The report of the Mandatory Renewable Energy Target Review was released today.

The Australian Government remains committed to the current Mandatory Renewable Energy Target (MRET) scheme. This Australian Government initiative is a world-first in developing a legislated national renewable energy market based on an innovative system of tradeable certificates. MRET has been a cornerstone of the Australian Government’s renewable energy strategy.

After almost three years of operation, the independent review panel found that MRET is meeting its objectives, with industry taking up the challenge of delivering new renewable energy projects. Under MRET, the interim targets for the first two years have been exceeded and the industry is well on the way to meeting targets for the third and fourth years.

Around 190 power stations that run on renewable energy have been accredited across Australia. This is a significant investment that is not only delivering clean energy to Australians but also regional development and employment growth.

MRET is a key plank in achieving Australia’s 108% emissions target and in positioning Australia for a lower greenhouse signature.

The Government is carefully examining all the recommendations of the report and will consider its response in the next few months in the context of broader energy and climate change directions.

The Australian Government’s MRET, which commenced in April 2001, requires the sourcing of 9,500 gigawatt hours of extra renewable electricity per year by 2010 through to 2020 – which is enough power to meet the residential electricity needs of four million people.

MRET places a liability on wholesale purchasers of electricity to proportionately contribute towards the generation of the additional renewable energy. The target applies nationally, and is implemented through the Renewable Energy (Electricity) Act 2000. The legislation underpinning the target was reviewed by an independent panel and the report provided to the Government in September 2003.