Office of the Renewable Energy Regulator

Increasing Australia's renewable electricity generation

Compliance nearing 100%

1 February 2010

Media release

The Office of the Renewable Energy Regulator announced today nearly 100% of electricity retailers complied with the mandatory renewable energy target (MRET) scheme in 2008. Strong compliance resulted in electricity from renewable sources powering over 1.4 million households in the same year.

Electricity retailers have a legal liability under the Renewable Energy (Electricity) Act 2000 to contribute towards the generation of electricity from renewable sources such as wind, hydro, landfill gas, solar and bagasse. Retailers purchase Renewable Energy Certificates (RECs) generated by renewable sources via an online system called the REC Registry.

Compliance through surrender of RECs was 99.81 per cent for the 2008 compliance year. Only three out of 72 liable parties are being assessed with a REC shortfall, defined as a failure to surrender enough RECs to meet their liability.

Renewable Energy Regulator, Andrew Livingston, said compliance has been consistently high since implementation of the scheme eight years ago.

‘Electricity retailers have been supportive of the scheme and, as a result, we’ve seen significant growth in electricity from renewable sources since 2001,’ Mr Livingston said.

The 2008 target of 6800 gigawatt hours (GWh) is equivalent to the residential electricity consumption of more than 1.4 million Australian households. The current target for 2010 is 12 500 GWh and annual targets will increase significantly given the implementation of the expanded Renewable Energy Target (RET). The RET follows through on the Australian government’s commitment to ensuring 45,000 gigawatt hours (GWh), approximately 20 per cent, of Australia’s electricity supply comes from renewable energy by 2020.

Most wholesaler purchasers of electricity (liable parties) fully met their 2008 liability under the Act by surrendering RECs rather than having a carried forward renewable energy certificate shortfall or paying a renewable energy shortfall charge.  Several liable parties, who had shortfalls in previous years also made up their shortfalls by surrendering additional RECs.

For the 2008 to 2001 compliance years the following liable parties have been assessed with carried forward renewable energy certificate shortfalls or were required to pay the renewable energy shortfall charge:

Liable partyREC Shortfall Percent of REC shortfall against the total REC liability
2008 Compliance year
AGL Sales (Queensland Electricity) Pty Ltd 1,013 Less than 1 per cent
AGL South Australia Pty Ltd 1,073 Less than 1 per cent
2007 Compliance year
AGL South Australia Pty Ltd 620 Less than 1 per cent
Stanwell Corporation Ltd 24,996 11.3 per cent
Total of previously reported company 9 100 per cent
2005 Compliance year
Total of previously reported company 18 100 per cent
2004 Compliance Year
Total of previously reported company 20 100 per cent
2003 Compliance Year
Endeavour Coal Pty Ltd 5,203 100 per cent
Total of previously reported company 13 100 per cent
2002 Compliance Year
Endeavour Coal Pty Ltd 4,042 100 per cent
Total of previously reported companies 38 100 per cent
2001 Compliance Year
Endeavour Coal Pty Ltd 1,306 100 per cent
Total of previously reported companies 372 100 per cent

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