Australia is targeting renewable energy.

The Commonwealth Government has developed a new scheme that sets targets for the generation of new renewable electricity in Australia between 2001 and 2020.

The Renewable Energy (Electricity) Act 2000 requires generators to produce an additional 9500GWh per year of renewable energy by 2010. This is equivalent to a 60% increase on 1997 levels of renewable energy generation.

The Act is the first legislated measure under the Federal Government’s programme to address greenhouse gas emissions in Australia, and is expected to reduce Australia’s greenhouse gas emissions by up to 7m tonnes in 2010.

Under the measure, purchasers of wholesale electricity will be liable to meet a share of the renewable energy target in proportion to their share of the national wholesale electricity market. In order to discharge their liability they will need to surrender Renewable Energy Certificates (RECs) to the Renewable Energy Regulator. One REC represents 1MWh of new eligible renewable energy.

Because Australia has adopted the world’s first national tradeable certificate approach, liable parties can discharge their obligations by purchasing certificates through a new market, which is separate to the physical market for electricity. This will promote the development of the most efficient forms of renewable electricity generation.

Electricity generated from a wide range of renewable sources is eligible for renewable energy certificates. Certificates may also be created for certain solar water heaters installed after 1 April 2001 based on the amount of electricity that they displace.

Public consultation
The Government appreciates the contribution of the public and industry to the development of the mandatory renewable energy target, gathered through an extensive public consultation process.
The regulations and any amendments to them go through a 30-day consultation period. Before finalising amendments to the regulations, the ORER places advertisements in national newspapers inviting industry and members of the public to provide comments on the regulations.

For information and queries on opportunities and obligations under the measure:
Telephone: +61 2 6274 2192
Email: orer@orer.gov.au
Website: www.orer.gov.au