Renewable Energy (Electricity) Amendment Regulations 2002 (No. 1)

Renewable Energy (Electricity) Amendment Regulations 2002 (No. 1) 2002 No. 48

EXPLANATORY STATEMENT

Statutory Rules 2002 No. 48

Minute No. of 2002 - Minister for the Environment and Heritage

Subject - Renewable Energy (Electricity) Act 2000

Renewable Energy (Electricity) Amendment Regulations 2002 (No. 1)

Subsection 161 (1) of the Renewable Energy (Electricity) Act 2000 (the Act) provides that the Governor-General may make Regulations prescribing all 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. Subsection 161 (2) provides that the draft Regulations must be available for public comment for a period not less than 30 days before the Regulations are made.(1)

The Act provides the legislative framework for the implementation of the Government's mandatory renewable energy target, announced by the Prime Minister on 20 November 1997. The mandatory renewable energy target (the target) is designed to increase the amount of electricity in Australia that has been generated from renewable energy sources. By 2010, an additional 9,500 GWh (Giga Watt hour) of electricity will be required to be supplied from renewable energy sources, to raise the contribution that renewable energy sources make to Australia's electricity supply to around 12 percent.

The Act puts into place the target by establishing a legal requirement for wholesale purchasers (liable parties) of electricity to increase the amount of electricity they buy from renewable energy sources or pay a penalty (Parts 3 and 4). The Act establishes the framework for renewable energy generators (eligible parties) to create 'renewable energy certificates' (Part 2) which can be sold to liable parties and surrendered (Part 5) to a Renewable Energy Regulator to demonstrate compliance with the requirements of the Act.

The purpose of the Regulations is to amend the Renewable Energy (Electricity) Regulations 2001 with minor changes to the inclusion of solar water heaters under the target.

The Regulations would:

•       extend the period, from 1 January 2002 to 1 July 2002, for solar water heater manufacturers to demonstrate certification against Australian Standard 2712:1993 (AS2712:1993). AS2712:1993 relates to the construction and design of solar water heaters. AS2712:1993 is being amended to reflect developments in the technology supporting several new solar water heaters that are currently available on the market and will be replaced later this year by a new version of the Standard. By waiting for the revised Standard solar water heater manufacturers will have a greater chance of having their models certified to the new Standard (Item 1 of Schedule 2 refers);

•       add further solar water heater models to the eligibility tables in the regulations and consolidate various parts of this table. When new solar water heaters are listed, homeowners who install them will be able to access financial incentives. The Regulations will add 95 additional eligible solar water heaters (Item 4 of Schedule 3 refers);

•       add an additional eligibility requirement for solar water heaters to contribute towards the target. The amendment will allow consumers who install a solar water heater on an existing commercial premises or house, where a water heating device has not previously been installed, to contribute towards the target. (Item 1 of Schedule 1 refers); and

•       specify the Renewable Power Percentage (RPP) for 2002, which, when used in a set formula calculates the number of renewable energy certificates that liable parties have to surrender to the Government to avoid a penalty (Item 3 Schedule 3 refers).

Details of the Regulations are set out in the Attachment.

The Regulations would commence as follows:

•       Regulations 1 to 3 and Schedule 1 to commence on 1 April 2001 (backdated to the commencement of the Act and the original Regulations);

•       Schedule 2 to commence on 1 January 2002 (to take effect immediately following the expiry of the previous provision); and

•       Schedule 3 to commence upon gazettal.

The backdating of eligibility of certain solar water heaters will not breach subsection 48 (2) of the Acts Interpretation Act 1901 as the retrospective nature of the amendment will not disadvantage any person.

The Minute recommends that the Regulations be made in the form.

(1) I confirm that in accordance with subsection 161 (2) of the Act, the Regulations have been available for public comment for a period of no less than 30 days.

Attachment

Details of the Renewable Energy (Electricity) Amendment Regulations 2002 (No. 1)

Regulation 1 - Name of Regulations

This provides that the name of the regulations is the Renewable Energy (Electricity) Amendment Regulations 2002 (No. 1).

Regulation 2 - Commencement

This provides for regulations 1 to 3 and Schedule 1 to commence on 1 April 2001.

This provides for Schedule 2 to commence on 1 January 2002.

This provides for Schedule 3 to commence upon gazettal.

Regulation 3 - Amendment of the Renewable Energy (Electricity) Regulations 2001

This regulation provides for Schedule 1, 2 and 3 of the amendment regulations to amend the Renewable Energy (Electricity) Regulations 2001.

Schedule 1 Amendments

Item 1 of Schedule 1 - Paragraph 19 (1) (aa)

A solar water heater must displace electricity to be eligible under the Act. These amendments provide that a solar water heater displaces electricity if it is the first installation of a water heater in an existing building.

Schedule 2 Amendments

Item 1 of Schedule 2 - Subregulation 3 (4), definition of solar water heater

This amendment extends the timeframe by which solar water heater manufacturers must demonstrate certification against Australian Standard 2713:1993 from
1 January 2002 to 1 July 2002.

Schedule 3 Amendments

Item 1 of Schedule 3 - Paragraph 3 (3) (a)

This amendment provides that a customer may claim renewable energy certificates for the installation of their solar water heater only from the date mentioned in Part 2 of Schedule 7.

Item 2 of Schedule 3 - Paragraph 19 (3) (b)

This amendment provides that the number of renewable energy certificates a solar water heater installation is eligible for is determined by; the postcode location (mentioned in Part 1 of Schedule 7), and the date of installation mentioned in Part 2 of Schedule 7.

Item 3 Schedule 3 - Regulation 23

This amendment inserts the Renewable Power Percentage for 2002, which is 0.62%.

Item 4 Schedule 3 - Schedule 7, Parts 2 and 3

This amendment inserts a consolidated Part 2 to Schedule 7. The consolidated list incorporates into one list solar water heaters listed in the existing Parts 2 and 3 and adds an additional 95 solar water heater model names. In the consolidated list, adjustments have been made to existing solar water heater model names and to Renewable Energy Certificate (REC) values for some systems as a result of improvements to the REC calculation methodology. RECs for solar water heaters with a capacity of 400L have been adjusted across all Zones and solar water heaters with a capacity of 300L have been adjusted for Zone 4 only.

The models listed in the Schedule would be eligible for certificates from the date that they commenced the process of certification under Australian Standard 2712. This date is listed in the Date column.