AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz
State electricity legislation provides the licensing framework for transmission operators. For example, in NSW, transmission licences are issued under the Electricity Supply Act 1995; in Victoria, under the Elec- tricity Industry Act 2000; and in Queensland, under the Electricity Act 1994. These licences impose obli- gations relating to safety, reliability and network per- formance. State planning legislation governs the physical sit- ing and construction of transmission infrastructure. Major transmission projects, such as those identi- fied as actionable in the ISP, are typically assessed under major project or State Significant Infrastruc- ture pathways, which involve environmental impact assessment and public consultation. Environmental reviews are mandatory for significant projects, with an EIS/EES or equivalent assessment required where the scale or location of the transmission line warrants detailed environmental scrutiny. The EPBC Act applies at Commonwealth level where a transmission project may significantly impact mat- ters of national environmental significance. Grid-scale battery storage facilities co-located with or connected to transmission infrastructure are assessed under the same state planning frameworks, with NER reforms accommodating the registration and dispatch of storage as a distinct participant category, Integrated Resource Providers. 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities The regulatory process for obtaining approvals to con- struct and operate transmission lines involves several parallel workstreams across state, national and (where In each jurisdiction, a proponent constructing, own- ing and operating transmission or distribution infra- structure beyond its own land boundaries requires an appropriate authority or licence. In Queensland, a transmission authority under Chapter 9 of the Elec- tricity Act 1994 is required where transmission activi- ties are the entity’s primary function or where third parties will connect to the network; these authorities applicable) Commonwealth jurisdictions. Transmission or Distribution Authority
also grant access to the Community Infrastructure Designation process and may provide a pathway to compulsory acquisition powers, with applications assessed over a minimum four-month period includ- ing public consultation. In NSW, a transmission opera- tor’s licence is issued under the Electricity Supply Act 1995. In Victoria, a transmission licence is granted under the Electricity Industry Act 2000. In Western Australia, a transmission licence is issued by the Economic Regulation Authority under the Electricity Industry Act 2004 (WA). Similar licensing frameworks apply in South Australia, Tasmania and the Northern Territory under their respective electricity legislation. Grid Connection Process Connection to the national grid follows the staged process under NER Chapter 5. The proponent first lodges a connection enquiry with the relevant network service provider, specifying the type, magnitude and timing of the proposed connection. The NSP responds with an outline of application requirements. The pro- ponent then submits a formal application to connect, negotiates access standards (where automatic access standards cannot be met), and negotiates a connec- tion agreement. Upon execution, both parties must jointly notify the AEMO within 20 business days. Regulatory Investment Test for Transmission (RIT-T) Before a major regulated transmission investment proceeds, it must satisfy the Regulatory Investment Test for Transmission (RIT-T), which is an economic cost-benefit assessment under the NER that evalu- ates whether the proposed investment maximises net market benefits. Where the AEMO’s ISP designates a project as “actionable”, the RIT-T process is stream- lined, with the ISP’s cost-benefit analysis accepted as satisfying key elements of the test. Planning and Environmental Approvals As the infrastructure owner, the proponent is respon- sible for corridor selection, environmental assess- ment, planning approvals and land acquisition. State planning approval is required – typically assessed through major project or State Significant Infrastruc- ture pathways for significant transmission lines, with the decision-maker being the relevant state planning minister or an independent planning commission.
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