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The VRET scheme commenced operating on 1 January 2007. The Victorian Renewable Energy Act 2006 (the Act) established the VRET scheme which mandates Victoria’s consumption of electricity generated from renewable sources be increased to 10% by 2016. The aim of the VRET scheme is to encourage additional generation of electricity from renewable sources. Under the scheme, all electricity retailers and wholesale purchasers of electricity in Victoria will have a legal liability to contribute towards the generation of additional renewable energy by acquiring Victorian renewable energy certificates (VRECs). The Commission is responsible for administering the VRET scheme. The VRET scheme operates by imposing a legal liability on relevant entities to support renewable energy electricity generation. An example of a relevant entity would be an electricity retailer acquiring wholesale electricity to meet the sale obligations to customers. Under the Act, relevant entities are required to surrender VRECs in proportion to their acquisitions of electricity. A penalty will be imposed upon entities who fail to surrender sufficient VRECs to offset their liability. Accredited renewable energy power stations and small generation unit owners are eligible to create VRECs under the scheme. The VRET scheme operates in parallel with the Commonwealth’s Mandatory Renewable Energy Target (MRET) scheme. » Interim target levels» Role and responsibility of the Commission » Victorian renewable energy certificates
The VRET scheme commenced operating on 1 January 2007. The Victorian Renewable Energy Act 2006 (the Act) established the VRET scheme which mandates Victoria’s consumption of electricity generated from renewable sources be increased to 10% by 2016. The aim of the VRET scheme is to encourage additional generation of electricity from renewable sources. Under the scheme, all electricity retailers and wholesale purchasers of electricity in Victoria will have a legal liability to contribute towards the generation of additional renewable energy by acquiring Victorian renewable energy certificates (VRECs). The Commission is responsible for administering the VRET scheme. The VRET scheme operates by imposing a legal liability on relevant entities to support renewable energy electricity generation. An example of a relevant entity would be an electricity retailer acquiring wholesale electricity to meet the sale obligations to customers. Under the Act, relevant entities are required to surrender VRECs in proportion to their acquisitions of electricity. A penalty will be imposed upon entities who fail to surrender sufficient VRECs to offset their liability. Accredited renewable energy power stations and small generation unit owners are eligible to create VRECs under the scheme. The VRET scheme operates in parallel with the Commonwealth’s Mandatory Renewable Energy Target (MRET) scheme.
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