Page 3021 - Week 07 - Thursday, 30 June 2011
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What was the outcome of these market forces? The Independent Competition and Regulatory Commission reports quarterly and publicly on the take-up in installed capacity under the ACT feed-in scheme. The March 2011 quarterly report on the scheme indicated a significant quickening of growth, about twice the levels previously experienced. By the time the scheme was closed, applications were being received at the rate of about 400 per week, against an historical average growth rate of about 400 connections per quarter.
I do have sympathy for the local solar industry and the possible impact on them and their staff of the closure of the micro category. But it is fair to say that there was that information and aggressive marketing campaign undertaken by that same industry, local as well as interstate participants. This was done with full knowledge of the implementation of caps and of the role they themselves were playing in overheating the market, which was a significant contributor to the early closure of the scheme. Few participants could have been unaware of how rapidly the market was growing.
The act provides for a capacity cap to limit the liability of ACT electricity users to fund the scheme. Once the cap is reached, I am obliged by legislation to close access to the scheme. This decision was not made lightly. Special provision was made so that the consumers who had already made a formal commitment to an installation and had paid any deposit required prior to the 31 May cut-off could still lodge their applications and participate in the scheme. This was a fair and reasonable decision, ensuring that consumers acting in good faith were not financially disadvantaged. The government acted to protect consumers.
There lies the irony. ActewAGL distribution is still receiving large volumes of applications, although they are slowing. Those applications that meet the criteria of good faith contracts will be honoured. Once all eligible outstanding applications are processed, the eventual micro category is expected to be about 21 to 22 megawatts, requiring a transfer of between six and seven megawatts from the medium generator category. In effect, the micro category has already had about half the access that Mr Rattenbury is advocating.
Following this transfer allowed for under the act, the remaining medium category will only total between eight and nine megawatts. The Greens, and the Liberals it would appear, want this remaining cap also to be made available to microgenerators. This is offering false hope for ACT installers. Both parties gave scant regard to the interests or the financial risks of those parties for whom the medium generator category was created. The new category recognised that there were many residents whose premises were unsuitable for the installation of renewable generation, for example, people who rent, people with poor-quality sited buildings or structurally unsound ones for the purposes of installation of renewable energy generation.
Provision was made to support the creation of community-owned generators run by the community in which such persons could invest and share in the proceeds on a cooperative basis. Such cooperatives take time to form and larger installations are subject to more complex planning approvals and financing arrangements than
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