Australia's Renewable Energy Target Bioenergy Austraia 2008 - PowerPoint PPT Presentation

Title: Australia's Renewable Energy Target Bioenergy Austraia 2008


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Australias Renewable Energy Target
Bioenergy Australia 2008 Monday 8 December 2008

Amarjot SinghActing Renewable Energy Regulator
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Renewable Energy Certificate System

• Mandatory Renewable Energy Target (MRET) scheme
  is based on Renewable Energy Certificates (RECs)
• Legislation came into force in early 2001
• Current target 9,500,000 MWh by 2010
• Scheme runs to 2020

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Objectives of the MRET

• Encourage additional generation of electricity
  from renewable energy sources
• Reduce greenhouse gas emissions
• Ensure renewable energy sources are ecologically
  sustainable

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How are the Objectives Achieved?

• By placing an obligation on wholesale purchasers
  of electricity known as liable parties
• Liable parties contribute towards increasing the
  amount of electricity generation from eligible
  renewable energy sources by buying and
  surrendering RECs
• Liable parties that do not offer RECs are
  required to pay 40 per REC renewable energy
  shortfall charge .

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Office of the Renewable Energy Regulator

• The role of ORER is established by the
• Renewable Energy (Electricity) Act 2000
• Renewable Energy (Electricity) (Charge) Act 2000
• Renewable Energy (Electricity) Regulations 2001

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Office of the Renewable Energy Regulator

• Main responsibilities of ORER
• Accrediting renewable energy power stations under
  MRET
• Overseeing creation, validation and surrender of
  RECs
• Assessing Annual Energy Acquisitions Statements
  and Electricity Generation Returns
• Ensuring the integrity of the measure by
  undertaking audits under the Act.

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Current Annual Targets

• The current legislated target is 9500 GWh of
  additional renewable source electricity by 2010
• The target for 2008 is 6,800 GWh and for 2009 the
  target is 8,100 GWh

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Renewable Energy Target
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Expanded Renewable Energy Target

• The Australian Government is committed to
  ensuring 20 per cent of electricity supply comes
  from renewable sources by 2020.
• Government is establishing an expanded national
  Renewable Energy Target (RET) scheme to increase
  the existing Mandatory Renewable Energy Target
  (MRET) to 45,000 GWh in 2020
• The Department of Climate Change (DCC) is
  responsible for the policy and design of expanded
  RET

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REC Market
Supply Side Creation of RECs
Demand Side/ Retirement of RECs
Registry
from RECs

• Liable Entities
• Wholesale electricity retailers and
• some generators

REC

• Eligible Parties
• Accredited power stations
• Eligible solar water heater
• Eligible small generation unit installations

Liable acquisition x RPP
Markets
Regulator
Non Renewable Generators
from Electricity sale

• Voluntary surrender of RECs
• Anyone can retire RECs voluntarily
• Participants of GreenPower meeting their
• obligations under their scheme

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Supply side Eligible Parties

• Renewable energy power stations
• that use one or more renewable energy sources
  listed under the Act are eligible for
  accreditation
• REC eligibility based on metered electricity
• Deemed units are solar water heater and small
  generation units
• Solar water heaters and small generation units
  are eligible for RECs based on the size and
  location of the installation

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Renewable Energy Power Stations

• The requirements for accreditation of power
  stations are detailed the Act and Regulations.
• Registration and accreditation information, forms
  available on ORER website.
• During the accreditation process of renewable
  energy power stations ORER
• Determines the 1997 baseline in accordance with
  the legislation
• Determines which components of the renewable
  energy power station are taken to be a renewable
  energy power station

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Accredited Power Stations in December 2008
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Accredited Bioenergy based Power Stations in
December 2008
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Power Station Accreditated in 2007 and 2008
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RECs from Bioenergy based Power Stations
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Sugar
Solar
Wind
Hydro
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Small Generation Units and Solar Water Heaters

• Small Generation Units
• Photovoltaic Systems not more than 100 kW and
  generating less than 250 MWh annually
• Hydro generators not more than 6.4 kW and
  generating less 25 MWh annually
• Wind turbines not more than 10 kW and generating
  less than 25 MWh
• Solar water heaters
• Listed in the Register of Solar Water Heaters are
  eligible for RECs
• Number of RECs for each model is provided for 4
  installation zones in Australia based on climatic
  and solar ration levels
• Owners can assign rights to create RECs to an
  agent

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Deemed units as in November 2008
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Demand Side Retirement of RECs

• Mandatory REC Liability
• Section 29 of the Act allows a registered owner
  of a REC to permanently retire a REC from the REC
  Market for the purposes of discharging REC
  liabilities
• Voluntary REC Surrender
• Section 28A of the Act, that was introduced in
  September 2006 allowing a registered owner of a
  REC to permanently retire the REC.

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RECs and REC Registry

• What are RECs?
• A RECs Unique Identification Code
• Information contained in the REC Registry
• Number of RECs against the target
• REC Prices

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What are RECs?

• RECs are created electronically via the internet
  based REC Registry system, known as the REC
  Registry
• One REC is equivalent to
• 1 MWh of renewable electricity generated above
  the renewable energy power station baseline or
• 1 MWh of renewable electricity deemed to be
  generated by small generation units or
• 1 MWh of electricity deemed to be displaced by
  the installation of solar water heaters.

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Unique REC Identification Code

• Each REC has a unique identification code
  consisting of
• Registered persons registration number
• Power station identification code OR
• Deemed Unit (small generation unit or solar
  water heater) Code
• The year the electricity was generated OR
• deemed units installation date
• Serial number of the REC
• EG 179 SRPVQL01 2008 00010

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Information contained in the REC Registry
610
36,240,000
269
310
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Information contained in the REC Registry
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Information contained in the REC Registry
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Information contained in the REC Registry
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Number of RECs and Annual Targets
Voluntary surrender function was introduced in
September 2006 a small number of RECs were
offered in 2007.
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Investment to November 2008
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REC Prices

• ORER does not control or monitor the price of
  RECs
• Independent REC pricing studies in 2002 and 2007
  to forecast REC prices. These studies are
  available from ORER website at http//www.orer.gov
  .au/publications/index.htmlrec-market-reports

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REC Prices
REC Price fall
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Where Are We Heading ?

• Government committed to a single national RET
  scheme
• Target to increase from 9,500 GWh under MRET to
  45,000 GWh RET by 2020
• RET consultation process through CoAG working
  group
• Legislation expected to be in place by mid 2009
• Possible new amendment to Act and Regulations
• Emissions trading plus numerous other policies

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NEW TARGET 45,000 GWh ADDITIONAL IN 2020
4.7 times
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www.orer.gov.au
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Two websiteswww.orer.gov.au website provides
information on Act and participation. Detailed
Information, forms and fact sheets about the
scheme are available from ORER websitewww.rec-re
gistry.gov.au details of four registries
Register of RECsRegister of accredited power
stationsRegister of applications for power
stations and Register of registered persons
Further Information
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Office of the Renewable Energy Regulatorwebsite
http//www.orer.gov.au/email
orer_at_orer.gov.auphone 02-6274-2192fax
02-6274-1725
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Office of the Renewable Energy RegulatorThank
you