Electricity Feed-in (Large-scale Renewable Energy Generation) Act 2011

This Act is the Electricity Feed-in (Large-scale Renewable Energy Generation) Act 2011.

The dictionary at the end of this Act is part of this Act.

Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere.

For example, the signpost definition ‘distribution system—see the National Electricity (ACT) Law, section 2.’ means that the term ‘distribution system’ is defined in that section and the definition applies to this Act.

Note 2 A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).

A note included in this Act is explanatory and is not part of this Act.

Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

Part 2 Objects and important concepts

The objects of this Act are to—

promote the establishment of large-scale facilities for the generation of electricity from a range of renewable energy sources in the Australian capital region and other places; and

promote the development of the renewable energy generation industry in the ACT and Australia consistent with the development of a national electricity market; and

reduce the ACT’s contribution to greenhouse gas emissions and help achieve targets to reduce the ACT’s greenhouse gas emissions; and

address the need for urgent action to be taken to reduce reliance on non-renewable energy sources while minimising the cost to electricity consumers.

In this Act:

large renewable energy generator means a generating system that—

generates electricity using a renewable energy source; and

has a capacity of more than 200kW.

renewable energy source means any of the following energy sources:

solar;

wind;

another energy source declared by the Minister under subsection (2).

The Minister may declare an energy source to be a renewable energy source.

A declaration is a disallowable instrument.

For this Act, the capacity, of a generating system, is the maximum power, expressed in megawatts, that can be delivered by the system at the point where it connects to the interconnected national electricity system.

However, if the Minister makes a determination under subsection (3), the capacity of the system is the capacity worked out in accordance with the determined method.

The Minister may determine a method for measuring the capacity of a system that generates electricity using a renewable energy source.

Also, for a system that generates electricity using a renewable energy source and a non-renewable energy source, the Minister may determine a method for working out the part of the system that generates electricity using a renewable energy source.

A determination is a disallowable instrument.

For this Act, a reference to the Renewable Energy (Electricity) Act 2000 (Cwlth) includes a reference to a regulation made under that Act.

Part 3 FiT entitlements

Division 3.1 Preliminary

In this Act:

FiT entitlement means a right for the holder of a FiT entitlement to receive FiT support payments under part 4 for the holder’s eligible electricity.

The total capacity of the generating systems of large renewable energy generators in relation to which FiT entitlements may be held under this Act (the FiT capacity) is 900MW.

Division 3.2 Releasing FiT capacity

The Minister may determine that a stated part of the FiT capacity (a FiT capacity release) is to be made available for the grant of FiT entitlements.

The determination must state—

whether the FiT capacity release will be made available by a competitive process or by direct grant to any person the Minister considers appropriate; and

the following in relation to any FiT entitlement that may be granted under the release:

the term (not longer than 20 years) of the entitlement;

the kind of renewable energy source that must be used;

whether a large renewable energy generator must be located within—

the ACT; or

the Australian capital region; or

a participating jurisdiction; and

Note Participating jurisdiction—see s (6).

for a release to be made available by direct grant—any criteria a person, or a person’s proposal, must meet to be eligible for a direct grant.

The determination may state the minimum capacity of a large renewable energy generator’s generating system in relation to which a FiT entitlement may be granted under the FiT capacity release.

In deciding whether to make a FiT entitlement available by direct grant, the Minister must have regard to—

the advantages and disadvantages to the Territory of not undertaking a competitive process; and

the objects of the Act.

A determination is a disallowable instrument.

In this section:

participating jurisdiction—see the National Electricity (ACT) Law, section 2.

The Minister may grant a person a FiT entitlement under a FiT capacity release in relation to a large renewable energy generator located—

in the Australian capital region; or

outside the Australian capital region if the Minister is satisfied that the person’s proposal—

offers exceptional economic development benefits to ACT renewable energy industries; and

minimises costs to electricity consumers.

However, the Minister must not grant a person a FiT entitlement if the grant would cause the FiT capacity release to be exceeded.

The Minister must not grant a FiT entitlement under a FiT capacity release before—

if there is a motion to disallow the determination under section 10 for the release and the motion is negatived by the Legislative Assembly—the day after the motion is negatived; or

the day after the 6th sitting day after the determination for the release is presented to the Legislative Assembly under the Legislation Act, chapter 7; or

if the determination for the release provides for a later date or time for the grant of the entitlement—that date or time.

Subsection (3) is subject to any disallowance or amendment of the determination under the Legislation Act, chapter 7.

In granting a FiT entitlement, the Minister must have regard to the following:

probity and ethical behaviour;

management of risk to the Territory;

the objects of this Act;

if the entitlement is granted under a FiT capacity release made available by a competitive process—open and effective competition.

The grant of a FiT entitlement must state the following:

the name of the holder of the entitlement;

the term (not longer than 20 years) of the entitlement;

when the term of the entitlement starts;

the amount of the feed-in tariff;

the requirements for the large renewable generator, including—

the kind of renewable energy source that must be used; and

the capacity of the generator’s generating system;

a description of the generator;

Example the generator’s plant specification

whether large-scale generation certificates for eligible electricity generated by the large renewable energy generator must be transferred to the Territory under the Renewable Energy (Electricity) Act 2000 (Cwlth).

The grant of a FiT entitlement is a notifiable instrument.

A FiT entitlement is subject to the following conditions:

that the large renewable energy generator complies with—

the requirements for the generator stated in the grant under section 11 (6) (e); and

the description of the generator stated in the grant under section 11 (6) (f);

that the holder of the FiT entitlement complies with—

any requirement in relation to renewable energy certificates stated in the grant under section 11 (6) (g); and

all laws relating to the construction, connection or operation of the large renewable energy generator; and

any written agreement the Minister requires the holder to enter into under subsection (3);

any other condition imposed by the Minister that the Minister considers appropriate to protect the interests of the Territory or promote the objects of the Act.

The conditions imposed under subsection (1) (c) may include conditions about any of the following:

establishing a schedule for construction of the large renewable energy generator and meeting stated deadlines in relation to its construction;

complying with a stated law in relation to the construction, connection or operation of the large renewable energy generator within a stated time;

establishing and meeting stated deadlines in relation to financing arrangements necessary for the construction, connection or operation of the large renewable energy generator;

entering into an agreement with a network service provider to connect the large renewable energy generator to the interconnected national electricity system within a stated time;

connecting the large renewable energy generator to the interconnected national electricity system and supplying electricity to the system within a stated time;

where a large renewable energy generator must be located and connected to the interconnected national electricity system;

the kind of generating system that must be used;

the minimum quantity of eligible electricity that must be generated by the large renewable energy generator in a stated time;

the maximum quantity of eligible electricity, in a financial year, in relation to which the holder is entitled to be paid a FiT support payment;

allowing reasonable access to the premises of the holder of a FiT entitlement and where the large renewable energy generator is located to check the holder’s compliance with the conditions of the FiT entitlement;

amending a FiT entitlement, including imposing a new condition or amending an existing condition.

The Minister may require the holder of a FiT entitlement to enter into a written agreement (however described) with the Territory, on terms approved by the Minister, in relation to the entitlement.

Division 3.3 Dealing with FiT entitlements