Media Releases

This page contains media releases distributed by the Office of the Renewable Energy Regulator prior to its move to the Clean Energy Regulator on 2 April, 2012

For Renewable Energy Target media releases after April 2012, please see the Media Centre of the Clean Energy Regulator website.

Please note that the information in these media releases may be out of date.  They are retained for historical and archival purposes only.

Liable entities compliant - 19 September 2011

The Office of Renewable Energy Regulator released figures today demonstrating nearly 100% compliance by wholesale electricity purchasers and electricity retailers to the Large-scale Renewable Energy Target.

Electricity retailers have a legal liability under the Renewable Energy (Electricity) Act 2000 to contribute towards the generation of electricity from renewable sources such as wind, hydro, landfill gas, solar and bagasse. The liability is met through the purchase and surrender of Large-scale Generation Certificates (LGCs).

Compliance through surrender of LGCs was 99.21 per cent for the 2010 compliance year. Only six out of 81 liable parties are being assessed with a shortfall due to failure to surrender enough LGCs to meet their liability.

Last year saw significant movement in the electricity industry with company mergers and general changes. Liable entities also adjusted to new compliance requirements due to the split of the Renewable Energy Target into the Large-scale Renewable Energy Target and Small-scale Renewable Energy Scheme in January 2011.

The 2010 Large-scale Renewable Energy Target of 12,500 GWh is equivalent to the residential electricity consumption of approximately 1.85 million Australian households. The target for 2011 is 10,400 GWh from Large-scale Renewable Energy Target and 28 million certificates from Small-scale Renewable Energy Scheme. Liable entities compliance under the large-scale and small-scale schemes for 2011 can be published when the assessment process is completed in 2012.

Most wholesale purchasers of electricity (liable parties) fully met their 2010 liability under the Act by surrendering LGCs rather than having a carried forward large-scale generation certificate shortfall or paying a large-scale generation shortfall charge.  Several liable parties, who had shortfalls in previous years also made up their shortfalls by surrendering additional LGCs.

For the 2001 to 2010 compliance years the following liable parties have been assessed with a carried forward large-scale generation certificate shortfalls or were required to pay the renewable energy shortfall charge:

Liable party REC Shortfall Per cent of REC shortfall against the total REC liability
2010 Compliance year
AGL Sales Pty Ltd 623 Less than 1 per cent
Australian Power and Gas Pty Ltd 394 1.2 percent
Bulwer Island Energy Partnership 516 6.1 percent
Independent Electricity Retail Solutions Pty Ltd* 10 100 percent
Integral Energy Australia 6,116 1.1 percent
Sanctuary Energy Pty Ltd 1,687 100 percent
2009 Compliance year
Integral Energy Australia 1,043 Less than 1 percent
Jackgreen (International) Pty Ltd * 15,648 100 percent
Sanctuary Energy Pty Ltd 23 11.8 percent
Total of previously reported company 29 7.8 percent
2008 Compliance year
AGL South Australia Pty Limited 1,356 Less than 1 percent
AGL Sales (Queensland Electricity) Pty Limited 887 Less than 1 percent
2007 Compliance year
AGL Sales (Queensland Electricity) Pty Ltd 125 Less than 1 per cent
Total of previously reported company 9 100 per cent
2005 Compliance year
Total of previously reported company 18 100 per cent
2004 Compliance Year
Total of previously reported company 20 100 per cent
2003 Compliance Year
Total of previously reported company 13 100 per cent
2002 Compliance Year
Total of previously reported companies 38 100 per cent
2001 Compliance Year
Total of previously reported companies 372 100 per cent

* These companies have ceased operating as market customers in the National Electricity Market (NEM).

For more information, please contact the ORER Communications Team on comms@orer.gov.au or 02 6519 7700.

Strong compliance by liable entities - 2 March 2011

The Office of the Renewable Energy Regulator announced today nearly 100% of electricity retailers complied with the Renewable Energy Target (RET) scheme in 2009. Strong compliance resulted in electricity from renewable sources powering over 1.7 million households in the same year.

Electricity retailers have a legal liability under the Renewable Energy (Electricity) Act 2000 to contribute towards the generation of electricity from renewable sources such as wind, hydro, landfill gas, solar and bagasse. Retailers purchase Renewable Energy Certificates (RECs) generated by renewable sources via an online system called the REC Registry.

Compliance through surrender of RECs was 99.96 per cent for the 2009 compliance year. Only four out of 76 liable parties are being assessed with a REC shortfall, defined as a failure to surrender enough RECs to meet their liability.

Renewable Energy Regulator, Andrew Livingston, said compliance has been consistently high since implementation of the scheme ten years ago.

‘Electricity retailers have been supportive of the scheme and, as a result, we’ve seen significant growth in electricity from renewable sources since 2001,’ Mr Livingston said.

The 2009 target of 8100 gigawatt hours (GWh) is equivalent to the residential electricity consumption of more than 1.7 million Australian households. The current target for 2011 is 10,400 GWh for the Large-scale Renewable Energy Target and 28,000 GWh for the Small-scale Renewable Energy Scheme. The RET follows through on the Australian government’s commitment to ensuring 45,000 gigawatt hours (GWh), approximately 20 per cent, of Australia’s electricity supply comes from renewable energy by 2020.

Most wholesale purchasers of electricity (liable parties) fully met their 2009 liability under the Act by surrendering RECs rather than having a carried forward renewable energy certificate shortfall or paying a renewable energy shortfall charge.  Several liable parties, who had shortfalls in previous years also made up their shortfalls by surrendering additional RECs.

For the 2001 to 2009 compliance years the following liable parties have been assessed with carried forward renewable energy certificate shortfalls or were required to pay the renewable energy shortfall charge:

Liable party REC Shortfall Per cent of REC shortfall against the total REC liability
2009 Compliance year
AGL Sales Pty Ltd 623 Less than 1 per cent
Click Energy Pty Ltd 29 7.8 per cent
2008 Compliance year 
AGL Sales (Queensland Electricity) Pty Ltd 1,012 Less than 1 per cent
AGL South Australia Pty Ltd 1,357 Less than 1 per cent
2007 Compliance year
AGL Sales (Queensland Electricity) Pty Ltd  125 Less than 1 per cent
Total of previously reported company 9 100 per cent
2005 Compliance year
Total of previously reported company  18 100 per cent
2004 Compliance Year 
Total of previously reported company  20 100 per cent
2003 Compliance Year 
Total of previously reported company 13  100 per cent
2002 Compliance Year
Total of previously reported companies 38 100 per cent
2001 Compliance Year
Total of previously reported companies 372 100 per cent

Compliance nearing 100% - 1 February 2010

The Office of the Renewable Energy Regulator announced today nearly 100% of electricity retailers complied with the mandatory renewable energy target (MRET) scheme in 2008. Strong compliance resulted in electricity from renewable sources powering over 1.4 million households in the same year.

Electricity retailers have a legal liability under the Renewable Energy (Electricity) Act 2000 to contribute towards the generation of electricity from renewable sources such as wind, hydro, landfill gas, solar and bagasse. Retailers purchase Renewable Energy Certificates (RECs) generated by renewable sources via an online system called the REC Registry.

Compliance through surrender of RECs was 99.81 per cent for the 2008 compliance year. Only three out of 72 liable parties are being assessed with a REC shortfall, defined as a failure to surrender enough RECs to meet their liability.

Renewable Energy Regulator, Andrew Livingston, said compliance has been consistently high since implementation of the scheme eight years ago.

‘Electricity retailers have been supportive of the scheme and, as a result, we’ve seen significant growth in electricity from renewable sources since 2001,’ Mr Livingston said.

The 2008 target of 6800 gigawatt hours (GWh) is equivalent to the residential electricity consumption of more than 1.4 million Australian households. The current target for 2010 is 12 500 GWh and annual targets will increase significantly given the implementation of the expanded Renewable Energy Target (RET). The RET follows through on the Australian government’s commitment to ensuring 45,000 gigawatt hours (GWh), approximately 20 per cent, of Australia’s electricity supply comes from renewable energy by 2020.

Most wholesaler purchasers of electricity (liable parties) fully met their 2008 liability under the Act by surrendering RECs rather than having a carried forward renewable energy certificate shortfall or paying a renewable energy shortfall charge.  Several liable parties, who had shortfalls in previous years also made up their shortfalls by surrendering additional RECs.

For the 2008 to 2001 compliance years the following liable parties have been assessed with carried forward renewable energy certificate shortfalls or were required to pay the renewable energy shortfall charge:

Liable party REC Shortfall Per cent of REC shortfall against the total REC liability
2008 Compliance year 
AGL Sales (Queensland Electricity) Pty Ltd 1,013 Less than 1 per cent
AGL South Australia Pty Ltd 1,073 Less than 1 per cent
2007 Compliance year
AGL Sales (Queensland Electricity) Pty Ltd  620 Less than 1 per cent
Stanwell Corporation Ltd 24,996 11.3 per cent
Total of previously reported company 9 100 per cent
2005 Compliance year
Total of previously reported company  18 100 per cent
2004 Compliance Year 
Total of previously reported company  20 100 per cent
2003 Compliance Year 
Endeavour Coal Pty Ltd 5,203 100 per cent
Total of previously reported company 13 100 per cent
2002 Compliance Year
Endeavour Coal Pty Ltd 4,042 100 per cent
Total of previously reported companies 38 100 per cent
2001 Compliance Year
Endeavour Coal Pty Ltd 1,306 100 per cent
Total of previously reported companies 372 100 per cent

Scheme sheds light on healthy renewable energy industry - 28 January 2009

The Office of Renewable Energy Regulator released figures today demonstrating nearly 100% compliance by wholesale electricity purchasers to the MRET scheme, resulting in electricity from renewable sources powering nearly 900,000 households in 2007.

Implemented in 2001, the Mandatory Renewable Energy Target (MRET) scheme was the first of its kind globally and has been a key factor in the growth of renewable electricity generation within Australia. The figures released today detail the high levels of compliance through Renewable Energy Certificates (RECs) surrendered under the Renewable Energy (Electricity) Act 2000 by wholesale purchasers of electricity.

Acting Renewable Energy Regulator, Amarjot Singh, said the MRET scheme has been setting the global benchmark for the renewable electricity market and is well supported by wholesale electricity purchasers and the Australian renewable energy industry.

"Compliance through the surrender of RECs by wholesale purchasers of electricity has been consistently high since the scheme's implementation seven years ago," Mr Singh said.

Under the Act wholesale purchasers of electricity such as electricity retailers are required to purchase RECs from renewable energy sourced power stations such as wind, hydro, landfill gas, solar and bagasse. By doing so, electricity retailers support additional generation of electricity from renewable energy power stations. RECs provide a financial incentive to renewable energy power stations.

The 2007 target of 5600 GWh is equivalent to the residential electricity consumption of approximately 900,000 Australian households. The current target for 2010 is 9500 GWh and is set to increase five fold given the Government's commitment to a goal of 20 per cent renewable energy in Australia's electricity supply by 2020. The expanded MRET will increase the target to 45,000 GWh by 2020.

'The future for the renewable energy industry under the scheme is looking bright. The Office of the Renewable Energy Regulator looks forward to working with the renewable energy industry and electricity retailers to build a sustainable future for Australia.'

Contact: Amarjot Singh, Acting Renewable Energy Regulator - 0422 097 897

Notes for editors:

  • The Office of the Renewable Energy Regulator (ORER) was established in February 2001, under the Renewable Energy (Electricity) Act 2000, to administer the provisions of the Act, its Regulations and the associated Renewable Energy (Electricity) (Charge) Act 2000. The statutory position of Regulator is created by the Renewable Energy (Electricity) Act 2000.
  • Most wholesaler purchasers of electricity (liable parties) fully met their 2007 liability under the Act by surrendering RECs rather than having a carried forward renewable energy certificate shortfall or paying a renewable energy shortfall charge. Several liable parties, who had shortfalls in previous years also made up their shortfalls by surrendering additional RECs.
  • For 2007 compliance year compliance through surrender of RECs was 99.45 per cent. Only three out of 70 liable parties are being assessed with a REC shortfall.
  • For the 2007 to 2001 compliance years the following liable parties have been assessed with carried forward renewable energy certificate shortfalls or were required to pay the renewable energy shortfall charge:
Liable party REC Shortfall Per cent of REC shortfall against the total REC liability
2007 Compliance year
Alinta Sales Pty Limited 5,379 8.9 per cent
Newmont Power Pty Ltd 945 9.2 per cent
Queensland Power Trading Corporation (trading as Enertrade) 9 100 per cent
2006 Compliance year
Alinta Sales Pty Limited 9 Less than 1 per cent
Hamersley Iron Pty Ltd 1 Less than 1 per cent
Momentum Energy Pty Ltd 16 Less than 1 per cent
Newmont Power Pty Ltd 34 Less than 1 per cent
Simply Energy 1,022 2.4 per cent
2005 Compliance Year 
Yamasa Seafood Pty Ltd 18 100 per cent
2004 Compliance Year     
Yamasa Seafood Pty Ltd 20 100 per cent
2003 Compliance Year 
Yamasa Seafood Pty Ltd 13 100 per cent
2002 Compliance Year
Redbank Project Pty Ltd 25 100 per cent
Yamasa Seafood Pty Ltd 13 100 per cent
2001 Compliance Year
NT Power Generation Pty Ltd 182 100 per cent
Redbank Project Pty Ltd 183 100 per cent
Synergen Power Pty Ltd 2 100 per cent
Yamasa Seafood Pty Ltd 5 100 per cent

Retailers strongly support renewable energy - 24 November 2006

Wholesale electricity purchasers continue to support the growing renewable energy industry, by surrendering renewable energy certificates (RECs) for the fifth year in a row rather than pay the renewable energy shortfall charge.

The Australian Government's Renewable Energy Regulator today released details of the RECs surrendered under Renewable Energy (Electricity) Act 2000 (the Act) for the 2001 to 2005 compliance years.

Under the Act wholesale purchasers of electricity (liable parties) must contribute towards the generation of additional electricity to reach the target of 9.5 million megawatt hour (MWh) by 2010.

Each year, liable parties surrender RECs in proportion to the amount of electricity they purchase. The scheme was introduced by the Australian Government to increase renewable electricity generation within Australia. For 2005 the target was 3.4 million MWh of renewable electricity. The renewable energy certificate requirement for 2005 is approximately equivalent to the residential electricity consumption of about 1,200,000 people. The annual targets rise until 2010 when the peak level of 9.5 million MWh is reached, after this the target remains at this peak level until 2020.

"Over the past five years the number of companies choosing to meet a required renewable energy target by surrendering RECs rather than paying renewable energy shortfall charge has remained at very high levels," said the Regulator, Mr David Rossiter.

"The 2005 compliance by surrender of RECs exceeded 99.7 per cent, which is very good news for the renewable energy industry as RECs directly assist developers of additional renewable electricity generation systems in Australia."

All but six liable parties fully met their liability under the Act by surrendering RECs rather than paying a renewable energy shortfall charge. The six liable parties with shortfalls totaling 8,486 RECs are:

Alcoa World Alumina Australia, Alinta DEBO Pty Ltd, Hamersley Iron Pty Ltd, Hazelwood Power, Robe River Mining Co Pty Ltd and Yamasa Australia Pty Ltd.

Several liable parties, who had shortfalls in previous years, made up their shortfalls by surrendering additional RECs. For the four earlier compliance years 2001 to 2004, there is a cumulative total shortfall of 443 RECs from four different liable parties. This outcome further reinforces the strong support for renewable electricity generation from the electricity industry.

Media contact:
David Rossiter 0408 276 214

Background

The Act requires wholesale purchasers of electricity (liable parties) to proportionately contribute towards the generation of additional renewable electricity to reach the target of 9.5 million MWh by the year 2010. Each year most wholesale purchasers of electricity demonstrate their support of electricity generated from renewable energy sources by surrendering RECs in proportion to the amount of electricity they purchase.

The renewable electricity requirement for 2005 was 1.64 per cent of liable electricity throughout Australia. The annual targets are progressively rising until 2010 when the peak level is reached and they continue at the peak level of 9.5 million MWh until 2020. Liable parties that fail to surrender RECs must pay the renewable energy shortfall charge of $40 for each REC not surrendered.

RECs can be created from eligible renewable energy power stations, small generation units and solar water heaters. One REC represents one MWh of renewable electricity generated above a power station's baseline or is equivalent to one MWh of electricity displaced by a solar water heater.

For more information on Australian Government renewable energy programmes, visit www.greenhouse.gov.au/renewable/government.html

Strong support for renewable energy industry - 21 November 2005

Wholesale electricity purchasers have strongly supported the growing renewable energy industry for the fourth year in a row, by surrendering renewable energy certificates (RECs) rather than pay the renewable energy shortfall charge.

The Australian Government's Renewable Energy Regulator today released details of the RECs surrendered under the Act for the 2001 to 2004 compliance years.

Under the Renewable Energy (Electricity) Act 2000 (the Act) some wholesale purchasers of electricity (liable parties) must contribute towards the generation of additional electricity to reach the target of 9.5 million megawatts per hour (MWh) by 2010.

Each year, liable parties surrender RECs in proportion to the amount of electricity they purchase.

The scheme was introduced by the Australian Government to encourage the additional development and generation of renewable energy within Australia. The renewable energy requirement for 2004 was 1.25 per cent of liable energy throughout Australia.

For 2004 the target was 2.6 million MWh of renewable energy. The annual targets are continually rising until 2010 when the peak level is reached and they continue at the peak level of 9.5 million MWh until 2020.

"Over the past four years the number of companies choosing to meet the renewable energy target requirements by surrendering RECs rather than paying renewable energy shortfall charge has increased markedly," said the regulator, Mr David Rossiter.

"In 2001, the first year of operation, just over 92 per cent of compliance was by REC surrender. For 2004 compliance exceeded 99.8 per cent, which is very good news for the renewable energy industry as RECs directly assist developers of additional renewable energy in Australia. This high level of compliance maximises support for the renewable energy industry."

For the 2004 compliance year all but six liable parties fully met their liability under the Act by surrendering RECs rather than paying a renewable energy shortfall charge. Several liable parties who had shortfalls in earlier years made up their shortfalls by surrendering additional RECs. The six liable parties with a shortfall of 2,827 RECs are: Aurora Energy Pty Ltd, Bulwer Island Energy Partnership, Newmont Mining Services Pty Ltd, Perth Energy Pty Ltd, Victoria Electricity Pty Ltd (Victoria Electricity) and Yamasa Australia Pty Ltd.

For the first four compliance years about 5.76 million RECs have been surrendered to the Office of the Renewable Energy Regulator, slightly below the 5.8 million cumulative mandated target.

Media Contact:
David Rossiter 0408 276 214

Background

The Act requires wholesale purchasers of electricity (liable parties) to proportionately contribute towards the generation of additional renewable electricity to reach the target of 9.5 million MWh by the year 2010. Each year most wholesale purchasers of electricity demonstrate their support of electricity generated from renewable energy sources by surrendering RECs in proportion to the amount of electricity they purchase.

The renewable electricity requirement for 2004 was 1.25 per cent of liable electricity throughout Australia. The annual targets are progressively rising until 2010 when the peak level is reached and they continue at the peak level of 9.5 MWh until 2020. For 2005 the target requirement is 1.64 per cent of liable electricity and for 2006 the target has been proposed at 2.17 per cent. Liable parties that fail to surrender RECs must pay the renewable energy shortfall charge of $40 for each REC not surrendered.

 

RECs can be created from eligible Renewable Power Stations, small generation units and solar water heaters. One REC represents one megawatt hour (MWh) of renewable electricity generated above a power station's baseline, if applicable, or one MWh of electricity displaced in the case of a solar water heater.

Prior Year Shortfalls Still Outstanding

For 2001 the number of companies carrying renewable energy shortfall charge shortfalls (shortfalls greater than 10 per cent of the company's 2001 total wholesale electricity purchase) and REC shortfalls (shortfalls within 10 per cent of the company's 2001 total wholesale electricity purchase which can be carried forward to the next compliance year) has fallen to five. The total shortfall for 2001 is now only 373 RECs for the year. The following companies are still showing shortfalls:

Bulwer Island Energy Partnership, NT Power Generation Pty Ltd, Redbank Project Pty Limited (Redbank Power), Synergen Power Pty Ltd and Yamasa Australia Pty Ltd.

Outstanding shortfalls for 2001 can no longer be redeemed but for later years (2002, 2003 and 2004) the three year redemption period has not yet closed.

For 2002 the number of companies carrying shortfalls has fallen to three, with a total shortfall of 40 RECs for that year. The companies are:

Bulwer Island Energy Partnership, Redbank Project Pty Ltd (Redbank Power), and Yamasa Australia Pty Ltd.

For 2003 the number of companies carrying shortfalls has fallen to four, with a total shortfall of 1,638 RECs for that year. The companies are:

Aurora Energy Pty Ltd, Bulwer Island Energy Partnership, Perth Energy Pty Ltd and Yamasa Australia Pty Ltd.

Renewable energy compliance at an all time high - 11 November 2004

The Renewable Energy Regulator today announced almost 100 per cent of major energy purchases have included the required amount of electricity generated from renewable sources.

David Rossiter, the Renewable Energy Regulator, said the high level of compliance is providing a significant boost to the renewable energy industry in Australia.

"This year 99.9 per cent of the Renewable Energy Certificate liability under the Renewable Energy (Electricity) Act 2000 was acquitted through surrender of Renewable Energy Certificates rather than by paying a shortfall charge," he said.

"Under the Act, wholesale purchasers of electricity such as retailers and corporations are required to source Renewable Energy Certificates from renewable energy sources such as hydro, landfill gas, photovoltaic, bagasse and wind power stations.

"In this way they are legally obliged to contribute towards the generation of additional renewable electricity to reach the target of 9,500,000 Mega Watt hours by the year 2010.

"Those liable parties that choose not to surrender the required number of Renewable Energy Certificates must pay the shortfall charge of $40 for each Certificate not surrendered.

A number of liable parties who had a shortfall in 2001 and 2002 made up their shortfalls by surrendering extra Renewable Energy Certificates. These one Mega Watt hour Certificates are the units of trade for renewable energy transactions within the electricity market.

The 2003 assessment process indicates that 99.9 per cent of the annual target was met by Renewable Energy Certificate surrender. For 2003, shortfalls totalled 790 Certificates from the following four liable parties:

Energex Retail Pty Ltd, Hazelwood Power, TXU Electricity Limited and Yamasa Seafood Pty Ltd.

For 2002, six liable parties have shortfalls totalling 582 Certificates. They are:

Energex Retail Pty Ltd, Ferrier Hodgson Electricity Pty Ltd, Hazelwood Power, Redbank Project Pty Ltd, TXU Electricity Limited and Yamasa Seafood Pty Ltd.

For 2001 six liable parties have shortfalls totalling 516 Certificates. They are:

Energex Retail Pty Ltd, Hazelwood Power, NT Power Generation Pty Ltd, Redbank Project Pty Ltd, Synergen Power Pty Ltd and Yamasa Seafood Pty Ltd.

The next surrender period from 1 January to 14 February 2005 will be the last opportunity for liable parties with a current 2001 shortfall to surrender additional Certificates to redeem or acquit that shortfall.

"For the first three years of operation of the Act about 3.24 million Renewable Energy Certificates have been surrendered to the Office of the Renewable Energy Regulator, slightly above the 3.2 million mandated target," Mr Rossiter said.

"To remain on target over the next three years over three times as many Certificates need to be surrendered. This tripling is a major challenge for the renewable energy industry but it looks well positioned to meet that test."

For more information on the Office of the Renewable Energy Regulator, visit ret.cleanenergyregulator.gov.au

To find out more about the trade in Renewable Energy Certificates, visit www.rec-registry.com

Renewable energy compliance up - 21 October 2003

The Renewable Energy Regulator today released details of Renewable Energy Certificates surrendered under the Renewable Energy (Electricity) Act 2000 for 2001 and 2002.

Most wholesale purchasers of electricity are required to demonstrate to the Australian Government each year that they are purchasing more renewable electricity. The renewable electricity requirement for 2001 was 0.24 per cent of electricity purchased and for 2002, 0.62 per cent.

The wholesale purchasers of electricity who are liable parties under the Act demonstrate their targets have been achieved by surrendering Renewable Energy Certificates (RECs) each year. Alternatively, they can declare any shortfalls to the Office of the Renewable Energy Regulator, although shortfalls can attract a penalty payment of $40 for each REC not surrendered. A REC represents one megawatt hour (MWh) of eligible renewable energy. RECS are purchased from electricity generators using renewable sources of power such as solar, wind, hydro or landfill gas.

"We have seen a marked increase in companies choosing to meet their targets by using RECs rather than through making shortfall payments. In fact, many who had shortfalls for 2001 have chosen to redeem these shortfalls through the surrender of additional RECs," Mr Rossiter, the Renewable Energy Regulator, said.

"Initially, just over 92 per cent of compliance in 2001 was through surrender of RECs, but with retrospective purchase of RECs this has now risen to over 96 per cent. In 2002, over 99 per cent of compliance has been through the surrender of RECs and the industry is to be congratulated on its very strong performance and clear support for renewable electricity generation."

The number of companies carrying over REC shortfalls from 2001 has fallen from 19 to 10, with a total shortfall of 11,243 RECs for that year. The following companies are still showing shortfalls, although they have until February 2005 to redeem them:

Australian Energy Services Pty Ltd, Country Energy, Energy Australia, Hazelwood Power, NT Power Generation Pty Ltd, Redbank Project Pty Ltd, Robe River Mining Co Pty Ltd, Synergen Power Pty Ltd, Tarong Energy Corporation Pty Ltd and Yamasa Seafood Pty Ltd.

For 2002, REC shortfalls totalled 2,757 RECs from the following eight companies:

Australian Energy Services Pty Ltd, Ferrier Hodgson Electricity Pty Ltd, Hamersley Iron Pty Ltd, Hazelwood Power, Redbank Project Pty Ltd, Robe River Mining Company Pty Ltd, Yallourn Energy Pty Ltd (Auspower) and Yamasa Seafood Pty Ltd.

"If this year's trend is anything to go by, I expect even more shortfalls to be redeemed from the purchase of RECs. Wholesale electricity generators have up to three years to redeem shortfalls by surrendering additional RECs," Mr Rossiter said.

With over 2.45 million RECs currently available for surrender, the Act looks well positioned to meet its target 0.88 per cent of electricity or 1.8 million RECs for 2003.

The Office of the Renewable Energy Regulator is a statutory authority established to oversee the implementation of the Government's mandatory renewable energy target.

Renewable Energy Certificates Surrendered by Liable Parties - 25 September 2002

The Office of the Renewable Energy Regulator today released information on Renewable Energy Certificates surrendered by the liable parties under the Renewable Energy (Electricity) Act 2000.

The Act requires wholesale purchasers of electricity to demonstrate to the Government they are purchasing more electricity generated from renewable sources. This is done through surrendering Renewable Energy Certificates (RECs) each year. Each REC represents 1 MegaWatt hour (MWh) of eligible renewable electricity.

For 2001 the first year of operation of the target, nearly 310,000 RECs were accepted for surrender against liabilities.

Renewable Energy Regulator, David Rossiter stated that the industry is to be commended on this excellent performance which very closely matches the target of 300,000 MWh for 2001.

"The commendation is especially deserved as industry had to adapt very rapidly to the new challenge created by the Renewable Energy (Electricity) Act which was passed in December 2000 and commenced on 1 April 2001".

The small excess of RECs surrendered above the target will be used to adjust downwards the future year targets to compensate. The excess was caused by greater demand for electricity than initially projected.

With over 1.2 million RECs validated to date the Act looks well positioned to meet its target of 1.1 million RECs for 2002.

For the 2001 compliance year (1 April 2001 to 31 December 2001) a total of 58 parties were required to surrender RECs. In the 2001 compliance year, 19 out of the 58 liable parties had individual shortfalls contributing to a total shortfall of 25,842 RECs being recorded.

The liable parties with REC shortfalls for the 2001 compliance year are:

Alcoa World Alumina Australia, Aurora Energy Pty Ltd, Australian Energy Services Pty Ltd, Australian Inland Energy and Water, Country Energy, Energy Australia, Macquarie Generation, NRG Flinders Operating Services P/L, NT Power Generation Pty Ltd, Perth Power Partnership, Pulse Energy Pty Ltd (includes liability for United Energy), Redbank Project Pty Ltd, Snowy Hydro Trading Pty Ltd, Southern Hydro Partnership, Synergen Power Pty Ltd, TXU Electricity Limited, Vicpower Trading (office of the administrator, SECV), Western Power Corporation and Yamasa Seafood Pty Ltd.

The RECs surrendered by the wholesale electricity purchasers was over 92% of the total REC surrender requirement. Not all shortfalls resulted in the payment of the penalty of $40/MWh as shortfalls within 10% of the total requirement are carried forward and added to next year's target.

"This sends a very positive signal about REC surrender as a preferred form of compliance behavior," said Mr Rossiter.

Renewable Electricity Targets - Surrender of Certificates - 22 March 2002

Today the Renewable Energy Regulator, Mr David Rossiter, released information on the first year of certificate surrender under the Renewable Energy (Electricity) Act.

"Over 314,800 certificates were surrendered to the Regulator for 2001, the first year of operation of the Act. Certificates had to be surrendered by 14 February 2002 for the 2001 year", Mr Rossiter said.

"The 2001 target was 300,000 certificates and it would appear that the level of compliance with the Act has been very high. This is a great achievement by the industry and clearly shows how well the industry has developed and adapted to the tradeable certificate approach permitted under the Act.

"We expect the statements to be finalised by mid 2002. As permitted under the Act any under or over achievement towards the 2001 target can be adjusted for in future annual renewable power percentages.

"Due to timing issues the renewable power percentage has been set for 2002 at 0.62% and any adjustment for 2001 will be made in 2003's renewable power percentage", said Mr Rossiter

"We have also received most of the annual energy returns from the renewable energy generators who create the certificates. These returns enable us to draw off a line at the end of 2001 and fully account for all energy generated in the year.

Since the scheme began on 1 April 2001 baselines have been set for 89 power plants. These baselines represent the amount of renewable energy that was being generated by the accredited power plants in 1997. The sum of the baselines of power stations accredited to date is 16,005 GWh. For a given power plant the baseline represents the energy levels above which renewable energy certificates can be claimed. Power plants first generating electricity on or after 1 January 1997 normally have a zero baseline.

As part of the ongoing operation of the Regulations some administrative amendments to the Regulations were tabled in Parliament on 20 March 2002. They cover matters such as additional solar water heater models, the renewable power percentage for 2002 and extension of the grace period for solar water heaters to meet the Australian Standard AS2712.

Further details on accredited power plants, applications and certificates are accessible at www.rec-registry.com , in accordance with the requirements of the Act.

First Year Renewable Energy Targets - 10 January 2002

The Office of the Renewable Energy Regulator today released information on the first year of certificate creation under the Renewable Energy (Electricity) Act which shows the renewable energy sector has created more than enough certificates to meet the renewable energy target for 2001 if they were all surrendered.

"Over one hundred and twenty renewable energy power stations have been accredited under the Renewable Energy (Electricity) Act 2000", the Renewable Energy Regulator, Mr David Rossiter explained.

"Since April 2001 these power plants have been generating additional renewable energy. This environmentally friendly energy enables these power plants to create Renewable Energy Certificates (RECs) and earn extra money for each megawatt hour of energy they create.

"Over 600,000 RECs were created last year providing more than enough certificates to cover 2001's target of 300,000 RECs and providing a head start for 2002's larger target of 1.1 million RECs.

"This is a wonderful achievement by the renewable energy industry which has reacted swiftly to the opportunity created only a year ago by the passage of the enabling legislation.

"An extraordinary array of power plants have emerged to meet this new market for renewable energy. They range from stations using hydro and sugar cane through wind and solar to sewage gas and waste chip fat. And we hear of more project proposals using wave power, chicken litter, wastes from weed control operations and even massive solar chimneys.

By 14 February 2002 those who are liable under the Act will need to surrender year 2001 RECs to the Regulator. Anyone making a 'relevant acquisition' of electricity as defined under the Act is liable to surrender certificates. The legislation is available on the ORER's web site at ret.cleanenergyregulator.gov.au.

"Typically liable entities are wholesale purchasers of electricity but under some circumstances a generator of electricity may become a liable entity. All persons who generate or deal in wholesaling or retailing of electricity should check their liability under the Act".

As part of the ongoing operation of the Regulations some draft administrative amendments to the Regulations have been displayed for public comment. The amendments can be accessed via the ORER web site and submissions close on 7 February 2002. Amongst other matters the draft amendments cover additional solar water heater models, the renewable power percentage for 2002 and extension of the grace period for solar water heaters to meet the Australian Standard AS2712.

Further details on accredited power plants, applications and certificates are accessible at www.rec-registry.com , in accordance with the requirements of the Act.

Australia leads world with national renewable energy market - 1 April 2001

A new world-leading renewable energy market began across Australia today, announced the Renewable Energy Regulator, Mr David Rossiter.

"Under the Renewable Energy (Electricity) Act 2000 renewable energy generated from accredited power stations will be eligible to create Renewable Energy Certificates (RECs)," Mr Rossiter said

"Australia is the first country in the world to create a national renewable energy market using tradeable certificates.

"RECs are a new form of "currency' used to demonstrate compliance with the Government's new mandatory renewable energy targets.

"Additional renewable electricity generation will now be directly rewarded for the environmental benefits of using renewable fuel sources.

Solar water heaters and small generators using solar photovoltaic, wind and hydro as power sources installed on or after 1 April 2001 can be eligible under the new Act as well.

"The market will ensure 9500 GWh of additional renewable energy is generated each year by 2010. This is equivalent to a 60% increase above levels of renewable energy generation in 1997, or enough energy to supply the residential electricity needs of a city of four million people."

"The Act is the advent of a new way of thinking about electricity. It places a separate value on the environmental quality associated with the method of generation of the electricity."

Renewable energy generators are encouraged to apply for accreditation from the Office of the Renewable Energy Regulator as soon as possible to take full advantage of this new system.

Wholesale electricity purchases are now liable under the legislation with compliance reporting for the 2001 year due on 14 February 2002.

Further information is available at www.greenhouse.gov.au/markets/2percent_ren.

Ends

Contact: Tonya Beeton 0411 130 561 or Carol Bartley 0412 994 800

Media contact

Communications Team
P: 02 6159 3448
E: media@cleanenergyregulator.gov.au

Date last updated: 14 Jan 2013