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RENEWABLE ENERGY (ELECTRICITY) AMENDMENT REGULATIONS 2005 (NO. 3) (SLI NO 255 OF 2005)
Renewable Energy (Electricity) Amendment Regulations 2005 (No. 3)
The Renewable Energy (Electricity) Act 2000 (the Act) underpins the Mandatory Renewable Energy Target (MRET). MRET creates a guaranteed market for an additional 9,500 gigawatt hours per year of renewables-based electricity by 2010. The legislation places a legal liability on wholesale purchasers of electricity (retailers and large users) to contribute proportionately towards annual targets which ramp up to 9,500 gigawatt hours in 2010, and remain at that level until the measure expires in 2020. The measure provides that one Renewable Energy Certificate may be created for each megawatt hour of electricity generated by accredited power stations using eligible renewable energy sources.
Section 161 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
Section 17 provides that the Regulations may prescribe matters necessary or convenient to give effect to what is an eligible renewable energy source. Section 23B provides that the number of renewable energy certificates for a particular installation of Small Generation Unit is to be determined by the Regulations.
The purpose of the Regulations is to amend the Renewable Energy (Electricity) Regulations 2001 to reflect the Government’s agreement to adopt a number of recommendations from the 2003 Review of MRET. These amendments will provide the bioenergy and solar technology sectors with opportunities to achieve a greater participation under the measure.
The changes:
· remove the primary purpose test from energy crops as an eligible renewable energy source, but clarifies that biomass from native forests is not an energy crop;
· increase the threshold generating capacity for photovoltaic (PV) Small Generation Units to 100kW and provide PV units with an option to create 15 years of Renewable Energy Certificates in a one-off up-front transaction; and;
· redefine Small Generation Units.
Details of the Regulations are set out in Attachment A.
Subsection 161(2) of the Act specifies that draft regulations must be available for public comment for a period of not less than 30 days before the regulations are made. This condition has been met.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulations commenced on 14 November 2005.
Attachment A
Details of the Renewable Energy (Electricity) Amendment Regulations 2005 (No 3)
Part 1 - Preliminary
This provides that the name of the regulations is the Renewable Energy (Electricity) Amendment Regulations 2005 (No. 3).
This provides for the regulations to commence on 14 November 2005.
3 – Amendment of Renewable Energy (Electricity) Regulations 2001.
This provides that Schedule 1 amends the Renewable Energy (Electricity) Regulations 2001.
Item [1] Subregulation 3(2)
This clarifies the definition of hydro and wind small generation units and amends the threshold generating capacity of photovoltaic small generation units from 10kW to 100kW.
This change removes the primary purpose test from energy crops, but specifies that biomass from a native forest should not be considered an energy crop.
Items [3] and [4] Paragraph 20(1)(a) and Paragraph 20(1)(b)
This removes references in Regulation 20 to the kilowatt rating of small generation units as the kilowatt rating is already specified in Subregulation 3(2). The schedules will now have a limit of 10kW installed or 25MWh of generation for hydro and wind small generation units, and a limit of 100kW installed or 250MWh of generation for photovoltaic small generation units.
Item [5] Subregulation 20(6)
Subregulation 6 specifies that parties wishing to claim certificates in respect of the installation of small generation units can create their certificates annually or upfront in bundles of 5 years. Where the creator of the certificates elects to create certificates each 5 years, subsequent allocation of certificates cannot be claimed until the Regulator has been provided with sufficient information to satisfy them that the system is still installed and is likely to remain operational for the next 5 year period.
This change provides parties wishing to claim certificates for a photovoltaic small generation unit installed after 31 July 2005 with a further option of creating 15 years of certificates in a one-off up-front transaction (referred to as the 15 year deeming option). Where the creator of the certificates elects to claim 15 years of certificates, no subsequent certificates may be created for the unit, including if the unit is reinstalled in the same or different location.
Where the creator of certificates elects to create certificates for a photovoltaic small generation unit either annually or upfront in bundles of 5 years, the creator cannot create certificates under the 15 year deeming option.