The requirement for clean, renewable sources of energythat deliver power on a continuous basis to the major population centres in Australia is expected to increase due to population growth, demand for additional power, economic development and growing pressures for green house gas abatement and governmental initiatives to promote renewable energy.

Australia will soon have a highly decentralised and competitive electricity market, with customers in all States able to choose their electricity supplier.

A market for renewable energy in Australia was promoted by the Renewable Energy (Electricity) Act 2000, which commenced operation on 18 January 2001 as part of Australia’s National Greenhouse Strategy. Under this Act, hot dry rocks and geothermal aquifers are classed as eligible renewable energy resources. The Act requires retailers and other large buyers of electricity to source an additional 2% of their electricity from eligible renewable energy sources.

This legislation entitles accredited power stations to issue Renewable Energy Certificates (“REC”) for power generated from renewable energy sources and requires power wholesalers to surrender a specified number of Certificates to the Renewable Energy Regulator based upon the volume of electricity purchased each year.

Wildflowers: photograph by Claus Furstner