Submission: Market drivers to reward renewable electricity
The Clean Energy Regulator’s renewable energy certificate framework has worked well, yet limitations in the near 25-year-old design have contributed to the delay in investment for new supply in Australia. Current investment levels lag behind the pace required to meet Australia’s target of an 82% renewable energy grid by 2030.
More granular renewable energy certificates can help consumers concentrate their energy consumption at times when renewables are abundant, incentivising entry of the technologies required to provide clean energy 24/7. A policy framework embedding this structure can circumvent grid integration challenges, such as switching off solar at times of surplus and negative pricing events.
The impending REGO scheme represents a unique opportunity to create a sophisticated, modern renewable energy accounting process which can keep Australia abreast with international developments, establishing Australia as a renewable energy superpower.
A decarbonised electricity system is foundational to the decarbonisation of every other sector, which is essential if Australia is to meet its ambitious decarbonisation targets. Economy-wide decarbonisation will facilitate IGCC members in meeting their own ambitious targets.
