Download Tenax Energy - Parliament of Victoria

Environment and Natural Resources Committee
The Approvals Process for Renewable Energy Projects in Victoria
Parliament of Victoria
Spring St
EAST MELBOURNE VIC 3002
1 June 2009
Dear Sir/Madam
Tenax Energy welcomes the opportunity to provide comment into opportunities to reduce red tape
associated with the approvals process for renewable energy projects in Victoria.
Tenax Energy is pleased to note that the Victorian Government is committed to the development of
a strong and viable renewable energy industry in the State and Government is encouraging the
uptake of new renewable energy projects.
Please find attached Tenax Energy’s submission to the Terms of Reference.
Should you have any questions or comments on this submission, please contact Alan Major, Director
of Tenax Energy on (08) 8941 7688 or at [email protected].
Yours sincerely
Alan Major
Director
TENAX ENERGY SUBMISSION ON OPPORTUNITIES TO REDUCE RED TAPE ASSOCIATED WITH THE
APPROVALS PROCESS FOR RENEWABLE ENERGY PROJECTS IN VICTORIA
1. Introduction
Tenax Energy Pty Ltd (Tenax Energy) is a company established to be actively involved in initiating
new renewable energy generation systems, to ensure there is a cheaper and more sustainable
solution to meeting the long term energy needs of the community. Tenax Energy is well placed to
comment on the Terms of Reference of this enquiry.
As awareness of global warming and climate change continues to increase, it is evident that new
renewable forms of generating energy must be explored, in order to respond to the global need to
reduce carbon expenditure. Tenax Energy is committed to exploring, developing, and bringing to
market, reliable and efficient renewable energy generation technologies. The company is dedicated
to ensuring that rising energy demands will be met in a cost effective manner, while maintaining a
focus on reducing green house gas emissions.
Tenax Energy proposes to develop an off-shore Tidal Energy facility in Port Phillip Bay and has
submitted an EES Referral, and an application to lease Crown Land, to the Victorian Government.
The company has also lodged Notices of Intent with the Northern Territory and Tasmanian
Governments, and submitted EPBC referrals to the Commonwealth to develop in-stream Tidal
Energy at two additional sites in Australia.
The project known as the Port Phillip Heads Tidal Energy Project comprises up to 45 tidal energy
generator turbines on the seabed of Port Phillip Bay, and an associated cable connection. The
project when operational is expected to produce 80.6GWh of electricity, the equivalent to supplying
all 15,000 households on Bellarine Peninsula with green energy.
2. Responses to the issues raised in the Terms of Reference
Tenax Energy has provided comments or a preferred position against the Terms of Reference in the
Table below.
Terms of Reference
a)
the major obstacles facing investors in large-scale renewable energy projects in Victoria,
including environmental, planning and other regulations;
To successfully integrate sufficient levels of renewables into the energy generation mix to meet the
challenge of Climate Change, meet Government’s stated aims, and meet the increasing energy needs
of the State, a broad range of sustainable electricity generation alternatives are needed.
Victoria appears to be forward focused in their determination to meet renewable energy targets.
Departments within Government, particularly DIIRD and Sustainability Victoria, are pro-actively
seeking the establishment of, and investment in, new renewable energy industries in the State.
Page 2
It is our experience that this principle may not extend across all Departments or all levels of the
Victorian Government.
Distributed Energy projects on a large scale do not receive the Government support required to
make a viable contribution to the energy needs of the State (for example FIT for Solar PV). Similarly,
medium scale projects have not been allowed to proceed, or are not assessed on merit.
Projects on Crown Land in Victoria are provided no certainty of tenure whilst proponents explore the
resource, undertake feasibility studies or during the approvals process. Proponents looking to
develop renewable energy projects on private land would likely enter into lease agreements with
landholders to complete the investigations required to lodge detailed EES referrals, however a
proponent on Crown Land may only be offered a non-exclusive License to Occupy.
(b)
how Victoria compares to other Australian jurisdictions with regard to relevant approvals
for renewable energy projects - in particular wind farms as they are the most common form;
Tenax Energy currently has documentation before four jurisdictions in Australia to develop Tidal
Energy sites, which provides the company an insight how each jurisdiction engages in assessing
renewable energy projects.
It has been our experience that all jurisdictions have provided excellent access to decision makers
within Government for proponents of renewable energy projects. Marine Energy has great potential
and is gaining Government support. In Victoria, face to face contact at the level of Deputy CEO and
above has been afforded to Tenax Energy in preparation for Government assessment of the project.
There have been negative aspects to our engagement with Departments in Victoria, which do not
occur in other jurisdictions. These include:
•
•
•
•
Proponents receiving verbal responses to documentation lodged with Government, not in
writing, providing no certainty to proponents and no avenue for appeal;
Projects not assessed on merit or within policy guidelines;
Projects on Crown Land require an application to Lease Crown Land be made on the
prescribed form. No form existed at the time of our application; and
Projects on Crown Land have no certainty of tenure whilst exploring the resource,
undertaking feasibility studies or during the approvals process;
(c)
opportunities to reduce risk and delays for investors, whether that be through
streamlining regulatory processes, appeals processes or other costs/risks;
Renewable energy projects on Crown Land in Victoria are provided no certainty of tenure whilst
exploring the resource, undertaking feasibility studies or during the approvals process. In 2005, the
Victorian Government passed the Geothermal Energy Resources Act, which provides secure title and
a clear and consistent approvals process for companies that want to explore or extract geothermal
Page 3
energy in Victoria. Similar policy initiatives that encourage the development of renewable energy on
Crown Land would provide greater certainty to project proponents.
Responses to documentation lodged with Government should always be provided in writing,
providing certainty to proponents and an avenue for appeal.
(d)
the likely future drivers of renewable energy in Victoria, particularly in the context of the
carbon pollution reduction scheme and the expanded federal renewable energy target;
There is a great level of support in Victoria for local companies engaged in the development and
commercialisation of new renewable energy technologies, including the Victorian Government’s
Energy Technology Innovation Strategy and the Commonwealth Climate Ready Program and
Renewable Energy Fund. Similar Government support structures need to be developed to encourage
the establishment of new renewable energy industries for technology developed outside Australia,
particularly those that have the potential to promote industry development and employment, and
likely to contribute substantively to the mix of renewable generation in Australia.
There are a number of initiatives around the globe designed to promote and encourage the
development of renewable energy generation. The United Kingdom has recently announced that
marine energy will create 1.5 renewable energy certificates per unit generated, whilst the long term
guaranteed feed-in tariffs offered in Germany, Spain and other EU countries have created world
class manufacturing centres and are world’s best practise.
(e)
other reviews and inquiries covering similar issues — this would include the Australian
Energy Market Commission's review of energy market frameworks in light of climate change
policies and the Environment Protection and Heritage Council's report on impediments to
environmentally and socially responsible wind farm development.
No comment
Page 4