Local Energy Networks (LEN)
From 1 January 2023, the Victorian State Government banned new residential Embedded Networks and introduced the Local Energy Network (LEN).
LENs require 5% or more of the electricity sold to residential customers to come from on-site renewable generation, with the balance to be sourced from offsite renewable energy facilities (such as GreenPower).
Speak to Energy On about your new regulatory requirements.
Summary of Changes
The Victorian General Exemption Order of 2022 outlines a number of changes to how new Embedded Networks, now Local Energy Networks, will operate moving forwards:
- New Retail Exemption categories.
- New Network Exemption Categories.
- New Conditions of Retail and Network Exemptions.
- New Generation Exemptions.
- Renewable Energy Generation and provision.
- Informed Consent provisions.
- Pricing Rules.
- Information provision to Minister or Commission.
Local Energy Service (LES) License
In addition to the new exemption process, the government has also proposed the introduction of a new Local Energy Service (LES) license. This license would be required for anyone who supplies or sells electricity within a new Embedded Network (EN). The LES license would require ENs / LENs to meet certain standards, including using clean and renewable energy technologies, and upgrading their metering and infrastructure to ensure that customers have access to competition from other on-market energy retailers. Embedded Networks will have three years from the introduction of the amended GEO to apply for a LES license.