Page 285 - Week 01 - Thursday, 15 December 2016
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In summary, the review found that wind auction II was successful in contributing to each of the objectives of the act. In particular, it found that wind auction II “will provide exceptional economic development investments into the ACT”. The auction’s winning proposals “exceeded expectations” and strong value-for-money outcomes were achieved. Wind auction II was efficient and effective, stimulating a high degree of industry participation and competition. Auction proponents had confidence in a known and well-administered process. The wind auction II process gave financiers and proponents confidence in the process, with industry generally finding the wind auction II process smoother than that of the first wind auction. An appropriate balance was struck in the risk allocation between auction proponents and the ACT government. Finally, there was a higher degree of consistency in local economic development proposals than in the first wind auction.
As well as tabling the review document, I have also tabled the government’s response to its key recommendations. Both this document and the review itself will be published on the website of the Environment, Planning and Sustainable Development Directorate. This information is relevant to any of the many governments across Australia and the world following the ACT government’s leadership in this space.
The review made eight recommendations, and the government fully agrees with the following: maintain a regular dialogue between the auction secretariat and relevant stakeholders to ensure that appropriate external resources are available; improve the efficiency of the auction evaluation process by further definition of the terms of reference for external evaluators; review the auction feedback process to proponents and consider if more detailed feedback can be given to proponents; provide more information on metering and grid connections in ActewAGL’s Distributions settlement procedure document; minimise the time period between the submission date and the announcement of winners to limit foreign exchange risk; and continue the discussion with financiers to minimise any auction bankability risks.
The government considers that responding to these recommendations will contribute to ensuring effective best-practice auction processes. In fact a number of these recommendations were directly incorporated into the next generation renewables auction held earlier this year.
The government agrees in part with the remaining two recommendations: to promote the level of community engagement with the territory, including through pro formas in future auctions; and to share the responsibility for monitoring EV3—local investment—initiatives across multiple directorates.
The government has led the development of improved community engagement practises across the wind industry nationally and supports publicising more examples of best practice. With regard to providing community engagement pro formas in future auctions, the government considers this must be balanced with the need to encourage innovation and retain flexibility. With regard to monitoring local investment initiatives, the Environment, Planning and Sustainable Development Directorate will remain responsible for local investment commitment monitoring and compliance. This will be carried out in close consultation with the Chief Minister, Treasury and Economic Development Directorate as well as the Education Directorate.
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