Western Australia grants collocated energy storage works grid license exemption

The Western Australia (WA) government has extended distribution and transmission license exemptions to include collocated energy storage sites, such as battery energy storage systems (BESS), for licensed generation works connected to the South West Interconnected System (SWIS) grid.

Following a WA Department of Energy consultation on facilitating collocation of storage works with licensed generating sites, generation license holders are now exempt from needing an additional license.

In the past, operating network assets without a license were exempt but that did not apply if storage works were collocated and connected to the licensed generation, because network assets would no longer be solely used to transport electricity from the generation works to the SWIS but to also transport electricity to and from the storage works, a consultation paper stated.

Under the Electricity Industry Act 2004, storage works such as utility-scale batteries did not fit within the definition of “generating works.” That meant a licensed generator had to apply for a transmission or distribution license, despite already holding an exemption.

Concerns were also raised that a license requirement for collocated storage would deter investment in electricity storage systems that are essential to support the transition of the SWIS to accommodate more renewable energy sources.

The new license exemptions have been approved under section 8 of the Electricity Industry Act 2004. The exemptions are provided in clause 17 of the Electricity Industry Exemption Order 2005.

From pv magazine Australia.