The Australian Rudd Government has announced this morning that from 1 January 2011 the Renewable Energy Target will be separated into two parts and a fixed price of $40 per megawatt hour will be set for small-scale technologies. Renewable energy developments in Australia have been hampered by a plummeting REC price, driven by the inclusion of credits for small-scale systems such as domestic roof mounted solar panel.

This important decision, driven by Minister Penny Wong, will create a more stable environment for investment in large scale renewable projects such as wind farms and utility scale solar. It also increases the net amount of renewable energy which the country targets to generate under its Mandated Renewable Energy Target (MRET) legislation. More details to follow…