The renewable energy laws set a statutory target of 9,500 GWh from renewable electricity sources in 2010, increasing to 45,000 GWh in 2020. This represents a four-fold increase on the renewable energy target set by the previous government in 2001 and would provide enough clean electricity to power all of Australia’s 21 million households. Currently, 8% of Australia's electricity comes from renewable sources, including hydroelectric plants built late last century.
The bill was passed without opposition by the Senate and House of Representatives on 20 August after being split from the controversial emissions trading bill and after the government brokered a deal with the main opposition party to boost government support for industries that use large amounts of electricity and safeguard existing investments in the coal mining industry. Electricity companies will now be forced to buy a portion of their power from renewable sources under the laws, while the new target matches the one established by the European Union in 2007.
"This is an extremely important achievement and it is one of the key institutional changes in the battle that the government is undertaking to deal with climate change," said Greg Combet, deputy minister for climate change. "The passage of the legislation will help unlock investment in renewable energy generation and of course in jobs associated with those industries in areas like solar and wind power, amongst others." In fact, leading environmental group, the Australian Conservation Foundation, has said that the target could encourage up to 31 billion Australian dollars (€18 billion) in new clean energy investment and create 26,000 jobs.
Need for more stringent controls over carbon emissions
Australia's largest green energy provider, Origin Energy, also welcomed the renewable energy laws, although it said that they were a poor second to the tougher carbon pollution reduction scheme (CPRS) proposed under the emissions bill. "In the longer term, the CPRS is the lowest cost way to drive investment in cleaner technologies," said Origin executive general manager Carl McCamish. "We encourage all political parties to negotiate a workable agreement to ensure that the CPRS is passed as soon as possible." Combet warned that without the CPRS, emissions would be 20% higher in 2020 than they were in 2000.
The Greens supported the separate renewable energy plan despite failing in a bid to have the target lifted from 20 to 30%, while some officials said more aggressive cuts in carbon gas emissions are still needed.
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