Western Australia grants co-located storage works licence exemption

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The Western Australia (WA) government has extended distribution and transmission licence exemptions to include co-located storage, such as battery energy storage systems (BESS), for licenced generation works connected to the South West Interconnected System (SWIS).

Following a WA Department of Energy consultation on facilitating co-location of storage works with licensed generating works, generation licence holders are now exempt from needing an additional licence.

In the past, operating network assets without a licence were exempt but did not apply if storage works were co-located 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 says.

Under the Electricity Industry Act 2004, storage works such as utility-scale batteries, did not fit within the definition of ‘generating works’, requiring a licensed generator to apply for a transmission or distribution licence, despite holding an existing exemption.

Licenced generation works connected to the South West Interconnected System are exempt from license constraints to co-locate storage projects such as battery energy storage systems.

Concerns were also raised that a licence for co-located storage would deter investments in electricity storage systems that are essential to support transitioning of the SWIS to more renewable energy sources.

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

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