Renewable energy in Australia Market and industry overview © McCullough Robertson Disclaimer This publication has been prepared for general Information contained in this publication information purposes only and should not be regarded as is current as at 16 June 2017. legal advice or other professional advice. Further advice All Rights Reserved. should be obtained before taking action on any issue dealt with in this publication. Renewable energy in Australia - Market and industry overview About McCullough Robertson
McCullough Robertson is a leading • advising on the redevelopment of independent Australian law firm with the abandoned Kidston Gold Mine four offices across the country. For by Genex into a hydropower facility more than 90 years, major Australian for the northern Australian electricity and foreign owned corporations, market. The Kidston Project will financial institutions, governments, be the first in the world to use two private enterprises and high net worth disused mine pits for hydroelectric individuals have trusted our advice on power generation; their most critical legal challenges. • advising on all aspects of the Our whole-of-project approach ensures development and delivery of seamless legal services are on hand from Mackay Sugar Limited’s bagasse the project approval and development cogeneration facility at its mill in phase, through to project financing, Mackay, Queensland; operation and expansion. Our specialist • acting for Mackay Regional Council in lawyers bring expertise, experience and relation to a landfill gas management in-depth knowledge of the renewables and energy utilisation project at industry, having worked on solar, Hogan’s Pocket and Bayersville hydro, wind, biomass and geothermal landfill sites; renewable energy projects in Australia • acting for Ergon Energy to provide and overseas. advice for the geothermal power Key highlights of our experience include: station at Birdsville, Australia’s only • advising on the delivery of a solar commercial geothermal power power station at Alice Springs Airport plant; and in the Northern Territory • advising on market design and for Ingenero; competition law issues in this space. • advising various wind farm operators, We understand the opportunities energy utilities and banks on the and challenges facing those in the development of wind farms and on renewables sector and provide the regulation of the renewables and commercial, outcomes focused advice electricity industry; on the full range of issues confronting participants in this field. Note from the editors
The increasing global demand for It provides: energy presents both opportunities and • an overview of the current state of the challenges for Australia. Australia is well Australian renewable energy industry, known for its abundance of renewable its key players, trends and priority energy sources and has not fully areas for future development; capitalised on them to date. However, as renewable energy projects become more • an examination of the challenges and cost competitive, and local demand for opportunities in the renewable energy renewable energy soars, domestic policy industry; and is developing to help drive local and • an in-depth guide to navigating the international investment in renewable legal framework in Australia, including energy projects. potential legal hurdles that investors face or are likely to face when doing The Australian Renewable Energy Target business in the Australian renewable (RET), for example, is a federal mandate energy sector. to create a supportive environment for long-term investment in Australia’s We will step you through the funding renewable energy industry. The RET has opportunities, structuring and corporate set a target of 23.5% of Australia’s total considerations, national electricity power to come from renewable energy regulations and preferred project by 2020. delivery methods. The Renewable energy in Australia three While we cannot delve into every detail part series provides some insights into in this guide, please contact any of our the issues you will face, and how best experts should you have any specific to overcome them, in proceeding with queries – we would be more than happy a renewable energy development in to help. Australia. Renewable energy in Australia - Market and industry overview
REN NIEMANN Partner Construction and Project Delivery Methods t +61 7 3233 8770 e [email protected]
LOUISE HORROCKS Partner Structuring and Corporate Advisory t +61 7 3233 8734 e [email protected]
ADRIAN SMITH Partner Funding and Corporate Advisory t +61 2 8241 5639 e [email protected]
JOHN KETTLE Partner Funding and Electricity Regulation t +61 7 3233 8962 e [email protected]
TIM HANMORE Partner Approvals and Planning t +61 7 3233 8955 e [email protected]
DAVID GILHAM Partner Funding and Project Finance t +61 2 8241 5611 e [email protected] Market overview A market that is poised for growth. In June 2015, the Federal Government set a new RET of 33,000GWh of renewable energy generation capacity by 2020. This target requires Australia to double its current renewable energy generation capacity and ensure that 23.5% of Australia’s total electricity generation will be from renewable sources by 2020.1 Renewable energy in Australia - Market and industry overview
The legislative implementation of An abundance of resources the RET in June 2015 was significant Australia has the highest concentration because it signalled the first instance of solar radiation per square metre of bipartisan political agreement on on Earth, making it environmentally the RET. ideal for solar power generation. In conjunction with the Federal RET There is incredible potential for solar legislation, individual State governments energy generation in Australia, given have also implemented their own that Australia receives an average of targets, which will affect the direction 58 million picojoules of solar energy of renewable energy investment per year – 10,000 times more than the 5 among States. country’s total energy consumption. The effects of the widely supported RET Australia is also home to some of reform and a more stable renewable the most favourable conditions for energy policy contributed to 3,150MW wind energy generation in the world of new generation capacity and $6.9 in terms of average wind speed billion being invested nationally in clean and conducive topography. energy projects set to go to construction The high potential yield for wind and in 2016.2 This represents the biggest year solar energy production make them for clean energy investment in Australia. the two most important renewable Half of the remaining 14,500GWh energy sources in the years to come. of additional generation required to meet the RET is expected to be under Both the Clean Energy Finance construction in 2017, most of which will Corporation (CEFC) and the Australian be delivered within a single year. 3 The Renewable Energy Agency (ARENA) industry is confident that the RET is have identified wind and solar as priority clearly within reach by the 2020 deadline. areas for both research and development investment and for project development.
Energy generation versus 2020 target
2016 2020 Target 17,500 GWh 33,000 GWh
Source: Clean Energy Council, Clean Energy Australia report 2016 (May 2017) – see [4] Renewable energy generation technology
Solar Wind The output of rooftop solar Wind generators accounted for PV installations reached 7.5% of capacity and generated over 3% of the National 6.1% of output in 2015–16. Electricity Market’s (NEM) Overall, wind generation electricity requirements in rose by 12% in 2015–16. The 2016. The amount of solar announcement of a record powered energy in the NEM number of new large-scale wind is expected to dramatically farms in 2016 will see a strong increase over the next decade rise in the capacity of wind due to reducing powered energy in the NEM. solar technology costs.
Hydroelectric Geothermal Hydroelectric generators Utility-scale geothermal power accounted for 17% of generation is not expected to registered capacity in be commercially viable until the NEM in 2015–16, 2020. Birdsville, in Queensland, supplying 10% of electricity is host to Australia’s only generated. The bulk of commercial geothermal Tasmanian generation is power plant. hydroelectric. NSW, Victoria and Queensland also have hydroelectric generation. Marine There is enormous potential to Bioenergy harness the power of waves, Bagasse (e.g. sugar cane tides and currents for electricity waste) is the most common generation. Marine energy form of Australian bioenergy remains at an embryonic generation. Biomass can stage of development across also be converted to liquid the world. The Carnegie fuels (biofuels) for energy Wave Energy Project, based generation. Bioenergy in Perth, was the first array of makes up 1.7% of the total wave power generators to be generation capacity in connected to an electricity the NEM. grid, worldwide. Renewable energy in Australia - Market and industry overview
Renewable generation contribution to NEM electricty supply
20
16
12
8
4 Percent of total generation total of Percent
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Hydro Wind Solar farm Rooftop solar Note: Rooftop solar PV generation is not traded through the NEM. Electricity generated from this source acts to reduce the demand for grid supplied electricity.
Source: Australian Energy Market Operator, Energy Update: June 2016 (May 2017) – see [6]
Renewable energy framework
SUPPLY TRANSACTIONS DEMAND
Certificate Certificate Creation REC Registry Surrender LIABLE ENTITIES
Less Partial Large-scale Exemption Generation Certificates ELIGIBLE PARTIES
Small-scale Generation Secondary Market
STC Clearing House
Source: Clean Energy Regulator, About the Renewable Energy Target: How the Scheme Works (29 March 2017) – see [7] The RET drives investment in the The RET is split into two parts: the Large- renewable energy sector by allowing Scale Renewable Energy Target and the electricity generators to create tradeable Small-Scale Renewable Energy Target. certificates for every MW that is The Large-Scale Renewable Energy generated or displaced from renewable Target creates financial incentives for the sources. These certificates are then establishment or expansion of renewable purchased by wholesale purchasers energy power stations and has been of electricity (predominantly electricity designed to deliver the majority of retailers), who sell the electricity to the RET. customers. The certificates act as a financial incentive for the use of The Small-Scale Renewable Energy renewable energy sources, as retailers Scheme is targeted at small household must submit the certificates to the Clean level renewable installations such as Energy Regulator (CER) to demonstrate domestic solar photovoltaic (PV) and their compliance with the RET scheme’s solar hot water. annual targets.
Electricity market framework
THE NEM The NEM is a wholesale electricity market in which generators sell electricity and retailers buy it to onsell to consumers. There are over 100 generators and retailers participating in the market, so it’s highly competitive and therefore an efficient way of maintaining relatively competitive electricity prices in the wholesale market.
THE NEM, THE GRID AND THE FINANCIAL MARKET WORK TOGETHER
THE FINANCIAL MARKET THE PHYSCIAL SUPPLY The financial market sits alongside SYSTEM ‘THE GRID’ the NEM and involves retailers and The transmission and distribution generators entering into the hedging networks deliver electricity from contract to buy and sell electricity. power stations anywhere in the These contracts set an agreed price for system to homes and business 24/7. the electricity and help to manage the risk of price volatility.
Source: Australian Energy Market Operator, The National Electricity Market Factsheet – see [8] Renewable energy in Australia - Market and industry overview
The Australian electricity market is Renewable energy generators participate broadly divided into two key sectors, in these markets and share in the the NEM which services Queensland, same customer base as non-renewable New South Wales, Victoria, South energy generators.13 Australia, Tasmania and Australian As the contribution of renewable Capital Territory, which provides roughly technologies to Australia’s energy mix 85% of Australia’s total electricity continues to grow, the integration of consumption, while most of Western such technologies presents challenges Australia is serviced by the Wholesale to the power system and the NEM in its Electricity Market (WEM), which current form. provides roughly 8% of Australia’s total electricity consumption.9 The remaining The Australian electricity market is also 7% of the Australian electricity market regulated by: is made up of a variety of small scale • the Australian Energy Market markets that cover the Northern Commission (AEMC), which creates Territory and remote Northern regions and amends the National Electricity of Western Australia.10 Rules (NER);14 Under the NEM, electricity generated • the Australian Energy Regulator (AER), by registered generators must be sold which is responsible for enforcing and through a mandatory pool arrangement, monitoring compliance with the NER managed and administered by the as well as the economic regulation of 15 Australian Energy Market Operator electricity transmission; and (AEMO).11 Generators must submit • the Council of Australian Governments the price at which they wish to sell (COAG) Energy Council, which their energy through the pool and oversees the governance and AEMO assesses these offers according regulatory framework and policies to demand in order to determine that apply to the Australian electricity the regional clearing price, which all market.16 generators in the region will receive.12 The NEM in Australia, unlike in many other OECD countries, is an ‘energy-only’ market in which electricity generators are paid for the energy they produce but not the capacity they make available. State of play in Australia Australia has been slower in its uptake of renewable energy compared to many of its international peers. However, market trends particularly over the previous year, show that the Australian renewable energy market is now experiencing a period of unprecedented growth as the country shifts away from its reliance on conventional energy sources. Renewable energy in Australia - Market and industry overview
Current state of the market The Australian energy market continues In 2016, the contribution of each energy to be dominated by conventional source to Australia’s total electricity sources of energy, mainly coal and gas. generation is shown in the diagram below. Overall, renewable energy The current policy landscape largely supplied 17.3% of Australia’s total continues to favour mature technologies electricity in 2016, a significant rise on which present the lowest investment the 14.6% generated by renewable risk at the expense of emerging options energy the previous year.19 which may present greater efficiency and emissions reduction gains.
Renewable generation technology type Annual electricity generation in 2016
1.1% Medium- 1.2% 0.1% scale solar Solar thermal 17.3% Large-scale PV Renewables solar PV 43% Hydro 8.6% Bioenergy
16.0% Small-scale solar PV
30.8% Wind 82.7% Fossil fuels
Source: Clean Energy Council, Clean Energy Australia report 2016 (May 2017) – see [20] Victoria, New South Wales and Tasmania remains the leader in its use Queensland are heavily reliant on of renewable energy, with renewable coal, whereas South Australia is more energy supplying over 90% of its reliant on gas powered generation electricity, largely due to its hydro and variable renewables. power plants.
Generation capacity in the NEM, by region and fuel source, 1 January 2017
20,000
18,000
16,000
14,000
12,000
10,000
8,000 Megawatts
6,000
4,000
2,000
0 Queensland NSW Victoria South Australia Tasmania
Black coal Brown coal Gas Hydro Wind Solar farm Other dispatched Rooftop solar
Note: Rooftop solar generation is not traded through the NEM. Electricity generated from this source acts to reduce the demand for grid supplied electricity.
Source: Australian Energy Market Operator, Energy Update: June 2016 (May 2017) – see [21] Renewable energy in Australia - Market and industry overview
Key trends Australia’s energy industry is towards large-scale solar power stations undergoing an unprecedented in 2016. A number of large, high- transformation. Recent market shifts voltage, grid-connected solar farms reveal a number of key trends that will are now operational at Moree, Nyngan continue to affect Australia’s future and Broken Hill with more planned or energy mix. Overall demand for currently under construction.24 electricity from the grid has declined, The large-scale projects that were due to a reduction in industrial demand successfully funded in 2015-2016 were and price-conscious consumers. primarily wind and solar PV projects. AEMO forecasts that rooftop PV Approximately 35% of new capacity 26 installations will increase by 350% and financed during 2016 was solar. contribute to around 11% of the NEM’s The ongoing development of those energy requirements by 2035–36.22 technologies has resulted in lower Forecasted strong growth in rooftop levelised costs of electricity (LCOE) which PV electricity will contribute to the are now on par with conventional fossil further flattening demand for electricity fuel technologies. supplied from the grid.23 While domestic The growth of renewable powered rooftop remains the predominant part energy is expected to cause a decline of Australia’s solar power generation, in gas powered generation by 60% by there has been a continuing shift 2020 compared with 2015 levels.27
Change in percentage of technology mix for estimated MW capacity
25% 35% Solar Solar
75% 65% Wind 2015 Wind 2016
Source: Clean Energy Regulator, Tracking Towards 2020: Encouraging renewable energy in Australia (2016) – see [25] Coal and gas plants continue to be shut The last of the lingering uncertainty down or mothballed in South Australia, from the review had washed out of the Queensland, New South Wales, Victoria industry’s system by the end of 2016. and Tasmania. The closure of the As of March 2017, the projects set to Hazelwood power station in Victoria in go to construction during the year March 2017, Australia’s most emissions added up to more than 3,725 direct jobs, intensive power station, removed $6.9 billion in investment and 3,150MW 1,600MW of brown coal generation from of new generation capacity.30 the NEM. The power plants had become Confidence has returned to the sector, increasingly unprofitable due to rising bolstered by State and Territory initiatives competition from renewable energy to encourage investment in renewable generation and rising maintenance costs. energy projects. AGL Energy plans to retire its 2,000MW Liddell plant in NSW in 2022.28 The Federal Government’s game changing announcement of its plans for Emerging electricity storage technologies a major expansion to the Snowy Hydro are set to fundamentally change the Scheme by as much 50% demonstrates way in which energy is stored and its renewed commitment to a cleaner used. Such technologies enable excess energy mix for Australia. New investment energy captured during the day to funds are also emerging, greenfield be stored for later use, rather than project power purchase agreements feeding the excess back into the grid. (PPAs) are being struck and there is By 2035–36, 3,800MW of total rooftop increased interest from corporates.31 PV generation is expected to have These activities are boosting 29 integrated battery storage. confidence in the market’s ability to Renewable energy investment stagnated meet the RET, increasing liquidity during 2014/15 due to uncertainty in financing markets and providing created by the Abbott Government’s alternative off-take arrangements. review of the RET in 2014.
As of March 2017, the projects set to go to construction during the year added up to more than 3,725 direct jobs, $6.9 billion in investment and 3,150MW of new generation capacity.30 Renewable energy in Australia - Market and industry overview
Market snapshot
The market share of renewable MORE major renewable energy currently accounts for roughly THAN 30 energy projects of Australia’s total are already under construction 17.3% electricity generation or have secured funding and and is expected to reach will start in 2017, delivering by a program of work which is 23.5% 2020 32 expected to create:
Coal fire generators are being billion in retired and not being replaced, $6.9 investment removing significant capacity from NEM and leaving a tighter supply- jobs demand balance. 3,725 and build MW of MORE THAN DOUBLE 3,150 capacity35 new large-scale renewable energy power stations were accredited 34 In mid-March 2017, the Federal in 2016 than in 2015. Government announced plans to dramatically expand the Snowy Hydro Scheme by increasing Grid consumption rose by the current output of the Snowy 2% in 2015-16 Hydro by about 50%, reversing several years of which is enough declining consumption. The rise to power 500,000 was apparent in all mainland additional homes. regions. Queensland recorded the strongest growth, reflecting The Government provided an initial the rising energy requirements of 33 estimate of roughly $2 billion to its liquefied natural gas industry. cover the cost of the expansion, demonstrating a clear commitment to long-term renewable energy HIGH GAS PRICES generation. The announcement due to tighter supply, rising should also strengthen investor production costs and regulatory confidence and encourage restrictions on exploration are further investment in the contributing to high electricity prices. Australian renewable energy sector. Key industry factors The Federal Government must build on recent successes and rising confidence to ensure Australia is one of the most enticing places to invest in renewable energy. In particular, market and regulatory reform is required to effectively integrate renewable electricity generators into the electricity grid and to recognise incentives for new services and solutions. Renewable energy in Australia - Market and industry overview
Policy and investor confidence One of the most significant on 17 October 2017 as part of the impediments to policy stability has been Federal Government’s long awaited the susceptibility of the RET to political final response to the Independent change. Historically, policy uncertainty Review into the Future Security of the and increased politicisation of climate National Electricity Market delivered by change (both domestically and a panel led by Dr Alan Finkel AO (Finkel overseas) has undermined the stability Review). of Australia’s renewable energy industry The announcement represents a and damaged investor confidence. rejection by the Federal Government Now that the RET has achieved years of the Finkel Review’s proposal for a of continued success and stability, the nationwide Clean Energy Target (CET). next challenge will be clarity around The NEG, recommended by the new the Federal Government’s National Energy Security Board (ESB), is made Energy Guarantee (NEG). The NEG up of two parts – a reliability guarantee is a new energy policy announced and an emissions guarantee. Renewable energy as a percentage of primary energy supply in 2015
80
70
60
50
40
30
20
11.2 10 9.6 7.7 6.5 6.9
0
Israel Italy Chile Korea Japan France China Turkey Spain Latvia IrelandMexico Poland Greece Estonia Canada AustriaFinland NorwaySwedenIreland BelgiumAustralia Hungary Germany Slovenia Portugal Denmark Switzerland NetherlandsLuxembourg United States OECD - Total New Zealand Czech Republic United Kingdom Slovak Republic
Source: OECD, Renewable energy (indicator) (2017) – see [37] Recent investment and project development trends demonstrate increasing momentum in renewables in Australia, which will continue to strengthen over the next few decades.
The reliability guarantee will require However, recent investment and project that electricity retailers source a yet development trends demonstrate to be specified part of their energy increasing momentum in renewables mix from ‘dispatchable energy’ such in Australia, which will continue to as coal, gas, pumped hydro and strengthen over the next few decades. battery technology. It is referred to as Australia’s return to the top ten most ‘dispatachable’ because it is not subject attractive countries to invest in new to environmental intermittency risk, renewable projects also demonstrates such as solar and wind. This will be rising confidence in the sector.38 regionalised. Given the short timeframe left to The emissions guarantee has even achieve the 2020 RET, indications less detail, but is said to contribute are that the industry is set for a big to Australia being able to comply 2017/18 financial year and considerable with its international obligations. The commercial opportunities are suggestion is that emissions from anticipated over the next few years. electricity generation will have to contribute proportionately to Australia’s Grid connection 26-28% Paris emission reduction target The complete integration of renewable to be reached by 2030. energy sources into the existing NEM While the details of the NEG are still to grid network poses significant technical, be provided, the driving force behind legal and regulatory challenges. this move away from the Federal Electricity supply relies on sophisticated Government’s preference for renewable interlocking technologies which balance energy to fuel neutrality is the need for the supply and demand of electricity consistent and reliable energy to keep without damaging electricity lines.39 the lights on, full stop. Renewable energy sources, such as The inevitable reality is that there wind and solar, that are intermittent in is a strong global trend towards nature can pose considerable technical transitioning to a future driven by challenges to the ability of the grid clean energy. The renewables sector in network to integrate them. A further Australia is not as developed compared challenge to such integration is the fact to its international peers – the above that many renewable energy resources graph identifies Australia as being are often located in remote areas that behind its international peers in terms are currently inaccessible or costly to of renewable energy as a percentage connect to the existing grid. of primary energy supply in 2015. Renewable energy in Australia - Market and industry overview
If Australia is to utilise a high to facilitate the efficient development percentage of renewable energy and connection of renewable energy resources, careful planning and zones across the NEM.41 reform of the energy market will be Falling costs of renewable required to successfully integrate intermittent renewable energy to the energy generation grid. In particular, legal and regulatory Renewable energy generation in frameworks for the NEM will need to Australia is becoming continuously be reformed to encourage investment more cost efficient. Technological in large-scale transmission expansion advances in renewable generation, and upgrades and to facilitate the most noticeably in wind and solar, introduction of battery storage has made renewable generation technologies so that power systems can more cost competitive against its access remote renewable resources and conventional rivals. deliver efficient and reliable renewable energy. International experience and According to Bloomberg New Energy capability in engineering demonstrates Finance, renewable energy is now that this is entirely feasible.40 the cheapest form of new energy generation that can be built in Australia. The Finkel Review has recognised the The cheapest renewable energy projects need to modernise the NEM to ensure are now below the cost of gas, which an orderly transition to a reliable and continues to struggle with securing low emissions electricity system – one of affordable fuel supplies, and well below the three key pillars of the Finkel Review the cost competitiveness of new coal.43 recommends improved system planning 2017 levelised cost of energy for new build technologies in Australia $AU/MWh
250
200
150
100
50
0 Wind Combined Cycle Solar Coal Gas Turbine
Source: Clean Energy Council, Clean Energy Australia report 2016 (May 2017) – see [42] The increased efficiency and Historically, proponents of renewable technologically driven savings that have energy have struggled to answer this already materialised are also likely to be basic question, and this has been a supplemented in the future by savings contributing factor to the slow take up generated by the increased take up of in Australia of renewable energy sources renewable energy generation sources. that are seen as intermittent (i.e. wind Increased market competitiveness, and solar for large-scale generation). innovation and economies of scale that come with increased usage are all Revised market designs and structures expected to contribute to falling costs. coupled with recent technological advances in the storage of generated Reliability of renewable energy solar electricity are set to drastically improve the reliability of intermittent Renewable energy (especially wind and renewable energy sources. solar) suffers from a perception of being unreliable when compared to traditional If the challenges of integrating renewable fossil fuel sources. The source of this energy into the existing grid can be perception can be traced back to one overcome, Australia is well positioned simple question: what happens when to take advantage of its geographical the sun does not shine or the wind vastness to produce a highly-distributed does not blow? renewable electricity system with an interconnected network of generators to fill gaps in electricity demand.
Revised market designs and structures coupled with recent technological advances in the storage of generated solar electricity are set to drastically improve the reliability of intermittent renewable energy sources. Renewable energy in Australia - Market and industry overview
Pump storage Wind Solar hydroelectricity
Pump storage has Technological advances Technological attracted increased in wind power such as developments in solar investment due to its improved micro-sitting plants are improving energy storage capabilities of turbines, more efficient efficiencies each year, and subsequent blades and control resulting in higher ability to balance the systems and predictive, operating temperatures, intermittency of solar smart maintenance decreased thermal and wind generated models all help increase storage costs and solar power. Enhanced dam the generational output PV module advances construction techniques of both offshore and leading to reduced panel and more effective onshore wind energy surface area requirements engineering designs generation models. for each watt of power have improved the The global average wind generated. The global energy capacities power cost is expected average of solar costs is of pump storage to drop 13.5% by 2025, predicted to fall 57% by power plants. compared with 2025, compared with 2015 levels. 2015 costs.
Source: IRENA, The power to change: solar and wind power cost reduction potential to 2025 (June 2016) – see [44] Glossary Definitions provided here are not comprehensive definitions and are only intended to assist the reader with the context of that term, which may be used in this guide.
ACCC Australian Competition and Consumer Commission ACCU Australian Carbon Credit Units ACL Australian Consumer Law AEMC Australian Energy Market Commission AEMO Australian Energy Market Operator AER Australian Energy Regulator ANZ Australia and New Zealand Banking Group APRA Australian Prudential Regulation Authority ARENA Australian Renewable Energy Agency ASIC Australian Securities and Investments Commission ASX Australian Securities Exchange BOOT Build, own, operate and transfer CBA Commonwealth Bank of Australia CCA Competition and Consumer Act 2010 (Cth) CEC Clean Energy Council CEFC Clean Energy Finance Corporation CEIF Clean Energy Innovation Fund Centre Critical Infrastructure Centre CER Clean Energy Regulator CET Clean Energy Target CETO Technological system to create electricity and desalinised water from ocean wave energy COAG Council of Australian Governments Corporations Act Corporations Act 2001 (Cth) DIBP Department of Immigration and Border Protection EKF Denmark’s Export Credit Agency EPC Engineer, procure and construct EPCM Engineer, procure, construct and maintain ERF Emissions Reduction Fund ESB Energy Security Board ESI Companies Early stage innovation companies Finkel Review Independent Review into the Future Security of the National Electricity Market delivered by a panel led by Dr Alan Finkel AO (9 June 2017) Renewable energy in Australia - Market and industry overview
FIRB Foreign Investment Review Board GST Goods and Services Tax GWh Gigawatt hours ICS Integrated Cargo System ILUA Indigenous Land Use Agreement ITAA 97 Income Tax Assessment Act 1997 (Cth) JV Joint venture Kyoto Units Carbon equivalent emission units that are traded on international compliance markets established under the Kyoto Protocol LGCS Large-Scale Generation Certificates LNG Liquefied natural gas LOCE Lower levelised cost of electricity MIS Managed investment scheme MW Megawatt NAB National Australia Bank Native Title Act Native Title Act 1993 (Cth) NEG National Energy Guarantee NEL National Electricity Law NEM National Electricity Market NER National Electricity Rules NGO Non-governmental organisation PPA Power purchase agreement PPP Public private partnership PV Photovoltaic QIC Queensland Investment Corporation R&D Research and development RET Renewable Energy Target SDPWOA State Development Public Works and Organisation Act 1971 (Qld) SPA Sustainable Planning Act 2009 (Qld) SPV Special purpose vehicle STCS Small-Scale Technology Certificates TNSP Transmission Network Service Provider WEM Wholesale Electricity Market (in Western Australia) Key contacts
Projects Commercial and Regulatory
REN NIEMANN JOHN KETTLE Partner Partner t +61 7 3233 8770 t +61 7 3233 8962 e [email protected] e [email protected]
MICHAEL ROCHESTER PAUL MCLACHLAN Partner Partner t +61 7 3233 8643 t +61 2 8241 5606 e [email protected] e [email protected]
GORAN GELIC MELISSA HILL Senior Associate Special Counsel t +61 2 8241 5659 t +61 7 3233 8953 e [email protected] e [email protected]
CHRISTIAN BALDOCK Senior Associate t +61 2 8241 5613 e [email protected] Renewable energy in Australia - Market and industry overview
Finance Planning and Environment
KRISTEN PODAGIEL STUART MACNAUGHTON Partner Partner t +61 7 3233 8757 t +61 7 3233 8869 e [email protected] e [email protected]
DAVID GILHAM TIM HANMORE Partner Partner t +61 2 8241 5611 t +61 7 3233 8955 e [email protected] e [email protected]
AMY TIN PATRICK HOLLAND Special Counsel Partner t +61 2 8241 5676 t +61 2 8241 5610 e [email protected] e [email protected]
Corporate
LOUISE HORROCKS Partner t +61 7 3233 8734 e [email protected]
ADRIAN SMITH Partner t +61 2 8241 5639 e [email protected] Tax, Stamp Duty and FIRB Native Title and Cultural Heritage
HAYDEN BENTLEY DOMINIC MCGANN Partner Partner t +61 7 3233 8579 t +61 7 3233 8838 e [email protected] e [email protected]
DUNCAN BEDFORD TIM HANMORE Partner Partner t +61 7 3233 8706 t +61 7 3233 8955 e [email protected] e [email protected]
TERESA DYSON LIAM DAVIS Special Counsel Senior Associate t +61 7 3233 8950 t +61 7 3233 8764 e [email protected] e [email protected]
Intellectual Property and Competition
ALEX HUTCHENS Partner t +61 2 8241 5609 e [email protected]
BELINDA BREAKSPEAR Partner t +61 7 3233 8968 e [email protected] Renewable energy in Australia - Market and industry overview
Real Estate Employment Relations and Safety
IAN HAZZARD MICHAEL MOY Partner Partner t +61 7 3233 8976 t +61 7 3233 8720 e [email protected] e [email protected]
KRISTAN CONLON CAMERON DEAN Partner Partner t +61 7 3233 8848 t +61 7 3233 8619 e [email protected] e [email protected]
EVA VICIC Special Counsel t + 61 2 8241 5634 e [email protected]
TRENT THORNE Special Counsel t +61 7 3233 8544 e [email protected] Endnotes
1. Department of the Environment and Energy, The Renewable Energy 27. Australian Energy Market Operator, ‘National Gas Forecasting Report’ Target (RET) Scheme
54. Queensland Government, Solar 150: Queensland’s large-scale solar 76. Above n 22. investment program (Fact Sheet, 2016)