Australia

Australia has committed through its Renewable Energy Target (RET) Scheme to a mandate that 20 per cent of Australia’s electricity supply will be sourced from renewable energy by 2020. Higher annual targets commenced on 1 January 2010. From January 2011, the existing RET scheme will be separated into two parts – the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET). Combined, they are expected to meet the target of 45,000 GWh in 2020. This enhanced scheme is enacted through the Renewable Energy (Electricity) Amendment Bill 2010 and administered by the Office of the Renewable Energy Regulator (ORER). The SRES includes Solar Credits which assist in the upfront costs of installing small scale renewable energy systems such as solar photovoltaic, wind and mini hydro.

After being elected in 2007, the current federal government proposed to limit the country’s carbon pollution through a Carbon Pollution Reduction Scheme (CPRS) – a cap and trade emissions trading scheme. The CPRS legislation was introduced to Parliament in 2009 but without bipartisan support was rejected a number of times. The scheme planned to utilise the existing National Greenhouse and Energy Reporting Act 2007, to monitor, report and audit the quantity of greenhouse gases emitted by liable entities. In April 2010, the government announced its decision to delay any implementation of the CPRS until 2013.

Other complementary measures have been introduced. The Clean Energy Initiative provides funding for the development of low emission energy technologies through the creation of the Australian Centre for Renewable Energy, a Solar Flagships Program and a Carbon Capture and Storage (CCS) Flagships Program. The Solar Flagships Program will support the construction and demonstration of a selected number of large scale solar thermal and solar photovoltaic power plants in Australia, while the CCS Flagships Program will support CCS projects globally.

To accelerate the uptake of energy efficiency measures across the Australian business and household community, a number of measures have been introduced by the federal government. The Prime Minister has established a Task Group on Energy Efficiency to advise the government on options to improve Australia’s energy efficiency. The Clean Business Australia program helps to increase the energy efficiency of Australia’s buildings and manufacturing processes while the Australian Carbon Trust will bring together public and private funding to assist business and community groups to invest in energy efficiency. Households are supported to reduce their emissions through the Solar Hot Water Rebate Program and the Green Start Program.

The National Strategy on Energy Efficiency was endorsed by The Council of Australian Governments (COAG) in July 2009 and will aid business and households to transition to a low carbon economy. The strategy aims to improve minimum standards for energy efficiency, accelerate the introduction of new technologies through regulatory incentives, and address identified barriers to energy efficiency. The strategy increases the stringency of Minimum Energy Performance Standards and mandatory energy rating labelling for appliances and equipment; increases the minimum energy efficiency requirements for buildings through an enhanced Building Code of Australia for 2010; and introduces mandatory disclosure of a building’s energy efficiency. The Energy Efficiency Opportunities (EEO) program was introduced in 2006 to improve energy efficiency via a mandatory reporting scheme for corporations to report on energy saving opportunities.

In addition to the federal government incentives, state and territory governments also have their own initiatives with some states having state-based renewable energy targets and energy efficiency targets. While there is no national feed-in tariff in Australia, state and territory governments have introduced their own feed-in tariffs for small scale renewable energy systems, some of which are still to be legislated while others have been in place for over a year.

Energy infrastructure is a crucial part of any country’s economic prosperity and the development of an Energy White Paper will further develop a framework for Australia’s transformation to a low carbon economy. Smart grids will create a more efficient energy network which will allow improved integration of renewable energy into the grid and help consumers better manage their electricity consumption. Australia’s national roll out of smart meters is a key step in the development of these smart grids.