Renewable Energy Handbook 2010 - Department of Finance - The ...

22RENEWABLE ENERGY AND THE ELECTRICITY MARKET IN WESTERN AUSTRALIAOFFICE OF ENERGYRENEWABLE ENERGY HANDBOOK 2010The Western Australian State Government alsoprovided $2.3million dollars of funding to establishthe Centre of Excellence for Geothermal. The Centreaims to lead and develop the exploration andexploitation of geothermal heat in Western Australia.Discussed further in the Wave Case Study.2.4.2 NATIONAL SUPPORTThere are a number of renewable energy incentiveprograms at the national level. The former MRET,now known as the expanded national RET,commenced in 2001 and will now continue to 2030,driving renewable energy investment. Further informationon the expanded national RET is provided below.Australian Government initiatives aim to address thecost barriers affecting the uptake or commercialisationof renewable energy. In addition to the expanded RET,the Australian Government announced a range ofmeasures that will support research, development anddemonstration of low emissions energy technologies.The $4.5 billion Clean Energy Initiative wasannounced in the May 2009 Budget. As a part of theClean Energy Initiative, the Australian Governmentproposes to establish the Australian Centre forRenewable Energy (ACRE) to promote the development,commercialisation and deployment of renewableenergy and enabling technologies.Further information on the Clean Energy Initiative, ACREand its programs is available at: www.ret.gov.au/energy/energy%20programs/cei/acre/Pages/default.aspxThe Australian Government’s Clean Business Australiainitiative provides $75million in funding over four yearsthrough competitive grants to proponents for researchand development, proof-of-concept and early-stagecommercialisation activities in developing small-scalerenewable energy.Additional information on Australian Governmentfunding opportunities can be found at the Departmentof Climate Change and Energy Effi ciency, AusIndustryand Department of Resources, Energy and Tourismwebsites at: www.climatechange.gov.auwww.ausindustry.gov.au and www.ret.gov.aurespectively.2.4.3 CARBON POLLUTION REDUCE SCHEMEThe proposed CPRS is a market-based policyinstrument, aimed at reducing Australia’s carbonpollution. Recently delayed by the Government untilat least 2013, the scheme will assist Australia inmeeting its expanded emissions reductions of asmuch as 25 per cent of 2000 levels by 2020.The Scheme employs a ‘cap and trade’ emissionstrading mechanism to limit greenhouse gas emissionsputting a price on carbon. Internalising the cost ofcarbon will increase the cost of conventional energysources, making renewable energy more competitive.On 27 April 2010, the Prime Minister announced thatthe Commonwealth Government has decided to delaythe implementation of the CPRS until after the end ofthe current commitment period of the Kyoto Protocoland only when there is greater clarity on the action ofother major economies, including the US, China and India.Further information on the CPRS, emission tradingand the Department of Climate Change and EnergyEffi ciency’s CPRS White Paper is available at:www.climatechange.gov.au2.4.4 EXPANDED NATIONAL RENEWABLEENERGY TARGET (RET)The expanded RET scheme requires all nationalelectricity retailers and wholesale purchasers ofelectricity to contribute to the generation of anadditional 45,000 GW.h per annum of renewableelectricity by the year 2020.Retailers meet their obligations by surrenderingRECs according to their proportional share of nationalelectricity consumption. A non-tax-deductible penaltyof $65/MWh applies if they fail to surrender suffi cientcertificates to meet their liabilities (one certificate equalsone MWh of eligible renewable energy generatedfrom an accredited renewable energy generator).RECs may also be created for eligible installationsof a solar water heater. Eligible sources of renewableenergy are defi ned in Section 17 of the RenewableEnergy (Electricity) Act 2000.Additional information on the expanded national RETaccreditation process is provided in Section 3.8.1.3-5963079