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 of electricity generated from these resources is falling and, without intervention, will continue to fall. This will aggravate the electricity supply industry's CO{sub}2 emissions rather than holding these to a minimum in accordance with the country's greenhouse gas obligations under the Kyoto Protocols. Putting into place a scheme that will prefer the use of renewable energy would reverse the falling trend. The MRETs scheme put forward requires electricity retailers to purchase, from qualifying new renewable sources, renewable energy certificates (RECs) for a ramping proportion of their energy requirements. Qualifying generators are issued with, and then sell, an REC for each MWh of electricity that they generate and sell; they receive an income, from sales of both electricity and RECs, only if they generate and sell their production. Failure by retailers to purchase RECs attracts a fee, the amount of which effectively caps their price. Australia has already introduced a MRETs scheme, not only to raise its proportion of electricity sourced from renewables, but to encourage the establishment and development of industries associated with new renewable generating facilities. New Zealand has already lost wind energy expertise to Australia and, without action, may see the regional centre of wind energy excellence become established over there, despite this country's much higher wind energy potential.