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Russia has been trying since to replace imports, particularly of technologically complex products, with locally produced products. The government encourages potential investors to run production of high-tech components for power-generating facilities in Russia to develop competitive local technologies and production in the country. A more detailed description of localisation rules is set forth in Section IV. Russian lawmakers began focusing on renewable energy as early as with the passage of an amendment to the 13 that attempted to connect renewable energy sources into Russia's electricity generation system.

Despite this attempt, a renewable energy programme was not successfully implemented until , when further changes to the Law on Electricity created an incentive scheme for investment in this sector. These changes led to the passage of Decree two years later and the renewable energy developments Russia is seeing today. The basis for the current expansion of Russian renewable energy was the passage in of Decree Initially, the government proposed to motivate renewable energy market participants through premium payments.

In , amendments to the Federal Law 'On Electric Power Industry' introduced a 'premium scheme' as a main promotion mechanism. This scheme envisaged that a certain premium on the equilibrium energy price in the wholesale electricity and capacity market was to be paid to the suppliers in renewable energy projects. However, this mechanism did not work in practice because of certain legal and technical issues, and the potential impact on prices for end customers.

Subsequently, in , the premium scheme was replaced by the 'capacity supply scheme'. The government adopted one of the key regulations establishing the existing state support mechanism for Russian renewable energy projects — Decree No. The key idea of the capacity supply scheme consists in switching from a 'premium' component to a consideration payable to the provider of power generation capacity.

Such consideration is calculated on the basis of the beneficial fixed tariff. Applying beneficial tariffs fixed for 15 years allows market players to receive a guaranteed return on an investment made into the construction and operation of a power facility. Such tariffs take into account the capital expenditure amount, currency fluctuations and other factors, and provide a 12 to 14 per cent profit margin.

However, to apply such a tariff, suppliers have to comply with the Russian localisation requirements. Decree deals with solar, wind, moderate-sized hydro and waste treatment power sources, and thus does not cover the entire field of renewable energy sources. Renewable capacities supplied must be equal to or exceed 5MW. Decree is also restricted to the central tariff zone, and does not apply to 'non-tariff zones' and isolated territories. The main mechanism under Decree for encouraging the use of renewable energy is the conclusion of long-term energy capacity supply agreements with renewable energy source operators.

A potential supplier is granted the right to enter into such agreements through a tender procedure conducted by the administrator of the trading system ATS. Under such an agreement, a supplier will be obliged to create the renewable energy facility within a certain time frame and to supply capacity into the Russian energy system.

Ministry of Energy of the Russian Federation - The Russian Government

The supplier will be entitled to receive remuneration for its capacity and for the energy it supplies based on year fixed prices. In particular, the procedure for concluding an agreement on capacity supply includes the following stages. Capacities are offered to potential suppliers once a year in a tender process organised by the ATS.

Ministry of Energy of the Russian Federation

Potential suppliers are invited to submit their bids according to the conditions provided for in Decree Together with a technical description of the project, the bid shall specify the degree of localisation of the renewable energy facility as well as financial guarantees for the potential supplier's obligations.

After the bids are submitted, the ATS will select the tender winners and conclude agreements on energy capacity supply with them. The main obligation of a potential supplier under the agreement is creating a renewable energy facility within the agreed-upon parameters of capacity, localisation levels and timings.

Agreements will always contain provisions on substantial penalties for delays in capacity supply. Another central element of any agreement will be the localisation requirements. Decree requires establishing detailed lists of localisation percentages for the different elements of renewable energy facilities.

In addition, reaching the agreed-upon level of localisation plays an essential role in determining the price for the supplied capacity. If this level is not reached, the price will be significantly lower 35 per cent lower for solar power sources, and 45 per cent for wind, small hydro and waste treatment power sources , which will render the relevant projects economically disadvantageous.

After completing construction of a renewable energy facility, the supplier must apply for the recognition of such source as a qualifying generating facility to be able to supply capacity to the market. The qualification process involves both federal authorities the Ministry of Industry and Trade of the Russian Federation and the wholesale market organisation Market Council. When the supplier applies to the Ministry of Industry and Trade for determination of a renewable energy facility's degree of localisation, the Ministry will assign this determination to a special commission.

Based on the commission's resolution, the Ministry will submit a statement to the Market Council, which will in turn allocate the renewable energy facility to one of three categories of localisation level: less than 50 per cent, between 50 and 70 per cent, or above 70 per cent. The corresponding price will be based on the Market Council's qualification. In addition to incentives provided by Decree , the supplier is also entitled to apply for subsidies from the Russian federal budget, provided that it meets certain criteria. Such subsidies could include reimbursement of costs for the technological connection of the generating facility to the electrical power networks.

The Russian electricity market is a two-level wholesale and retail electricity and capacity market. The retail market involves an end-consumers element, while the wholesale market mostly consists of generation companies, retail companies and large consumers. The wholesale market commodities are electricity and capacity.

Acquisition of capacity by an acquirer means that it has a right to demand from the supplier that electricity of a defined quality be generated by his or her generating equipment. Thus, the sale of capacity is in fact an arrangement for the provision of certain volumes of electric power in the future. Provision of capacity generated through renewable energy sources is one of the mechanisms used in the wholesale capacity market. As already mentioned above, this mechanism is structured through the capacity supply agreements entered into as a result of the tenders for the selection of investment projects in the respective areas.

Such tenders are conducted four years in advance for each type of the generating facilities operating on the basis of different types of renewable energy sources: solar photovoltaic , wind and water moderate-sized hydro energy. Since , a similar procedure applies to waste-burning energy sources. A first step to enter the market for the potential participant would be to adhere the Rules of Wholesale Electricity and Capacity Market Operation established by Decree No.

A mandatory form of accession contract is approved by law, and cannot be renegotiated or amended by the market participants. Once the accession contract is entered into, the market participant is deemed to be involved in the wholesale capacity market. The following key entities regulate commercial activities within the market:. The Market Council also performs some authorities related to using the renewable energy facilities. The ATS is primarily responsible for conducting state tenders and entering into contracts with wholesale market participants. The CFS provides settlement services to all market participants and ensures the effective operation of the complex settlement system in the wholesale capacity market.

Based on what has been discussed above, the typical project steps for potential market participants would be as follows:. Particular time frames for projects are determined by the deadline indicated in the respective capacity supply agreements. In practice, the deadline is usually from one-and-a-half to four years from the date of the tender.

If the deadline is missed, significant penalties will apply to the supplier. These penalties will automatically be discharged from the supplier's account, which is opened in the settlement system by the CFS. Subject to the provision by the supplier of additional financial security, the deadline can be postponed, but for not more than two years overall. As can be seen from the above, there will be no classical project development in the Russian wholesale capacity market, as the activities thereon are strictly regulated by Russian law.

Usually, projects are financed by foreign investors in the beginning. However, Russian market players, being huge and reliable companies, also participate in the financing of projects. After a tender, the initial investors make efforts to attract borrowed financing: for example, it has been announced that Gazprombank will finance the construction of the wind parks by the Rosatom corporation, and that the amount of investment will be approximately 64 billion roubles. Potential capacity suppliers do not go alone into project tenders. The companies combine their efforts and create consortiums that involve global Russian players, foreign investors and local players responsible for issues that may arise in-land.

Such structuring allows the creation of a strong team that can effectively resolve arising issues. Russian industrial policy has been trying since to replace imported materials with locally manufactured ones. This policy is generally described by such terms as 'import substitution' and 'localisation'. Russia has chosen a similar path for developing its renewable energy sources: both the distribution of capacity and the level of prices for the supplied capacity depend on the degree of the localisation of the power generating facility, namely:. To be admitted to a tender, operators need to register as wholesale market participants.

The minimum amount of supplied capacity by operators who are wholesale market participants is 5MW. Specifically, for operators of hydro energy plants, there is an additional maximum limit of 25MW. The volume of supplied capacity is estimated by each operator before the actual construction of the power generating facility by signing contracts on the design and construction of the corresponding facilities. The estimates are also set out in the capacity supply agreements that are signed with tender winners.

A failure to honour these agreements will trigger contractual penalties. Furthermore, when planning to participate in a tender, operators have to consider the requirements in terms of the maximum amount of capital expenditures for the construction of the power generating facility, which is one of the tender's criteria. This amount depends on the renewable energy resource and the year of participation in the tender. For example, the capital expenditures for the construction of solar plants for projects that are selected in may not exceed, inter alia , , roubles per KW in and , roubles per KW in For wind plants, the upper limit is, inter alia , , roubles per KW in and , roubles per KW in Finally, the upper limit for small hydro energy plants is , roubles per KW from to Therefore, companies participating in tenders only compete on the basis of the amount of capital expenditure that is needed to develop the facility.

As mentioned above, a certain degree of localisation must be reached to win a tender. Power generating facilities and their components and equipment have to be at least partly manufactured in Russia. Since , 70 per cent of the generating equipment for solar energy plants has to be made in Russia. Wind energy plants have to attain a 55 per cent localisation level in , and from this should reach 65 per cent.

For small hydro energy plants, the localisation degree is 65 per cent. Government Decree No. Non-compliance with these requirements means that an operator can no longer participate in a tender. The declared localisation degree is also based on operators' forecasts, the planned local industrial capacity and their contracts with the suppliers or manufacturers of components and equipment.

The localisation requirements are rather high and, at the same time, most components and equipment for power generating facilities are still not manufactured in Russia. Tender winners are, therefore, usually confronted with the need to produce such components and equipment themselves shortly after concluding a capacity supply agreement. If a tender winner fails to comply with the agreed timelines and the declared localisation degree, it may be subject to contractual penalties ranging from 85 to per cent of the contract's total value.

Indo-German Energy Programme (IGEN)

After the construction of a plant, its certification as a power generating facility that uses renewable energy sources is the final step to set the price for capacity. For the purpose of this certification, the operator first has to file an application for the determination of the degree of localisation with the Ministry of Industry and Trade. After reviewing the submitted documents, the Commission then makes a decision that is used by the Ministry to determine the localisation degree and to send a copy of its decision to the Market Council. In terms of administrative costs, other initiatives such as the Californian PBF can be administratively complex and thus more costly than an RPS.

Finally, it is arguable that an RPS will be overly burdensome on retail electricity suppliers, who are required to actively participate in the renewables or the renewables energy credit market. The strength of this argument remains to be tested, but after the first year of the mandatory renewable energy target in Australia, this does not appear to be a major issue.

The second major initiative contained in the proposed EPA is net metering. Each retail electric supplier would be required to make available, upon request, a net metering service to any retail electric consumer whom the electricity supplier serves. Electric utilities must not discriminate in price against consumers to whom they provide net metering service, and must measure the quantity of electricity produced by the on-site generating facility and consumed by the consumer according to normal metering practices.

The electric utility would bill the owner or operator of the on-site generating facility for the electricity they have consumed during a billing period, according to the usual practice. The net metering service would be available to residential and commercial consumers. American commentators seem to be unanimously in favour of the system of net metering, with net metering laws existing in 36 States as of 10 May It encourages consumer investment in renewable energy technologies by giving customers the flexibility to use the amount of electricity produced at a different time than when it is actually generated, thereby allowing them to maximise the value of their production.

Electricity supply companies also benefit from net metering for a number of reasons. First, when customers produce electricity during peak periods, the system load factor is improved. Secondly, distribution losses are reduced, compared to the supply of electricity from a central power station. California has been the leading US State in both electricity industry restructuring and in the implementation of policies promoting renewable energy development.

In , it accounted for 14 per cent of all utility renewable electricity generation and 23 per cent of all nonutility renewable electricity generated in the US. The funds are collected on the basis of electricity usage, via a charge levied on their local distribution service. In September , Senate Bill 90 [79] was enacted to provide administrative guidelines for the renewables program introduced by the Assembly Bill of The Existing Renewable Resources Account is used to pay generators a monthly subsidy for eligible renewable energy electricity generation.

The New Renewable Resources Account supports new renewable electricity generation projects built in California after 26 September by awarding a production incentive to potential projects according to bids submitted at periodic auctions. Funds in the Customer-Side Resources Purchases Account are used for customer rebates for the purchase of electricity produced by renewable energy, and for consumer education.

PBFs have a number of advantages. This, it is argued, makes the system pragmatic and politically viable. However, PBFs also suffer from a number of limitations. The CPUC explicitly stated its opposition to centrally administered funds because of such complexity. It is argued that only solutions which can survive in the market without special forms of protection that raise costs should be pursued. Thirdly, a wires charge may be viewed as a tax, and may therefore be politically unacceptable. First, the government-owned, vertically integrated Central Electricity Generating Board was restructured into two generating companies PowerGen and National Power — the latter has since demerged into Innogy and International Power.

Further, a transmission company the National Grid Company and 12 regional area boards were transformed into a distribution network of 12 regional electricity companies. All these companies were progressively privatised. Secondly, competition was introduced into the generation and retail sectors of the industry, so that no single generation company is now dominant in England and Wales.

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Further reforms were introduced by the Utilities Act UK. Electricity licensing conditions were changed, which resulted in the separation of electricity supply and distribution functions. While the electricity industries of Scotland and Northern Ireland were restructured at around the same time, this occurred separately to the reforms in England and Wales. Legislative mechanisms to implement policies to promote the generation of renewable energy also operate separately to those in England and Wales.

Thus, it is important to note that references to the UK industry in this article generally refer only to England and Wales. Sections 32 1 and 31 2 of the Electricity Act UK empowered the Secretary of State to make an order, known as an NFFO Order, requiring each public electricity company to acquire specified amounts of generating capacity from non-fossil fuel generating stations, including renewable energy sources.

The renewables capacity was secured though contracts at premium rates with generators of renewable electricity. The government had five rounds of tendering under the NFFO process conducted on a biennial basis. The renewable energy generators were required to submit details of the proposed project including the provisional bid price per kW and their generating capacity , and demonstrate the availability of the resource to the NFPA.

The government awarded contracts to the best bidders within each type of eligible renewable energy technology. The renewable energy generator then supplied the electricity to the public utility at the price specified in the contract for a period of up to 15 years. Because the cost of supplying electricity generated by fossil fuels was lower than the cost of supplying electricity generated by renewable energy sources, the rate paid to renewable generators by the regional electricity companies was lower than the NFFO contract price. The difference between this rate and the contract price was paid by the NFPA to the generators out of funds raised by a Fossil Fuel Levy [96] of 0.

The NFFO was the subject of a number of criticisms with respect to its ability to promote the use of renewable energy sources in electricity generation. First, the underlying basis for awarding contracts under the NFFO was criticised. As contracts in each technology band were awarded solely on the basis of cost, the system favoured large companies able to utilise economies of scale at the expense of emerging and experimental technologies.

Secondly, the length of time between the award of contracts and the deployment of technology five years provided an incentive for parties to make low-cost bids to win contracts. Such bids were made in the hope that between the contract period and the commissioning date, costs would decline sufficiently to make the project viable.

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The use of cost predictions for future projects, based on large cost reductions over the following five years, led to a situation where projects were not being deployed at the required commissioning date because sufficient cost reductions had not occurred. Thirdly, under a system of competitive bidding such as the NFFO, the government is constrained by legal procedures and terminology when awarding contracts to renewable energy generators. The NFFO was criticised over the failure of the scheme to award contracts to some well-developed projects because of the legal and administrative restrictions placed upon governments under the terms of the legislation.

Thus one benefit of an RPS over a tendering system like the NFFO, is that the former is self-regulating, as it requires no government interference in the contracting process. Fourthly, the NFFO failed to include an appeals mechanism regarding the awarding of projects. Where governments are involved in the granting of projects, an appeals mechanism is essential to achieving fairness and government accountability. A final reason why the NFFO failed to achieve its objectives was the difficulties in obtaining development approval particularly for landfill gas and waste and wind power projects after NFFO contracts had been awarded.

This presented a major barrier to the successful construction of renewable energy facilities. The denial of planning permission meant that relatively few mW of energy from these sources were actually installed despite dozens of contracts being signed under the NFFO. While it can be argued that issues of development approval are separate from the actual operation of the NFFO, the lack of a streamlined system for granting permits demonstrates that power purchase contracts alone are insufficient to ensure new renewable facilities are actually built.

These changes included the introduction of separate licences for distribution and supply, and new electricity trading arrangements. This is because they are well established in the market and in a position to compete with electricity from fossil fuel. As an RPS, the Renewables Obligation places a burden on every designated electricity supplier to show that a percentage of their total electricity supply has been acquired from renewable energy sources.

This proportion has been set at three per cent from 1 April to 31 March The proportion will increase annually to reach a target of The system of tradable green certificates is established through the new s 33B inserted in the Electricity Act UK. GEMA is empowered to issue a certificate to the operator of a generating station or to an electricity supplier [] in accordance with the criteria specified in art 4 of the Renewables Obligation Order UK. A certificate must confirm that the generating station has produced the amount of electricity stated in the certificate from renewable sources, and that it has been supplied to customers in Great Britain.

To be issued with renewable obligation certificates, a generating station must first be accredited by GEMA. Certificates will be issued monthly, with one certificate being issued per mW of electricity generated from eligible renewable energy sources. The formula for calculating the amount of electricity generated from eligible renewable energy sources is as follows: [].

Net output is gross output less all electricity consumed by the company, and gross output is the total amount of electricity generated by the station. The Electricity Act UK also makes arrangements for recycling the receipts from the buy out of renewable obligations. As an RPS, the Renewables Obligation can be subjected to the same debate over its merits and demerits as discussed above in relation to the US scheme.

However, various factors specific to the UK market may hinder the operation of the Renewables Obligation. In particular, a current shortage in the generating capacity of renewables is placing a premium on the prices of available renewable energy. While renewables account for over 2. This has left about 1. This is about half of the total capacity required by all electricity suppliers to meet their obligations.

Market uncertainty, the lack of information concurrent with the introduction of the new system, and the shortfall of renewable supplies, led retailers to anticipate having to pay the buyout price and to factor this into the prices for short-term contracts.

As the market gains more information, and a larger capacity to generate renewable energy is installed, the price of renewables should fall. Whether this actually occurs depends on the pace at which eligible renewable energy installations are deployed, and whether the buyout price has been set at an appropriate level.

If renewable energy developers continue to face hurdles in gaining development approval then the shortage of renewables will persist, and possibly worsen as the obligation placed on electricity suppliers increases each year. If the buyout price has been set too low, then there is an incentive for electricity suppliers to discharge their obligation through the buyout mechanism. In this respect, the lack of tough sanctions for non-compliance with the Renewables Obligation may prove to be a significant flaw in the UK system, tempting suppliers to opt for the buyout option, and defeating the purpose of the legislation.

Historically, a single vertically-integrated, State-owned authority or a combination of State-owned authorities , responsible for the generation, transmission and distribution of electricity, dominated the electricity supply industry in each Australian State and Territory. Prior to , State governments and their electricity authorities drove investment in the generation of electricity from new sources. Electricity prices were regulated by State governments, and were set at a level that covered the industry's costs plus any returns required by State governments as shareholders.

Since , the Australian electricity industry has been radically transformed. More specifically, generation has been disaggregated into separate companies to ensure adequate competition between generators. Transmission and distribution systems have been established as separate companies managed as monopolies by a regulator who is independent of government.

The NEM is a market for the wholesale supply and purchase of electricity, combined with an open access regime for use of the transmission and distribution networks in five Australian States and Territories: the Australian Capital Territory, New South Wales, Queensland, South Australia and Victoria. A key component of this radical transformation of the electricity industry is the movement towards generating electricity from renewable sources. Additionally, both federal and State governments have developed financial incentives to this end.

These pieces of legislation establish a national scheme that applies to all electricity retailers and wholesale electricity purchasers. These entities are required to surrender a specified number of certificates for the electricity that they acquire during a year to the Renewable Energy Regulator. If a liable entity does not have enough certificates to surrender, it must pay a renewable energy shortfall charge. Renewable energy certificates may be traded in a market separate from the physical market for energy.

The Renewable Energy Electricity Act Cth is the major enactment creating and implementing the mandatory renewable energy target. The target for is set at gWh, and this figure rises each year until the amount of gWh is reached in The target remains fixed at this level for each succeeding year up to For example, in the first year of operation of the UK Renewable Obligation, designated suppliers must source 3 per cent of their electricity from eligible renewable energy facilities. To discharge their obligations under the MRET in Australia, liable entities must surrender the prescribed number of renewable energy certificates to the Regulator.

The actual number of renewable energy certificates that must be surrendered by a liable entity each year is determined by the following formula: []. The renewable power percentage is worked out using the formula: []. If a liable entity does not surrender a sufficient number of certificates to the Regulator, the entity has a renewable energy certificate shortfall. Any resulting number greater than zero is the renewable energy certificate shortfall; any result less than zero is a carried forward surplus. Renewable energy certificates may only be created by persons registered under s 10 of the Renewable Energy Electricity Act Cth.

Pre-existing renewable generation assets that is, those in commercial operation prior to 1 January will only be eligible to earn certificates from existing generation assets if they can demonstrate an increase in output from these existing assets above the eligible renewable power baseline. Renewable energy certificates must exclude from the calculations electricity that was generated using any energy sources that are not eligible renewable energy sources.

Up to 18 February , renewable energy certificates had been created from generation in This was sufficient to meet the target of certificates. Different prices have emerged for certificates, depending on the source of the renewable energy. Thus, in contrast to the UK, there has been more than enough renewable energy available to meet the obligation set by legislation in Australia.

The majority of certificates in Australia came from hydro-electricity , followed by solar hot water systems , and wind energy Furthermore, the greatest number of applications for accreditation and successful accreditations have come from hydro-electric sources, as can be seen from Table 1 below. It may be that in Australia, as cheaper renewables options are exhausted, the price will rise over the years.

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However, it is too early to predict the price effects with certainty. The level of the MRET has also come under early criticism. The target set for extra renewables of gWh by equates to a two per cent target increase since , based on a forecast of estimated Australian electricity generation by However, more recent estimates of future electricity consumption estimate the gWh target will represent an increase in renewables of only 0.

The Renewable Energy Electricity Act Cth is set to be reviewed in April , two years after it came into operation. Issues likely to be addressed in the review include: increasing the MRET to at least 5 per cent ; raising the penalty for non-compliance; linking the penalty to the consumer price index; and rewriting the baseline to exclude power from existing hydro-electric dams. However, the MRET is not the only initiative currently operating in Australia to encourage the generation of electricity from renewable sources.

The federal government has recently introduced several financial schemes to promote the use and development of renewable energy technologies. The States administer the program on behalf of the Commonwealth. From July , rebates became available to owners of community buildings such as schools. The minimum system size is, again, Wp. The funds, made available to States and Territories from July , are used to provide a rebate for the installation of remote area power supplies. To be eligible for the rebate, installations must replace diesel with renewable energy for all or part of the energy source for off-grid installations.

The rebate is also available for new installations where it can be shown that the fuel would otherwise have been diesel. This can include generating equipment, enabling equipment, and essential non-equipment such as installation costs. The effectiveness of these recently introduced financial schemes has not yet been studied. On the one hand, they can be criticised on the grounds that there has been no attempt to coordinate their implementation with that of the regulatory system established under the Renewable Energy Electricity Act Cth , so as to produce a coherent government policy on the promotion of renewable energy for electricity generation in Australia.

They are simply an ad hoc response to political pressure to support the photovoltaic manufacturing industry and the use of renewable energy in remote areas. On the other hand, the schemes respond to social and environmental needs and, within their limited scope, support the transition to renewable energy. The notion of combining regulatory measures with financial incentives has long been advocated as an appropriate way to promote renewable energy technologies. Regulations ensure that a minimum level of response to government initiatives is obtained, while incentives encourage targeted groups to go beyond the prescribed minimum.

It has been proposed in other contexts in the promotion of renewable energy and energy efficiency, [] and its use in the present context is quite appropriate. In some States, federal initiatives supporting electricity produced from renewable sources have been supplemented by additional legislative and fiscal measures. Consistent with differing political attitudes towards energy policy and renewable energy resources, these mechanisms differ between the jurisdictions. It is beyond the scope of this article to examine all these initiatives, which include both financial and non-financial measures.

One example of a financial mechanism is the New South Wales Rebates for Solar Power Scheme, which provides funding to assist the installation of building-integrated photovoltaic systems. These grants are allocated on a competitive bidding basis. These State initiatives have been adopted independently of the Commonwealth government reforms.

Constitutionally speaking, it is quite appropriate for the States to intervene in this area, as they possess the basic powers over intrastate energy trading under the terms of the Australian Constitution. The initiatives can also be supported on the basis that any measures for the promotion of renewable energy for electricity generation are welcome on environmental grounds. Nevertheless, in comparison with the Commonwealth initiatives discussed above, state powers are very limited in their scope and application, and are most unlikely to have any major impact on the switch to renewable energy for power production.

If the States wish to supplement the Commonwealth measures, it would seem appropriate for the current miscellaneous measures to be replaced by harmonised and coordinated schemes. This should be the subject of discussion at a future meeting of the Council of Australian Governments. An ideological difference exists between those who view initiatives to promote electricity generation from renewable energy sources as unwarranted government intrusion in the electricity market, and those who view such initiatives as necessary in the public interest.

We believe that government intervention is required to ensure that all electricity supply companies take a minimum level of action in support of renewable energy resources.

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