Page 1557 - Week 06 - Tuesday, 17 May 1994
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The standing committee made recommendations on the feasibility of incentives to adopt cogenerated power, development of a solar thermal generator, and the sourcing of more electrical energy needs from renewable sources. A cogeneration system is designed so that primary energies such as oil and gas can be used more effectively by the simultaneous generation of electricity and heat. Therefore, cogeneration can reduce demand on the ACT electricity grid or balance peak loads. With the introduction of the national electricity market under the Commonwealth Government's national competition policy, the ACT's access to hydro-electric power from the Snowy Mountains scheme may no longer be guaranteed. This increases the case for considering renewable and alternative energy sources. Studies of renewable energy technologies have found that solar thermal generation of power is not economically viable at this stage. Solar thermal power generation is viable in remote areas with small power loads, and ACT Electricity and Water is currently examining its remote area power supply policy. A preliminary study of the hydro-electric potential of the Corin and Googong dams has found that the dams are potentially viable sites. A feasibility study of Corin Dam will be carried out in mid-1994. ACT Electricity and Water has published buyback rates and conditions for connection to the grid for cogenerated power. These rates are more favourable than those applying in New South Wales. ACT Electricity and Water and the Natural Gas Company have also been conducting feasibility studies of potential applications for cogeneration in large complexes in the ACT.
The standing committee further recommended that the ACT Government investigate the feasibility of all new commercial and manufacturing complexes providing for cogenerated power where their energy demands and size exceed a pre-determined level. The ACT Government itself would not investigate the feasibility of potential cogeneration in future commercial and manufacturing complexes. Such an investigation would be carried out by the proponent as part of the development's economic appraisal. Most large developments are subject to some level of environmental assessment, and these provisions could be used where appropriate to require that a proponent examine the option of cogenerated power.
The ACT Government does not support the recommendation to legislate for a minimum quantity of electrical energy to be supplied from renewable sources by the year 2000. In the current climate of major utilities reform and in the absence of a long-term energy supply strategy, it would not be appropriate to legislate for energy sourcing at this stage. Nevertheless, the ACT Government is aware of the impacts of the utilities reform agenda and intends to commence development of an energy strategy for the ACT during this calendar year. This recommendation can be reviewed once further evaluations of solar thermal and wind power generator farms in Australian conditions have been completed. Other alternative energy measures such as hydro-electric power and geothermal storage require further investigation.
The standing committee examined barriers to the adoption of renewable technology and recommended that the ACT Government request the Australian and New Zealand Minerals and Energy Council to assess the institutional and economic barriers which prevent renewable technologies from competing with fossil fuel based systems.
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