Outcome:	1. Environment		Question Nos: 30 & 49
Division/Agency:	Office of the Renewable Energy Regulator
Topic:	Mandatory Renewable Energy Target
Hansard Page ECITA:	42 and 87

Senator Webber asked:
Senator WEBBER—When we had the discussion the other night about meeting that target, we were not able, as I recall it, to get a breakdown of how we were going with meeting the MRET target. Is that correct?
CHAIR—I think we have been told that they are on target to meet it.
Senator WEBBER—Yes. But that is all I get. I do not get any detail of where we have got with it.
CHAIR—I suppose if the officials cannot give you the detail you want now, you could certainly put it on notice.
Mr Morvell—The difficulty we have answering these questions now is that most of those questions on the detail are the responsibility of the Office of the Renewable Energy Regulator.
Senator WEBBER—Where do I find them?
Mr Morvell—They were here the other night. It was David Rossiter.
Senator WEBBER—That is right. But David could not seem to be able to give me any detail either.
Dr O’Connell—We can take it on notice.

Answer/s:
The additional annual generating capability contributing towards the Mandated Renewable Energy Target (MRET) by 6 February 2007 was estimated as shown in the table below:

Eligible Renewable Energy Source	Estimated GWh per full year	
Wind	2400	
Hydro	1600	
Solar Water Heaters	1000	
Wood Waste	450	
Landfill Gas	400	
Bagasse	400	
Other	150	
Total	6400	

Outcome:	1. Environment			Question No: 47
Division/Agency:	Office of the Renewable Energy Regulator
Topic:	Price of Renewable Energy Certificates
Hansard Page ECITA:	88

Senator Milne asked:
Senator MILNE—Do you have year by year estimates from when we started with the investment in renewable energy and when MRET was implemented until now?
Mr Rossiter—We have estimates as at this moment, yes
Senator MILNE—Can you provide those, please?
Mr Rossiter—I think we probably can, yes.

Answer:
The following estimated annual investments have been made in renewable energy since 2001 when MRET was first implemented.

Calendar Year	$ millions	
2001	620	
2002	690	
2003	360	
2004	470	
2005	880	
2006	480	
Total	3500	

Please note the investments are estimated to have occurred on the date the power station was accredited. As the investments are lumpy and can occur over several years before or after accreditation these numbers should be considered as a guide only.

Outcome:	1. Environment			Question No: 48
Division/Agency:	Office of the Renewable Energy Regulator
Topic:	Price of Renewable Energy Certificates
Hansard Page ECITA:	89

Senator Milne asked:
Senator MILNE—What has been the trend since the implementation of the MRET on the REC price?
...
Senator MILNE—Can you provide any documentation of those price trends to us?
Mr Rossiter—There is third-party information available through various sources.
...
Senator MILNE—I understand that, but what we are trying to understand is the reflection of the price of RECs in relation to the period of MRET and the progress towards the 9,500 target.
Mr Rossiter—We could get that information for the spot market but we would not be able to get it for the bilateral market.
Senator MILNE—If you could provide it even for the spot market I would appreciate that.

Answer:
As far as we are aware there was little information available before 2003 on the prices of renewable energy certificates (RECs). From then until February 2005 the spot prices of RECs were relatively steady at about $35. Prices on the spot market at least have since trended downwards until about October 2006 when they reached about $12. Spot prices have since risen steadily and in early February 2007 were approximately $17. They have continued to rise to about $28 by late February 2007.

The price of RECs is determined by market forces and the Office of the Renewable Energy Regulator (ORER) has no role in determining the price. An electronic registry provided by the ORER facilitates the trade in RECs by recording the details of each unique REC and its ownership. The registry does not require the price of RECs to be recorded.

Some third-party organisations do provide on a commercial basis detailed information about the price trend of RECs. As far as the ORER is aware this information is restricted to spot market trades which we estimate account for approximately 20 percent of RECs traded. The remainder of the RECs are traded via bilateral contracts, the details of which are often commercially confidential and generally unknown to the Office.