Page 4408 - Week 12 - Thursday, 24 October 2019

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through four reverse auctions and to a community solar farm. This leaves only nine megawatts of entitlements that may be provided within the current limit. The 650-megawatt limit has allowed the ACT government to sign deeds of entitlement to deliver on the target of 100 per cent electricity by 2020 but it is not sufficient to meet the legislated 100 per cent renewable electricity target on an ongoing basis.

An increase to the limit is required to continue to deliver 100 per cent renewable electricity on that ongoing basis. The recently announced auction is unlikely to be the last auction ever required if population continues to grow and if electricity continues to replace natural gas and transport fuels. Additionally, the current contracts for renewable electricity will expire in the 2030s, requiring additional capacity releases to replace them. That may be some distance in the future, but that is one of the things that future assemblies will need to contemplate. However, by legislating to allow increases to the maximum capacity, the bill will allow the ACT government to deliver the target in perpetuity. This arrangement will continue to provide the Assembly with appropriate oversight on the limit on capacity.

Let me touch on that point briefly. Ms Lee has flagged her intention to move an amendment. The government is happy to agree to that. My view was that a disallowable instrument gives the Assembly a degree of oversight and scrutiny in the sense that if the instrument is egregious to the Assembly, it can be disallowed. Ms Lee’s preference is to put this in legislation. I do not have a strong view either way. I think each mechanism offers the Assembly a way to oversee future changes in this space in different ways.

Given the opposition’s preference, I am happy to support that. It is not a significant difference either way, so that will be fine. Upon passage of the bill, I intend to immediately publish a limit on capacity. In fact, forgive me; I will not need to do that anymore if we accept that amendment. But what we will do is release that additional capacity in the coming future auction.

Overall, this bill will enable us to continue to meet this achievement that has been very well received in our community. It has been delivered in a way that has been affordable for our community. It has delivered significant new economic investment to the ACT. Estimates are that it will generate at least $500 million of new investment in the ACT over the 20-year life of the agreements that have been let out so far.

The new auction will contain further measures to drive further investment in the ACT. What we have seen is that through this process the ACT has become recognised as a centre of renewable energy excellence that is generating new opportunities, new partnerships and the like. It has led to new jobs in the territory, with windfarms being operated all over Australia and, in fact, across the Southern Hemisphere from locations up and down Marcus Clarke Street.

These are the sort of things that Canberra is increasingly being known for. These are providing new job opportunities for this city, new economic opportunities, whilst at the same time meeting the very significant obligations we have to reduce our greenhouse gas emissions. I thank members of the Assembly for their support for this bill.


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