|Policy status:||In Force|
|Date Ended:||To cease by 2030|
|Policy Type:||Regulatory Instruments|
|Policy Target:||Multiple RE Sources>Power|
|Policy Sector:||Electricity, Framework Policy|
|Agency:||Department of the Environment|
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.
The Australian Government has settled on reforms to the Renewable Energy Target, following careful consideration and extensive consultations.The new target for large-scale generation of 33,000 GWh in 2020 will double the amount of large-scale renewable energy being delivered by the scheme compared to current levels and means that about 23.5 per cent of Australia’s electricity generation in 2020 will be from renewable sources.
|This record supersedes:||Renewable Energy Target , Solar Credits|
Last modified: Fri, 03 Jun 2016 16:52:19 CEST