FRIDAY 26 FEBRUARY, 2010 |
Government Announces Revamped Renewable Energy Target
Two days after the Australian Greens submitted a Private Members Bill with
recommendations for a revised
Renewable Energy Target
, the Rudd Government has announced major changes
that should please many solar energy supporters.
There appears to be one small catch - the changes won't be implemented until
January 2011, which may be after the next Federal election.
From 1 January next year the Renewable Energy
, which guarantees 20 per cent of Australia’s energy in 2020 will come from renewable sources, will include two parts - the Small-scale Renewable Energy Scheme
(SRES) and the Large-scale Renewable Energy Target (LRET).
The SRES will apply small-scale technologies such as residential
and solar hot water
and will provide a fixed price of $40 per Renewable
(REC). The Solar
program is based on a RECs multiplier system and due to a flood of
RECs on the market in recent months, their value has dropped below $40 and in
turn affected rebate levels.
The LRET will cover large-scale renewable energy projects like wind and solar
farms and should boost investor confidence in those projects, which has also
been negatively affected by low REC prices.
The Government says the changes are expected to deliver more renewable energy than the original 20 per cent target and will ensure
Australia builds the clean energy future the nation needs.
More adjustments to the RET may be forthcoming, with the Government stating it will continue to work with the states and territories on other issues being considered by the Council of Australian Governments’ Review of Specific RET Issues.
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