Renewable Energy (Electricity) Amendment Regulations 2011 (No. 4)

Overview

The Renewable Energy (Electricity) Amendment Regulations 2011 (No. 4) were enacted to amend the Renewable Energy (Electricity) Regulations 2001, which provide an administrative framework for the implementation of the Renewable Energy (Electricity) Act 2000. This legislation was introduced by the Commonwealth Parliament to establish the Renewable Energy Target (RET) scheme, with the aim of promoting electricity generation from renewable sources, ultimately ensuring that 20 per cent of Australia’s electricity supply is generated from renewable sources by 2020. The Regulations increase the fee for the registration of small-scale technology certificates (STCs) created from small generation units (SGUs) under the Small-scale Renewable Energy Scheme (SRES) component of the RET scheme, from $0.08 to $0.47. This fee increase is intended to partially recover the costs associated with the on-site component of the SGU inspection regime, which was introduced in mid-2010. The Regulations apply to STCs created on or after 17 October 2011, while the registration fee for STCs created prior to this date remains unchanged. The fee for STCs for solar and heat pump hot water systems also remains unchanged. The policy objective of these Regulations is to ensure the efficient administration of the SGU inspection regime by partially recovering the associated costs through the increased registration fee for STCs. The Regulations were developed following public consultation, which sought feedback on the technical and operational aspects of the fee increase. This legislative instrument aims to strike a balance between encouraging the adoption of renewable energy technologies and managing the administrative costs associated with the implementation of the RET scheme.

Scope and Application

The Renewable Energy (Electricity) Amendment Regulations 2011 (No. 4) pertain to the Renewable Energy (Electricity) Act 2000, which establishes the Renewable Energy Target (RET) scheme to promote electricity generation from renewable sources. The Act applies to wholesale electricity purchasers, referred to as 'liable entities', who are required to contribute to the RET in proportion to their share of the national wholesale electricity market. The RET operates through two components: the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES). The Act also pertains to renewable energy generators, small generation units (SGUs), and solar water heaters, which are eligible to create renewable energy certificates. These certificates represent one megawatt-hour of electricity from eligible energy sources. The Regulations amend the Renewable Energy (Electricity) Regulations 2001 to increase the fee for the registration of small-scale technology certificates (STCs) created from SGUs under the SRES, from $0.08 to $0.47, effective from 17 October 2011. The fee increase aims to partially recover the costs of the on-site inspection regime for SGUs introduced in mid-2010. The Regulations apply nationally across Australia and are administered by the Office of the Renewable Energy Regulator.

Key Provisions

The Renewable Energy (Electricity) Amendment Regulations 2011 (No. 4) primarily serve to adjust the fee structure for the registration of small-scale technology certificates (STCs) under the Small-scale Renewable Energy Scheme (SRES) component of the Renewable Energy Target (RET) scheme. The primary provision of these regulations is found in Regulation 3, which amends subregulation 28(3) of the Renewable Energy (Electricity) Regulations 2001 (Principal Regulations). Specifically, it increases the registration fee for STCs created from small generation units (SGUs) from $0.08 to $0.47, effective for STCs created on or after 17 October 2011. This fee adjustment aims to partially recover the costs associated with the on-site inspection regime introduced for SGUs in mid-2010. These regulations impose specific obligations on liable entities and renewable energy generators involved in the RET scheme. Liable entities, which include wholesale electricity purchasers, must ensure their contributions to the RET are accurately reflected in the number of STCs they acquire. Renewable energy generators, particularly those operating SGUs, must now account for the increased registration fee when generating and registering their STCs. The regulations also mandate that STCs are not valid until they have been registered, and registration is contingent upon the payment of the prescribed fee, as stipulated in section 26(3A) of the Act. Breaches of the Renewable Energy (Electricity) Act 2000 and its regulations can lead to various consequences. For instance, failure to comply with the requirements for registering STCs may result in these certificates being deemed invalid, thus undermining the generator's contribution to the RET. While the Act does not explicitly outline civil or criminal penalties for such breaches, non-compliance could potentially lead to financial penalties or legal action under related provisions of the Act. The exact nature and extent of these penalties would be determined by the specific circumstances of the breach and the applicable regulatory framework.