Mining and Energy Law

Introduction

This chapter deals with the regulation of renewable energy. Renewable energy is crucial to climate change mitigation and a shift towards realising sustainable, low-carbon societies. There has been a global divestment from carbon intensive, fossil fuels across all sectors of the investment community and a shift towards investment in the clean energy sector. For example, by 2030 China plans to increase the non-fossil fuel share of all energy to approximately 20 per cent. This objective is to be achieved through the efficient use of fossil fuels and the expansion of renewable energy sectors to generate low-carbon electricity. It will also include the widespread implementation of carbon capture technology (CCS). These industries are rapidly progressing. Solar panels cost 90 per cent less than they did in 1980 and 60 per cent less than they did in 1998. Decarbonisation of the atmosphere – with the aim of preventing global temperature increases – is achievable provided there is a large scale shift to renewable energy. The primary pathway for this will be asset transformation, the progression of research and development, and the facilitation of financing mechanisms.

This chapter examines the broader regulatory frameworks that subsidise renewable energy at both the state and federal levels and has a specific focus on solar and wind energy. Whilst an overview of the nature and forms of renewable energy have been dealt with in Chapter 1, the purpose of this chapter is to provide an outline of the renewable energy sector in Australia and to review the regulatory frameworks supporting the progression of this sector. This chapter provides a detailed outline of the Renewable Energy (Electricity) Act 2000 (Cth) and examines the operative elements of the renewable energy target and the role that the various clean energy bodies have assumed in implementing this framework. Consideration is given to some of the economic implications underlying renewable energy progression as well as some of the existing market impediments. This chapter concludes by focusing upon one of the most significant emergent renewable energy industries in Australia; namely, wind energy. The nature of wind farming, the regulatory principles, and best practices standards are reviewed and the social and community issues associated with the progression of this important renewable industry for Australia are examined.