Release of Position Paper

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.