Mandatory renewable energy target

In a nutshell

Mandatory renewable energy targets are part of government-legislated schemes which require electricity vendors to source specific amounts of aggregate electricity sales from renewable energy sources according to a fixed time frame. The objective of these schemes is to promote renewable energy and decrease dependency on fossil fuels. If this results in an additional expenditure of electricity, the additional cost is distributed across customers by increases in other tariffs. The cost of this measure is therefore not funded by the government budgets, except for costs of establishing and monitoring the scheme and any audit and enforcement actions. As the cost of renewable energy has become lower than that of other sources, meeting and exceeding a renewable energy target will also reduce the expenditure of electricity to consumers.

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Country Participation

At least 67 countries have renewable energy policy targets of some kind. In Europe, 28 European Union members states and 8 Energy Community Contracting Parties have legally binding renewable energy targets. The European-Union target is 42.5% by 2030 . The United States does not have a federally-mandated target, but several states do . Canada has set goals for 2035 and 2050 . China's 15th five-year plan aims for increased use of non-fossil-fuel energy sources by 2030 . Around the world, targets are typically for shares of electricity production, but some are defined as by primary energy supply, installed capacity, CO2 emissions, or otherwise.

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Overview

Renewable energy technologies are essential contributors to the energy supply portfolio, as they contribute to world energy security, reduce dependency on fossil fuels, and provide opportunities for mitigating greenhouse gases. The International Energy Agency has defined three generations of renewable energy technologies, reaching back over 100 years:

First-generation technologies emerged from the Industrial Revolution at the end of the 19th century and include hydropower, biomass combustion, geothermal power and heat. These technologies are quite widely used.
Second-generation technologies include solar heating and cooling, wind power, modern forms of bioenergy, and solar photovoltaics. These are now entering markets as a result of research, development and demonstration (RD&D) investments since the 1980s. Initial investment was prompted by energy security concerns linked to the oil crises (1973 and 1979) of the 1970s but the enduring appeal of these technologies is due, at least in part, to environmental benefits.
Third-generation technologies are still under development and include advanced biomass gasification, biorefinery technologies, concentrating solar thermal power, hot-dry-rock geothermal power, and ocean energy.

First-generation technologies are well established. However, second-generation technologies and third-generation technologies depend on further promotion by the public sector. The introduction of mandatory renewable energy targets is one important way in which governments can encourage the wider use of renewables.

Targets by country

Australia

In 2001, the federal government introduced a Mandatory Renewable Energy Target (MRET) of 9,500 GWh of new generation, with the scheme running until at least 2020. This represents an increase of new renewable electricity generation of about 4% of Australia's total electricity generation and a doubling of renewable generation from 1997 levels. Australia's renewable energy target did not cover heating or transport energy like Europe's or China's, Australia's target was therefore equivalent of approximately 5% of all energy from renewable sources.

An Expanded Renewable Energy Target was passed on 20 August 2009, to ensure that renewable energy obtains a 20% share of electricity supply in Australia by 2020. To ensure this, the Labor government committed that the MRET will increase from 9,500 gigawatt-hours to 45,000 gigawatt-hours by 2020. The scheme was to continue until 2030. After 2020, the proposed Emissions Trading Scheme and improved efficiencies from innovation and manufacture was expected to allow the MRET to be phased out by 2030. The target was criticised as unambitious and ineffective in reducing Australia's fossil fuel dependency, as it only applied to generated electricity, but not to the 77% of energy production exported, nor to energy sources which are not used for electricity generation, such as the oil used in transportation. Thus 20% renewable energy in electricity generation would represent less than 2% of total energy production in Australia.

In 2011 the 'expanded MRET' was split into two schemes: a Large-scale Renewable Energy Target (LRET) of 41,000 GWh for utility-scale renewable generators, and an uncapped Small-scale Renewable Energy Scheme for small household and commercial-scale generators. Following the 2014 Warburton Review initiated by the Abbott government, and subsequent negotiations with the Labor Opposition, in June 2015 the LRET target was reduced to 33,000 GWh.

As of October 2025 the 33,000 GWh annual target remains in place. Based on this annual target there has been a goal set to achieve 82% renewable energy generation by 2030, however, the government has no official law mandating this.

Individual Australian states and territories have also set their own targets, such as Victoria with a 95% by 2035 target, and the ACT of 100% renewables by 2020 (achieved in 2019). In October 2025, Queensland's Liberal National Government repealed the former Labor government's target of 80% renewables by 2035. Similar changes occurred in the Northern Territory where in March 2025 the Country Liberal Party scrapped a target of 50% renewables by 2030 set by the previous Labor government in 2016, despite having supported this target whilst being in opposition.

United States

As of July 2010, 30 US states and DC have established mandatory renewable energy targets, and a further three have voluntary targets. The Energy Independence and Security Act of 2007 has set a target for 36 billion US gallons (140,000,000 m³) of biofuel produced annually by 2022. Of that, 21 billion US gallons (79,000,000 m³) shall be advanced biofuels (derived from feedstock other than corn starch). Of the 21 billion US gallons (79,000,000 m³), 16 billion shall come from cellulosic ethanol. The remaining 5 billion US gallons (19,000,000 m³) shall come from biomass-based diesel and other advanced biofuels. For sources other than biofuels, The United States carries no mandatory renewable energy targets although they do support the growth of renewable energy industries with subsidies, feed-in tariffs, tax exemptions, and other financial support measures.

Renewable energy targets by region

The European Union (EU) has a renewable energy target of 42.5% renewables target by 2030.

Latin America pledged 70% renewable energy by 2030.

The West African States (ECOWAS) aim for 38% renewable energy by 2030 achieved through the creation of 20GW of solar. The African Union also aims for a minimum of 10GW of renewable energy on the continent by 2030.

Table of renewable energy and targets

Overview

European countries

Other countries

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