Electricity generation licence application - Hornsdale Power Reserve Pty Ltd
- Project Released: 23 Dec 2019
- Project Closes: Apr 2020
- Contact: Julie Dixon
The Commission has received an application from Hornsdale Power Reserve Pty Ltd to vary its electricity generation licence by increasing the capacity of the battery operated generating plant from 100 to 150 megawatts, located at Hornsdale.
Current status is Initiate
The Commission has received an application from Hornsdale Power Reserve Pty Ltd to vary its electricity generation licence in accordance with the Electricity Act 1996 (Electricity Act). The applicant is seeking to increase the capacity of the battery operated generating plant from 100 to 150 megawatts, located at Hornsdale.
In assessing a variation application, the Commission considers the relevant licensing provisions set out in the Electricity Act. It will also have regard to its primary objective under the Essential Services Commission Act 2002, being the protection of the long-term interests of South Australian consumers with respect to the price, quality and reliability of essential services, and other factors as they apply to the Commission's role as an economic regulator of the South Australian electricity industry.
In making its assessment, the Commission considers advice from the Australian Energy Market Operator and the Office of the Technical Regulator. Matters related to health and environment protection are regulated under separate legislative frameworks.
Hornsdale Power Reserve Pty Ltd’s application is subject to a public consultation period closing on 30 January 2020. The Commission welcomes submissions on any matters relevant to the application.
On 13 October 2017, the Commission issued an electricity generation licence to Hornsdale Power Reserve Pty Ltd (Hornsdale Power Reserve), authorising it to operate a series of Tesla batteries up to a total maximum capacity of 100MW.
Hornsdale Power Reserve will be required to comply with stronger licence conditions, consistent with those outlined in the Commission's Inquiry into the licensing arrangements for generators in South Australia (hyperlink to Inquiry), demonstrating that new technologies can and should contribute to a secure and resilient power system.
The Commission assessed Hornsdale Power Reserve's application for an electricity generation licence against the relevant provisions of the Electricity Act 1996 and the Essential Services Commission Act 2002 and determined that, with the inclusion of the additional technical licence conditions, all relevant criteria under those Acts have been satisfied.
Hornsdale Power Reserve applied to the Commission for an electricity generation licence on 31 July 2017. The Commission undertook a round of public consultation in relation to the application and received no submissions from stakeholders. In making its assessment, the Commission sought technical advice from the Australian Energy Market Operator and the Technical Regulator.
A copy of the Hornsdale Power Reserve licence may be accessed below.