Amendments to the legislation from the Review of MRET Operation
The Office of the Renewable Energy Regulator, updated 07 September 2009
A review to assess the efficiency and effectiveness of the Mandatory Renewable Energy Target (MRET), and its implementation, administration and operation of the Act, was conducted during 2003, the third year of operation of the MRET. The review was conducted by a panel independent of the Australian Government.
As part of the Australian Government's response to the review, an Amendment Bill was introduced into the parliament in 2006. The Renewable Energy (Electricity) Amendment Act 2006 was passed by the parliament on 22 June 2006 and received Royal Assent on 30 June 2006. The legislation commenced on 11 September 2006.
Amendments to the Act
Amendments to the Renewable Energy (Electricity) Act 2000 included:
- allowing for recent reforms in the National Electricity Market and potential new market operators;
- setting time-limits for the creation of renewable energy certificates and providing the opportunity to voluntarily surrender certificates;
- providing for provisional accreditation of proposed generation projects, establishing timeframes for determining the eligibility of proposed projects by the Renewable Energy Regulator and clarifying the components of a power station;
- allowing for the publication of additional data on baselines and renewable electricity generation;
- clarifying the provisions and definitions in the Act for Eligible Renewable Energy Sources and providing increased opportunities for bioenergy;
- clarifying the provisions with respect to the claiming of renewable energy certificates associated with solar water heaters and small generation units;
- clarifying the provisions in relation to the eligibility of solar water heaters and expediting the process by which certificates can be claimed for new solar water heater models as they become commercially available;
- clarifying the provisions in relation to a relevant acquisition of electricity to ensure that only one entity is made liable in relation to the purchase of a particular quantum of electricity;
- providing the Renewable Energy Regulator with the power to vary a number of assessments and determinations under the Act, including varying the annual energy acquisition statement, renewable energy shortfall statement and the 1997 eligible renewable energy baselines for accredited power stations;
- providing the Renewable Energy Regulator with information gathering powers to enable the effective monitoring and compliance with the provisions of the legislation;
- allowing for the suspension of an accredited power station under a number of circumstances including where gaming is suspected; that is, whereby power station outputs are manipulated to increase the number of renewable energy certificates that can be created without increasing renewable energy generation; and
- removing a statutory requirement to expose new or amended regulations to a 30-day public consultation process.
Amendments to the regulations
In addition to the legislation changes, consequential amendments are required to the Renewable Energy (Electricity) Regulations 2001 (the Regulations).
The first amendment was conducted by the Australian Greenhouse Office and allows for the commencement of new electricity market arrangements in Western Australian that commenced on 21 September 2006. This amendment provides a definition of the Independent Market Operator (IMO) in Western Australia and inserts Regulation 21A to provide that the IMO is a prescribed body for paragraphs 31(2)(c) and 32(1)(a) and Section 34 of the Renewable Energy (Electricity) Act 2000. This has the effect that an acquisition of electricity by IMO is not a relevant acquisition, and that an acquisition of electricity from the IMO is a relevant acquisition for the purposes of the Act.
The second and final amendment process for the Regulations as part of the legislation review changes was conducted by the Australian Greenhouse Office and come into effect on 6 October 2007. The amendment process includes:
- clarifying definitions;
- further defining requirements for Energy Generation Returns;
- providing requirements for Solar Water Heater and Small Generation Unit Returns;
- clarifying the meanings of eligible renewable energy sources and sources that are not eligible renewable energy sources;
- clarifying the eligibility criteria relevant to the treatment of native forest wood waste;
- redefining plantations as energy crops and broadening the definition of municipal solid waste;
- clarifying the circumstances under which the Regulator can suspend an accredited power station;
- clarifying the circumstances under which a variation of 1997 eligible renewable power baselines is possible;
- clarifying the components for a power station and calculation of the electricity generation for a power station;
- clarifying the determination of fees for the provisional accreditation of power stations;
- providing details for a register of solar water heaters;
- clarifying the arrangements in respect to when a solar water heater and small generation unit is taken to have been installed;
- clarifying the arrangements in respect to claiming renewable energy certificates for solar water heaters and small generation units;
- clarifying the determination of administration fees for the surrender of renewable energy certificates when a renewable energy shortfall charge is redeemed; and
- allowing for reforms in the National Electricity Market.
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