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Increasing Australia's renewable electricity generation

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Renewable Power Percentage

The renewable power percentage (RPP) establishes the rate of liability and is the mechanism that liable parties use to determine how many renewable energy certificates (RECs) need to be surrendered to discharge their liability each year. Individual REC liabilities can be determined by multiplying the total liable or relevant acquisition for a year by the RPP.

• For example, in 2010 the RPP is 5.98%. A liable party purchasing 100,000 MWh of electricity in 2010 must surrender 5,980 RECs to fully discharge their liability for this year.

The RPP is required to be published in the Renewable Energy (Electricity) Regulations 2001 (regulations) prior to 31 March of the year in which it applies. This allows liable parties time to plan their REC acquisition strategies. If the RPP is not published prior to 31 March then the default formula under Section 39 of the Act applies and can be used to determine the default RPP for the given year.

• More about the Regulation amendment process

The RPP is set to achieve the interim targets specified in the legislation which will achieve the renewable energy target for 2020 of 45,000 GWh.

As the RPP is calculated in advance, it is based on:

• the required amount of renewable electricity for the year;
• the estimated amount of electricity that will be acquired for the year;
  the amount by which the required GWh of renewable source electricity for previous years has exceeded, or has been exceeded by, the amount of renewable electricity required under the scheme in those years; and
• all partial exemptions expected to be claimed for the year.

For example, the 2008 RPP is 3.14% to achieve a target of 6,800,000 RECs;

• If the RPP resulted in 6,801,000 RECs being surrendered, a later year target would be adjusted downwards by 1,000 MWh prior to calculating its RPP. For example, the 2010 target of 12,500,000 RECs would be adjusted to 12,499,000.  Before calculating the 2010 RPP ORER then factors all partial exemptions expected to be claimed for the year.
• If the 2008 RPP resulted in 6,769,436 RECs being surrendered, a later year target would be adjusted upwards prior to calculating its RPP. For example, in this case the 2010 target would become 12,530,564 RECs.  Before calculating the 2010 RPP ORER then factors all partial exemptions expected to be claimed for the year.

The size of each liable party's REC liability for each year will not be adjusted after surrender if the RPP is found to not exactly match the interim target. The ORER will recommend that the Australian Government adjust a later year RPP taking the overall REC liability into account.

Calculated RPPs

To view RPPs that have been calculated you can reference Regulation 23 of the Renewable Energy (Electricity) Regulations 2001. Where the RPP for a compliance year is not set under the regulation the default RPP applies.  To determine the default RPP you need to reference section 39 (2) (b) of the Renewable Energy (Electricity) Act 2000.