How the Victorian Government’s review into Embedded Networks could impact CHOs



Embedded Electricity Networks Review

Embedded Networks Review © Copyright State Government of Victoria


The Victorian Government has released its formal response to Victoria’s Embedded Networks Review and is beginning implementation of the recommendations made. Phase One of the implementation will require all new embedded networks to meet two renewable energy requirements in order to operate legally:

  1. One hundred per cent of the electricity supplied to domestic customers must be from a renewable energy source.
  2. At least five per cent of the electricity supplied to domestic customers must be from on-site renewable energy generation.

These changes will come into effect from 1 January 2023, and will not apply to existing embedded networks. The changes will be implemented through an amended General Exemption Order to be published later this year, which will include a definition of “new embedded networks”. We recommend members whose current projects include an embedded network contact their embedded network operator to discuss what impact these changes may or may not have on your project.

Any sites which are registering a new embedded network with the Essential Services Commission (ESC) on or after this date will need to comply with the above requirements, and be able to demonstrate their ability to do so to the ESC before properties are tenanted.

Phase Two of the implementation will see the introduction of a licencing framework for all embedded networks, whereby they will need to obtain a licence from the ESC. This will be a phased transition in which CHIA Vic will have the opportunity to provide feedback on behalf of members to the Department of Environment, Land, Water and Planning.