Origin remains unhappy with RET
Previously Origin lead the charge with other retailers to have the 20% Renewable Energy Target (RET) reconsidered due to movements in demand forecasts. Now that the RET remains, the Gentailer wants the split between the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES) to be reconsidered.
Under the scheme energy retailers including Origin are liable to purchase a specified amount of certificates, both large-scale generation certificates (LGCs) and small-scale technology certificates (STC). These are then passed on to consumers as part of their electricity pricing bundle.
Origin would like to see the LRET merge with the SRES so that the aggregate can meet the RET of 20% renewable energy by 2020. The amount of LGCs required to meet the former is specified each year by the Clean Energy Regulator, while the latter in uncapped with no target. The effect of this would be a greater focus on the SRES as the roll-out of domestic PV is occurring faster than installed renewable energy power stations. Origin may hope that this would reduce the amount of certificates required to purchase. It would also raise less money for renewable energy construction in a time when more and more carbon-intensive generation, including Origin’s substantial gas-fired assets and the massive 2.8GW Eraring coal-fired power station, is being crowed out of the NEM by the carbon pricing mechanism.