The Energy Regulation and Markets Review - Stikeman Elliott

Australia
2004 White Paper, ‘Securing Australia’s Energy Future’. 31 The EEO Act is aimed at
encouraging energy efficiency in the estimated 250 Australian businesses using more
than 0.5 petajoules of energy per year (large energy users).
The EEO Act requires large energy users to undertake a detailed energy assessment
and publicly report on identified opportunities that have payback periods of four years
or less. This provides a rich source of comparative data that can assist in identifying
common points of saving and provides business‐specific information for potential
energy-efficiency investments. 32
As part of its carbon price package, the government has announced that it will
expand the existing programme by extending base funding to 30 June 2017, including
energy transmission and distribution networks, major greenfield and expansion projects,
enhancing assessment and verification requirements and by establishing a voluntary
scheme for medium-sized energy users. 33
iii Technological developments
The Australian government has committed up to A$17 billion in funding to support
the development, commercialisation and deployment of clean energy technologies. This
includes the establishment of the CEFC and ARENA, as well as support for large-scale
carbon capture and storage demonstration. 34
Carbon capture and storage
Australia is one of the first countries to have established regulatory frameworks specifically
for carbon capture and storage (‘CCS’) activities. Under the framework, offshore CCS
activities in waters administered by the Federal Government will be governed by the
Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008 (Cth), while
onshore CCS activities and those in state waters are regulated by separate state regimes.
The Australian government funds the Carbon Capture and Storage Flagships
Program, which supports the construction and demonstration of large‐scale integrated
CCS projects. Additional government support for technological development in CCS is
provided via the A$315 million Global Carbon Capture and Storage Institute and the
A$370 million National Low Emissions Coal Initiative. 35
31 Australian government, ‘Securing Australia’s Energy Future’, Canberra, June 2004, available at
www.efa.com.au/Library/CthEnergyWhitePaper.pdf.
32 Department of Resources, Energy and Tourism, Draft Energy White Paper 2011: Strengthening
the foundations for Australia’s energy future, Canberra, December 2011, available at www.ret.
gov.au/energy/Documents/ewp/draft-ewp-2011/Draft-EWP.pdf; for further details see www.
ret.gov.au/energy/efficiency/eeo/about/Pages/default.aspx.
33 Department of Resources, Energy and Tourism, Draft Energy White Paper 2011: Strengthening
the foundations for Australia’s energy future, Canberra, December 2011, available at www.ret.
gov.au/energy/Documents/ewp/draft-ewp-2011/Draft-EWP.pdf.
34 Id.
35 Id.
17