Approvals Process for Renewable Energy Projects in Victoria
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ENVIRONMENT AND NATURAL RESOURCES COMMITTEE Inquiry into the Approvals Process for Renewable Energy Projects in Victoria FEBRUARY 2010 Ordered to be printed Victorian Government Printer 2010 Parliamentary Paper No. 281 Session 2006–10 Inquiry into the Approvals Process for Renewable Energy Projects in Victoria Parliament of Victoria Environment and Natural Resources Committee Inquiry into the Approvals Process for Renewable Energy Projects in Victoria ISBN 978-0-9807561-0-4 The Committee would like to thank: • Mr Fei Li for allowing his photo of a wind turbine at Wonthaggi, Victoria – to be reproduced on the front cover • Solar Sytems Pty Ltd for allowing a photo of the trial solar project at Bridgewater, Victoria – to be reproduced on the front cover • Pacific Hydro for allowing photos of wind farms to be reproduced throughout the report This report is printed on 100% recycled paper. Table of contents Table of figures ............................................................................................................................... vii Committee members ....................................................................................................................... ix Terms of reference........................................................................................................................... xi Chair’s foreword ............................................................................................................................ xiii Executive summary ........................................................................................................................ xv Recommendations....................................................................................................................... xxiii Glossary ....................................................................................................................................... xxxi Acronyms and abbreviations..................................................................................................... xxxv Chapter 1: Introduction............................................................................................................. 1 Background to the inquiry.......................................................................................................................1 Scope of the inquiry................................................................................................................................2 Inquiry process .......................................................................................................................................2 Issues raised during the inquiry..............................................................................................................3 Inquiry report ..........................................................................................................................................4 Chapter 2: Victoria’s renewable energy resources................................................................. 5 Introduction.............................................................................................................................................5 Types of renewable energy in Victoria....................................................................................................8 Wind .................................................................................................................................................8 Bioenergy .......................................................................................................................................11 Hydroelectricity...............................................................................................................................15 Geothermal.....................................................................................................................................17 Solar...............................................................................................................................................20 Marine – wave and tidal..................................................................................................................23 Current forecast sources of renewable energy.....................................................................................27 Chapter 3: Policy and regulatory framework for renewable energy projects in Victoria... 29 Introduction...........................................................................................................................................29 International legal framework................................................................................................................29 United Nations Framework Convention on Climate Change ..........................................................30 Kyoto Protocol................................................................................................................................30 A post-Kyoto framework .................................................................................................................30 National policy framework for renewable energy..................................................................................31 Carbon Pollution Reduction Scheme..............................................................................................32 Renewable Energy Targets............................................................................................................33 – i – Inquiry into the Approvals Process for Renewable Energy Projects in Victoria Mandatory Renewable Energy Target.................................................................................33 Expanded Renewable Energy Target..................................................................................34 Commonwealth renewable energy projects.........................................................................38 Victorian policy and funding framework for renewable energy..............................................................40 Victorian climate change policy ......................................................................................................40 Victorian Renewable Energy Initiatives ..........................................................................................43 The Victorian Energy Technology Innovation Strategy........................................................43 GreenPower ........................................................................................................................43 Solar feed-in tariff ................................................................................................................44 Key planning approval and environmental assessment processes ......................................................45 Overview.........................................................................................................................................45 First stage: pre-application consultation .........................................................................................49 Second stage: primary consent phase ...........................................................................................50 Environment Protection and Biodiversity Conservation Act process ...................................50 The Environment Effects Statement process.......................................................................52 Planning permit process ......................................................................................................54 Third stage: secondary consent phase...........................................................................................56 Fourth stage: monitoring, enforcement and decommissioning .......................................................58 Ongoing reviews of key planning and environmental approvals.....................................................58 Geothermal energy approvals ........................................................................................................60 Other renewable energy project planning approval processes.......................................................61 Regulation of the Victorian energy sector.............................................................................................62 Introduction to the National Electricity Market ................................................................................63 The Victorian energy sector............................................................................................................65 Existing electricity infrastructure in Victoria .........................................................................65 Participants in Victoria’s electricity system ..........................................................................65 Victorian energy policy.........................................................................................................66 Victoria’s privatised energy sector.......................................................................................68 Connections to the transmission network: Victoria’s plan and procure model.....................69 Connecting to Victoria’s distribution network .......................................................................70 Recent reviews and developments in energy policy.......................................................................71 Review of energy market frameworks in light of climate change policies ............................71