Australia: Renewable energy regulation and change
WA SEA lunch
27 August 2010
Andrew Livingston
Renewable Energy Regulator
ORER - Statutory Agency administering RET
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Accredits renewable energy power stations
Registers eligible persons and agents
Validates RECs and undertakes compliance activities
Audits surrender of RECs by liable parties
Manages and maintains the online REC Registry
Communication of Act and Regulations
Maintains the Register of solar water heaters
Manages process for emissions-intensive trade-exposed
industries
On line REC Registry
3
Renewable energy legislation timeline
Year
Legislative changes
2001
• Mandated Renewable Energy Target (MRET)commences
• 9,500 GWh of new renewable electricity by 2010
• ORER established to administer MRET
2006
• MRET review - to assess efficiency, effectiveness and implementation
• Inclusion of REC transparency, gaming rules and NEM provisions
• Time limits for the creation of RECs for power stations
• Voluntary surrender included
2009
• Target renamed to RET and increased to 45,000 GWh (20% by 2020)
• Extended from 2020 to 2030 to encourage investment
• Transition of State based schemes
• Solar Credits for household PV systems
2010
• Splitting of target – small-scale and large-scale
• Large scale target 41,000 GWh for eligible renewable power stations
• Clearing House for household systems - uncapped volume and $40 fixed
• Increased compliance measures - civil penalties and inspections
Renewable Power Stations in WA
Biomass**
Hydro
Landfill Gas
Sewage Gas
Solar
Wind
Total
Accredited
Power Stations
4
3
9
1
6
12
35
RECs created for
Total RECs created*
2009
0
72,735
6,403
153,607
121,794
646,433
0
49,144
80
302
679,353
3,270,745
807,630
4,192,966
*as of 31 July 2010, since beginning of this scheme
**food waste, wood waste
Deemed Units in WA
Number of
Deemed Unit type
installations*
Photovoltaic
Solar Water Heater
Wind / Hydro
Total
23,328
84,756
27
108,084
RECs created
for 2009
RECs created*
386,683
538,818
20
925,521
*as of 31 July 2010, since beginning of this scheme
1,287,209
2,351,584
478
3,639,271
REC Liability for WA
2009
Western Australia
Total Australia
Liable acquisitions* (GWh)
19,105
215,204
REC Liability *(‘000)
695
7,833
TOTAL REC Eligibility (‘000)
1,733
17,141
*provisional data
RPP for 2009 is 3.64%
70%
60%
Annual REC Generation by fuel type (%)
50%
Hydro
SWH-Deemed
40%
Wood Waste
Bagasse
Food, Ag & Bio Waste
Wind
30%
Landfill & Sewage Gas
Black Liquor
SGU-Deemed & Solar
20%
10%
0%
2001
2002
2003
2004
2005
2006
2007
2008
2009
Spot REC prices
9
Classification of RECs
REC
LGC
STC
• large-scale generation
• small-scale technology
certificate
• renewable energy power
stations
• equivalent to 1MWh
• surrendered annually
certificate
• eligible SWHs and
SGUs
• equivalent to 1MWh
generated or displaced
unless multiplier applies
• surrendered quarterly
Transitionals for RECs
Power station RECs
Power station LGCs
SWH/SGUs installed
LGCs – creation within 12 months
SWH/SGUs installed - STCs
SWH/SGUs installed with
eligible contract on or before
25 February 2010 - LGCs
1 January 2011
Register split
Register of Renewable
Energy Certificates
(RECs)
Register of Large-scale
Generation Certificates
(LGCs)
• Including Register of RECs
Register of Small-scale
Technology Certificates
(STCs)
1 January 2011
Legislated Annual Renewable Energy Targets
45,000
40,000
35,000
Modified 2010 Target
Original 2001 Target
30,000
Example of S40 (1A) 34,500 GWh adjustment
GWh
25,000
20,000
15,000
10,000
5,000
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
Directing questions
Department of Climate Change and Energy Efficiency
responsible for policy – ret@climatechange.gov.au
ORER responsible for administration and implementation.
© Geoscience Australia and ABARE, 2010. Material source: Australian Energy Resource Assessment
Thank you
Compliance Activities to date
ACTIVITY
2009/2010
2010/2011 YTD
Site visits
602
23
Outreach Visits
28
2
Warrants Executed
9
1
Compliance Visits
39
7
Agents Suspended
2
0
Regulations – off-grid multiplier
Amendments to the Act allow for an off-grid
multiplier
Increase in kW capacity limit for Solar Credits
multiplier for eligible off-grid installations
Subject to an annual cap
Period of small generation unit installation
Number
1 July 2010 to 30 June 2011
250 000
1 July 2011 to 30 June 2012
250 000
1 July 2012 to 30 June 2013
250 000
1 July 2013 to 30 June 2014
150 000
1 July 2014 to 30 June 2015
100 000
Australian Electricity Regulatory Environment
AER - Australian Energy
Regulator - part of ACCC
(Australian Competition &
Consumer Commission)
Council of Australian
Governments (COAG)
& Ministerial Council on
Energy (MCE)
Australian Energy Market
Commission (AEMC)
Western Aust. & NT
electricity regulators
AEMO - Australian
Energy Market Operator
Merging of six industry
bodies from gas and
electricity markets.
Ownership 40% market
participants and 60%
Government.
SWIS, DKS, Mt Isa,
Pilbara, Gove, Telfer Mt
Keith/Leinster grids
Office of the
Renewable Energy
Regulator (ORER)
• Administers the
national renewable
electricity legislation,
•Target is 20% of
renewable electricity
by 2020,
• Established 2001,
© Geoscience Australia and ABARE, 2010. Material source: Australian Energy Resource Assessment