Submission: Market drivers to reward renewable electricity
2 November 2023
IGCCs submission to the Federal Government’s consultation on an Australia’s Renewable Energy Guarantee of Origin (REGO) scheme focuses on providing investment certainty for the creation of renewable energy certificates beyond 2030. With the decarbonisation of the electricity sector over the next 10-15 years central to Australia achieving net-zero emissions by 2050, the evolution of renewable energy certificates is essential to aligning demand with supply and creating the incentive structures for renewable energy growth in Australia.
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.
Read the full submission.