The changing face of Australian renewable energy regulation

Andrew LivingstonRenewable Energy Regulator

March 2010

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Objectives of the RET

• Encourage additional generation of electricity from renewable energy sources

• Ensure renewable energy sources are ecologically sustainable

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RECs defined

• A commodity in the REC Market. • RECs are created by eligible parties and

sold to liable parties via the REC Registry to meet their liability under the RET.

• Exist in the REC Registry• Based on 1 MWh of electricity

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Information contained in the REC Registry

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EligibilityOwners of Solar Water Heaters and Small Generation Units• Date of installation• Model• Accredited installer• kW capacity• Solar creditsRenewable Energy Power Stations • Obtain development and environmental approvals• Provide details to ORER regarding operation

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REC Price fall

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Outcomes of MRET/RET• Increased investment in renewables • Total investment approximately $8 billion • Generating capability is over 11,000 gigawatt hours

(GWh)• This is equivalent of the residential electricity needs of

over 1.7 million households

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Outcomes of MRET/RET• 291 power stations accredited and over 552,000 deemed

small generation units since inception

• Voluntary surrender > 2 mil RECs in 2009

• Scheme participants > 220,000 in 2009

• Number of RECs created 7 mil > than 2008

• Near to 100% compliance by liable parties

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2001 2002 2003 2004 2005 2006 2007 20080.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0% Annual REC Generation by Fuel Type (%)

Hydro WindSWH- Deemed Landfill & Sewage GasWood Waste Black LiquorBagasse SGU- Deemed & SolarFood, Ag & Bio Waste

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Number of RECs and Annual Targets

2001

2002

2003

2004

2005

2006

2007

2008

2009

0 2000000 4000000 6000000 8000000 10000000 12000000 14000000

300000

1100000

1800000

2600000

3400000

4500000

5600000

6800000

8100000

12500000

RECs accepted to discharge liabilities under the ActRenewable Energy Target in MWh Voluntary SurrenderedSurrenderedTarget

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Two websites:www.orer.gov.au website provides information on Act and participation. Detailed Information, forms and fact sheets about the scheme are available from ORER websitewww.rec-registry.gov.au details of four registries Register of RECsRegister of accredited power stationsRegister of applications for power stations and Register of registered persons

Further Information