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» EU and UK Renewable Policy

» December 2009

» AGL Energy

EU and UK Renewable Policy

› EU has a legal requirement for 20% of energy to be sourced from renewable sources (nuclear cannot be counted). Individual member states (i.e. countries) are free to implement their own policies to achieve their share of this target

» The UK is required to achieve 16% by 2020

» The requirement is for all energy, not just electricity

› The existing ROC (Renewable Obligation Certificates) scheme in the UK is similar to the expanded Renewable Energy Target

» 1 ROC = 1 MWh of new renewable generation

» Approximately 40-45 pounds per certificate

» Onshore (1/4) and offshore (1/2) wind likely to be largest sources

» Similarly to Australia, the best wind resources are not located near good grid access (i.e. top of Scotland)

› Once critical point of difference is that the expanded Renewable Target in Australia includes small scale generation and solar hot water

» The RET may yet be adjusted to remove small scale generation and solar hot water as eligible sources (if the scheme is to be consistent with other global policies such as the ROC scheme)