Review of SA Electricity Licensing Framework

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Consultation has concluded. Below is a record of the engagement.


**UPDATE: The Department has released a Position Paper for the Review of the South Australian Licensing Framework. See below.**


Have your say on South Australia's current electricity licensing framework!

What's being decided?

Licences are required in South Australia under the Electricity Act 1996 for electricity generation, transmission, distribution, and system control functions. A retail licence may also be required for entities who sell electricity to customers but are not connected to the National Electricity Market.

The current licensing framework was established back in a very different technological environment from the one that is currently evolving. Distributed Energy Resources and associated business models, such as Virtual Power Plants and Electric Vehicle charging networks, are expected to have a significant impact on our future electricity supply and demand balance.

To help us work out the best way forward, your feedback is sought on the following:

  • strengths and weaknesses of the current electricity licensing regime
  • costs and benefits of the current electricity licensing regime
  • whether the current electricity licensing regime is achieving its objectives
  • how well the current electricity licensing regime interacts with the NEM.

Your comments, experience and insight are valuable to help ensure that the licensing framework keeps pace with the way that electricity is increasingly being generated and delivered to customers in South Australia.

Background

The electricity supply is in the process of rapidly transitioning to a carbon constrained future, with South Australia leading this transition. This is resulting in technically different ways in which the electricity supply is entering the market and radical changes to customer demand.

The transition to a decentralised power system represents an unprecedented change in power system and electricity market operation:

  • Consumers are leading the way in the growth in installed distributed PV.
  • Solar industry competitiveness and marketing is leading to increasing choices for consumer energy solutions.
  • The falling cost of renewable generation and batteries is lowering the cost of providing off-grid electricity supply.
  • The increasing role of storage means electricity market participants are both drawing electricity from the grid and sending electricity out to the grid.

Get involved

Find out more:

Have your say by:

  • Joining the online discussion below.
  • Join us for an online workshop on Friday 21 January 2022 from 10:00 am to 11:30 am (ACST) (register your interest at dem.consultation@sa.gov.au)
  • Emailing a submission to dem.consultation@sa.gov.au
  • Posting your written submission to:

    Department for Energy and Mining
    Review of the Electricity Licensing Framework
    GPO Box 320, Adelaide, South Australia 5001

What are the next steps?

All feedback will be consolidated and considered to determine appropriate reform options.

If you would like to provide any comments in addition to a submission or discuss this consultation further, please email dem.consultation@sa.gov.au.

**UPDATE: The Department has released a Position Paper for the Review of the South Australian Licensing Framework. See below.**


Have your say on South Australia's current electricity licensing framework!

What's being decided?

Licences are required in South Australia under the Electricity Act 1996 for electricity generation, transmission, distribution, and system control functions. A retail licence may also be required for entities who sell electricity to customers but are not connected to the National Electricity Market.

The current licensing framework was established back in a very different technological environment from the one that is currently evolving. Distributed Energy Resources and associated business models, such as Virtual Power Plants and Electric Vehicle charging networks, are expected to have a significant impact on our future electricity supply and demand balance.

To help us work out the best way forward, your feedback is sought on the following:

  • strengths and weaknesses of the current electricity licensing regime
  • costs and benefits of the current electricity licensing regime
  • whether the current electricity licensing regime is achieving its objectives
  • how well the current electricity licensing regime interacts with the NEM.

Your comments, experience and insight are valuable to help ensure that the licensing framework keeps pace with the way that electricity is increasingly being generated and delivered to customers in South Australia.

Background

The electricity supply is in the process of rapidly transitioning to a carbon constrained future, with South Australia leading this transition. This is resulting in technically different ways in which the electricity supply is entering the market and radical changes to customer demand.

The transition to a decentralised power system represents an unprecedented change in power system and electricity market operation:

  • Consumers are leading the way in the growth in installed distributed PV.
  • Solar industry competitiveness and marketing is leading to increasing choices for consumer energy solutions.
  • The falling cost of renewable generation and batteries is lowering the cost of providing off-grid electricity supply.
  • The increasing role of storage means electricity market participants are both drawing electricity from the grid and sending electricity out to the grid.

Get involved

Find out more:

Have your say by:

  • Joining the online discussion below.
  • Join us for an online workshop on Friday 21 January 2022 from 10:00 am to 11:30 am (ACST) (register your interest at dem.consultation@sa.gov.au)
  • Emailing a submission to dem.consultation@sa.gov.au
  • Posting your written submission to:

    Department for Energy and Mining
    Review of the Electricity Licensing Framework
    GPO Box 320, Adelaide, South Australia 5001

What are the next steps?

All feedback will be consolidated and considered to determine appropriate reform options.

If you would like to provide any comments in addition to a submission or discuss this consultation further, please email dem.consultation@sa.gov.au.

Consultation has concluded. Below is a record of the engagement.


  • Release of Position Paper

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    After considering submissions and internally assessing relevant options, the Department for Energy and Mining has released a Position Paper, outlining options assessed and recommendations as part of this review.

    This Position Paper proposes changes to the electricity licensing framework to clarify regulatory requirements for operators of smaller generators and operators of electric vehicle (EV) charging stations, as well as proposing investigating new licensing requirements for operators of virtual power plants (VPPs).

    The findings of this Position Paper can be summarised as:

    • intent to amend regulations to permanently change the capacity threshold for generation licenses from 100kVA to 5MW with the condition that the exempt entity maintain a maintenance plan to the Technical Regulator as currently required as part of a safety, reliability, maintenance and technical management plan.
    • Intent to amend regulations to permanently exempt EV charging stations from the need to hold a network (distribution or transmission) licence.
    • undertake further work to determine the basis for permanently exempting EV charging stations from the need to hold a retail licence.
    • investigate developing regulations that require VPP’s with generation capacity of at least 5MW to hold a generation licence, including undertaking comprehensive industry consultation to understand appropriate conditions and scope for such as licence.

    As previously advised, to allow adequate time for consultation on these options and subsequent regulatory amendments to be made, the Essential Services Commission of South Australia extended by 12 months to 30 November 2024 the current fixed term exemptions for sub 5MW operators and EV charging station operators, and by 24 months to 30 November 2025 for VPP operators.

  • Department announces upcoming release of a Position Paper and supports extension to current fixed-term exemptions

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    Please note the following important update regarding the Review of the South Australian Electricity Licensing Framework:

    • A Position Paper will be uploaded to this webpage for comment by the end of January 2024, outlining options assessed and recommendations made as part of the Review.

    • To allow adequate time for consultation on these options to occur and subsequent regulatory amendments to be made, the Department supports the Essential Services Commission of South Australia extending by 12 months to 30 November 2024 the current fixed term exemptions for sub 5MW operators and EV charging station operators, and by 24 months to 30 November 2025 for VPP operators.