Industrial heat credits and the Renewable  Energy Target (PRA399-1516)

Industrial heat credits and the Renewable Energy Target (PRA399-1516)

15th April 2016

This report looks at the role that renewable heat credits could play in both the current RET of 33 TWh in 2020 and modelled scenario of 66 TWh of renewable electricity in 2030. Note that the Australian Government has no current proposal to expand the RET. Stakeholders in the forest products industries believe that the inclusion of heat credits in the Renewable Energy Target (RET) can contribute to the cost effective decarbonisation of energy in Australia, promote the use of sustainable forest resources and support Australian forest industries.


The inclusion of industrial heat within the RET is consistent with the stated aims of the RET “to encourage the additional generation of electricity from renewable sources” and “to reduce emissions of greenhouse gases in the electricity sector”. It will do this by encouraging cogeneration at the source of the wood waste. A policy gap is identified with no adequate measures to support heat generation from biomass in Australia. Clearly there is international precedence for the inclusion of large scale heat credits from biomass across numerous jurisdictions including US, UK, Sweden, Norway, Finland, France and Italy.

Findings Report


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Forest and Wood Products Australia Limited (FWPA), a not-for-profit company, is the forestry and wood industry’s service provider, investing in research and development, and providing research results to the forest and wood products industry in Australia. FWPA aims to improve the competitiveness and sustainability of the Australian forest and wood products industry through innovation, and investment in effective and relevant R&D.

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