INTRODUCTION
The Hydrogen and Renewable Energy Act 2023 (SA) (HRE Act) and the Hydrogen and Renewable Energy Regulations 2024 (SA) (HRE Regulations) came into effect on 11 July 2024.
The HRE Act creates a new approval and regulatory regime for hydrogen facilities, renewable energy projects and batteries, as well as a new access, approval, and regulatory regime for renewable energy projects on Pastoral Lease lands and in State waters.
Importantly, the HRE Act will also apply to existing (i.e., operating) renewable energy and BESS facilities in South Australia. This alert outlines the way the HRE Act applies to lawfully operating renewable energy infrastructure (including wind farms, solar farms, other renewable energy generation facilities and associated infrastructure), and BESS facilities (Existing Operator).
IMMEDIATE ACTION
There is no immediate action required from Existing Operators. The facility can continue operating under existing approvals for the time being.
No changes are required to be made in respect of the land access arrangements or tenure for freehold land and perpetual lease land.
LICENCES
An Existing Operator will need to apply for a licence under the HRE Act before 11 July 2025 (i.e. there is a 12 month transitional period). The Existing Operator can then keep operating until a decision is made on the application.
For renewable energy generation facilities, the relevant licence is the Renewable Energy Infrastructure Licence.
The conditions of the Renewable Energy Infrastructure Licence will be the conditions in the existing development authorisation for the facility (as outlined by the Minister) together with other conditions imposed by the Minister.
Once the Renewable Energy Infrastructure Licence is granted, the facility will be regulated under the conditions of the licence and in accordance with the new regulatory regime set out in the HRE Act.
EXEMPTIONS
Existing Operators will be exempt from the rehabilitation bond/security requirements of the HRE Act.
The facility is not exempt from the new licence fees under the Act: A fee of $5,329 will apply for the Renewable Energy Infrastructure Licence and there will be an annual fee of $4,507 or $5 per sqkm or part of a sqkm in the area of the licence, whichever is the greater.
Once licensed, the operator will need to comply with the HRE Act, which includes requirements for annual and half yearly reporting, incident reporting, data and record management, decommissioning and rehabilitation planning, and requirements to obtain Ministerial consent before transferring the Licence or changing more than 20% of the shareholding / voting rights in respect of the operator entity (among others).
Variations to the project will be dealt with under the Planning, Development and Infrastructure Act 2016 (SA) until the facility has a Renewable Energy Infrastructure Licence, and then under the new Hydrogen and Renewable Energy Act.
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.
