Following government’s response to the Embedded Networks Review, DELWP has now published a new General Exemption Order (GEO) which outlines the renewable energy condition which new residential embedded networks will need to meet to operate legally after 1 January 2023. It also defines what constitutes a ‘new’ embedded network for these purposes.
The GEO requires new embedded networks selling electricity to 10 or more residential customers to supply 100 per cent of its electricity from renewable sources, with at least 5 per cent generated onsite.
The GEO also sets out the definition of a “new embedded network”. From 1 January 2023 a new network is one that is not yet selling electricity to all customers in the network, or intends to sell it to 10 or more residential customers but does not yet have a legally binding agreement to that effect.
This means that members with a development underway which includes an embedded network who will complete their build after 1 January 2023 must ensure that they have a legally binding agreement in place with the embedded network provider prior to 31 December 2022 or be in a position to meet the on-site renewable energy requirement at the time they tenant the property.
However it should be noted that these are only transitional provisions. Phase two of the implementation will include transitioning all embedded networks (new and existing) onto a licensing framework with the same renewable energy requirement. Members will need to consider the implications this may have for existing properties as well as for future projects with embedded networks.
More information (including the published GEO and fact sheets) can be found at the Review website.