Australia passes 20% renewable energy target by 2020
From my colleague Adam Walters:
On August 20 the Australian government announced the passage of a bill quadrupling its Renewable Energy Target (RET) to ensure that 20% (approximately 45,000 GWh) of Australia’s electricity is generated from renewable energy sources by 2020.
How does Australia’s RET Scheme Work?
The RET scheme is an expansion of Australia’s Mandatory RET scheme introduced in 2001, the first of its kind in the world. It works through the creation and sale of Renewable Energy Certificates (RECs) by renewable power generators to “liable parties” (mainly large-scale electricity utilities and consumers), who must provide a designated quantity of REC’s to Australia’s renewable energy regulator to demonstrate compliance and avoid having to pay charges for any shortfall. One of the changes brought about the new legislation is to increase from $40/MWh to $65/MWh.
Renewable energy sources eligible for accreditation under the RET scheme include: solar, wind, hydro, tidal, wave, biomass and geothermal, as well as solar water heaters and other smaller generation units. Hydro has historically dominated Australia’s renewable energy landscape, but recent project announcements and funding opportunities for wind and solar projects signal greater diversification of the industry, particularly for proven technologies.
Why should anyone care?
On a per capita basis Australia’s public investment in infrastructure in the last twenty years has dwarfed that of the U.S. Why? Aside from the infusion of tax revenues from Australia’s natural resources boom, the answer in short is a combination of political will and cooperation amongst Australia’s federal and state governments at a level that the U.S. can only dream of. This can be seen, for instance, in the Australia’s National Pubic Private Partnership (PPP) Policy Framework, a product of federal and state government cooperation to make Australia one of the world’s leaders in successfully implementing the PPP model as a vehicle for driving social infrastructure, transport and other large-scale development.
The new renewable energy target, coupled with recently announced government funding programs, such as the Clean Energy Initiative, and the emissions trading scheme the Rudd government has proposed (the Carbon Pollution Reduction Scheme), signals Australia’s commitment to renewable energy. This author, having experienced Australian innovation and willpower on large infrastructure projects first-hand, has little doubt that the new RET Target will herald the rapid expansion of commercial renewable energy power projects in Australia in the next decade.
United States Joins the International Renewable Energy Agency
The United States officially joined the International Renewable Energy Agency (“IRENA”) last week, increasing the number of countries participating in the organization to 136, including several African countries, the Middle East, Europe, Australia, Greenland, India, Japan, and parts of South America. The new agency will engage governments in making a rapid transition toward using renewable energy in their respective countries.
The United States is also expanding its international efforts north of the border. Last week, DOE hosted the first U.S.-Canada Clean Energy Dialogue Roundtable, with clean energy leaders from private industry and from the U.S. and Canadian governments present, to discuss how the two nations can work together to develop clean energy technologies and combat climate change. Specific areas for further bilateral cooperation under the Clean Energy Dialogue include renewable and energy efficiency technologies, carbon capture and sequestration, and smart grid technologies.
Show Me the Money: Renewable Energy Financing in the Farm Bill
In an earlier blog, my colleague, Debra Frimerman reported about the Rural Energy for America Program (REAP). REAP provides grants and loan guarantees to agricultural producers and rural small businesses to purchase renewable energy systems, make energy efficiency improvements and conduct feasibility studies for renewable energy systems.
REAP is a program under the Food, Conservation, and Energy Act of 2008 (the "2008 Farm Bill"). The 2008 Farm Bill also includes numerous other programs to help develop renewable energy in rural areas and promote the production of sustainable feedstocks for renewable energy production. Please see this recent alert for specifics.
$37 mn US for Clean Energy in New Mexico
Governor Bill Richardson and the New Mexico Office of Recovery and Reinvestment have announced $37 million US funding from the U.S. DOE through the American Recovery and Reinvestment Act for New Mexico's State Energy Program, the Energy Efficiency and Conservation Block Grant Program, and the Energy Efficient Appliance Rebate Program.
The initial Request for Application (RFA) solicits applications for demonstration projects that will generate renewable energy, reduce reliance on imported energy, increase energy efficiency, and improve electricity and fuel supply reliability. These projects may include use of renewable energy and clean-burning transportation fuels.
For the State Energy Program funding under this RFA, only public entities including schools (K-12), local governments, state agencies, colleges and universities, Indian tribes and pueblos are eligible to apply and compete, although they may subcontract all or part of the work required for their projects. Under the Energy Efficiency and Conservation Block Grant Program, only municipalities and counties are eligible to compete for funding. Grants will range from $50,000 to $500,000. The deadline for applications is June 26, 2009, with a webinar to help guide potential applicants through the application process hosted by the Energy Conservation and Management Division on Monday, June 1, 2009.
Additional public and private sector funding opportunities will be available through RFAs and Requests for Proposals that will be issued later this summer.
