Scheme sheds light on healthy renewable energy industry
28 January 2009
Media release
The Office of Renewable Energy Regulator released figures today demonstrating nearly 100% compliance by wholesale electricity purchasers to the MRET scheme, resulting in electricity from renewable sources powering nearly 900,000 households in 2007.
Implemented in 2001, the Mandatory Renewable Energy Target (MRET) scheme was the first of its kind globally and has been a key factor in the growth of renewable electricity generation within Australia. The figures released today detail the high levels of compliance through Renewable Energy Certificates (RECs) surrendered under the Renewable Energy (Electricity) Act 2000 by wholesale purchasers of electricity.
Acting Renewable Energy Regulator, Amarjot Singh, said the MRET scheme has been setting the global benchmark for the renewable electricity market and is well supported by wholesale electricity purchasers and the Australian renewable energy industry.
"Compliance through the surrender of RECs by wholesale purchasers of electricity has been consistently high since the scheme's implementation seven years ago," Mr Singh said.
Under the Act wholesale purchasers of electricity such as electricity retailers are required to purchase RECs from renewable energy sourced power stations such as wind, hydro, landfill gas, solar and bagasse. By doing so, electricity retailers support additional generation of electricity from renewable energy power stations. RECs provide a financial incentive to renewable energy power stations.
The 2007 target of 5600 GWh is equivalent to the residential electricity consumption of approximately 900,000 Australian households. The current target for 2010 is 9500 GWh and is set to increase five fold given the Government's commitment to a goal of 20 percent renewable energy in Australia's electricity supply by 2020. The expanded MRET will increase the target to 45,000 GWh by 2020.
'The future for the renewable energy industry under the scheme is looking bright. The Office of the Renewable Energy Regulator looks forward to working with the renewable energy industry and electricity retailers to build a sustainable future for Australia.'
Contact: Amarjot Singh, Acting Renewable Energy Regulator - 0422 097 897
Notes for editors:
- The Office of the Renewable Energy Regulator (ORER) was established in February 2001, under the Renewable Energy (Electricity) Act 2000, to administer the provisions of the Act, its Regulations and the associated Renewable Energy (Electricity) (Charge) Act 2000. The statutory position of Regulator is created by the Renewable Energy (Electricity) Act 2000.
- Most wholesaler purchasers of electricity (liable parties) fully met their 2007 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 2007 compliance year compliance through surrender of RECs was 99.45 per cent. Only three out of 70 liable parties are being assessed with a REC shortfall.
- For the 2007 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 party | REC Shortfall | Percent of REC shortfall against the total REC liability |
|---|---|---|
| 2007 Compliance year | ||
| Alinta Sales Pty Limited | 5,379 | 8.9 percent |
| Newmont Power Pty Ltd | 945 | 9.2 percent |
| Queensland Power Trading Corporation (trading as Enertrade) | 9 | 100 percent |
| 2006 Compliance year | ||
| Alinta Sales Pty Limited | 9 | Less than 1 percent |
| Hamersley Iron Pty Ltd | 1 | Less than 1 percent |
| Momentum Energy Pty Ltd | 16 | Less than 1 percent |
| Newmont Power Pty Ltd | 34 | Less than 1 percent |
| Simply Energy | 1,022 | 2.4 percent |
| 2005 Compliance year | ||
| Yamasa Seafood Pty Ltd | 18 | 100 percent |
| 2004 Compliance Year | ||
| Yamasa Seafood Pty Ltd | 20 | 100 percent |
| 2003 Compliance Year | ||
| Yamasa Seafood Pty Ltd | 13 | 100 percent |
| 2002 Compliance Year | ||
| Redbank Project Pty Ltd | 25 | 100 percent |
| Yamasa Seafood Pty Ltd | 13 | 100 percent |
| 2001 Compliance Year | ||
| NT Power Generation Pty Ltd | 182 | 100 percent |
| Redbank Project Pty Ltd | 183 | 100 percent |
| Synergen Power Pty Ltd | 2 | 100 percent |
| Yamasa Seafood Pty Ltd | 5 | 100 percent |
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