❓ Hon. Kate Doust questions the Minister for Energy regarding Verve Energy's submission on renewable energy, capacity payments, and the state's renewable energy targets. The Minister provides updates on market rule changes and outlines the government's strategic energy initiative.
AnsweredQoN 473Legislative Council
QuestionView source ↗
RENEWABLE ENERGY — VERVE ENERGY SUBMISSION
I refer to Verve Energy’s December 2010 submission to the federal Department of Resources, Energy and Tourism’s “A Cleaner Future for Power Stations: Interdepartmental Task Group Discussion Paper”, in which it noted that market rule changes would significantly curtail installation of new intermittent generation. (1) What is the status of the review of capacity payments to renewable generators in the wholesale electricity market? (2) Given Verve’s submission, could the minister advise whether Western Australia will obtain its fair share of renewable energy through the renewable energy target or just subsidise renewable energy deployment in other Australian states? (3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER
I refer to Verve Energy’s December 2010 submission to the federal Department of Resources, Energy and Tourism’s “A Cleaner Future for Power Stations: Interdepartmental Task Group Discussion Paper”, in which it noted that market rule changes would significantly curtail installation of new intermittent generation. (1) What is the status of the review of capacity payments to renewable generators in the wholesale electricity market? (2) Given Verve’s submission, could the minister advise whether Western Australia will obtain its fair share of renewable energy through the renewable energy target or just subsidise renewable energy deployment in other Australian states? (3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER
AnswerView source ↗
I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(1) What is the status of the review of capacity payments to renewable generators in the wholesale electricity market? (2) Given Verve’s submission, could the minister advise whether Western Australia will obtain its fair share of renewable energy through the renewable energy target or just subsidise renewable energy deployment in other Australian states? (3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(2) Given Verve’s submission, could the minister advise whether Western Australia will obtain its fair share of renewable energy through the renewable energy target or just subsidise renewable energy deployment in other Australian states? (3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(1) What is the status of the review of capacity payments to renewable generators in the wholesale electricity market? (2) Given Verve’s submission, could the minister advise whether Western Australia will obtain its fair share of renewable energy through the renewable energy target or just subsidise renewable energy deployment in other Australian states? (3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(2) Given Verve’s submission, could the minister advise whether Western Australia will obtain its fair share of renewable energy through the renewable energy target or just subsidise renewable energy deployment in other Australian states? (3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(3) Given the constraints associated with increased penetration of intermittent generation in the south west interconnected system, would the minister consider setting a target for renewables capable of supplying baseload electricity in Western Australia, such as wave, concentrated solar thermal or geothermal? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
I thank the honourable member for some notice of the question. (1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(1) The Independent Market Operator’s Market Advisory Committee undertook analysis, through the Renewable Energy Generation Working Group, to assess the appropriateness of the existing capacity credit valuation methodology for intermittent generation capacity. This led to the Independent Market Operator submitting a rule change proposal to the Market Advisory Committee on 29 November 2010. Griffin Energy also submitted a rule change proposal on this issue to the Market Advisory Committee on 30 November. The Independent Market Operator has aligned the time lines for the two proposals so that interested stakeholders can comment on the two methodologies at the same time. A draft report on both proposals was due to be published on 24 June 2011; however, the time frame for preparing the draft report has been extended by the Independent Market Operator to 27 July 2011. Information on these rule change proposals is available on the Independent Market Operator website. (2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
(2)–(3) The state government recognises that the commonwealth government’s national renewable energy target scheme will be the primary driver of renewable energy investment in this state over the next decade. The Office of Energy is in the process of finalising the strategic energy initiative, “Energy2031”, including modelling the future generation mix in Western Australia. The vision for the strategic energy initiative, “Energy2031”, outlines the need for increased diversity in Western Australia’s energy supply sources. Strategies outlined in the final strategic energy initiative will include a focus on increasing renewable energy penetration in Western Australia, with more detailed implementation plans to be developed in consultation with key stakeholders following finalisation of the document.
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