Commonwealth of Australia Explanatory Memoranda

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RENEWABLE ENERGY (CERTIFICATES AND OTHER MATTERS) AMENDMENT BILL 2009

                               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.

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