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Renewable energy may be defined as energy
from a source that is either limitless or that is naturally
regenerated over a short time. Examples are the sun, wind, geothermal
heat, hydroelectric power, wave or tidal energy, or biomass
or biomass-based waste products, including landfill gas. All
of these are relevant to Australia, and a range of policies
has been developed over the last decade to encourage their development
by industry. Most activity and progress has been made in the
solar (hot water systems and photovoltaic power generation)
and wind areas.
The Renewable
Energy Policies and Programs fact sheet from the Department
of Industry, Tourism and Resources summarises the Howard Government
initiatives over the last decade. In the late 1990s, the $26.6
million Renewable
Energy Equity Fund provided support to smaller companies
for innovation in renewable energy technology, and the $55.6 million
Renewable Energy Commercialisation
Program assisted in its commercialisation and development.
In 2000, the renewable energy industry and the Australian Government
developed the Renewable
Energy Action Agenda to develop a strategic vision and plan
of action for the growing renewable energy industry, aiming
to achieve annual sales of $4 billion by the year 2010.
In 2001, the Howard Government introduced
the Mandatory Renewable Energy Target
(MRET), backed by the Renewable Energy (Electricity) Act
2000, to increase the country’s level of renewable energy
electricity generation. The MRET requires the generation of
9500 gigawatt-hours (GWh) of additional renewable electricity
by 2010, over and above existing renewable energy generation,
and maintains this target until 2020. The measure is expected
to stimulate $3.5 billion of investment in renewable energy
over the life of the scheme.
In the 2004 Energy White Paper, Securing Australia’s Energy Future,
over $700 million was allocated for a range of initiatives to
support low emission and renewable energy technologies, including:
- $500 million for the Low Emissions Technology
Demonstration Fund, which is designed to leverage at least
$1 billion in private sector investment in new technologies
that demonstrate low emission technologies, including renewable
energy
- $100 million for the Renewable Energy Development Initiative
to support the development of renewable energy technologies
that have strong commercial potential
- $75 million for Solar
Cities to test the effectiveness of measures such as improved
energy-efficiency, smart meters, solar technology, and responsive
pricing to technology in reducing energy demand during peak
periods
- $20.4 million for the Advanced Electricity
Storage Technologies initiative to support
energy storage for intermittent renewable technologies, such
as wind and solar
- $14 million to develop an Advanced Wind Forecasting Capability,
and
- the Improving
Grid Accessibility initiative, whereby the Commonwealth
and state and territory governments identify and respond to
specific rule changes required in the national electricity
market to maximise the benefits of distributed generation.
A further $123 million was allocated in August
2006 to the Renewable Energy Remote Power Generation Program
to reduce the amount of diesel fuel use. The Commonwealth Government
is also funding the preparation of a Geothermal Industry Development
Framework, although this is not strictly renewable energy. Since
2000, geothermal energy projects have been allocated grants
of $32 million.
The Australian Labor Party (ALP) has made
several commitments related to renewable technologies. It plans
to:
- Reduce emissions. This includes increasing the national
Clean Energy Target
(electricity from low emission sources) to 45 000 GWh
annually by 2020.
- Stimulate solar energy installation. The ALP platform set
a 20 per cent renewable energy target by 2020; this includes
$489 million for solar power installations in schools, but
other details are not available at this time.
- Offer industry incentives. The ALP announced initiatives
designed to stimulate the development of the renewables industry:
$15 million for a Clean Energy Export Strategy; up to $20
million for a Clean Energy Enterprise Connect Centre; $50 million
for an Australian Solar Institute, and $50 million for the
development of geothermal (that is, hot rock) power.
Outstanding issues that should be addressed
by the 42nd Parliament include:
- MRET and the research and development grant arrangements
have to date failed to increase the input of renewables to
electricity generation in percentage terms, owing to growth
in electricity demand and strong growth in gas generation.
There is no certainty that the 45 000 GWh target will
diminish reliance on fossil fuels for electricity generation.
- Consumer-focused programs target domestic and community
installations, rather than major consumers, such as industry
and government instrumentalities. (The main incentive for
generating corporations to adopt renewable technologies is
limited to Renewable Energy Credits.)
- Given forecast growth in energy demand, existing policies
and programs appear insufficient to deliver significant reductions
in CO2 emissions from electricity generation.
- States have a range of plans and targets for electricity
generation from renewables. A national measure would provide
consistency, certainty and avoid double-counting between state
and national targets.
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