Commonwealth of Australia Explanatory Memoranda

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CLEAN ENERGY SECURITY BILL 2009

                     2008-2009




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




           HOUSE OF REPRESENTATIVES




           Clean Energy Security Bill 2009




           EXPLANATORY MEMORANDUM




              (Circulated by authority of
               Hon Wilson Tuckey MP )
                          CLEAN ENERGY SECURITY 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
gigawatt hours of the ultimately available 45,000 gigawatt hour renewable target.


Schedule 2: this amendment will also recognise 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 one-third 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 a 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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