Executive summary of update

This update introduces significant, temporary financial relief measures to stimulate investment in the offshore electricity sector. Key changes include substantial reductions in application fees for research, demonstration, and transmission licences for a 24-month period. The update also remits (waives) offshore electricity infrastructure levies for both existing and new feasibility, research, and transmission licences granted before mid-2027. This provides immediate cost savings and reduces financial uncertainty for early-stage projects. Furthermore, the regulations now explicitly define infrastructure for producing and transporting green hydrogen and related chemicals as 'offshore renewable energy infrastructure'. This provides crucial regulatory certainty for projects focused on these emerging energy products, clarifying their legal standing and encouraging investment. The primary consequence is a significant lowering of financial barriers for project development in the short to medium term.

Impacted parties

Project proponents, particularly those in early-stage development, planning transmission infrastructure, or pursuing green hydrogen projects, are the most significantly impacted by this update.

Change Analysis

Temporary Financial Relief for Licence Applicants and Holders

The update introduces several measures aimed at reducing the financial burden on project proponents, particularly in the early stages of development.

• Application Fee Reductions: Section 146 has been amended to introduce temporary fee reductions for applications made within 24 months from 15 November 2025. The fee for a research and demonstration licence is reduced from $300,000 to $20,000, and the fee for a transmission and infrastructure licence is reduced from $300,000 to $150,000.
• Remittal of Past and Future Levies: The new Section 150A remits all unpaid levies for existing feasibility licences for periods that began before 15 November 2025, and also remits the levy for the next 12-month period. The new Section 150B provides forward-looking relief for licences granted on or before 30 June 2027, remitting the full levy for the first two years for feasibility and research/demonstration licences, and half the levy for the first two years for transmission and infrastructure licences.

Note: These changes are designed to incentivise new applications and support the financial viability of existing early-stage projects.

Expanded Definition of Offshore Renewable Energy Infrastructure

The update provides critical clarification on the scope of regulated infrastructure, particularly for the green hydrogen industry.

• Inclusion of Green Hydrogen Infrastructure: The new Section 159A expands the definition of 'offshore renewable energy infrastructure' for the purposes of the Act....