GOVERNMENT ACTION ON CLIMATE CHANGE

CLEAN ENERGY FUTURE PACKAGE:

CLEAN ENERGY FINANCE CORPORATION

 

A $10 billion new commercially oriented Clean Energy Finance Corporation (CEFC) will be established to drive innovation through commercial investments in clean energy through loans, loan guarantees and equity investments.

 

The CEFC will leverage private sector financing for renewable energy and clean technology projects, investments critical to the transformation of the Australian economy. It will identify projects and remove barriers that would otherwise prevent the financing of large-scale renewable energy projects.

Investments will focus on renewable energy, energy efficiency and low emissions technologies and the transformation of existing manufacturing businesses to re-focus on meeting demand for inputs for these sectors.

 

The CEFC will be run by an independent Board made up of experts in banking, investment management and clean energy and low emissions technologies.

 

RENEWABLE ENERGY AGENCY

 

A new, independent statutory body, the Australian Renewable Energy Agency (ARENA), will be created to coordinate around $3.2 billion in existing grant funding programs supporting research, development and demonstration of new renewable energy technologies.

The establishment of ARENA as an independent statutory body presents a unique opportunity to adopt a holistic approach to financing the research, development, commercialisation and demonstration of renewable energy technologies.

SOLAR FLAGSHIPS PROGRAM

The Government has committed $1.5 billion to support the construction of up to four large scale, grid connected solar power stations in Australia, using solar thermal and photovoltaic technologies.

The Solar Flagships program is part of the Australian Government’s $5 billion Clean Energy Initiative and will support the commercial demonstration of large scale solar  power plants in a competitive electricity market in Australia.

 

The primary objective of the Solar Flagships program is to provide the foundation for large scale, grid connected, solar power to play a significant role in Australia’s electricity supply and to operate within a competitive electricity market. The Government’s aim is to establish up to 1,000 megawatts of solar power generation capacity.

RENEWABLE ENERGY TARGET [R.E.T]

In August 2009, the Government implemented the Renewable Energy Target (RET) scheme, which is designed to deliver on the Government’s commitment to ensure that 20 per cent of Australia’s electricity supply will come from renewable sources by 2020. In ten years’ time the amount of electricity coming from sources like solar, wind and geothermal will be around the same as all of Australia’s current household electricity use. The RET expands on the previous Mandatory Renewable Energy Target (MRET), which began in 2001.

LARGE-SCALE RENEWABLE ENERGY TARGET & SMALL-SCALE RENEWABLE ENERGY TARGET

The Office of the Renewable Energy Regulator is a statutory agency established to oversee the implementation of the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES).

 

These schemes are implemented through the Renewable Energy (Electricity) Act 2000 and the accompanying Renewable Energy (Electricity) Regulations 2001.

The schemes aim to:

• encourage the additional generation of electricity from renewable sources;
• reduce emissions of greenhouse gases in the electricity sector; and
• ensure that renewable energy sources are ecologically sustainable.

 

This is achieved by:

• the creation of online certificates by eligible renewable energy sources based on the amount of electricity in megawatt hours (MWh):
  • generated by a renewable energy power station, or small-scale solar panel, wind or hydro system; or
  • displaced by a solar water heater or heat pump; and
• placing a legal obligation on liable entities (usually electricity retailers) to purchase and surrender a certain amount of these certificates each year.

The trade in these certificates thereby provides financial incentive for investment in renewable energy power stations, and for the installation of solar water heaters, heat pumps, and small-scale solar panel, wind, and hydro systems.

 

The certificates are created and traded through the REC Registry, an Internet-based registry managed by the Office of the Renewable Energy Regulator.

SWITCHING TO LOW EMISSION HOT WATER SYSTEMS

The Australian, state and territory governments are now working together to phase out greenhouse intensive hot water systems, commencing during 2010. This phase out will result in the reduction of greenhouse gases by over 30 million tonnes over ten years from 2010-2020.

Each electric hot water system produces around four tonnes of greenhouse gases each year. That's at least 2.5 times the greenhouse gases produced by other more efficient technologies and equivalent to running an average sized car for a year.

To help the 50 per cent of Australian households using electric hot water systems to reduce their energy bills and Australia's greenhouse emissions, the Australian Government has committed to:

• working with state and territory governments to phase out greenhouse intensive hot water systems, commencing in 2010; and
• offering a rebate of up to $1,600 for eligible households to install solar hot water or heat pump systems.
• Fact sheet - Phase out of greenhouse intensive hot water systems

How will the government phase out greenhouse intensive hot water systems?

The phase out will be implemented in two stages:

During 2010, electric hot water systems will no longer be able to be installed in:

• any new detached, terraced and town houses; and
• any existing detached, terraced and town houses where there is access to piped natural gas, except where an exemption applies.

During 2012, electric hot water systems will no longer be able to be installed in:

• any existing detached, terraced and town houses; and
• any new flats and apartments with access to piped gas except where an exemption applies.

Do I have to replace my hot water system immediately?

No, there will be no requirement to replace a working electric storage hot water system. You will only have to purchase a low emission hot water system when your current unit breaks down or is replaced.

 

PHASE-OUT OF INEFFICIENT INCANDESCENT LIGHT BULBS

Working with the states and territories, the Australian Government will gradually phase out all inefficient incandescent light bulbs.

The first stage of the phase-out plan was the introduction of an import restriction on inefficient incandescent light bulbs used for general purposes from 1 February 2009.

The phase-out will deliver considerable savings to the environment and the economy. Across the country, the move to more efficient lighting, such as CFLs, is expected to save around 28 million tonnes of greenhouse gas emissions between 2008 and 2020. This is equivalent to permanently decommissioning a small coal-fired power station or taking more than 500,000 cars off the road permanently. It is expected to result in savings to the Australian economy of around $380 million per year by 2020 and result in net savings of more than $50 per year for each household that changes all of its incandescent light globes to CFLs.