Renewable Energy in Australia: Clean Energy Framework, Implications beyond the Policy Area - Case Study Example

RENEWABLE ENERGY IN AUSTRALIA By Name Course Instructor Institution City/State Date Renewable energy in Australia Background Significant steps towards has been taken by Australia’s renewable energy policy in promoting the deployment of energy generation with lower carbon emissions. Effective regulatory frameworks as well as policy are vital in incentivising renewable energy deployment so as to realize lasting carbon emissions’ reductions (Byrnes et al., 2013, p.6). Still noteworthy policy hurdles still subsist at the state and federal levels, which as a result have lessened the usefulness of a determined national attempt to deploy renewables. Basically, the present policy setting has chiefly favoured established technologies which offer the least investment risk to the detriment of up-and-coming alternatives which could offer bigger gain in emissions reduction as well as efficiency. The Renewable Energy Target (RET) scheme is intended for ensuring that twenty percent of electricity in Australia by 2020 source from renewable sources. The RET scheme is helpful in changing Australia electricity generation mix to sources that are more diverse and cleaner as well as promoting employment and growth in the renewable energy sector (Department of the Environment, 2011). Since the beginning of 2011, the RET scheme has functioned in two parts: the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES). In this case, the LRET generates a monetary incentive for the expansion and establishment of power stations for renewable energy, like hydro-electric power stations or solar and wind farms. This is done through demand legislation of Large-scale Generation Certificates (LGCs). On the other hand, the SRES generates a monetary incentive for community groups, small businesses and households to set up appropriate small-scale renewable energy systems such as small-scale hydro systems, wind systems, solar photovoltaic (PV) systems, heat pumps or solar water heaters (Department of the Environment, 2011). This is achieved through demand legislation of Small-scale Technology Certificates (STCs). To enable larger uptake of ‘clean’ energy, the Australian government has to develop the Clean Energy Framework intended for heightening innovation and deployment of renewable energy. This framework of the policy is strengthened by the need for resourcefully deploying renewable technologies anchored in market indications, aid through the policy measures and innovation cycle so as to handle the possible non-price market barriers (Byrnes et al., 2013, p.6). Thus, the Clean Energy Framework promotes competitive backing of cheap technologies which favours mature as well as more recognized technologies. The Australian government has introduced measures through the policy to boost renewable energy competitiveness (and by this means lessen carbon emissions); this includes carbon pricing so as to internalise green costs related to emissions. Other measures that have been introduced include direct subsidies and feed-in tariffs (FITs), and such have resulted in practical uptake in small-scale photovoltaic, and medium-scale to large-scale wind generation. Aims and objectives 1. To improve the renewable energy technologies competitiveness as well as heighten the renewable energy supply in Australia. 2. To reduce carbon emissions as well as increase clean energy application. 3. To promote the extra electricity generation from renewable sources so as to reduce greenhouse gas (GHG) emissions. 4. To reduce GHG emissions in the electricity sector. 5. To make sure that sources of renewable energy are environmentally sustainable. 6. To improve the resilience and flexibility of electricity distribution systems in Australia for the future 7. To recognize main issues that challenge the renewable energy sustainable integration as well as management of demand 8. To make sure a holistic approach to the distribution industry. 9. To offer a set of advocacy and recommendations platforms to communicate regulation and policy reform intended for easing obstacles to integrating demand management and renewable energy (Clean Energy Council, 2014; Byrnes et al., 2013; Department of the Environment, 2011; Sinclair Knight Merz, 2012). Implications beyond the policy area or the jurisdiction Renewable energy industry in Australia at present has employed almost 21,000 Australians, scores being in rural and regional areas, and is endeavouring to produce an extra investment worth $15 billion in large-scale projects by 2020. From 2011 investment in the renewable energy sector as mentioned by Clean Energy Council (2014) has been over $5 billion every year, with the Large-scale Renewable Energy Target (LRET) single-handedly using over $10 billion in investment up to now. Banks and large worldwide investors have financially supported the RET (Clean Energy Council, 2014). In spite of the recent political and policy uncertainty, RET has offered them the belief to make the needed monetary commitments for LRET projects. Domestic and international investors as well as sponsors of Australian projects concerning renewable energy were amongst entities that made RET review submissions, emphasizing the importance for continuing investment certainty and policy stability. So far the RET has brought about investment worth over $10 billion in LRET projects, with this investment going mainly in Australian rural and regional areas. If RET policy is not changed an extra $15 billion will have to be invested in large-scale projects in the coming ten years, in addition to scores of extra billions in solar hot water and rooftop solar power. Besides that, more than 21,000 have been employed in the renewable energy sector at the moment, and this is expected to increase to 39,400 by 2020 (Clean Energy Council, 2014). However, all this will be endangered if the RET Review panel recommendations to reduce RET are espoused. Evidently, reducing the RET will connote that Australia will lose a minimum of $15 billion investment in LRET as well as additional tens of billions more in SRES technologies, in addition to placing thousands of jobs in danger (Clean Energy Council, 2014). The aforementioned implications will disseminate across Australian territories and states. Accountability The responsible agencies for development, implementation, and evaluation of Australian renewable energy policy include, Clean Energy Council, the Australian Energy Market Commission, Council of Australian Governments (COAG), Australian Solar Council, Australian Greenhouse Office (AGO), the Department of Environment and Heritage (DEH), the Commonwealth Department of Resources, Energy and Tourism (DRET), the Australian Energy Regulator as well as the Australian Energy Market Operator. Communications Communication is imperative for social acceptance of any policy; given that social acceptance has been a key element in the growth of the renewables industry. Lack of enough communication resulted in the existence of ‘not in my backyard’ phenomena, especially with regard to wind farms, which from time to time have strongly been opposed. Numerous examples globally, as well as some in Australia, have proved that community participation is steered by communication, especially in deployment of the policy and as a result, it facilitates support as well as social acceptance (Byrnes et al., 2013, pp.7,15). As RET starts to have a bigger role in Australia electrification, communication has been imperative in making the public as well as stakeholders to be more familiar with the policy. Partakers in the renewable energy industry that depend on support from the government for feasibility can severely discount the support value offered if there is lack of communication. Since Australian renewable energy industry is growing, communication has been imperative in reducing the policy vulnerability thanks to renewable energy industries with more institutional experience as well as reputable access to capital. Main stakeholders have been involved in all reviews of the policy and regulation (Byrnes et al., 2013, p.15). Importantly, communication has been used to identify issues that could result, especially in proposals to take out support and adaptation timeframes. More importantly, communication has been integrated into intergovernmental co-ordination and co-operation mechanisms to make certain changes in policy are done cognisant of their possible effects. Outcomes The Small-sale Renewable Energy Scheme as well as the Medium Renewable Energy Target scheme has offered various upfront incentives that decrease the cost of installation for renewable energy systems. With the RET scheme (as well as presuming other support measures go on as intended), the generation level from small scale photovoltaic is anticipated to increase to roughly 8,200 GWh by 2020 from approximately 1,300 GWh in 2011 (Sinclair Knight Merz, 2012, p.33). Further analysis by Sinclair Knight Merz (2012, p.33) show that the SRES scheme has boosted the purchasing of small scale PV systems while the superior impact has been by means of the feed-in tariff arrangements, considering that exclusive of the SRES scheme, the uptake by 2015 would still be strong. The RET scheme without doubt will be a key investment driver in large-scale generation in the coming few years. With just pricing carbon, the renewable energy generation level is projected to grow by just 5,000 GWh before 2020, mainly through cheap hydro-electric upgrades investment as well as investing in a number of biomass based projects in reaction to costly electricity under carbon pricing as well as inducements under the Green Power program (Sinclair Knight Merz, 2012, p.37). Importantly, solar generation investment under the Solar Flagships programs will in the future boost generation level. RET scheme key impact is changing the renewable energy generation mix clear of a mix conquered by hydro-electric generation to inputs from various technologies. The majority of the extra will be the wind generation, and this technology is expected to be the biggest generation source of renewable energy by 2020, consisting of only over 50% of the entire generation of renewable energy as well as almost 10 percent of the entire generation. Conclusion In conclusion, it has been argued that The RET scheme is supportive in altering Australia electricity generation mix to sources that are more wide-ranging and cleaner in addition to promoting renewable energy sector in terms of employment and growth. Among other objectives, the policy intends to show the technical performance of emerging and existing renewable energy technologies as well as analyse their value to the distribution network, and also to reduce GHG emissions. . Insufficient support for emerging technologies has impeded the successful deployment of the policy together with the amassing of exceedingly experienced human capital. References Byrnes, L., Browna, C., Foster, J. & Wagner, L., 2013. Australian Renewable Energy Policy: Barriers and Challenges. White Paper. St Lucia, Qld: University of Queensland University of Queensland. Clean Energy Council, 2014. The impact of cutting the Renewable Energy Target on state jobs and investment. [Online] Available at: https://www.cleanenergycouncil.org.au/policy-advocacy/renewable-energy-target/impact-on-states.html [Accessed 13 October 2014]. Department of the Environment, 2011. The Renewable Energy Target (RET) scheme. [Online] Available at: http://www.environment.gov.au/climate-change/renewable-energy-target-scheme [Accessed 13 October 2014]. Sinclair Knight Merz, 2012. Benefit of the Renewable Energy Target to Australia’s Energy Markets and Economy. White Paper. Sydney: Sinclair Knight Merz Clean Energy Council. Read More