Mandatory renewable energy targets

A mandatory renewable energy target is a government legislated requirement on electricity retailers to source specific proportions of total electricity sales from renewable energy sources according to a fixed timeframe. The additional cost is distributed across most customers by increases in other tariffs. The cost of this measure is therefore not funded by government budgets (other than for the establishment and monitoring of the scheme and any audit and enforcement action.

At least 66 countries, including 27 EU countries have renewable energy policy targets of some type. The EU baseline target is 20% by 2020. While the USA does not have a national RET 29 of its states do. Similarly Canada has 9 state RETs but no national target. Targets are typically for shares of electricity production, but some are defined as by primary energy supply, installed capacity or otherwise. While some targets are based on 2010-12, many are now for 2020 which ties in with the IPCC suggested cuts of 25 to 40% by Annexe 1 countries by 2020, although some are for 2025. [http://www.worldwatch.org/files/pdf/renewables2007.pdf at page 22 retrieved 150508 ]

Overview

Renewable energy technologies are essential contributors to the energy supply portfolio, as they contribute to world energy security, reduce dependency on fossil fuels, and provide opportunities for mitigating greenhouse gases.International Energy Agency (2007). [http://www.iea.org/textbase/papers/2006/renewable_factsheet.pdf "Renewables in global energy supply: An IEA facts sheet" (PDF)] OECD, 34 pages.] The International Energy Agency has defined three generations of renewable energy technologies, reaching back over 100 years:

*"First-generation technologies" emerged from the industrial revolution at the end of the 19th century and include hydropower, biomass combustion, geothermal power and heat. These technologies are quite widely used.

*"Second-generation technologies" include solar heating and cooling, wind power, modern forms of bioenergy, and solar photovoltaics. These are now entering markets as a result of research, development and demonstration (RD&D) investments since the 1980s. Initial investment was prompted by energy security concerns linked to the oil crises of the 1970s but the enduring appeal of these technologies is due, at least in part, to environmental benefits.

*"Third-generation technologies" are still under development and include advanced biomass gasification, biorefinery technologies, concentrating solar thermal power, hot-dry-rock geothermal power, and ocean energy.

First-generation technologies are well established. However, second-generation technologies and third-generation technologies depend on further promotion by the public sector. The introduction of mandatory renewable energy targets is one important way in which governments can encourage the wider use of renewables.

Renewable energy targets exist in at least 66 countries around the world, including the 27 European Union countries, 29 U.S. states, and 9 Canadian provinces. Most targets are for shares of electricity production, primary energy, and/or final energy for a future year. Most targets aim for the 2010–2012 timeframe, although an increasing number of targets aim for 2020, and there is now an EU-wide target of 20% of final energy by 2020, and a Chinese target of 15% of primary energy by 2020.REN21 (2008). [http://www.worldwatch.org/files/pdf/renewables2007.pdf Renewables 2007 Global Status Report (PDF)] p. 7.]

Targets by country

Australia

Commonwealth Government

The Australian Government has announced a Mandatory Renewable Energy Target to ensure that renewable energy obtains a 20% share of electricity supply in Australia by 2020. To ensure this the government has committed that the MRET will increase from 9,500 gigawatt-hours to 45,000 gigawatt-hours by 2020. After 2020 the proposed Emissions Trading Scheme and improved efficiencies form innovation and in manufacture are expected to allow the MRET to be phased out by 2030.

In May 2008 the Governments leading think tank, the Productivity Commission, claimed the MRET would drive up energy prices and would do nothing to cut greenhouse gas emissions. [ [http://www.theaustralian.news.com.au/story/0,25197,23744414-601,00.html Kevin Rudd's energy strategy 'flawed' says Productivity Commission] "The Australian" May 23, 2008] The Productivity Commission submission to the climate change review, stated that energy generators have warned that big coal fired power stations are at of risk "crashing out of the system", and leaving huge supply gaps and price spikes if the transition is not carefully managed.

Computer modelling by the National Generators Forum has signalled the price on greenhouse emissions will need to rise from $20 a tonne in 2010 to $150 a tonne by 2050 if the Rudd Government is to deliver its promised cuts. Generators of Australia's electricity warned of blackouts and power price spikes if the Rudd Government moved too aggressively to put a price on greenhouse emissions. [http://www.theaustralian.news.com.au/story/0,25197,23749166-11949,00.html Power producers warn on emission targets] "The Australian" May 24, 2008]

Climate Change Minister Penny Wong has reaffirmed that the Government will proceed with its mandatory renewable energy target of 20 per cent of supply by 2020. The renewable energy industry has backed the commitment, claiming a 20 per cent target was the global standard for climate change policy.

tates

The Commonwealth and the states agreed in December 2007 at a Council of Australian Governments (COAG) meeting to work together from 2008 to combine the disparate state schemes with the Commonwealth scheme into a single national scheme. The initial report on progress and an implementation plan are expected to be considered at a March 2008 COAG meeting with a final design to be presented for consideration at the September 2008 COAG meeting. [ http://www.greenhouse.gov.au/renewabletarget/index.html accessed 10 May 2008] [ http://www.orer.gov.au/publications/pubs/mret-overview-feb08.pdf accessed 10 May 2008]

witzerland

The Swiss federal government has a full-system of feed-in tariffs differentiated by technology, size and application. There are tariffs, or payments per kilowatt-hour (kWh), for solar photovoltaics, wind, hydro, geothermal and biomass. The Swiss system, like those in Germany, France and Spain, pays a renewable energy generator for every kWh of electricity generated. The payments are made for periods of 20 to 25 years, depending upon the technology. The new Swiss tariffs, among the highest in the world, are the first to include a specific tariff for small wind turbines — those under 10 kW — of 0.20 SWF/kWh (US $0.20/kWh) for 20 years. [http://www.renewableenergyworld.com/rea/news/story?id=53026 accessdate=16 July 2008]

Table of renewable energy and targets

Overview

Developing Countries

http://www.ren21.net/pdf/RE2007_Global_Status_Report.pdf at pages 21ff retrieved 16 May 2008]

References

ee also

* Energy policy of Australia
*Centre for Energy and Environmental Markets
*Clean Energy Future Group
*Effects of global warming on Australia
*Garnaut Climate Change Review
*Geothermal energy exploration in Central Australia
*Greenhouse Mafia
*Greenhouse Solutions with Sustainable Energy
*List of Australian renewable energy topics
*List of renewable energy topics by country
*Photovoltaic and renewable energy engineering in Australia
*Solar Cities in Australia
*Solar power in Australia
*Wind power in Australia