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Executive Summary

Renewable Energy Target at a glance

Provides an incentive

The Renewable Energy (Electricity) Act 2000 encourages the supply of additional electricity from renewable sources to reduce greenhouse gas emissions from the electricity sector. It provides an incentive for investment in renewable energy power stations and smaller systems such as household solar, while ensuring the energy sources used are ecologically sustainable.

When we refer to the Renewable Energy Target, it includes both the Large-scale Renewable Energy Target and the Small-scale Renewable Energy Scheme:

  • The Large-scale Renewable Energy Target—requires Australia to generate 33 000 gigawatt hours (33 million megawatt hours) of additional renewable electricity by 2020. That is equivalent to the electricity required by around five million houses for a year.1
  • The Small-scale Renewable Energy Scheme—encourages additional electricity supply from small scale systems. The Small-scale Renewable Energy Scheme has no set target.

More information about large-scale systems is on the Renewable power stations page and more information about small-scale systems is on the Small scale system installations page.

Creates a market

The Renewable Energy Target works by creating a market for renewable energy certificates. On the supply side, certificates are created for each megawatt hour of renewable energy generated or displaced. On the demand side, liable entities (mainly electricity retailers) buy certificates to meet their obligations under the Renewable Energy Target. We provide the secure systems that enable the market to operate.

More information about supply and demand dynamics is on the How it works page and more information about the market is on the Progress toward the Large-scale Renewable Energy Target page.

Accelerates carbon abatement

We administer the Renewable Energy Target as part of our purpose of accelerating carbon abatement for Australia.

Footnotes

1 Based on average household electricity consumption of 122.3 kilowatt hours per week. Household Energy Consumption Survey, Australia: Summary of Results, Australian Bureau of Statistics.

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