In November 2007, after intense campaigning from Greenpeace and many other environmental organisations, Kevin Rudd promised that, if elected, he would expand Australia’s renewable energy target to 20% by 2020. After sitting in limbo since the election, the legislation is finally being debated this week.
Apart from the unnecessary delay in implementing the legislation, the Government tied it to the beleagured Carbon Pollution Reduction Scheme in order to pressure the Coalition to pass their dud CPRS. Thankfully common sense has prevailed and the RET has now been de-linked from the CPRS, but the legislation on offer is a far cry from the 20% Renewable Energy Target we were promised nearly two years ago.
There are few tricks that the Government are using that mean that the actual target is likely to be far less than 20%.
Fake Renewable Energy
The scheme works by issueing “Renewable Energy Certificates” or REC’s for each unit of renewable energy generated, and the Government mandates the total number of REC’s that need to be produced – which is supposed to equal 20% of the total electricity produced.
Under the draft legislation, there is a thing called the ‘Solar Credits scheme’ which is supposed to encourage solar PV. It works by creating five REC’s for every unit of electricity produced by solar panels. Only one of these REC’s is for actual renewable energy produced, the other 4 are just pretend REC’s that create a financial incentive for people to install solar panels. So if all of the Renewable Energy Target was met through solar PV, Australia would only be producing 4% of our total energy from renewables, not 20% as promised.
In reality, other technologies (notably wind) will take up a lot of the renewable energy target, but this Solar Credits Scheme is still a scam that will reduce the total amount of renewable energy produced under the RET.
They’re also fudging the figures by including solar hot water in the RET. Solar hot water is one of the best ways to reduce our greenhouse footprint and energy demand – but it isn’t renewable electricity – which is what the RET is designed to support.
In 2008, solar hot water accounted for 37% of all Renewable Energy Credits (RECs) issued . This means that currently, 37% of the certified electricity contributing to the renewable energy target would not be actual electricity that is generated.
If the solar multiplier and solar hot water remain in the final legislation and the target is not topped up with the commensurate number of certificates, it will not be a 20% RET.
Another problem is the possible inclusion of fossil fuels as renewable energy. It has been proposed that coal seam methane and gas be considered for inclusion in the RET . It scarcely requires explaining, but it is clear that natural gas and coal seam methane are fossil fuels – they are not renewable energy.
The suggestion that coal seam methane is a waste product is misleading. It is a gas that exists in underground coal seams and can be extracted without actually having to touch the coal. If coal seam methane or natural gas are made eligible sources in the final legislation, it could no longer be called a “renewable energy” target.
As if this wasn’t ridiculous enough, the big polluters have been calling to be exempted from the scheme so that they aren’t required to use renewable energy – or get compensated if they are. But the reality of the RET is that it would lower electricity prices, not increase them. This is borne out by modelling conducted for The Business Council of Australia and the National Generators Forum, both ironically, opponents of the RET.
The Renewable Energy Target is crucial if Australia is to start making the transition to a low carbon economy. We need the bill passed and implemented as soon as possible. It just needs to be improved so that the promise of 20% renewable energy by 2020 is actually met. Unfortunately the big polluters continue to try to worm their way out of any pro-active steps to cut emissions, and the major parties are often only too willing to oblige.
