Asia Pacific – Page 2 – Global Power Law & Policy

Powers of Regulators Brought Into the Spotlight by High Court Decision

Apr 14 2015

Recently the High Court of Australia handed down its unanimous decision in Australian Communications and Media Authority v Today FM (Sydney) Pty Ltd [2015] HCA 7 (HCA Decision) which relates to the powers of the Australian Communications and Media Authority (Authority).

The HCA Decision accepts that the Authority was permitted to make a finding of fact that a licensee committed a criminal offence and in doing so had breached a licence condition, despite the fact that no proceedings in relation to the criminal offence had been commenced or successfully prosecuted.

Security of Payment Legislation and Set-Off Under Commonwealth Insolvency Laws

Apr 14 2015

A recent Victorian Supreme Court case[1] has clarified the impact of Commonwealth insolvency set-off provisions on State-based security of payments legislation.

The case demonstrates that although a principal is generally precluded from relying on a set-off or counterclaim in certain contexts under the Building and Construction Industry Security of Payment Act 2002 (Vic) (BCISP Act), this general preclusion does not apply if the claimant is in liquidation, due to the operation of section 553C of the Corporations Act 2001 (Cth) (Corporations Act).

The case also provides useful commentary on what is considered a ‘payment schedule’ for the purposes of the BCISP Act.

If you would like to read more about this case, please click here.

[1] Façade Treatment Engineering Limited v Brookfield Multiplex Construction Pty Ltd [2015] VSC 41.

The Australian Energy Market Commission releases a draft report recommending against the implementation of optional firm access

Mar 18 2015

On 12 March 2015 the Australian Energy Market Commission (AEMC) released its draft report about a model for optional firm access to electricity transmission networks.

The report follows the development, testing and assessment of the optional firm access model by the AEMC at the request of the Council of Australian Governments’ Energy Council.

Amendments to the Australian Corporations Regulations: carbon abatement contracts not financial products

Mar 17 2015

The Emissions Reduction Fund (ERF) forms a key part of the Australian Federal Government’s Direct Action Plan to address climate change. Under the model, successful bidders in an ERF auction enter into “carbon abatement contracts” with the Clean Energy Regulator. These contracts require the bidder to provide carbon abatement to the Regulator according to an agreed schedule.

Previously, carbon abatement contracts may have been considered “derivatives” and “financial products” for the purposes of the Corporations Act 2001 (Cth) (the Act) and Corporations Regulations 2001 (Cth) (Regulations). This characterisation would have subjected ERF participants to onerous regulatory burdens under the Act and Regulations (such as the requirement to hold an Australian Financial Services Licence).

To ensure that persons are not burdened by these regulatory obligations simply because they regularly enter into contracts with the Clean Energy Regulator, the Corporations Amendment (Emissions Reduction Fund Participants) Regulation 2015 (the Amendments) exempt carbon abatement contracts from the definitions of “derivative” and “financial product”.

The Amendments will commence the day after they are registered on the Australian Federal Register of Legislative Instruments.

Solar Sukuk Lights the Way to Alternative Funding Sources: Australia, Indonesia and Malaysia Working Together

Mar 13 2015

SGI-Mitabu, a joint venture of two Australian solar companies, The Solar Guys International and Mitabu Australia, has revived its plans to fund its Indonesian 250 megawatt solar project with Islamic compliant funding. The solar project will require up to A$550 million of financing. Commencing in July 2015, the first phase of the project will be funded through an offer of A$150 million of sukuk (a type of Islamic investment instrument, similar to a bond).

Energy Storage Council Conference

Mar 13 2015

K&L Gates is pleased to announce that partner Jenny Mee will be a presenter at the inaugural Energy Storage Council Conference, on May 13-14, in Melbourne, Australia. This informative and comprehensive two day conference will explore important issues relating to the advancement of energy storage solutions in Australia and globally, including market developments and trends, technology integration, policy and industry case studies.

Click here for full event details.

Regulatory implications of new products and services in the Australian electricity market

Mar 03 2015

The Energy Market Reform Working Group in Australia released a consultation paper at the end of 2014 regarding the regulatory implications of new products and services in the national electricity market.

New products and services include energy supply from generation facilities installed at the customer’s premises (which may be combined with energy storage), products and services relating to demand management and energy information and advice.

The paper outlines some of the potential regulatory implications of these new products and services. It seeks feedback from stakeholders as to the types of new products and services which may be offered to small customers and whether regulatory reforms may be necessary – from either a consumer protection or a power system operations perspective.

Stakeholders are invited to make submissions on the issues raised by the consultation paper by close of business on 20 March 2015. Written submissions can be sent by email to energycouncil@industry.gov.au. Alternatively, please contact us and we would be happy to assist you in preparing a submission.

To read more about this consultation paper and the key findings and issues identified, please click here.

Australian Government Announces First Emissions Reduction Fund Auction

Feb 19 2015

The Australian Government recently announced that the first Emissions Reduction Fund auction will occur in April 2015. The Emissions Reduction Fund provides proponents of carbon abatement projects with opportunities to enter into contracts with the Government, via the Clean Energy Regulator, under which the proponent receives payment for undertaking carbon abatement. In the reverse auction process project proponents will submit sealed bids for the Clean Energy Regulator to purchase (in the form of Australian carbon credit units) emissions reductions generated by their projects.

Successful auction bids will be those with the lowest price, and successful proponents will then enter into Australian Carbon Contracts with the Clean Energy Regulator. The first auction will be open from 9.00am (Australian Eastern Standard Time) on 15 April 2015 and close at 5.00pm on 16 April 2015 (Australian Eastern Standard Time). The auction will occur through the online bidding platform Austender.
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The Australian Energy Regulator is considering its approach to regulating innovative energy selling business models.

Feb 12 2015

The Australian Energy Regulator (AER) is currently considering its approach to regulating new and innovative energy selling business models, for example business models which incorporate electricity storage, under the National Energy Retail Law.

The AER released an issues paper on this topic at the end of 2014 and has sought feedback on the issues paper from interested stakeholders. The AER has indicated that it will publish its final position in the second quarter of 2015. Read More

Department of Commerce Issues Final Antidumping and Countervailing Duty Determinations on Crystalline Silicon PV Products from China and Radically Reinterprets the Scope of the Investigations

Jan 20 2015

As we reported in June 2014, the U.S. Department of Commerce (the “Department”) announced that certain crystalline silicon photovoltaic (“CSPV”) products from the People’s Republic of China (“PRC” or “China”) had been produced by taking advantage of subsidies, and that such products could therefore be subjected to countervailing duties when imported into the United States (http://www.globalpowerlawandpolicy.com/2014/06/department-of-commerce-issues-preliminary-countervailing-duty-determination-on-crystalline-solar-pv-products-from-china/). Read More

Catagory:Asia Pacific