Renewable energy and carbon capture
Renewable energy consumption, policy and general regulationGive details of the production and consumption of renewable energy in your country. What is the policy on renewable energy? Describe any obligations on the state and private parties for renewable energy production or use. Describe the main provisions of any scheme for registration of renewable energy production and use and for trade of related accounting units or credits.
In Australia, renewable energy is produced from hydro, wind, bioenergy and solar photovoltaic cells. Bioenergy includes energy produced from landfill biogas and industrial waste, among other things. The following table gives electricity produced by fuel type in the 2019/2020 financial year, which is the latest for which information is available.
Renewable energy production
Fuel | Electricity produced (GWh) | Percentage of all electricity production |
Hydro | 15,150 | 5.7 |
Wind | 20,396 | 7.7 |
Bioenergy | 3,352 | 1.3 |
Solar PV | 21,033 | 7.9 |
All renewables | 59,931 | 22.6 |
The above information is taken from the Department of the Environment and Energy, Australian Energy Statistics (2021) Table O.
The following table gives electricity consumed by fuel type in the 2019/2020 financial year, which is the latest for which information is available. Energy consumption is measured in petajoules (PJ). One PJ is equal to 278GWh.
Renewable energy consumption
Fuel | Electricity consumed (PJ) | Percentage of renewable electricity production |
Biomass | 169.3 | 40.4 |
Municipal and industrial waste | 4.0 | 1.0 |
Biogas | 16.7 | 4.0 |
Biofuels | 6.6 | 1.6 |
Hydro | 54.5 | 13 |
Wind | 73.4 | 17.5 |
Solar PV | 75.7 | 18.1 |
Solar hot water | 18.5 | 4.4 |
All renewables | 418.8 | 100 |
The above information is taken from the Department of the Environment and Energy, Australian Energy Statistics (2021) Tables D, F, O.
Wind energyDescribe, in general terms, any regulation of wind energy.
Planning and environment approvals may be required to construct or operate a wind energy project. For example, state and territory environment laws and laws that regulate land use approvals. In New South Wales (NSW), a tiered approvals regime for renewable energy systems exists, to ensure the level of assessment is appropriately tailored to the scale and type of the system. Under the State Environmental Planning Policy (Planning Systems) 2021 (NSW), electricity generating works, including renewable energy proposals such as wind farms, with a capital cost of more than A$30 million (or A$10 million in an environmentally sensitive area) are considered as State Significant Development under section 20. Under the State Environmental Planning Policy (Transport and Infrastructure) 2021 (NSW) (the Infrastructure SEPP), there are a range of assessment pathways for small-scale renewable energy proposals, which are tailored to the size, location and level of environmental impact of the proposal. Small-scale renewable energy systems covered by the Infrastructure SEPP include small wind turbine systems and wind monitoring towers.
Government schemes exist to encourage the development of renewable power stations like wind farms. The Clean Energy Regulator administers the Renewable Energy Target (RET) Scheme, which includes the Large-scale Renewable Energy Target (LRET). This target creates a market for the creation and sale of certificates known as large-scale generation certificates (LGCs). Certain accredited power stations can create LGCs for electricity generated from its renewable energy sources, such as wind. The LGCs can then be sold to electricity retailers (and other entities with certain liabilities) to meet their compliance obligations. The LGCs operate as offsets to energy use and GHG emissions.
Another part of the RET Scheme is the Small-scale Renewable Energy Target. This target creates a financial incentive for individuals and small businesses to install certain small-scale renewable energy systems, such as small-scale wind systems. This scheme creates small-scale technology certificates (STCs), which energy retailers can use to discharge their RET compliance obligations.
In addition, the Offshore Electricity Infrastructure Act 2021 (Cth) commenced on 2 June 2022 which established a regulatory framework to enable the operation of offshore renewable energy projects, including offshore wind farms.
Solar energyDescribe, in general terms, any regulation of solar energy.
Planning and environment approvals may be required to construct or operate a solar energy project. In NSW, a tiered approvals regime for renewable energy systems exists to ensure the level of assessment is appropriately tailored to the scale and type of the system. Under the State Environmental Planning Policy (Planning Systems) 2021 (NSW), electricity generating works, including renewable energy proposals such as solar farms, with a capital cost of more than A$30 million (or A$10 million in an environmentally sensitive area) are considered as State Significant Developments under section 20. There is a range of assessment pathways for small-scale renewable energy proposals, which are tailored to the size, location and level of environmental impact of the proposal. Small-scale renewable energy systems covered by the Infrastructure SEPP include photovoltaic systems, solar hot water systems and solar air heating systems.
Government schemes exist to encourage the development of renewable power stations, such as solar farms. One such scheme is the LRET, which is administered by the Clean Energy Regulator. This scheme creates a market for the creation and sale of LGCs. Certain accredited power stations can create LGCs for electricity generated from its renewable energy sources such as solar (see Renewable Energy (Electricity) Act 2000 (Cth) section 17(1)(f)). Once someone has created an LGC, they can then sell it to electricity retailers (and other entities with certain liabilities) to meet their compliance obligations. The LGCs operate as offsets to energy use and GHG emissions.
Another part of the RET Scheme is the Small-scale Renewable Energy Target. This target creates a financial incentive for individuals and small businesses to install certain small-scale renewable energy systems, such as solar panel systems and solar water heaters. Energy retailers can use STCs to discharge their RET compliance obligations.
Financial incentives are currently offered by some state governments for the installation of solar power systems. The NSW government recently introduced its Empowering Homes programme – a scheme that is designed to assist eligible NSW residents to decrease their power bills by providing interest-free loans of up to A$9,000 for a battery system or up to A$14,000 for solar and battery systems. This scheme is currently running as a pilot in limited NSW regions and will then be rolled out state-wide.
Hydropower, geothermal, wave and tidal energyDescribe, in general terms, any regulation of hydropower, geothermal, wave or tidal energy.
Planning and environment approvals may be required to construct or operate hydropower, geothermal, wave or tidal energy projects. For example, in South Australia, the production of geothermal energy is a regulated activity under the Petroleum and Geothermal Energy Act 2000 (SA), and as such requires an environmental impact report. For another example, if a proposed tidal energy project affects a Commonwealth marine area (or on another matter of national significance), then the project may require assessment under the Environment Protection and Biodiversity Conservation Act 1999 (Cth).
Government schemes exist to encourage the development of renewable power stations, such as hydropower, geothermal, wave and tidal energy projects. One such scheme is the LRET, which establishes a market for the creation and sale of LGCs. Certain accredited power stations can create LGCs for electricity generated from their renewable energy sources. Renewable energy sources are defined to include hydro, wave, tide, ocean and geothermal‑aquifer (see RET Act sections 17(1)(a)–(d), (g)). Once someone has created an LGC, they can then sell it to electricity retailers (and other entities with certain liabilities) to meet their compliance obligations. The LGCs operate as offsets to energy use and GHG emissions.
Waste-to-energyDescribe, in general terms, any regulation of production of energy based on waste.
Planning and environment approvals may be required to construct or operate a waste-to-energy project.
Government schemes exist to encourage the development of renewable power stations such as waste-to-energy projects. The Clean Energy Regulator administers the LRET, which establishes a market for the creation and sale of LGCs. Certain accredited power stations can create LGCs for electricity generated from its renewable energy sources. Renewable energy sources are defined to include agricultural waste, food waste, bagasse, black liquor and gases from landfill and sewage (see RET Act sections 17(1)(j)–(s)). Once someone has created an LGC, they can then sell it to electricity retailers (and other entities with certain liabilities) to meet their compliance obligations. The LGCs operate as offsets to energy use and GHG emissions
Biofuels and biomassDescribe, in general terms, any regulation of biofuel for transport uses and any regulation of biomass for generation of heat and power.
The use of biofuels for transport is regulated at the state and territory level. Two states, Queensland and New South Wales (NSW), have introduced biofuel mandates. For example, in NSW, service stations and other volume fuel retailers must make sure that ethanol is at least 6 per cent of all petrol sold and that biodiesel is at least 2 per cent of all diesel sold. Planning and environment approvals may be required to construct or operate a biomass energy project.
Government schemes exist to encourage the development of renewable power stations such as those fuelled by biomass. The Clean Energy Regulator administers the LRET, which establishes a market for the creation and sale of LGCs. Certain accredited power stations can create LGCs for electricity generated from its renewable energy sources. Eligible energy sources include biomass‑based components of municipal solid waste (see RET Act section 17(1)(q)). Once someone has created an LGC, they can then sell it to electricity retailers (and other entities with certain liabilities) to meet their compliance obligations. The LGCs operate as offsets to energy use and GHG emissions.
Carbon capture and storageDescribe, in general terms, any policy on and regulation of carbon capture and storage.
There are currently few large-scale carbon capture and storage (CSS) projects in Australia. Planning and environment approvals may be required to construct or operate CCS projects.
Australia is involved in the Carbon Sequestration Leadership Forum (CSLF). The CSLF is an international, ministerial-level climate change initiative for the development of improved and cost-effective technologies for CCS. Another Commonwealth government initiative is the Carbon Capture and Storage Flagships programme, which promotes the use of CCS technologies by supporting selected demonstration projects that capture carbon dioxide emissions from industrial processes, provide transport infrastructure and can store carbon dioxide underground in stable geological formations.
