Renewable Energy Certificates Surrendered by Liable Parties
25 September 2002
Media release
The Office of the Renewable Energy Regulator today released information on Renewable Energy Certificates surrendered by the liable parties under the Renewable Energy (Electricity) Act 2000.
The Act requires wholesale purchasers of electricity to demonstrate to the Government they are purchasing more electricity generated from renewable sources. This is done through surrendering Renewable Energy Certificates (RECs) each year. Each REC represents 1 MegaWatt hour (MWh) of eligible renewable electricity.
For 2001 the first year of operation of the target, nearly 310,000 RECs were accepted for surrender against liabilities.
Renewable Energy Regulator, David Rossiter stated that the industry is to be commended on this excellent performance which very closely matches the target of 300,000 MWh for 2001.
"The commendation is especially deserved as industry had to adapt very rapidly to the new challenge created by the Renewable Energy (Electricity) Act which was passed in December 2000 and commenced on 1 April 2001".
The small excess of RECs surrendered above the target will be used to adjust downwards the future year targets to compensate. The excess was caused by greater demand for electricity than initially projected.
With over 1.2 million RECs validated to date the Act looks well positioned to meet its target of 1.1 million RECs for 2002.
For the 2001 compliance year (1 April 2001 to 31 December 2001) a total of 58 parties were required to surrender RECs. In the 2001 compliance year, 19 out of the 58 liable parties had individual shortfalls contributing to a total shortfall of 25,842 RECs being recorded.
The liable parties with REC shortfalls for the 2001 compliance year are:
Alcoa World Alumina Australia, Aurora Energy Pty Ltd, Australian Energy Services Pty Ltd, Australian Inland Energy and Water, Country Energy, Energy Australia, Macquarie Generation, NRG Flinders Operating Services P/L, NT Power Generation Pty Ltd, Perth Power Partnership, Pulse Energy Pty Ltd (includes liability for United Energy), Redbank Project Pty Ltd, Snowy Hydro Trading Pty Ltd, Southern Hydro Partnership, Synergen Power Pty Ltd, TXU Electricity Limited, Vicpower Trading (office of the administrator, SECV), Western Power Corporation and Yamasa Seafood Pty Ltd.
The RECs surrendered by the wholesale electricity purchasers was over 92% of the total REC surrender requirement. Not all shortfalls resulted in the payment of the penalty of $40/MWh as shortfalls within 10% of the total requirement are carried forward and added to next year's target.
"This sends a very positive signal about REC surrender as a preferred form of compliance behavior," said Mr Rossiter.
Media contact: David Rossiter Phone 02 6274 2192
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