Electricity Infrastructure Legislation Amendment Act 2025

Overview

The Electricity Infrastructure Legislation Amendment Act 2025, enacted by the Parliament of Australia and assented to on 20 February 2025, seeks to amend existing legislation relating to electricity infrastructure. This Act addresses gaps in the regulatory framework by modifying the Offshore Electricity Infrastructure Act 2021 and introducing new provisions under the Climate Change Act 2022. Specifically, it aims to ensure that the amendments to the Offshore Electricity Infrastructure Amendment (Overlapping Applications) Regulations 2024 apply to all relevant applications, regardless of their submission date. Furthermore, the Act establishes the Capacity Investment Scheme Program to achieve significant targets in renewable and clean dispatchable generation capacity by the end of 2030. The overarching policy objective is to bolster Australia's electricity infrastructure and renewable energy capacity in alignment with national climate change goals.

Scope and Application

The Electricity Infrastructure Legislation Amendment Act 2025 is a piece of Australian Commonwealth legislation that amends existing laws related to electricity infrastructure. It applies to the regulations and activities governed by the Offshore Electricity Infrastructure Act 2021 and the Climate Change Act 2022. Specifically, the Act amends the Offshore Electricity Infrastructure Regulations 2022 to ensure that amendments made by the Offshore Electricity Infrastructure Amendment (Overlapping Applications) Regulations 2024 apply to all applications for a feasibility licence, including those made before the commencement of the amending regulations. Furthermore, the Act introduces the Capacity Investment Scheme Program under the Climate Change Act 2022, mandating the implementation of this program to achieve at least 23 gigawatts of renewable generation capacity and 9 gigawatts of clean dispatchable capacity by the end of 2030. This involves the Commonwealth making, varying, or administering arrangements for the program's activities, with any variation or revocation of the program requiring approval by a resolution of each House of the Parliament. The Act commenced on 20 February 2025, the date it received the Royal Assent.

Key Provisions

The Electricity Infrastructure Legislation Amendment Act 2025 includes several key provisions that address amendments to existing legislation. Section 1 amends the Offshore Electricity Infrastructure Act 2021 by clarifying the application of certain regulatory amendments. Specifically, it states that the amendments made by the Offshore Electricity Infrastructure Amendment (Overlapping Applications) Regulations 2024 apply to both applications for a feasibility licence made before the commencement of those regulations and those made on or after the commencement (Schedule 1, item 1). This ensures consistency in the application of regulatory changes. The Act also imposes obligations on the Commonwealth regarding the implementation of the Capacity Investment Scheme Program. Under the Climate Change Act 2022, the Capacity Investment Scheme Program must achieve at least 23 gigawatts of renewable generation capacity and at least 9 gigawatts of clean dispatchable capacity by the end of 2030 (Schedule 2, item 15B). If the Capacity Investment Scheme Program is prescribed by legislative instrument under the Industry Research and Development Act 1986, the Commonwealth must make, vary or administer arrangements to achieve these targets (Schedule 2, item 15C(1)). Additionally, if the Climate Change Authority advises a material risk to achieving these targets, the Minister’s Annual Climate Change Statement must respond to that advice (Schedule 2, item 15C(2)). The Act further regulates the amendment process for the Capacity Investment Scheme Program. Any instrument made under the Industry Research and Development Act 1986 that varies or revokes another instrument prescribing the Capacity Investment Scheme Program does not come into effect until approved by a resolution of each House of the Parliament (Schedule 2, item 15D(1)). This ensures a parliamentary oversight mechanism for significant changes to the program. However, this requirement does not apply to instruments that do not prescribe the Capacity Investment Scheme Program (Schedule 2, item 15D(2)). There are no explicit provisions detailing specific offences, penalties, or civil/criminal consequences for breaches of the provisions in the Electricity Infrastructure Legislation Amendment Act 2025. The focus of the Act appears to be on clarifying the application of regulatory amendments and outlining the obligations and processes for achieving the Capacity Investment Scheme Program targets. However, given the nature of legislative amendments, any breaches of the underlying Acts (such as the Offshore Electricity Infrastructure Act 2021 or the Climate Change Act 2022) may still incur penalties as specified in those respective Acts.