Australia's market framework for renewable energy sources is fundamentally working well, reports the country's acting renewable energy regulator, Amarjot Singh. Through acquisition of renewable energy certificates (RECs), wholesale electricity purchasers are demonstrating nearly 100% compliance with their green power purchase obligations under the federal Mandatory Renewable Energy Target (MRET). Nearly 900,000 households were powered with electricity from renewables sources in 2007, the most recent period reported. The 5600 GWh of green power in 2007, about 2600 GWh of that from wind, puts Australia on track to meet its target of 9500 GWh by 2010, says Singh. Production will have to increase fivefold, however, to meet the new MRET of 20% supply from renewable energy sources by 2020, currently proposed by the government (page 112). Singh says the MRET market structure was the first of its kind globally and has been setting the benchmark for renewables electricity markets. It is well supported by wholesale electricity purchasers and the Australian renewable energy industry, he adds, and the future for the industry under MRET "looks bright."
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