Thursday 24 September 2009

1-2pm, in Fenner School FORESTRY LECTURE THEATRE

Renewable Electricity in Australia: the good, the bad and the mediocre

Greg Buckman, PhD Scholar, Fenner School of Environment & Society

Abstract

Electricity generated from renewable energy can be a major tool in reducing greenhouse gas emissions, particularly given that electricity generation is an easier sector to decarbonise than transport or agriculture. Decarbonisation of electricity generation can play a major part in reducing Australia's greenhouse gas emissions which are high compared to other developed countries, particularly in the electricity generation sector. Australia has had a renewable electricity stimulatory mechanism - the Mandatory Renewable Energy Target (MRET) - since 2001 and is about to upgrade it with the introduction of the Renewable Energy Target (RET). MRET was supposed to lift the share of grid-connected electricity generated by renewable energy from 10.5% in 1997 to 12.5% by next year but by 2010 its market share will probably be about 9%. The RET is supposed to lift the market share of renewable electricity to 20% by 2020 but there is good reason to think this also will not be achieved. The failure, or potential failure, of both MRET and RET to achieve their goals throws up major questions about their specific design as well as about the design of renewable electricity stimulatory mechanisms in general.

These questions include how ambitious they should be, how they should treat pre-existing renewable electricity, how they interact with emissions trading, whether they should aim to stimulate more expensive and less mature types of renewable electricity, to what extent they should allow banking of tradable certificates and the penalties that should apply for non-compliance. Many of these questions come into sharp focus when a comparison is made between renewable portfolio standard mechanisms - which like MRET and RET dictate a quantity of renewable electricity but not a price - and feed-in tariffs, which dictate a price but not a quantity. For historic reasons most developed countries have had either type of mechanism for at least a decade now. The differences between the two are often exaggerated and their varying strengths often overlooked which means an opportunity is lost to incorporate some of the best features of each into the design of the other. Given that Australia is about to start its new RET, now is a good time for the country to reassess its renewable electricity stimulatory mechanism(s) and reassess where they are likely to take the country's greenhouse gas reduction efforts.

This seminar will detail the strengths and weaknesses of Australia's renewable electricity mechanisms and will explore what can be learnt from the overseas experience of such mechanisms. The seminar will also profile the part that renewable electricity can play in Australia's greenhouse gas reduction effort.

Bio

Greg Buckman is an accountant and an author who has had extensive experience in the conservation/green movements in Australia. He holds a Bachelor of Commerce and a Bachelor of Fine Arts and has had books published on globalisation, the nature reserves of Tasmania and the battles over their preservation. He was the national finance manager of the Australian Greens for five years and has worked as a research assistant to the Greens' national climate change and energy spokesperson, Senator Christine Milne. He has been a PhD candidate at the Australian National University's Fenner School since January 2008.

The Fenner School Seminar Series is held in the Forestry Lecture Theatre, Forestry Building 48, Linnaeus Way (comes off Daley Road), ANU (Acton) campus, ACT