Australia's Renewable Energy Target 

The transition to a low carbon economy will require an increase in Australia’s renewable energy generation capacity. The Australian Government has set a target of 20 per cent share of renewables in Australia’s electricity mix by 2020 through the national Renewable Energy Target (RET) scheme. The RET scheme guarantees a market for additional renewable energy generation, using a mechanism of tradeable Renewable Energy Certificates (RECs).

The Government, in cooperation with the States and Territories through COAG, is increasing the legislated target more than four fold from 9,500 gigawatt-hours (GWh) to 45,000 GWh in 2020. The Expanded RET (ERET) scheme increases the existing Mandatory Renewable Energy Target (MRET) and absorbs existing and proposed State and Territory renewable energy schemes into a single national scheme.

The Carbon Pollution Reduction Scheme (CPRS) will help to bring renewable energy technologies into the market over time, however, the RET will accelerate uptake by supporting the competitiveness of renewable electricity generation and prepare the electricity sector to contribute to the significant emissions reductions that will be needed to address climate change.

It is planned that the measure will commence on 1 July 2009 (legislation to be passed by Parliament) with the expanded targets to commence from 1 January 2010. The target profile is to be maintained at 45,000 GWh from 2020 to 2030, at which point the RET scheme will conclude.

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