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RNE 1.2¢

renewable energy certificates ....

  1. Pardox

    209 Posts.

    Renewable Energy Certificates ....

    I don't fully understand how this works - correct me if I am wrong - but it seems to me the Renewable Energy Certificates offset the cost of producing electricity from renewable sources like so ....

    Government regulator:

    * For each MWhr produced, a renewable energy certificate is issued.

    * These are tracked financial instruments which can be traded on the open market. They fluctuate in price according to demand for certificates from non-renewable electricity suppliers who have not met their mandatory 2% target set by the government and need to buy REC's.

    * Price projections are that REC's may fluctuate in value between $30 and $40 per MWhr
    REC Price Projections:

    * Electricity generation from some renewable energy sources can range in cost up to double the cost of non-renewable sources. The REC's give these expensive producer's 50% or more rebate to make their production cost competitive.

    * HDR from the Cooper Basin is expected to be cost competitive with non-renewable sources without any REC support ($40/MWhr). Trading REC's at $30 to $40 will almost neutralize the cost of production.

    ... sounds to good to be true

    ..... I must be wrong

    ....... Paradox

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