Review of the South Australian Electricity Licensing Framework by the Department for Energy and Mining

14 Jan 2022

The Department for Energy and Mining (DEM) is seeking stakeholder feedback on the South Australian licensing framework that applies to electricity entities, as established in the Electricity Act 1996.

The current licensing framework was established in a very different technological environment from the one that is currently evolving.

To help understand and determine the best way forward, the Department for Energy and Mining is seeking feedback 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, and
  • how well the current electricity licensing regime interacts with the National Energy Market

A consultation paper “Review of the South Australian Electricity Licensing Framework” has been released for stakeholder feedback.  Stakeholders are encouraged to read the consultation paper and provide submissions directly to DEM by close of business Friday, 18 February 2022.  

In November 2021, following the approval of the Minister for Energy and Mining, Hon D van Holst Pellekaan MP, the Commission granted a temporary exemption from the requirement to hold a licence to persons who carry on virtual power plant (VPP) operations, electric vehicle (EV) charging station operations and the generation of electricity in South Australia utilising generating plant that have a rated nameplate output of five megawatts or less (Sub 5MW Operators). 

The review by the Department for Energy and Mining will consider whether a permanent exemption for VPP, EV and Sub 5MW Operators is warranted. 

Stakeholders are encouraged to make a submission to support the future development of the electricity industry in South Australia.