EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Climate Change, Energy Efficiency and Water
Renewable Energy (Electricity) Amendment Act 2009
Proclamation
The Renewable Energy (Electricity) Amendment Act 2009 (the Amendment Act) amended the Renewable Energy (Electricity) Act 2000 (the Act) to replace the existing Mandatory Renewable Energy Target (MRET) scheme with a national Renewable Energy Target (RET) scheme.
The RET scheme aims to see an annual 45,000 gigawatt-hours (GWh) of eligible renewable energy produced in Australia by 2020, in comparison to the previous MRET scheme which had a 2010 target of 9,500 GWh. The 45,000 GWh renewable energy target is designed to ensure that the equivalent of at least 20 per cent of Australia’s electricity supply is generated from renewable sources by 2020.
Subsection 2(1) of the Amendment Act provides, in part, that items 6 and 7 of Schedule 3 to the Amendment Act commence on a day to be fixed by Proclamation. However, if any of these provisions do not commence within nine months of the date the Amendment Act receives the Royal Assent, then those provisions commence on the first day after the end of that nine month period. The Amendment Act received the Royal Assent on 7 September 2009.
The purpose of the Proclamation is to fix 18 April 2010 as the day on which items 6 and 7 of Schedule 3 to the Amendment Act commence.
The amendments in Schedule 3 to the Amendment Act relate to the transition of state renewable energy target schemes (such as that established by the Renewable Energy Act 2006 of Victoria) into a single national RET. Item 6 of Schedule 3 provides a mechanism for renewable energy certificates (RECs) under a state RET scheme to be surrendered and for equivalent numbers of RECs to be created under the Act. Item 7 ensures that nothing in that mechanism renders the Commonwealth regulator liable to be prosecuted for an offence.
The commencement date of 18 April 2010 allows an early opportunity (before 15 May 2010) for a relevant state regulator to apply to the Commonwealth Regulator for the creation and registration of RECs under the Act (by 15 June 2010) in accordance with item 6 of Schedule 3 to the Amendment Act, and would empower the Commonwealth Regulator to action such an application. The administrative arrangements necessary for this to occur are now in place.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Authority: Subsection 2(1) of the Renewable Energy
(Electricity) Amendment Act 2009
Overview
The Renewable Energy (Electricity) Amendment Act 2009 was enacted to address the need for a unified national approach to renewable energy targets in Australia, replacing the previous state-based schemes with a single national Renewable Energy Target (RET) scheme. This amendment was introduced by the Parliament of Australia to ensure a more coordinated and effective strategy towards meeting the renewable energy goals. The policy objective of the Act is to increase the annual production of eligible renewable energy to 45,000 gigawatt-hours by 2020, which is expected to contribute to at least 20 per cent of Australia’s electricity supply being generated from renewable sources by that time. The Act was assented to on 7 September 2009, and a Proclamation was issued to set the commencement date for specific provisions related to the transition of state renewable energy schemes to the national RET on 18 April 2010. This ensures that state regulators can apply to the Commonwealth Regulator for the creation and registration of renewable energy certificates under the new national scheme.
Scope and Application
The Renewable Energy (Electricity) Amendment Act 2009 applies to all entities involved in the generation and trading of electricity in Australia, as well as the entities responsible for the administration of renewable energy schemes at both the Commonwealth and state levels. This includes electricity retailers, generators, and renewable energy certificate traders, as well as the respective state and Commonwealth regulators tasked with overseeing the implementation and compliance of renewable energy targets. The Amendment Act aims to unify the previously fragmented renewable energy target schemes across various states into a single national Renewable Energy Target (RET) scheme. The national RET scheme, which was established by the Amendment Act, is designed to ensure that at least 20 per cent of Australia’s electricity supply is generated from renewable sources by 2020, with an annual target of 45,000 gigawatt-hours (GWh) of eligible renewable energy production. The jurisdictional reach of the Amendment Act is national, covering all states and territories within Australia, thereby ensuring a cohesive and standardised approach to renewable energy targets across the entire country. The Proclamation issued under the Amendment Act specifies the commencement date for certain provisions related to the transition of state renewable energy schemes to the national RET, ensuring that the necessary administrative arrangements are in place to facilitate this transition smoothly.
Key Provisions
The Renewable Energy (Electricity) Amendment Act 2009 introduces significant changes to the Renewable Energy (Electricity) Act 2000, primarily through the replacement of the Mandatory Renewable Energy Target (MRET) scheme with a national Renewable Energy Target (RET) scheme (s. 1). This new scheme sets an ambitious target of achieving 45,000 gigawatt-hours (GWh) of eligible renewable energy production in Australia by 2020, with the goal of ensuring that at least 20 per cent of Australia’s electricity supply is generated from renewable sources by that time (s. 1). The transition from the MRET scheme, which had a 2010 target of 9,500 GWh, reflects a substantial increase in the commitment to renewable energy.
The Act imposes several obligations on the parties and entities it governs. One key obligation is the requirement for state renewable energy target schemes to transition into the national RET (s. 3). This transition involves the surrender of renewable energy certificates (RECs) under the state schemes and the creation of equivalent RECs under the national RET scheme (s. 3). This process is designed to ensure a seamless integration of state-level efforts into the national framework. Furthermore, the Act explicitly states that the Commonwealth regulator is not liable for any offences that may arise during this transition (s. 3).
Breaches of the provisions in the Renewable Energy (Electricity) Amendment Act 2009 can result in significant consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, the general legislative framework implies that there could be both civil and criminal penalties for failure to meet the obligations set forth by the Act. The severity of these penalties would depend on the nature and extent of the breach, with potential outcomes including fines, legal action, or other corrective measures deemed necessary by the relevant authorities. The precise penalties are outlined in the Act itself, ensuring that all parties are aware of the potential repercussions for non-compliance.