Page 4253 - Week 13 - Thursday, 27 November 2014
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MR RATTENBURY: In times gone by, people got their electricity and other services in a one-way system—from the large-scale producers such as coal-fired power stations or gas-fired power stations to the consumer. As we have come face to face with the challenges of climate change, most people have looked for more sustainable ways of producing energy and managing water. It has become obvious that the one-way system does not serve all our needs in terms of utilities and distribution.
Specifically, with regard to energy, this bill comes from recognition that in the ACT we are moving into a space where we have a range of different sizes and types of generators feeding electricity into our grid. It is no longer appropriate to assume that our electricity grid is a one-way system. We have seen in recent times the advent of some significant-sized generators feeding electricity into our grid—the 20-megawatt solar farm at Royalla and the Zhenfa solar farm at Mugga Lane being two high profile examples.
It is no longer safe to assume that energy and water are managed and consumed at a single site. We are seeing more and more opportunities for district energy systems and water services as people seek to manage their resources in a sustainable way. Local generation, through perhaps solar systems or trigeneration systems, can form the basis of district energy services, and local areas or developments with multiple residences can work together to reduce and manage local water or use hot or cold water for heating and cooling.
The function of the technical regulator comes from a place of ensuring reliability of supply for consumers, safety for the public and for those working on utilities, and the long-term serviceability of regulated networks. Reliability of supply has traditionally been at the core of preserving the status quo around utility regulation. Advocates in support of big generators often make mention of the concerns of smaller generators not being capable of delivering secure electricity supply. But we cannot continue into the new era of energy management if we take that approach. We need to consider the positive role that smaller and medium-scale generators can play as we start to operate within a more distributed energy system.
I hope that the intention of the government as outlined in the tabling speech and in the explanatory statement ends up facilitating that improved regulation and support of smaller and medium generators by offering a more flexible regulatory approach that is tailored to addressing the needs of a range of different generators. However, the regulatory system also needs to ensure that these smaller players operate in a safe way that does not put the public at risk, so we need to ensure that they are captured by the regulatory framework.
Medium-scale generators who have come to the ACT in recent times have had some obstacles as they have engaged in discussion with the distributor about how, where and at what cost they can connect to the grid in order to feed in electricity. It became clear that the technical regulator needed to take a more active role in facilitating and managing these processes, as it was not necessarily appropriate for the distributor to be making these decisions based on their interpretation of the rules or, for that matter, to necessarily determine the cost or locations of connection. This bill seeks to put the
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