Mandated Renewable Energy Targets A Strategy for New Renewables

摘要

Despite New Zealand being blessed with an abundance of renewable energy resources, the proportion ofelectricity generated from these resources is falling and, without intervention, will continue to fall. Thiswill aggravate the electricity supply industry’s CO2 emissions rather than holding these to a minimum inaccordance with the country’s greenhouse gas obligations under the Kyoto Protocols. Putting into place ascheme that will prefer the use of renewable energy would reverse the falling trend. The MRETs schemeput forward requires electricity retailers to purchase, from qualifying new renewable sources, renewableenergy certificates (RECs) for a ramping proportion of their energy requirements. Qualifying generatorsare issued with, and then sell, an REC for each MWh of electricity that they generate and sell; theyreceive an income, from sales of both electricity and RECs, only if they generate and sell theirproduction. Failure by retailers to purchase RECs attracts a fee, the amount of which effectively capstheir price. Australia has already introduced a MRETs scheme, not only to raise its proportion ofelectricity sourced from renewables, but to encourage the establishment and development of industriesassociated with new renewable generating facilities. New Zealand has already lost wind energy expertiseto Australia and, without action, may see the regional centre of wind energy excellence becomeestablished over there, despite this country’s much higher wind energy potential.