3. Abstract
Effective policy and regulatory frameworks are paramount to
incentivising for the deployment of renewable energy to achieve long
term reductions in carbon emissions.
Australia’s renewable energy policy has taken significant steps towards
encouraging the deployment of lower-emission energy generation.
Significant policy barriers still exist at the federal and state levels,
however, which have reduced the effectiveness of a concerted national
effort to deploy renewable sources.
The current policy landscape has favoured mature technologies which
present the lowest investment risk at the expense of emerging options
which may present greater efficiency and emissions reduction gains.
4. Introduction
Development of renewable energy in Australia is important to address
concerns about climate change and energy security because electricity
generation in Australia is the single largest contributor producing 38%
of total emissions with rising CO2 emissions from the burning of fossil
fuels.
Use of fossil fuels due to abundant resources of coal and gas.
Governments commitment to increase the amount of renewable energy
used for electricity generation, due to the environmental impacts of
fossil fuel .
Fossil fuels accounted for around 96% of Australia’s primary energy
consumption in 2011 and 90% of electricity generation in 2012.
Australian Government aims to reduce Australia’s total greenhouse gas
emissions by 5% on 2000 levels by 2020 and by 80% on 2000 levels by
2050.
From 2001 to 2012, Australia’s renewable electricity capacity increased
from 10,650 MW to 19,700 MW . Still contribution of renewable energy
is 10 per cent in 2012 due to growth in both non-renewable and
renewable electricity generation.
5. Background
The Australian governmental system:
Australia is a federal parliamentary democracy consisting of Federal,
State and local governments. So it is difficult to achieve united policy
structure.
State governments generally have limited ability to capture future
revenue (compared with their Federal counterpart) and this can result
in divergent incentives and motivations for policy amendment and
intervention.
Australian energy system , three main energy markets by geography :
1. Eastern region
2. Western region
3. Northern regions
4. South regions
6. Australian clean energy sector
Renewable energy provided 17.3 per cent of Australia’s electricity in
2016, which was the most of any year this century. This was a significant
improvement compared to the previous year, when renewable energy
provided 14.6 per cent of Australia's electricity
Power generation from Australia’s hydro plants made the biggest
contribution, providing 42.3 per cent of total renewable energy
following excellent rainfall in key hydro catchments.
Approx. 17,500 GWh of renewable energy was generated in 2016
towards meeting the large-scale component of the Renewable Energy
Target (RET), which is set at 33,000 GWh in 2020. This puts the
industry just over halfway towards achieving it.
11. Policies discussion
Transition to renewably sourced electricity will allow Australia to exploit:
1. highest average solar radiation of any continent approx. 58 million
PetaJoule /yr.
2. high quality wind resources on the southern coast.
3. substantial hot-rock geothermal resources.
Cost is a major hurdle for renewable technologies due to high costs per unit
of electricity compared to traditional generators.
To increase competitiveness of renewable energy Australian Renewable
Energy Agency (ARENA) was established in 2012. ARENA is an
independent authority with $3 billion in funding guaranteed in legislation
until 2020.
ARENA has two key areas for investment:
1. commercialisation of new technologies
2. research projects
12. Government policies
Mandatory Renewable Energy Target
(MRET) schemes
In 2001, the Howard Government introduced an MRET of 9,500 GWh
of new renewable energy generation by 2010.
Expanded Renewable Energy Target was passed on 20 August 2009, to
ensure that renewable energy obtains a 20% share of electricity supply
in Australia by 2020. To ensure this the Federal Government committed
to increasing the MRET from 9,500 gigawatt-hours to 45,000 gigawatt-
hours by 2020. The scheme was scheduled to last until 2030.
Target revised in January 2011.
13. The MRET was split in 2012 to ensure that adequate incentive exists
for large scale grid connected renewable energy into:
- small scale renewable energy scheme (SRES)
- large scale renewable energy target (LRET).
A number of states have also implemented their own renewable
energy targets. For example, the Victorian Renewable Energy Target
Scheme (VRET) mandated an additional 5% of Victoria's "load for
renewable generation", although this has since been replaced by the
new Australian Government LRET and SRES targets.
South Australia achieved its target of 20% of renewable supply by 2014
three years ahead of schedule (i.e. in 2011) and has subsequently
established a new target of 33% to be achieved by 2020.
14. Renewable Energy Certificates
Registry
Aims to increase the penetration of renewable generators
with 20% of electricity generated to be sourced from renewable
sources by 2020.
Internet based registry system that is required by the
Australian Renewable Energy Act 2000.
The REC-registry is dedicated to:
1. maintaining various registers
2. facilitating the creation, registration, transfer
3. surrender of renewable energy certificates
15. Carbon pricing
In 2012, the Gillard government implemented a carbon price of $23 per
tonne to be paid by 300 liable entities representing the highest
business emitters in Australia. The carbon price will increase to $25.40
per tonne by 2014–15, and then will be set by the market from 1 July 2015
onwards.
1. encouraging efficient use of electricity,
2. encourage investment in cleaner renewable energy sources such as
solar and wind power.
Energy from the renewable sector is likely to reach 40 percent of supply
by 2050.
Drop in carbon emissions by the electricity sector with less electricity
being sourced from coal and more being produced by renewable
during first 6 months of operation of the carbon tax.
The carbon pricing legislation was repealed by the Tony Abbott-led
Australian Government on 17 July 2014. Since then, carbon emissions
from the electricity sector have increased.
16. Clean Energy Finance
Corporation
The Australian Government has announced the creation of the new
10 billion dollar Clean Energy Finance Corporation which commenced
business in July 2013.
Designed to provide capital assistance.
The goal is to overcome barriers to the mobilisation of capital by the
renewable energy sector.
It will make available 2 billion dollars a year for five years for the
financing of renewable energy, energy efficiency and low emissions
technologies projects .
17. Feed-in tariffs
To encourage investment in renewable energy by providing
commercial rates for electricity generated from sources such as rooftop
photovoltaic panels or wind turbines on state by state basis.
Focus on residential scale infrastructure by excluding larger scale
developments such as wind farms.
It started at a premium, but have mechanisms by which the price
paid for electricity decreases over time to be equivalent or below
the commercial rate. All the schemes now in place in Australia
are "net" schemes whereby the householder is only paid for
surplus electricity over and above what is actually used.
In 2008 the Council of Australian Governments(COAG) agreed to
harmonise the various state schemes and developed a set of national
principles to apply to new schemes.
The tariff rate changed over time, ranging between 8c per kWh to 60c
per kWh depending on the jurisdiction and size of the system.
18. State Current Rate Paid
VIC - 5c
SA - Varies
ACT - 6.0c – 7.5c
TAS - 6.671c
NT - Same as consumption rate
WA - Varies
QLD - 6.0c – 12c
NSW - 5.5 – 7.2c
(NA)
(NSW)
(QLD)
(WA)
(SA) (TAS)
(VIC)
1 Aus dollar = 49.59 rupees
1 cent = 0.49 rupees
19. Ratification of the Kyoto
Protocol
Australia ratified the Kyoto Protocol in December 2007 under
newly elected Prime Minister Kevin Rudd so that australia will
meet its targets.
Australia had not ratified the Kyoto Protocol until then, due to
concerns over a loss of competitiveness with the US, which also
rejects the treaty.
20. Policies challenges
Administrative hurdles such as lengthy, regulatory approval and permit
procedures.
Non-transparency and costly procedures for grid connection.
No national standard for grid connection in Australia.
Policy instability with sudden policy changes and stop-and-go
situations.
Cost competitiveness.
Government support for existing traditional electricity sources.
