Balneus

Australian Lefty on Politics, Governance, Science and Info Management

Energy efficiency trading scheme bill open for comment

Posted by Dave Bath on 2007-08-28


Yet another interesting Democrats bill now open for public comment: "Inquiry into the National Market Driven Energy Efficient Target Bill 2007". The bill proposes to amend the Renewable Energy (Electricity) Act 2000 to introduce an energy efficiency trading scheme, or, in the long title of the bill, "to create incentives and a market for energy savings, which are additional to energy efficiency activities set by minimum energy performance regulation, through energy efficiency certificate trading".

It’s an interesting approach to supplement carbon-trading (which looks like it will have initial prices set too low, despite the lessons that could be learnt from the tuning problems from Europes early attempt).  The other interesting thing is that the traded certificates might involve not just the "big guys", but little-old-us as domestic consumers.

I’m still going through the gories, but I’ll probably put in a short simple "darn good idea" submission.  If anyone out there finds a niggle or something particularly laudatory, feel free to comment here and it might help my thoughts mature.

Here’s some of the frontmatter to give you an idea of scope of the bill which defines the…:

creation, trading and extinguishing of energy efficiency certificates (EECs).

EECs are used to commoditise the energy saving due to the energy efficiency activity and allow trading. Trading of EECs will have the effect of equalising the marginal cost of compliance among the liable entities.

EECs may be created by registered persons who operate or own an eligible energy efficiency activity and are accredited by the Regulator. A person may apply to the Regulator for accreditation. Accredited participants include but are not limited to the following:

(a) energy consumers from all sectors of the economy (commercial, industrial, and domestic sectors);

(b) intermediaries or aggregators, for example energy service companies or energy retailers;

(c) local government or municipal utilities;

(d) liable entities who invest directly in an eligible energy efficiency activity.

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