The Australian Sustainable Energy Policy Framework

							The Australian Sustainable Energy
Policy Framework


      APEC New and Renewable Energy Technologies
      Expert Working Group Meeting
      Everbright Conference Centre, Shanghai
      13 October 2003
                                         Alasdair Lawrence
                                        Principal Consultant
                                 Carbon Asset Management
Australian Electricity Background


  •   Australian population ~20 million
  •   Installed capacity ~30,000 MW
  •   90% coal, 6% hydro, 3% gas, < 1% renewables
  •   Wholesale price ~RMB 175 MW/hr
  •   Residential retail price ~RMB 0.6 KW/hr
  •   10 years of economic growth at 4%
  •   Electricity demand growth at 4%
                                    Carbon Asset Management
Electricity Policy Framework


  • Federal Government - environment policy
     – Meet Kyoto target, but not ratify
  • State Governments - energy policy
     – Most favour Kyoto ratification
  • National Electricity Market
     – 80% population <50 km east coast
     – Complex administrative and technical issues
  • Reregulation, corporatisation, privatisation, IPP
                                           Carbon Asset Management
Mandatory Renewable Energy
Target (MRET)
  • Increase proportion of renewables by 2% of total
    national output (9,500 GW/hr annually) by 2010
  • No large hydro or native forest biomass
  • Office of Renewable Energy Regulator
  • 1 MW/hr = 1 Renewable Energy Certificate
  • Green Electricity Market 1 REC = ~ RMB 170
  • Boosted wind, biomass installed capacity
  • Currently under review             Carbon Asset Management
NSW Retailer Emissions
Benchmarks
  • Retailers must reduce CO2 emissions associated
    with sales from January 2003
  • 5% below 1990 per capita emission levels by
    2007 and maintain until 2012
  • Abatement task = target 7.27 tonnes of CO2 per
    capita ~ 14% drop on current levels
  • Penalty up to RMB 75 / tonne
  • Gas, energy efficiency, renewables
                                   Carbon Asset Management
Green Power Accreditation Program


  • Allows consumers to choose to pay a premium
    (30%) to buy renewable energy
  • 80% of sales must be from new generation,
    must be beyond MRET and Benchmarks
  • Retailer audited, can use approved marketing
  • 70,000 customers (1% market) 2,900 business
  • Sales 400 GWhr year and increasing
  • RMB 850 million in investment
                                   Carbon Asset Management