Next Emissions Reduction Fund Auction Announced
Jan 07, 2016
The Clean Energy Regulator has announced it will hold the third Emissions Reduction Fund auction for carbon abatement contracts on Wednesday 27 and Thursday 28 April 2016.
"We can already see that there is strong interest in the market for another auction. Participants that missed out at previous auctions are keen to have another opportunity to come forward and new projects are being registered every week," said Ms. Chloe Munro, Chair of the Clean Energy Regulator.
"We understand that many potential participants will consider Emissions Reduction Fund projects in the context of their annual businesses planning cycle. We have set the date of the next auction well in advance to allow plenty of time to plan, register and qualify for the auction."
"For the same reason, we can also confirm our intention to hold the fourth auction in the final quarter of the 2016 calendar year," Ms Munro said. "This will allow participants who don’t expect to be ready to bid in the current financial year to plan ahead for the next auction."
Project registration is the first step towards participation in an auction. Anyone who plans to bring a new project to the third auction must apply for project registration by midnight AEDT Wednesday, 9 March 2016.
The April 2016 auction will follow the same format as the second auction, in a single-round, pay-as-bid auction. The Clean Energy Regulator will purchase between 50 and 100 per cent of the abatement on offer below the benchmark price. Auction guidelines detailing the process will be released prior to Christmas.
"I would remind all potential participants that the best strategy to succeed at an auction is to price projects realistically and bid the lowest price at which it is worthwhile to undertake the project," Ms. Munro said.
"Our objective remains to purchase as much abatement as we can with the $1.3 billion still available in the fund. The first two auctions put the Emissions Reduction Fund on a solid footing, with a substantial volume of abatement contracted at competitive prices." Ms. Munro said.
"We expect bidding at future auctions to continue this trend. We will only commit funds that represent best value in terms of total cost and total volume."
A timeline of the third auction process is available under Planning for an auction on the Clean Energy Regulator website.