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 BESS facilities, 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 persons who hold an existing development authorisation for projects that will now be regulated under the HRE Act. This alert outlines the way the HRE Act applies to projects that have an existing development authorisation but have not commenced construction and/or operation, including wind farms, solar farms, other renewable energy generation facilities and associated infrastructure, as well as BESS facilities (New Operator).
IMMEDIATE ACTION
There is no immediate action required from New Operators.
No changes are required to be made in respect of the land access arrangements or tenure for freehold land and perpetual lease land.
LICENCES
A New Operator can commence construction of a renewable energy facility, but will need to hold a licence under the HRE Act before commencing the operation of the facility. (Note that the requirements for the form and content of the application have not yet been released).
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 identified 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
New 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.
