Feb 26 Australia has a set a target of 20
percent renewable energy generation by 2020 to help curb the
growth in planet-warming carbon dioxide emissions and trim the
nation's reliance on coal and gas for power generation.
The renewable energy target (RET) scheme rewards investors
with renewable energy certificates, or RECs, that can be sold
to a ready market of buyers to offset the cost of the
Each certificate represents one megawatt-hour of
electricity generated from renewable energy.
But the scheme has run into trouble because of a flood of
RECs, largely from small household solar installations, driving
down the market price. This has deterred major investments in
wind farms, solar and other large renewable energy projects.
To overcome this, the government announced changes to the
RET scheme on Friday to boost big clean-energy investments.
(For related story, click on [ID:nSGE61P01N])
The government has set a target of renewable energy
generation of 45,000 gigawatt-hours by 2020 for the RET scheme,
which runs until 2030.
Previously, the flow of RECs was from household and
large-scale renewable investments, a step that has driven down
the price of the certificates.
From Jan 1, 2011, the RET programme will split into two:
the Small-scale Renewable Energy Scheme (SRES) and the
Large-scale Renewable Energy Target (LRET).
Combined, these are expected to deliver more renewable
energy than the existing 45,000 GW/h target by 2020, the
The bulk of this, 41,000 GW/h, will come from large-scale
projects. The government has set a series of annual targets of
10,400 GW/h for 2011, 18,000 GW/hr by 2015 and 41,000 GW/h by
2020. This target remains until the scheme ends in 2030.
The government says the degree to which the 20 percent
target is exceeded will depend on the uptake of small-scale
technologies by households, small business and community
The LRET portion of the target will be increased to ensure
the 20 percent by 2020 target is still met if the uptake of
small-scale technologies is lower than anticipated.
FIXED PRICE FOR HOUSEHOLDS
The small-scale scheme offers A$40 for each REC created by
small-scale technologies like solar panels and solar water
heaters, effectively providing a floor price for RECs.
The number of systems receiving support under the SRES will
be uncapped to ensure small-scale installers have certainty.
The government plans to review the SRES as part of a
mandated 2014 review of the renewable energy target to ensure
the fixed price for RECs remains relevant. ($1 = A$1.12)
(Source: the Australian Department of Climate Change:
ble-target.aspx) (Editing by Sugita Katyal)