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Recent State legislative updates

Both Victoria and South Australia have recently progressed significant legislation focused on renewable energy. 
 
The Victorian Government’s Climate Change and Energy Legislation Amendment (Renewable Energy and Storage Targets) Bill 2023 has had its second reading in the Legislative Assembly. The Bill is intended to reduce the cost of power bills, create tens of thousands of jobs and encourage investment in the State’s renewable energy industry. 

 

Both Victoria and South Australia have recently progressed significant legislation focused on renewable energy. 
 
Victoria

The Victorian Government’s Climate Change and Energy Legislation Amendment (Renewable Energy and Storage Targets) Bill 2023 has had its second reading in the Legislative Assembly. The Bill is intended to reduce the cost of power bills, create tens of thousands of jobs and encourage investment in the State’s renewable energy industry. 

Some key elements of the Bill include:

  • Legislating Victoria’s emission reduction targets to 45-50% below 2005 levels by 2030, 75-80% by 2035 and achieving net-zero emissions by 2045;
  • Setting a target of 95% renewable energy generation by 2035. In 2022/23, 37.8% of Victoria’s electricity generation was renewable energy;
  • Put in place energy storage targets for at least 2.6 GW or capacity by 2030 and at least 6.3 GW by 2035; and
  • Setting offshore wind targets of at least 2GW by 2032, 4 GW by 2035 and 9 GW by 2040.

It is estimated that the renewable energy and storage targets will create over 59,000 jobs in Victoria and generate $9.5 billion in economic development.
The Bill also seeks to amend the Planning and Environment Act 1987 to put in place an explicit climate change objective in the planning framework. This will require authorities to consider climate change, emissions reduction targets and the need to increase resilience to climate change when making decisions about the use and development of land. The amendments also give the Minister for Planning the power to issue written directions to planning authorities regarding climate change that must be taken into account when preparing a planning scheme or amendment. 
This change is in response to the decision in Sharma v Minister for the Environment by placing an express duty of care on planning authorities to consider the impact of planning schemes and amendments on climate change. As a result, local councils and planning authorities may need to review their current procedures to ensure they accommodate this new legislative requirement (when passed). 


South Australia

The Hydrogen and Renewable Energy Act was recently passed in South Australia. The legislation covers the lifecycle of a hydrogen and renewable energy project from investigation right through to rehabilitation. 

The legislation will regulate large-scale hydrogen projects that involve generating hydrogen as well as renewable energy projects that involve renewable energy resources. Key elements of the legislation include:

  • Enabling the Government to identify government-owned land and waters for renewable energy projects. This has been part of a consultation and review process with rights holders and stakeholders to identify optimal areas;
  • Allowing companies to compete for licences to access the land to deliver their projects;
  • Implementing a licensing regime for large-scale hydrogen and renewable energy projects across the entire lifecycle. There are six licences in total that cover all aspects of the process;
  • Ensuring First Nation people’s rights and interests are considered throughout the process by requiring a native title agreement is in place prior to the grant of licences;
  • Putting in place a framework for developments to be delivered with net environmental benefits;
  • Ensuring the land is rehabilitated and returned to its pre-existing condition; 
  • Establishing a Hydrogen and Renewable Energy Fund for research into a range of issues including engineering and practices to reduce environmental damage and the protection and preservation of native title and indigenous heritage; and
  • Enabling multiple land use provisions so there are fair outcomes of landowners, communities and other land rights holders.

It is anticipated that the legislation will unlock a pipeline of renewable energy projects worth approximately $21 billion, an amount that is expected to grow. 
 
 

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