Australia and New Zealand

Australia as a signatory to the United Nations’ Framework Convention on Climate Change, the Australian Government has established a mandatory renewable energy target (MRET) scheme. This scheme targets 9,500 GWhrs of renewable energy production by 2010, and requires generators to supply 2% of their energy from renewable sources such as wind farms, as verified by renewable energy certificates (RECs). However both industry participants and climate change advocates believe this target to be far too low.
In the absence of efforts to strengthen the federal MRET framework, the state governments are moving to introduce replacement schemes. The most aggressive on this front has been the Victorian Government, which has finalised its own renewable energy target (VRET) scheme which will require electricity retailers to purchase a minimum of 10 % renewable energy by 2016, up from the present level of 4%. However the NSW Government has announced an NRET which provides even higher targets, 10% renewable energy by 2010 rising to 15% by 2020.
At the time of writing Australia is heading into a Federal election whereby each of the two major parties has announced significant mandated increased targets in renewable energy by 2020 if elected. Each of the targets either 15% 0r 20% renewable energy by 2020, is considered by industry participants to provide strong support for the industry by encouraging the development of a significant amount of new renewable energy assets, primarily wind generated electricity due to its lower cost per unit than other developing renewable technologies.

New Zealand is a signatory to the Kyoto Protocol and has therefore set significant targets for renewable energy albeit from a low population base and therefore lower demand base. Much of New Zealand’s electricity is provided by significant sized hydro electric schemes combined with off shore natural gas and coal fired power stations. In 2006 only 2.5MW of wind generated electricity was installed, this lack of growth in new renewable energy might be explained by the nature of the electricity grid system which already utilises large quantities of renewable energy through the large hydro electric schemes already in existence.