Australia endorses law on 20% renewable energy target

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The government has endorsed its renewable energy laws that set a target of supplying 20% of the country’s energy needs from renewable sources by 2020. By 2020, the equivalent of all household electricity use will come from wind and solar and wave and whatever other renewable energy sources can come to the market.

The legislation, which will come into effect from January 2011, consists of two parts. The first supports households using solar panels and solar hot water systems. The second supports the development of large-scale projects such as wind farms, commercial solar and geothermal projects.

The amendments also allow for temporarily raising the renewable energy target in 2012 and 2013, and reviewing the price of tradeable renewable energy certificates (RECs). Higher REC prices would reap better returns for investors in wind, solar, geothermal and other renewable energy projects.

The renewable energy laws would boost value of RECs, which has dropped because the government used the scheme to reward households that installed solar water heating facilities. The government will also review the renewable energy laws every two years to take account of potential new technology. This is expected to unlock up to $19bn in clean energy investments.

An Australian research report has detailed an ambitious blueprint for the country to rely 100% on renewable energy sources by 2020 at a price of A$37bn a year in private and public money. The report proposes a mix of 60% of energy from solar thermal with molten salt storage and 40% from wind power.

See also:

• Australia - Smart Grid Market Overview

• Australia - Smart Grids - Analysis - The market in 2010

• Australia - Smart Grids - Climate Change and Photovoltaics

• Australia - Smart Grids - Demand Side Management

• Australia - Smart Grids - Major Players & Projects

• Australia - Smart Grids - Smart City-Smart Grid Project

• Australia - Smart Grids - Smart Meters

• Australia - Smart Transport Systems

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