Country:Australia
Year:2001
Policy status:In Force
Jurisdiction:National
Date Effective:2001
Date Amended:

2015

Date Ended:To cease 2030
Policy Type:Regulatory Instruments
Policy Target:Framework/ Multi-sectoral Policy, Energy Sector>Electricity Generation, Energy Sector>Electricity Generation>Renewable
Agency:Department of the Environment and Energy / Clean Energy Regulator
Legal References:Renewable Energy (Electricity) Act 2000
Penalty:AUD 65 for each Renewable Energy Certificate (REC) not surrendered
Description:

The Renewable Energy Target (RET) is designed to deliver a 23.5% share for renewables in Australia’s electricity mix by 2020.

The RET legislation includes a legislated annual Large-Scale Renewable Generation Targets (LRET), rising to 33,000 gigawatt-hours of renwable energy by 2020, while the Small-Scale Renewable Energy Scheme (SRES) is uncapped.

  • Large-Scale Renewable Energy Target (LRET): The LRET creates a financial incentive for the establishment and growth of renewable energy power stations, such as wind and solar farms, or hydro-electric power stations. It does this by legislating demand for Large-scale Generation Certificates (LGCs). Each LGC is equivalent to one megawatt hour of eligible renewable electricity generation. LGCs can be sold or traded to liable entities to create a revenue source for renewable energy power stations in addition to the sale of electricity. Liable entities (wholesale electricity retailers) have a legal obligation to buy LGCs and surrender them to the Clean Energy Regulator on an annual basis.

  • Small-Scale Renewable Energy Scheme (SRES):The SRES creates financial incentives for home owners to install eligible small-scale renewable systems such as solar water heaters and heat pumps. It does this by legislating demand for Small-scale Technology Certificates (STCs). STCs are created for these installations according to the amount of electricity they produce or displace over the deemed life of the system. Liable entities have a legal obligation to buy STCs and surrender them on a quarterly basis. The STCs created can be sold or traded to receive an upfront cash support or a discount on the system purchased, which assists in reducing the capital cost of the system for the home owner.  
Related policies:Safeguarding the Future: Australias Response to Climate Change , Renewable Energy Commercialisation Programme , Green Electricity Market , Clean Energy Target
This record is superseded by:Renewable Energy Target
This record supersedes:2% Renewable Energy Target

Last modified: Fri, 05 May 2017 18:12:35 CEST