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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