coal bed methane technology, which uses the trapped methane in coal to produce natural gas, has been identified among technologies to benefit from the new law. Companies actively exploring coal bed methane includes Sydney Gas Ltd SGL.AX, Queensland Gas Co QGC.AX, and Origin Energy.

* Exposure to Australia's wave energy sector can be made through investments in Carnegie Corp CNM.AX while Ceramic Fuel Cells (CFU.AX) offer exposure to fuel cell development. (Sources: Australian government, here;The Clean Energy Council, www.cleanenergycouncil.org.au; Auerbach Grayson Research, www.agco.com; McLennan Magasanik Associates, Wilson HTM as cited in Auerbach Grayson reports) ($1=A$1.15) (Compiled by Leonora Walet; Editing by Clarence Fernandez)