Renewable energy law in the context of a transforming Australian energy market

Australia is in an unusual quandary when it comes to energy policy. On the one hand, it is the world’s largest exporter of coal, and soon to be the world’s largest exporter of LNG, while also being a major supplier of uranium for use in nuclear power facilities. On the other hand, Australia also has some of the world’s best solar and wind resources, exceptionally high electricity prices, an internationally islanded grid and as a result, is being used as a global test market for new energy technologies. This paper examines the complex legal and governance framework that supports the deployment of renewable energy in Australia. The paper begins by describing the current energy mix in the National Electricity Market, and how that mix is transforming with the very high penetration of residential photovoltaic solar and development of larger scale renewable energy projects. In Part 2, the paper considers the constitutional settlement, which led to responsibility for energy being shared between the Commonwealth Government and the states prompting a very complex set of cooperative governance arrangements. It is argued in Part 3 that the existing governance arrangements for the National Electricity Market lead to lowest common denominator decision-making, are not transparent and make changes to the status quo, which is largely designed for the incumbent fossil fuel generators, difficult to achieve. Part 4 of the paper then critically analyses the national Renewable Energy Target and some of the state and territory laws that operate to support the deployment of renewable energy. Part 5 of the paper examines the recent efforts to create an integrated energy and climate policy through the development of the National Energy Guarantee, critiques the draft design and considers how the outcome of 2019 Federal election is likely to impact on its adoption. The paper concludes in Part 6.