Meeting the 2020 RET and opportunities in WA Mark Williamson, - PowerPoint PPT Presentation

Meeting the 2020 RET and opportunities in WA Mark Williamson, Executive General Manager, Clean Energy Regulator

Outline – what’s in this presentation • About the Clean Energy Regulator and our purpose • Renewables capacity in Australia • Progress towards 2020 Large-scale Renewable Energy Target • Supply and demand dynamics • The prices behind the projects • Our compliance position Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 2

Our purpose: accelerating carbon abatement for Australia Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 3

Renewables in Australia – Large-scale Accredited under the Renewable Energy Target Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 4

Renewables in Australia – Small-scale Supported by the Renewable Energy Target Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 5

Progress towards the 2020 Large-scale Renewable Energy Target • 6,000 megawatts of new build to be committed by 2018 and built by 2019 to meet the 2020 Large-scale Renewable Energy Target • Commitments and build would need to happen early to provide an adequate supply of large-scale generation certificates along the way. Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 6

Supply and demand dynamics Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 7

Supply and demand dynamics - WA 2016 Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 8

Renewables in Australia – Firmly announced Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 9

New projects in Western Australia 2016 2017 Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 10

The prices behind the projects Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 11

LGC Spot Price LGC Spot Price 2015-2017 $100.00 Final surrender date $90.00 $85.25 $80.00 $70.00 $60.00 $50.00 Large-scale RET legislated $40.00 at 33,000 GWh $30.00 $20.00 Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 12

PPA prices “tumbling” Source: Origin Energy Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 13

Our posture on compliance Our position remains that payment of the penalty or shortfall charge does not fulfil the purpose of the legislation to support new generation to meet the 2020 target. Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 14

It is in the hands of retailers to forward contract for the Large-scale generation certificates to cover future liability at least cost. Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 15

Clean Energy Regulator publications • LGC holdings – recently published on our website • Renewable Energy Target Annual Statement 2015 • EY Report: Meeting the Renewable Energy Target: Innovative approaches to financing renewables in Australia www.cleanenergyregulator.gov.au Meeting the 2020 RET and opportunities in WA – WA Power and Gas Conference 2017 16