VRET Scheme to Commence on 1 January 2007

01 Oct 2006Archived News Climate Change Matters

On 19 September 2006, legislation was enacted in Victoria to create the Victorian Renewable Energy Target (VRET).

 

 

The scheme is designed along similar lines to the Federal Government's Mandatory Renewable Energy Target (MRET), and is aiming to stimulate demand for another 3,274 GWh in renewable energy generation by 2016. Victorian Renewable Energy Certificates (VRECs) must be created in Victoria to be eligible for the scheme. Retailers are required to submit Renewable Energy Certificates relevant to the level of energy that they currently sell in the State of Victoria. The cost of managing participation in this mandatory scheme is then passed through to the end users.

While the scheme starts on 1st January 2007, the liability for retailers in the first year is zero and in the second year is 193 GWh. There should be no additional cost to customers therefore until 1st January 2008.

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