Hon Robin Chapple questions Western Power's limit on independent renewable energy capacity, suggesting it hinders WA's ability to meet federal renewable energy targets and may be anti-competitive. The Minister defends the limit as an initial step and emphasizes Western Power's commercial obligations.

AnsweredQoN 632Legislative Council
Asked
9 May 2002
Portfolio
Energy

QuestionView source ↗

35MW is less than one percent of the current installed capacity in the SWIS ie. nearly 4000MW in total -
(1) Why is Western Power limiting the amount of independent renewable capacity to under one percent of SWIS, instead of thinking of ways to encourage private sector and community participation in renewable projects to support the Government’s Sustainability policy?
(2) The Federal Government aims at achieving two percent of total generation in Australia in renewable energy. Does the Minister consider that Western Power’s one percent limit placed on independent renewable capacity may be making it more difficult for Western Australia to achieve the Federal target?
(3) Does the Minister consider that if Western Power aims to achieve the Federal two percent target itself, then this may be seen as anti-competitive as it aims at preserving a market share for Western Power through arbitrary regulation?
(4) Does the Minister consider that this could be a concern for Western Power under the
Trade Practices Act
?

AnswerView source ↗

Answered
18 June 2002
Responded by
Minister for Housing and Works representing the Minister for Energy
Response time
40 days
The intent of the initial access arrangements is to facilitate the development of small renewable energy projects by providing relaxation of some of the normal conditions for network access. It is certainly anticipated that there will be larger renewable generators connecting to the network and these will be the subject to individual network impact studies. (2) The Minister notes that the two percent target is for 2010. As the 35 MW limit is only an initial part of the orderly development of access for renewable generators, adopting a cap and allowing robust access regime conditions to develop as experience is gained will help to bring forward renewable energy projects. (3) Western Power is required by its legislation to pursue commercial outcomes and is doing so in planning and implementing renewables generation that is competitive with the alternatives available. I am advised that Western Power is pursuing a policy that seeks a balance between its own sources and supply available to it on commercially attractive terms. It is also seeking to source any renewable energy certificates it needs to acquire to meet its MRET obligations from Western Australian generators of renewable energy, although these certificates are available and may be traded across all jurisdictions in the nation. The Minister for Energy endorses these two policy positions. (4) No.
It is certainly anticipated that there will be larger renewable generators connecting to the network and these will be the subject to individual network impact studies. (2) The Minister notes that the two percent target is for 2010. As the 35 MW limit is only an initial part of the orderly development of access for renewable generators, adopting a cap and allowing robust access regime conditions to develop as experience is gained will help to bring forward renewable energy projects. (3) Western Power is required by its legislation to pursue commercial outcomes and is doing so in planning and implementing renewables generation that is competitive with the alternatives available. I am advised that Western Power is pursuing a policy that seeks a balance between its own sources and supply available to it on commercially attractive terms. It is also seeking to source any renewable energy certificates it needs to acquire to meet its MRET obligations from Western Australian generators of renewable energy, although these certificates are available and may be traded across all jurisdictions in the nation. The Minister for Energy endorses these two policy positions. (4) No.
(2) The Minister notes that the two percent target is for 2010. As the 35 MW limit is only an initial part of the orderly development of access for renewable generators, adopting a cap and allowing robust access regime conditions to develop as experience is gained will help to bring forward renewable energy projects. (3) Western Power is required by its legislation to pursue commercial outcomes and is doing so in planning and implementing renewables generation that is competitive with the alternatives available. I am advised that Western Power is pursuing a policy that seeks a balance between its own sources and supply available to it on commercially attractive terms. It is also seeking to source any renewable energy certificates it needs to acquire to meet its MRET obligations from Western Australian generators of renewable energy, although these certificates are available and may be traded across all jurisdictions in the nation. The Minister for Energy endorses these two policy positions. (4) No.
(3) Western Power is required by its legislation to pursue commercial outcomes and is doing so in planning and implementing renewables generation that is competitive with the alternatives available. I am advised that Western Power is pursuing a policy that seeks a balance between its own sources and supply available to it on commercially attractive terms. It is also seeking to source any renewable energy certificates it needs to acquire to meet its MRET obligations from Western Australian generators of renewable energy, although these certificates are available and may be traded across all jurisdictions in the nation. The Minister for Energy endorses these two policy positions. (4) No.
(4) No.

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