Mandatory Renewable Energy Target (MRET) & Renewable Energy Certificates (RECs)
Renewable resources are naturally occurring processes which can be harnessed without depletion. Renewable resources include solar irradiation from the sun, wind, hydro, biomass, geothermal, wave, tidal and others.
Technologies that convert renewable resources to useful forms of energy include solar photovoltaic panels, wind turbines, solar thermal devices, hydroelectric dams, biomass fired boilers and others.
The Australian Government’s Mandatory Renewable Energy Target (MRET) was introduced to increase generation and supply of electricity from renewable energy sources and achieve reductions in greenhouse gas emissions.
A REC is an electronic certificate deemed to have been created by eligible parties for each megawatt-hour of eligible renewable electricity generated. Renewable Energy Certificates (RECs) are surrendered by liable parties under the MRET scheme.
Each REC has been certified by the Office of Renewable Energy Regulation (ORER). Under the MRET scheme one REC represents the generation of power from renewable energy sources equivalent to one Megawatt hour (MWh). RECs can be generated from Renewable Energy (RE) technologies such as Solar Hot Water (SHW) heaters where it is deemed that 1MWh of fossil fuel based electrical power generation has been substituted.
RECs are created by registered persons including nominated persons who are registered for accredited RE power stations; agents that have been assigned deemed units to them by owners of said units or individual owners of deemed units derived from their deemed unit installation.
Acquitting RECs against activities that generate GHG emission increases demand for, and ultimately promotes, more renewable energy generation by reducing the pool of available RECs.
Individuals or companies wishing to receive and/or utilise RECs need to be appropriately registered with the ORER.
The ORER has established a REC Registry to track the production and transfer of certified RECs and to manage the retirement of acquitted RECs that have been used to meet obligations of the MRET scheme, or used for other purposes.