Changes were made to the Renewable Energy Electricity Act as a result of the Enhanced Renewable Energy Target (eRET) and there is good news and bad news for all the stakeholders involved.
With the recent postponement of the Carbon Pollution Reduction Scheme (CPRS) and the abandoning of the Emissions Trading Scheme (ETS) the only thing left on the table is the Enhanced Renewable Energy Target.
- Regulator to establish and operate clearing house
“The Regulator is to establish and operate a facility (the clearing house) for the transfer of small-scale technology certificates in accordance with this Part.”
- Surrender period for a quarter
Each year consists of quarters as follows:
(a) January, February and March in the year (the first quarter)
(b) April, May and June in the year (the second quarter)
(c) July, August and September in the year (the third quarter)
(d) October, November and December in the year (the fourth quarter).
The surrender period for a quarter
The surrender period for a quarter of a year is as follows (inclusive of the specified dates):
(a) for the first quarter the period from 15 February to 28 April in the year;
(b) for the second quarter the period from 29 April to 28 July in the year;
(c) for the third quarter the period from 29 July to 28 October in the year;
(d) for the fourth quarter the period from 29 October in the year to the time by which the liable entity is required to lodge an energy acquisition statement for the year (14th February).
What does that mean?
The regulator in this situation is the Office of Renewable Energy Regulator. It is their responsibility to regulate the Renewable Energy Certificate market and to help Australia reach its target of ‘20% by 2020.’
The good news is that the establishment of a “clearing house” is something that adds greater security to the $40 price tag for RECs being created by the solar panels on your roofs. The bad news is that it decreases the ability of the larger liable entities from purchasing them for cheaper.
The good news with quarterly surrendering means that an increase in accuracy with which a REC represents a megawatt-hour of renewable energy electricity consumption. The bad news is that this makes it easier to calculate a surplus or deficit of production of renewable energy and therefore increases the regulators ability to fine generators.
Nonetheless the proposal of the eRET is a great sign for Australians given the postponement of the Emissions Trading Scheme and the Carbon Pollution Reduction Scheme as it ensures that there is a growing market for small-scale generation until 2020.
Written by Prateek Chourdia
MEngSc – Photovoltaics and Solar Energy, UNSW
Solar Energy Analyst
© 2010 Solar Choice Pty Ltd
Source: Renewable Energy Electricity Act 2001