Australia's ASX to launch renewable energy futures

Published: 16 Sep 2009 22:21:47 PST

SYDNEY, Sept 17 - Australia's securities exchange operator ASX Ltd plans to establish a futures market for renewable energy by the end of the year as the country seeks to quadruple energy generated from renewable energy by 2020.

ASX said on Thursday that it hoped to list futures and options contracts on Renewable Energy Certificates (RECs) before the year-end as demand grows for RECs to offset greenhouse gas emissions and as consumers seek greener energy.

"We're just waiting for final regulatory approval but expect to make an announcement shortly," David Kresvan, ASX's manager of energy and environmental markets, told Reuters.

RECs are a form of currency in Australia that can be earned by installing renewable energy generating capacity such as solar energy panels or wind turbines. Each REC represents one megawatt hour of electricity generated from renewable energy and can be traded once registered.