Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

Rather than read out the statement, I seek leave to incorporate the statement.

Leave granted.

The statement read as follows—

• The Government has significantly expanded support for the renewable energy industry by increasing the Renewable Energy Target to 20 % of electricity from renewables by 2020 and providing support for large scale solar power generation under the $4.5 billion Clean Energy Initiative.
• The price of Renewable Energy Certificates (RECs) is set by the market, depending on the supply of renewable energy and demand created by the RETs legislated targets.
• The REC prices often quoted are for the spot market. Most renewable energy projects enter into long-term contracts for the sale of RECs and are therefore less subject to short-term fluctuations on the spot market.
• The significantly expanded targets will boost demand for RECs and growth in the renewable energy sector.
• For example, the current target for 2010 is 12,500 gigawatt-hours, up from 8,100 gigawatt-hours, strengthening the demand for RECs. During March, the Renewable Energy Regulator will quantify the RECs obligation in 2010 for RET-liable parties.
• The annual targets increase further in the period to 2020 and are maintained at 45,000 gigawatt-hours until 2030.
• The Government is working with states and territories to review a number of specific RET issues, including factors impacting on the REC price.
• The Council of Australian Governments (COAG) received a report on specific RET issues in December 2009 and will explicitly examine the current state of the RET spot market, including any implications for the deployment of large-scale projects such as wind farms.
• COAG is expected to consider the review in early 2010
• The Government opposes this motion

Question agreed to.