Marco Stella, Environmental Broker, Next Generation Energy Solutions.
EcoGeneration — May/June 2010
Australia’s Renewable Energy Market received a shake-up in late February as the Federal Government announced its plans to separate the existing scheme into a Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET). The Enhanced RET announcement was followed up with a Discussion Paper released in late March, which aims to provide additional information on the way the proposal would operate as well as to canvass views on a number of operational matters.
Since the original announcement on 26 February, the plight of the Renewable Energy Certificate market has changed considerably.
The spot price moved from the low to mid $30s where it had been for close to four months, to a high of $47 before softening to $46 in early April.
While trading volumes grew steadily across 2009, 2010 has seen a considerable spike in over-the-counter market activity with February and March both witnessing volumes close to double the twelve-month average.
While there are many elements of the proposed plan that are yet to be finalised and market proponents will have plenty to say on it, yet the overriding issue remains whether the entire plan will receive the bipartisan support it would likely need to pass in the winter sitting of Parliament.
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Comments written, and reflect market and industry circumstances, as at 1 April 2010.
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