Commonwealth of Australia Explanatory Memoranda

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GEOTHERMAL AND OTHER RENEWABLE ENERGY (EMERGING TECHNOLOGIES) AMENDMENT BILL 2009 (NO. 2)

                        2008-2009




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                       THE SENATE




      Geothermal and Other Renewable Energy
   (Emerging Technologies) Amendment Bill 2009




             EXPLANATORY MEMORANDUM




 (Circulated by authority of Senator the Hon Nick Minchin)


Geothermal and Other Renewable Energy (Emerging Technologies) Amendment Bill 2009 OUTLINE This Bill seeks to ensure that emerging renewable energy source electricity will be able to gain a share of the guaranteed renewable energy market in accordance with the table set out in the Bill. Geothermal technology is included in the title of the Bill to stress the importance of this emerging technology. FINANCIAL IMPACT There is no identifiable budgetary impact. NOTES ON CLAUSES Clause 1 - Short title Provides for the Act to be cited as the Geothermal and Other Renewable Energy (Emerging Technologies) Act 2009. Clause 2 - Commencement This clause provides that the Act commences on the day on which it receives the Royal Assent. Clause 3 - Schedules Provides that each Act that is specified in a schedule is amended or repealed as set out in the applicable items in the Schedule and that any other item in a Schedule has effect according to its terms.


Schedule 1 - Amendment of the Renewable Energy (Electricity) Act 2000 Item 1 After paragraph 39(3)(a) Insert: (aa) for a year after 2014 and before 2031--the required GWh of emerging renewable energy source electricity for the year; and Item 2 At the end of Division 2 of Part 4 Add: 40A Required GWh of emerging renewable energy source electricity (1) The required GWh of emerging renewable energy source electricity for a year is set out in the following table: Required GWh of emerging renewable energy source electricity Year GWh 2015 1375 2016 2875 2017 4375 2018 5875 2019 7375 2020 8875 2021 8875 2022 8875 2023 8875 2024 8875 2025 8875 2026 8875 2027 8875 2028 8875 2029 8875 2030 8875 (2) The required GWh of emerging renewable energy source electricity for a year specified in subsection (1) is a component of the required GWh of renewable source electricity for that year specified in subsection 40(1). (3) The following table sets out the emerging technologies and their features that qualify as providing emerging renewable energy source electricity for the purposes of subsection (1):


Type of technology Solar thermal energy · Evacuated-tube collectors or Solar concentrator · Parabolic-trough collectors energy · Dish/engine systems · Power towers · Transpired collectors (heating Geothermal energy · Flash steam power plants · Dry steam power plants · Binary cycle power plants · Direct use geothermal (hot water systems) · Geothermal heat pumps (heating Ocean thermal · Closed cycle electricity conversion energy systems · Open cycle electricity conversion systems · Hybrid systems (a combination of closed and open cycle systems) Tidal energy Wave energy conversion systems: · Channel systems · Float systems · Oscillating water column systems Biofuels · Bioethanol · Biodiesel · Methane (produced by anaerobic digestion) Biopower (or Biomass · Direct-fired biopower plants power) · Co-firing biopower plants · gasification (e.g. Integrated Gasification Combines Cycle (IGCC) coal-based power generation (4) The regulations may provide for additional emerging technologies to be added to the table in subsection (3). (5) A generation unit for a technology listed in subsection (3) must be 1 MW capacity or greater to qualify as emerging capacity capable of providing emerging renewable energy source electricity for the purposes of subsection (1). (6) The regulations must make provision for the inclusion of emerging renewable energy source electricity in relation to: (a) the acquisition of electricity by a liable entity; (b) the creation and transfer of certificates; (c) the calculation of the renewable power percentage for a year; (d) the required renewable energy of a liable entity for a year;


(e) the surrender of certificates by a liable entity for a year (f) the renewable energy certificate shortfall of a liable entity for a year.


 


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