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Issues Paper Expert Panel May 2016 Written Submissions Queensland Renewable Energy Issues Paper Expert Panel May 2016 Written submissions The Expert Panel is interested in Submissions close on understanding the views and 10 June 2016 attitudes of the Queensland Process for formal submissions on the Issues Paper community ► Online submissions toward renewable www.QLDREpanel.com.au energy, and the ► Mail submissions issues associated Project Manager – Queensland Renewable Energy Expert Panel with a 50% PO Box 15456, City East Qld 4002 renewable energy Confidentiality target for In the interests of transparency and to promote informed discussion, the Queensland Expert Panel would prefer submissions to be made publicly available wherever this is reasonable. However, if a person making a submission does not want that submission to be public, that person should claim confidentiality in respect of the document (or any part of the document). Claims for confidentiality should be clearly noted on the front page of the submission and the relevant sections of the submission should be marked as confidential, so that the remainder of the document can be made publicly available. It would also be appreciated if two copies of each version of these submissions (i.e. the complete version and another excising confidential information) could be provided. Where it is unclear why a submission has been marked 'confidential', the status of the submission will be discussed with the person making the submission. While the Expert Panel will endeavour to identify and protect material claimed as confidential as well as exempt information and information disclosure of which would be contrary to the public interest (within the meaning of the Right to Information Act 2009 (RTI)), it cannot guarantee To get involved in other aspects that submissions will not be made publicly available. For more information, call the Department of Energy and Water Supply of the public inquiry, visit: on 13 43 87. www.QLDREpanel.com.au Queensland Renewable Energy Expert Panel – Issues Paper i Foreword Foreword by the Panel Chair The Queensland Government has established the As well as opportunities, moving toward a greater Queensland Renewable Energy Expert Panel to share of renewable energy will also be a complex provide advice on credible pathways to a 50% and challenging task, and there will be many factors renewable energy target for Queensland by 2030. that will need to be investigated in relation to technical integration and consumer impacts. Queensland is one of many jurisdictions across Australia and globally that is considering ways to Like many economies, Queensland produces the increase the share of renewables in their energy vast majority of its electricity from coal fired mix. More than 140 countries around the world generation – around 73% of total generation in have renewable energy targets, with many states, 2015. In order to contribute to Australia’s emission cities and towns also setting local ambitions1. It is reduction, it will be necessary for Queensland to estimated that in 2015 more than $300b was increase the proportion of renewables and other low invested globally in renewable energy2. emission energy sources in its electricity mix. A key driver of this shift is the need to transition to a In developing credible pathways, the Government low-carbon energy sector in order to meet global has asked the Panel to ensure that the identified agreements to reduce emissions and mitigate the pathways strike an appropriate balance between negative impacts of climate change. economic, environmental, market, consumer and government outcomes. Moving towards a cleaner energy mix will involve both challenges and opportunities for Queensland, The purpose of this issues paper is to obtain the and the Panel’s task is to identify these issues and views and attitudes of the Queensland community, develop options to chart a sustainable transition for consumers and industry toward renewable energy, the state. and the issues associated with a 50% target. Based on experience in other jurisdictions, there are With the support of the Expert Panel, I look forward opportunities for Queensland to attract renewable to engaging with the community and key energy investment and jobs, and take greater stakeholders in delivering advice to the Queensland advantage of its high quality renewable energy Government on this important issue. resources. To date, there has been an extraordinary uptake of small-scale solar PV in the state, however Queensland has not seen a pro-rata share of large- COLIN MUGGLESTONE scale renewable energy investment under the Federal Renewable Energy Target. Wind turbine Queensland Renewable Energy Expert Panel – Issues Paper ii Contents Foreword ii Basis of the public inquiry 1 The approach of the Panel 4 Summary of consultation questions 6 1. Background 7 2. Policy options for increasing renewable energy 17 3 Funding renewable energy 24 4. Issues for electricity system operation 29 5. Commercial and investment issues 32 6. Supporting economic development 38 Attachments 41 Notes 46 Queensland Renewable Energy Expert Panel – Issues Paper Basis of the public inquiry The Panel will Role of the Expert Panel investigate and The Queensland Government is committed to developing a renewable COLIN MUGGLESTONE (Panel Chair) report on the costs energy economy for Queensland. In 2014, Colin retired from Macquarie Capital after a 22 year investment banking career in Australia, UK and South-East Asia. Colin and benefits of The Government has appointed a Renewable Energy Expert Panel to was Head of Energy & Utilities (Australia), completing a large number adopting a target undertake a public inquiry into how Queensland might move to meeting a of renewable transactions including wind, hydro and solar projects. target of 50% renewable energy by 2030. Colin also had a 9 year engineering career including building power of 50% renewable stations and gas rigs in Australia, UK and Norway. energy in Panel members include: Queensland by ► Mr Colin Mugglestone (Panel Chair) ALLISON WARBURTON Allison is a leading private and government sector legal advisor 2030 ► Ms Allison Warburton across the energy, resources and power generation industries. Prominent in the climate change and clean energy space, Allison co- ► Mr Paul Hyslop heads Minter Ellison's national climate change practice. ► Prof Paul Meredith ► Ms Amanda McKenzie. The terms of reference for the inquiry are set out in Figure 1. PAUL HYSLOP Paul is CEO of ACIL Allen Consulting and leads the company’s energy The primary tasks of the Expert Panel are to: practice. Throughout his career Paul has consulted extensively on energy industry matters, including advising on renewable energy ► Investigate and report on the costs and benefits of adopting a investments under the expanded RET, and the impact of climate target of 50% renewable energy in Queensland by 2030 change policies on energy investments. and ► Determine how the adoption of a renewable energy target and PAUL MEREDITH other complementary policies can drive the development of a Paul is a Professor of Physics at the University of Queensland and renewable energy economy for Queensland. Director of UQ Solar. He manages a >$50m portfolio of solar PV and concentrated solar thermal research spanning fundamental Throughout the course of the public inquiry, the Expert Panel will examine technology development, systems-level integration and policy the technical, commercial issues and environmental issues, costs and issues. benefits, and impacts and opportunities involved in meeting a 50% renewable energy target. AMANDA MCKENZIE Public engagement will also play a central role to the inquiry, and the Panel Amanda McKenzie is an environmental leader and CEO of the will be seeking the view of stakeholders and the community at various Climate Council. In her time as leader of the Climate Council, stages throughout the inquiry process. Amanda has overseen a rapid expansion of Council, helping it build a reputation as Australia’s ‘go-to’ organisation for information on climate change and renewable energy. Queensland Renewable Energy Expert Panel – Issues Paper 1 Basis of the public inquiry The Panel will Queensland Government energy objectives Figure 1: Terms of reference consider the The Queensland Government has established five strategic energy The Government has asked the Panel to provide advice on the following: objectives to guide its decision making on energy-related policy (Table 1). Queensland ► A credible pathway for up to 50% renewable energy generation by Government’s five In undertaking the public inquiry, the Expert Panel will consider these 2030 objectives in the development of its advice and recommendations to the energy objectives ► The impact on electricity prices arising under different scenarios Government. and their distribution across customer groups Table 1: Queensland Government energy objectives ► The impact on Queensland’s greenhouse gas emissions under different scenarios OBJECTIVE DETAIL ► Better functioning energy markets An efficient market will drive competition The key design features of a target - this should include advice on: and innovation and encourage new − Should a target be legislated? products that compete on price, service − Should a target apply to the electricity sector only or more and quality, while improving customer broadly? outcomes. − How should a target be measured? − Which technologies should be eligible? Enhancing customer value Creating an environment where − Should small scale generation
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