Welcome to The Demand Manager, a quarterly e-newsletter designed to focus on energy and water demand management. With growing attention on climate change, demand management is fast gaining a reputation as the cheapest, quickest and most effective way to cut greenhouse gas emissions.

Each edition will look at issues affecting the industry, examples of innovative projects and other news and views and we welcome your feedback and suggestions.

In This Issue

Fruits of our Labor
20% Renewable Energy Target Approved
30% Accelerated Depreciation Allowance
Green Globe Awards
Upcoming Events

Fruits of our Labor

The start of 2009 has seen an unprecedented release of funding for sustainable energy and water projects, particularly from the new Federal Government in the drive to provide “complementary measures” to the announced Carbon Pollution Reduction Scheme.

Funds have been established, rounds have been held and some initial results have even been announced.  Some of the major funding initiatives to emerge in the past 6 months include:

• $90 million in funding for energy efficiency in commercial buildings through the Green Building Fund.

• $75 million for energy and water efficiency in manufacturing operations through the Re-tooling for Climate Change program.

• $75 million for research and development, proof-of-concept and early-stage commercialisation activities of new technologies through the Climate Ready Program.

• $200 million in funding for stormwater harvesting and reuse projects under the National Urban Water and Desalination Plan – a component of the Australian Government’s $12.9 billion Water for the Future commitment.

• $435 million in grants was established under the Renewable Energy Demonstration Program for projects demonstrating near-commercial renewable energy technologies.

• $250 million is on offer under the National Rainwater and Greywater Initiative, providing grants for residents and community clubs to implement rainwater and grey water systems, again as part of the Water for the Future initiative.

Demand Manager produces a regular update on the various State and Federal Government grants and rebates called FundWatch.  To view the latest copy click here. 

20% Renewable Energy Target Approved

The Australian Government has announced the penultimate approval of its 20% Renewable Energy Target as the Council of Australian Governments (COAG) endorsed the plan.  The last stage of approval will require the legislation to be approved through both houses of Parliament.

The Renewable Energy Target (RET) will set a target to achieve a 20% share of renewables in Australia’s electricity mix by 2020.  This is expected to lead to a four-fold increase in the target from 9,500 gigawatt-hours under the old scheme to 45,000 gigawatt-hours of renewable energy production per annum by 2020.

The expanded RET builds on the current Mandatory Renewable Energy Target (MRET) and is estimated to bring about direct investment in the Australian renewable energy sector worth AU$20 billion.  Some of the key design principals of the expanded RET will include:

• All current eligible sources of Renewable Energy Certificates (RECs) will continue to be eligible, including Solar Hot Water (SHW).
• Existing generators will continue to be eligible under the new RET.
• There will be increased support for small-scale solar PV systems, wind turbines and micro-hydro systems by applying a ‘multiplier’ at the time of installation – effectively increasing the upfront value of these projects.
• Annual targets are set to peak around 2020 through 2025.

The new RET is scheduled to commence in 2010 and the small-scale PV solar provisions due for commencement on 1 July 2009.  More information on the RET can be sourced here.

30% Accelerated Depreciation Allowance

The Australian Government has announced an investment tax break for business in the form of an “Investment Allowance” that can assist sustainable energy and water projects (amongst others) become more cost-effective.

The Small Business and General Business Tax Break was announced on 3 February 2009 as part of the Government’s Nation Building and Jobs Plan. The Investment Allowance is an incentive for businesses to spend money upgrading their plant and equipment and is in the form of an extra tax deduction on top of normal depreciation.
According to leading accounting firm, Stewart Brown & Co, the key elements of the concession are as follows:-

• The assets purchased must be “new” tangible assets;
• Ineligible assets include second hand items, trading stock, land, buildings subject to the building allowance and intangible assets (e.g. computer software);
• New motor vehicles (but not all demonstrators) are eligible assets but the Investment Allowance is limited to the depreciation cost limit (currently $57,180);
• New expenditure on existing assets may also qualify;
• The assets must be owned by the taxpayer (i.e. be careful of leasing an asset as the leasing company generally owns the asset and would be entitled to the concession not you!);
• The Investment Allowance is in addition to normal depreciation;
• The Investment Allowance deduction is available in the year the eligible assets are installed ready for use; and
• The Investment Allowance is a tax adjustment in your tax return and will not be reflected in your financial statements.

The rate of the Investment Allowance is dependent on when you enter into a binding contract to purchase the asset and when the asset is first used or is installed ready for use.  Generally, for contracts signed before 30 June 2009 where the technology is to be installed for use before 30 June 2010, the rate is set at 30%.

The Investment Allowance is available for small businesses (less that $2 million in turnover) for projects over $1,000 in size, or over $10,000 in size for all other businesses.

More information on the Investment Allowance can be viewed here.

Green Globe Awards

The Green Globe Awards are the leading environmental awards in New South Wales.

Now in its tenth year, the NSW Government's Green Globe Awards showcase and recognise outstanding achievements in the sustainable use of natural resources in NSW and leadership in tackling climate change.

This year, the NSW Department of Environment and Climate Change has introduced new awards for community, Local Government and media to celebrate the achievements of leaders in those fields.

Nominations will close on Thursday 11 June 2009 at 5:00pm (EST) and Nomination Forms can be found here.

Winners of the awards will be announced at a gala event hosted by the Hon. Carmel Tebbutt, the Minister for Climate Change and the Environment on Tuesday 28 July 2009

Upcoming Events

Growing the Green Collar Workforce
Hon Nathan Rees Premier of NSW and Hon Mike Rann, Premier of South Australia discuss the opportunity for the creation of new jobs in new green industries.
NSW Parliament House.  Thursday 21 May 2009 – Midday to 1.30pm

Demand Response & DSM
A conference to discuss the challenge of providing the cheapest, fastest and cleanest way to balance the supply demand equation.
Bayview Eden, Melbourne, Victoria.  Thursday & Friday 18-19 June 2009.

Clean Energy Council Energy Efficiency Seminar
Opening address by the Hon Peter Garret AM MP, Minister for the Environment, Heritage and the Arts.
Sydney – Venue TBA.  Friday 12 June 2009

NSW Green Globe Awards
Hosted by the Deputy Premier, the Hon Carmel Tebbutt MP, the 10th annual Green Globe Awards will be held at NSW Parliament House.
NSW Parliament House, Sydney.  Evening of Tuesday 28 July 2009

ATRAA 2009
ATRAA 2009 will be Australia’s biggest solar industry event attracting a range of delegates from business leaders, suppliers and installers, to students, trainers, teachers and manufacturers, bot locally and globally.
National Convention Centre Canberra.  29 July to 1 August 2009.