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SA Hydrogen and Renewable Energy Act Commences

4 minutes read time

INTRODUCTION
On 11 July 2024, the Hydrogen and Renewable Energy Act 2023 (SA) (HRE Act) and the Hydrogen and Renewable Energy Regulations 2024 (Regulations) came into operation. The purpose of the HRE Act is to facilitate and regulate the generation of hydrogen and renewable energy in South Australia.

The HRE Act creates a new approval and regulatory regime for hydrogen facilities, as well as a new access, approval and regulatory regime for renewable energy projects on Pastoral Lease lands and in State waters.  The HRE Act also replaces the existing approval and regulatory regime for renewable energy projects on freehold land (and other Crown Lands such as Perpetual Lease land) that has until now been administered under the Development Act 1993 (SA) and more recently the Planning, Development and Infrastructure Act 2016 (SA).

 

OVERVIEW
The HRE Act introduces a new regime for hydrogen and renewable energy infrastructure (including wind farms, solar farms and other forms of renewable energy generation) by imposing licence requirements for “regulated activities”, being:

  • generating hydrogen for a commercial purpose;
  • exploring for a renewable energy resource;
  • exploiting a renewable energy resource (which includes generating or obtaining energy from a renewable energy resource as well as storing, transmitting or otherwise conveying energy obtained from a renewable energy resource);
  • an infrastructure activity;
  • an associated infrastructure activity; and
  • an activity of a kind prescribed by the regulations.

It is important to note that the recently-made Regulations now provide that associated infrastructure activities include “energy storage systems” (i.e. BESS facilities) that are capable of being charged and storing/discharging energy, have a storage capacity of 5 MW or above, and are connected to a transmission or distribution network through which energy is conveyed.  These facilities, whether associated with a renewable energy generation project or not, will need to be licensed and operated in accordance with the HRE Act.

The HRE Act provides that an associated infrastructure licence may be granted to authorise associated infrastructure activities.  However, we note that if a BESS facility is developed as part of (for example) a wind farm project, and has the primary purpose of storing, transmitting or otherwise conveying energy obtained from a renewable energy resource, it should be possible for the BESS to be authorised by the wind farm’s renewable energy infrastructure licence.

Further, it is now apparent with the making of the Regulations that ports, wharves and jetties associated with the import or export of any compound of hydrogen, or any infrastructure necessary for the storage of any compound of hydrogen, are now also included within the scope of associated infrastructure activities.

 

TRANSITIONAL PROVISIONS
The HRE Act contains a suite of transitional provisions to address the application of the new regime to renewable energy projects that are:

  1. already operating; or
  2. already approved under the Planning, Development and Infrastructure Act 2016 (SA) but not yet operating; or
  3. undergoing assessment under the Planning, Development and Infrastructure Act 2016 (SA).

The Regulations have modified and expanded the transitional provisions under the HRE Act.  As a result, operating projects may continue to operate for the time being, however existing operators now have 12 months as opposed to the previously prescribed 6 months to obtain a licence or permit under the HRE Act.

Projects already approved under the Planning, Development and Infrastructure Act 2016 (SA) can be constructed in accordance with their existing approval, but will require a licence under the HRE Act to commence operating.

We will be issuing a separate summary of the transitional provisions in the coming days.  Please subscribe to ensure that you don’t miss this important information.

 

FURTHER INFORMATION
If you would like to discuss how the HRE affects your renewable energy or hydrogen project in South Australia, please contact our team.