Renewable energy compliance up
21 October 2003
Media release
The Renewable Energy Regulator today released details of Renewable Energy Certificates surrendered under the Renewable Energy (Electricity) Act 2000 for 2001 and 2002.
Most wholesale purchasers of electricity are required to demonstrate to the Australian Government each year that they are purchasing more renewable electricity. The renewable electricity requirement for 2001 was 0.24 percent of electricity purchased and for 2002, 0.62 percent.
The wholesale purchasers of electricity who are liable parties under the Act demonstrate their targets have been achieved by surrendering Renewable Energy Certificates (RECs) each year. Alternatively, they can declare any shortfalls to the Office of the Renewable Energy Regulator, although shortfalls can attract a penalty payment of $40 for each REC not surrendered. A REC represents one megawatt hour (MWh) of eligible renewable energy. RECS are purchased from electricity generators using renewable sources of power such as solar, wind, hydro or landfill gas.
"We have seen a marked increase in companies choosing to meet their targets by using RECs rather than through making shortfall payments. In fact, many who had shortfalls for 2001 have chosen to redeem these shortfalls through the surrender of additional RECs," Mr Rossiter, the Renewable Energy Regulator, said.
"Initially, just over 92 percent of compliance in 2001 was through surrender of RECs, but with retrospective purchase of RECs this has now risen to over 96 percent. In 2002, over 99 percent of compliance has been through the surrender of RECs and the industry is to be congratulated on its very strong performance and clear support for renewable electricity generation."
The number of companies carrying over REC shortfalls from 2001 has fallen from 19 to 10, with a total shortfall of 11,243 RECs for that year. The following companies are still showing shortfalls, although they have until February 2005 to redeem them:
Australian Energy Services Pty Ltd, Country Energy, Energy Australia, Hazelwood Power, NT Power Generation Pty Ltd, Redbank Project Pty Ltd, Robe River Mining Co Pty Ltd, Synergen Power Pty Ltd, Tarong Energy Corporation Pty Ltd and Yamasa Seafood Pty Ltd.
For 2002, REC shortfalls totalled 2,757 RECs from the following eight companies:
Australian Energy Services Pty Ltd, Ferrier Hodgson Electricity Pty Ltd, Hamersley Iron Pty Ltd, Hazelwood Power, Redbank Project Pty Ltd, Robe River Mining Company Pty Ltd, Yallourn Energy Pty Ltd (Auspower) and Yamasa Seafood Pty Ltd.
"If this year's trend is anything to go by, I expect even more shortfalls to be redeemed from the purchase of RECs. Wholesale electricity generators have up to three years to redeem shortfalls by surrendering additional RECs," Mr Rossiter said.
With over 2.45 million RECs currently available for surrender, the Act looks well positioned to meet its target 0.88 percent of electricity or 1.8 million RECs for 2003.
The Office of the Renewable Energy Regulator is a statutory authority established to oversee the implementation of the Government's mandatory renewable energy target.
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