Energy price impacts arising from RET

01 Aug 2009Archived News Climate Change Matters

The recent Senate approval of the National Renewable Energy Target (RET) legislation is a necessary stimulant for new renewable generation projects, however the RET legislation joins a long list of other national and state schemes.

 

Energetics constantly receives and compares energy price offers, and reviews invoices as part of our bill processing service. From this information we have found instances where customers are paying well above the market rate for these charges.

Analysis from a range of customers shows that the current range in prices is:  

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The additional RET cost will start from 1st January 2010 and escalate each year until 2021. This will increase the cost of mandatory renewable energy costs from a minimum of $1.8 /MWh today to an expected price of potentially $6/MWh in 2012/13. The long term price impact of all these schemes will vary depending on if, and when, the Carbon Pollution Reduction Scheme is passed.

The NESS is expected to replace the NGAC scheme in NSW. As no certificates have yet been created, pricing is still being seen at the penalty rate which does not indicate the future pricing.

In managing these costs it is important to also be aware of exemptions. For example trade exposed industries that are particularly intensive users of electricity will have the right to apply for an exemption from the NESS and expanded RET if they are recognised under an emissions-intensive trade-exposed (EITE) activity.

Disclaimer:
To the extent that this information contains prospective financial content, that information has been based on current expectations about future events and is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described in such prospective financial information. Past performance is not indicative of future performance. 

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