Renewable Energy in Australia - Essay Example

Renewable Energy in Australia Student Name Number Institution Course Code Instructor Date of Submission The Renewable Energy Target (RET) Policy Introduction The policy was initiated as an Act; Renewable Energy (Electricity) Act 2000 and was referred to as Mandatory Renewable Energy Target (MRET). According to the Parliament of Australia report (2014), the policy has grown with time with review of the initial design consequently and progress made documented. In 2009, the Act was amended through the Renewable Energy (Electricity) Bill from the former MRET to the current policy, Renewable Energy Target (RET). RET comprises of a federal policy that has been designed with the main aim of making sure more than 20% of the total national electricity grid is derived from renewable sources by 2020 (Clean Energy Council, 2014). This essay analyses the Renewable Energy Target (RET) policy in Australia by first looking into the aims and objectives followed by its implications. Accountability of the policy, communication and outcomes will also be evaluated. Renewable energy refers to one that can be obtained from natural resources and replenished constantly (ARENA, 2014). The technologies that have been embraced to give renewable energy include bioenergy, hydropower, geothermal, wind power, solar energy and ocean currents energy. The policy contains two major schemes: the Large-scale Renewable Energy Target (LRET) and Small-scale Renewable Energy Scheme (SRES) (Government of Western Australia, 2014). The scheme was split into two in 2010 with LRET creating a financial incentive for more and enormous renewable energy power stations to be in operation while SRES encourages owners to install small-scale renewable energy systems like rooftop solar panels and small-scale wind and hydro systems (Department of Environment, 2014). Aims and Objectives The policy’s major aim has been to increase the use of clean energy through utilising natural resources in that give renewable energy to reach a limit of 20% national electricity generation (Australian Government, 2012). Through reduction of over-reliance on fossil fuel to generate electricity, reduction of greenhouse gases emission will be achieved to a greater extent. This will in turn help in the global aim of reducing climatic changes brought about by emission GHGs destroying the ozone and resulting to global warming (Zahedi, 2010). The three core aims of the policy are: to encourage the increased generation of renewable electric energy; reduce greenhouse has emission within the electricity generation sector; and make sure renewable energy sources are ecologically sustainable (Government of Western Australia, 2014). Implications beyond the Policy Area or the Jurisdiction The policy goes beyond ensuring clean energy to the point of affecting the overall climate and health outcomes. The uptake of renewable energy ensures more benefits from abating greenhouse gases when there is no carbon pricing scheme. According to the Report to the Clean Energy Council (2012), carbon pricing mechanism results to a national cap on emissions, thus a higher level of abating brought about by complementary policy that would ensure satisfaction to the abatement need within the economic activity in Australia. The grid connection fees have also significantly brought about hindrances of the renewable energy industry thus can probably result to substantial increase in the capital expenditure necessary for a project. Effendi and Courvisanos (2011) indicate that there lacks a national standard for grid connection within Australia resulting to new generators paying the costs necessary for connecting to the grid which is dependent upon condition and capacity of the network. The challenges observed in respect to connection are not technical, but mostly concern the allocation of costs especially where the costs comprise a significant amount compared to the price of the project. Amid the challenges of increasing renewable energy levels to the national electricity generation grid, transition to renewable sources of electricity is important in allowing Australia to exploit the naturally available resources (Zahedi, 2010). These are the best world sources of renewable sources incorporating highest average solar radiation of any continent, strong wind energy experienced on the southern coats and substantially hot-rock geothermal resources. The challenges expected in the exploitation of the resources mainly rests with high costs of production in comparison to the non-renewable sources of electricity (Martin, 2012). However, the long-term benefit in conjunction with climatic benefits should act as key factors promoting the importance of renewable sources of electricity. Accountability The federal governments have the authority of ensuring implementation of this policy through strategic measures targeting both the small and large scale users of electricity (Australian Government, 2012). Through targeting geothermal, wind and solar energy; large scale production has been promoted, while on the other hand, small scale production has seen exploitation of solar and wind power. Subsidies have been utilised by the government to enhance use of renewable energy like in solar hot-water heaters as well as attracting Renewable Energy Certificates (RECs) within Australia (ARENA, 2014). This is a clear precedent in respect to geothermal heat pumps which are known to save up to 70% of air conditioning electricity. Nevertheless, the recent past concerns have indicated various quarters raising concerns over the increased price pressure. This is due to the fact that amid renewable energy being competitive, it becoming quite expensive in respect to production (Clean Energy Council, 2012). The policy is reviewed every two years through an expert body appointed by the relevant authorities in the Ministry of Environment and the Ministry of Industry. The Clean Energy Council plays a crucial role in ensuring the realisation of set goals towards achieving electricity from renewable sources (CEC, 2014). The Australian Renewable Energy Agency is the one responsible in supporting innovations necessary for improving the competitiveness of renewable energy technologies within Australia, as well as raising the levels of renewable electricity to the electricity generating grid (ARENA, 2014). Communications The policy has been live for more than a decade giving it sufficient time to permeate and get roots amongst individuals and industrial users of electric power (Department of Environment, 2014). The public has experienced changes of climate tremendously in the past fifty years which has greatly been attributed to increased global atmospheric concentration of carbon dioxide, methane and nitrous oxide emanating from human activities through during of fossil fuels and destruction of vegetation. Further, Martin (2012) indicates that the public has increasingly demanded action by the governments on the planet, to ensure utilisation of measures to curb global warming. There has been bi-partisan support in Australia for clean energy and associated corporate activity has been on the rise (Effendi and Courvisanos, 2011). These forms of awareness have made sure the general public appreciate the need for clean energy and thus, favouring the RET policy measure initiative in respect to awareness. Generally, it is clear that Australian renewable energy sector is rapidly growing in response to both the demand from the public and the efforts made by the government (Clean Energy Council, 2014). The recent years has also been characterised by increased awareness to the public through the media coverage pertaining to climatic changes with RET coming out as one policy with the capacity to contribute greatly in addressing the issue. Outcome The policy has ensured focus onto increasing the proportion of utilising clean energy to 20% with a target of 45,000 GWh target in 2020 (Australian Government, 2012). However, the new projections place the percentage projected to be delivered at 27%. The previous reviews has indicated broad community support of the initiative due to the contribution towards more renewable energy generation resulting into some exports domestically of manufactured equipment (ARENA, 2014). Further, there has been very small negative effect on the Australian economy in respect to the associated increases in electricity costs. The increased use of renewable energy plays a crucial role in the reduction of Australia’s greenhouse gas emissions (Zahedi, 2010). Programmes like the Solar Towns is an initiative started as a pilot programme with an allocation of $300,000 for each to seven regions and build up support for solar energy technology exploitation. As of 2010, when RET was split into two; the LRET was implemented as a fixed volume target of 41 TWh and SRES uncapped with a notional 4 TWh target (Parliament of Australia, 2014). In December 2012, the Climate Change Authority projected that SREs will reach 11 TWh by 2020, far exceeding the original 4 TWh projected at the onset. With the new reviews, approximately 27% of renewable energy will be delivered by RET into the Australia’s electricity generation mix up from the initial projection of 20% (Department of Environment, 2014). This policy has also enhanced other policies like the carbon pricing mechanism which also is in place aimed at being the main instrument in Australia to realise greenhouse gas emissions reduction targets (Parliament of Australia, 2014). The carbon pricing scheme is being observed how effective it will also contribute towards stimulating the renewable energy industry. Its focus attempts to balance social and strategic interests with environmental concerns (ARENA, 2014). It has the potential to internalise costs that are associated with non-renewable electric power production resulting into increased cost competitiveness of the renewable energy. This is a crucial step with the aim of developing the generation of renewable energy. Finally, it is evident that Renewable Energy Target (RET) policy by the Australian government is an initiative of great importance to the global natural phenomena. The projected increase of clean energy use in Australia to 27% by 2020 will go a long way in reducing emission of greenhouse gases. This will culminate into the reduction of global warming and ozone layer depletion. References Australian Government (2012). Renewable Energy Target review: Final Report. Commonwealth of Australia, Climate Change Authority. Australian Renewable Energy Agency (ARENA) (2014). What is renewable energy? Australian Government, accessed from . Clean Energy Council (CEC) (2012). Benefits of the renewable energy target to Australia’s energy markets and economy. Report to the Clean Energy Council. Sinclair Knight Merz. Clean Energy Council (2014). Renewable Energy Target, Accessed October 17, 2014 from . Department of Environment (2014). The Renewable Energy Target (RET) scheme: Review. Australian Government, Commonwealth of Australia. . Effendi, P. and Courvisanos, J. (2011). Political aspects of innovation: Examining renewable energy in Australia. Renewable Energy. 38: 245-252. Government of Western Australia (2014). Renewable Energy Target. Department of Finance, Government of Western Australia. Accessed on October 18, 2014 from . Martin, N.J. (2012). Developing renewable energy supply in Queensland, Australia; A study of the barriers, targets, policies and actions, Renewable Energy. 44: 119- 127. Parliament of Australia (2014). The Renewable Energy Target: A quick guide. Parliament of Australia, Commonwealth of Australia. . Zahedi, A. (2010). Australian renewable energy progress, Renewable and Sustainable Energy Reviews. 14: 2208-2213. Read More