How will the Renewable Energy Target legislation affect energy retailers?

The Renewable Energy Target (RET) is a Federal Government policy which requires that 20 per cent of Australia’s electricity will be produced from renewable energy sources by 2020. To meet this objective, the Government has set annual targets for electricity retailers and wholesale buyers. Compliance is demonstrated by surrendering renewable energy certificates (REC’s), where one REC is equivalent to one additional megawatt-hour (MWh) of electricity generated of general energy sources. Failure to surrender adequate REC’s to the Clean Energy Regulator results in a shortage charge of $65 per MWh. Read More