Renewable energy compliance at an all time high
11 November 2004
Media release
The Renewable Energy Regulator today announced almost 100 per cent of major energy purchases have included the required amount of electricity generated from renewable sources.
David Rossiter, the Renewable Energy Regulator, said the high level of compliance is providing a significant boost to the renewable energy industry in Australia.
"This year 99.9 per cent of the Renewable Energy Certificate liability under the Renewable Energy (Electricity) Act 2000 was acquitted through surrender of Renewable Energy Certificates rather than by paying a shortfall charge," he said.
"Under the Act, wholesale purchasers of electricity such as retailers and corporations are required to source Renewable Energy Certificates from renewable energy sources such as hydro, landfill gas, photovoltaic, bagasse and wind power stations.
"In this way they are legally obliged to contribute towards the generation of additional renewable electricity to reach the target of 9,500,000 Mega Watt hours by the year 2010.
"Those liable parties that choose not to surrender the required number of Renewable Energy Certificates must pay the shortfall charge of $40 for each Certificate not surrendered.
A number of liable parties who had a shortfall in 2001 and 2002 made up their shortfalls by surrendering extra Renewable Energy Certificates. These one Mega Watt hour Certificates are the units of trade for renewable energy transactions within the electricity market.
The 2003 assessment process indicates that 99.9 per cent of the annual target was met by Renewable Energy Certificate surrender. For 2003, shortfalls totalled 790 Certificates from the following four liable parties:
Energex Retail Pty Ltd, Hazelwood Power, TXU Electricity Limited and Yamasa Seafood Pty Ltd.
For 2002, six liable parties have shortfalls totalling 582 Certificates. They are:
Energex Retail Pty Ltd, Ferrier Hodgson Electricity Pty Ltd, Hazelwood Power, Redbank Project Pty Ltd, TXU Electricity Limited and Yamasa Seafood Pty Ltd.
For 2001 six liable parties have shortfalls totalling 516 Certificates. They are:
Energex Retail Pty Ltd, Hazelwood Power, NT Power Generation Pty Ltd, Redbank Project Pty Ltd, Synergen Power Pty Ltd and Yamasa Seafood Pty Ltd.
The next surrender period from 1 January to 14 February 2005 will be the last opportunity for liable parties with a current 2001 shortfall to surrender additional Certificates to redeem or acquit that shortfall.
"For the first three years of operation of the Act about 3.24 million Renewable Energy Certificates have been surrendered to the Office of the Renewable Energy Regulator, slightly above the 3.2 million mandated target," Mr Rossiter said.
"To remain on target over the next three years over three times as many Certificates need to be surrendered. This tripling is a major challenge for the renewable energy industry but it looks well positioned to meet that test."
For more information on the Office of the Renewable Energy Regulator, visit www.orer.gov.au
To find out more about the trade in Renewable Energy Certificates, visit www.rec-registry.com
Media contact: David Rossiter Phone 02 6274 2192, mobile 0408 276 214
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