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Renewable Energy (Certificates and Other Matters) Amendment Bill 2009

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2008-2009

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

THE SENATE

 

 

 

 

 

 

Renewable Energy (Certificates and Other Matters) Amendment Bill 2009

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

Circulated by authority of

 

SENATOR MICHAELIA CASH, WESTERN AUSTRALIA



Renewable Energy (Certificates and Other Matters) Amendment Bill 2009

 

 

OUTLINE

 

The bill deals with the quota of renewable certificates and the inclusion of energy efficient transmission systems.

 

Schedule 1 is to ensure that more mature renewable energy technologies will not crowd out from access to renewable energy certificates emerging renewable energy technologies, which have the potential to provide more reliable and cheaper renewable energy, but require the financial benefits of renewable certificates, to attract private investment to develop technology.

 

This purpose is achieved by limiting any one renewable resource technology to 20,000 GWh of the ultimately available 45,000 GWh renewable target.

 

Schedule 2 recognises that energy saved in the transmission of power, as available in new technology, achieves the same purpose as renewable generation in as much that it requires less emissions from the generator to supply demand.

 

Incentives to install efficient transmission systems will also improve the viability of emerging renewable technologies, the source of which is frequently located in remote areas.

 

FINANCIAL IMPACT

The bill will have no financial impact

 

NOTES ON CLAUSES

 

Schedule 1 implements the 20, 000 GWh limit on any particular renewable resource. It does this through the following process:

 

·          It requires the people who create certificates to advise the Regulator to give a breakdown of the type of renewable resource to which the certificates apply.

·          The Regulator then publishes how many certificates were created for each renewable energy resource.

·          If no renewable resource leads to the creation of over 20,000 GWh in certificates in a year the effect is nil.

·          If renewable resource leads to the creation of over 20,000 GWh in certificates in a year then the value of these certificates is diluted by so much that their market share is in effect 20,000 GWh.

 

Schedule 2 allows for the creation of certificates for building more efficient transmission systems. It does this through the following process:

 

·          The Regulator publishes a report once every three years discussing the efficiency of various technologies.

·          The Government draws up regulations covering the calculation of issuing certificates based on this information.