Hon Robin Chapple questions the Minister for Energy on the delay in introducing regulations for renewable energy access to the Western Power grid, citing repeated commitments and financial limbo for projects. The Minister responds that draft regulations are being considered and highlights existing concessional arrangements.

AnsweredQoN 759Legislative Council
Asked
1 April 2003
Portfolio
Energy

QuestionView source ↗

I refer to the letter from the Minister for Energy tabled on Tuesday, 21 May 2002, the answers to question without notice 122 on Wednesday, 11 September 2002, and question without notice 475 on Wednesday, 4 December 2002. (1) After two years in government and repeated commitments, why has the Minister for Energy failed to introduce regulations that provide for the access requirements of the renewable energy industry to the Western Power grid? (2) Is it the minister’s intention to immediately provide an access regime to the renewable energy sector so that the many projects held in financial limbo by the lack of action by this Government and Western Power can get on with the job of providing renewable energy to Western Australia? Hon TOM STEPHENS

AnswerView source ↗

I note that the question contains a lot of argument. Nonetheless, the Minister for Energy has provided a reply on this occasion. He thanks the member for notice of his question. Hon Norman Moore: It depends upon who is asking the question. Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(1) After two years in government and repeated commitments, why has the Minister for Energy failed to introduce regulations that provide for the access requirements of the renewable energy industry to the Western Power grid? (2) Is it the minister’s intention to immediately provide an access regime to the renewable energy sector so that the many projects held in financial limbo by the lack of action by this Government and Western Power can get on with the job of providing renewable energy to Western Australia? Hon TOM STEPHENS replied: I note that the question contains a lot of argument. Nonetheless, the Minister for Energy has provided a reply on this occasion. He thanks the member for notice of his question. Hon Norman Moore: It depends upon who is asking the question. Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(2) Is it the minister’s intention to immediately provide an access regime to the renewable energy sector so that the many projects held in financial limbo by the lack of action by this Government and Western Power can get on with the job of providing renewable energy to Western Australia? Hon TOM STEPHENS replied: I note that the question contains a lot of argument. Nonetheless, the Minister for Energy has provided a reply on this occasion. He thanks the member for notice of his question. Hon Norman Moore: It depends upon who is asking the question. Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
Hon TOM STEPHENS replied: I note that the question contains a lot of argument. Nonetheless, the Minister for Energy has provided a reply on this occasion. He thanks the member for notice of his question. Hon Norman Moore: It depends upon who is asking the question. Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
I note that the question contains a lot of argument. Nonetheless, the Minister for Energy has provided a reply on this occasion. He thanks the member for notice of his question. Hon Norman Moore: It depends upon who is asking the question. Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
Hon Norman Moore: It depends upon who is asking the question. Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
Hon TOM STEPHENS: I am not sure; it might depend on how much trouble he is trying to get me into! (1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(1) Regulations have been drafted to implement a tolerance for renewable energy balancing. These draft regulations are now being considered in the light of developments in electricity reform. I draw the member’s attention also to concessional balancing arrangements currently available for renewable energy generators accessing Western Power’s network. These arrangements provide significant advantages to renewable energy generators as compared with the alternative non-renewable balancing scheme in that they - (a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(a) permit energy transactions within each of peak and off-peak periods to be netted off; (b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(b) provide an upper limit of the ratio of top-up to spill price of 1.4:1; and (c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(c) cap the average top-up price to no more than 11c a kilowatt hour to be reviewed annually. Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
Together, these current arrangements limit risk and improve the bankability of renewable developments. (2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.
(2) The electricity reform agenda being pursued by government recognises the important role that renewable energy plays in the energy industry. Recommendations to encourage renewable energy developments and to address problems with renewable energy balancing and access charges are being considered by the Electricity Reform Implementation Steering Committee. I would also question the MLC’s assertion that many projects are being held in financial limbo because of the access regime.

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