The winds of change
The Regulator 2022 - Issue 2
With the commencement of the Offshore Electricity Infrastructure Act 2021 (OEI Act) just around the corner, NOPSEMA will be officially established as the regulator for offshore renewables.
The regime provides for regulatory and investment certainty including security of tenure and protections for offshore infrastructure. The OEI Act, along with the associated Regulatory Levies and Consequential Amendments to the Offshore Petroleum and Greenhouse Gas Storage (OPGGS) and other Acts, will come into effect on 2 June.
As the Offshore Infrastructure Regulator, we will have responsibilities for overseeing work health and safety, infrastructure integrity, environmental management, and financial security of offshore infrastructure activities.
Although we are taking on a new role in this emerging industry in Australia, we will not be taking any focus away from the important role we play in regulating the offshore oil and gas sector.
Funding for the renewables role will also be entirely separate via government funding until industry activity results in sufficient and separate renewables levies. The regulations that underpin the OEI Act are being developed in stages, with the first set of draft regulations covering the licensing scheme, fees and levies, spatial referencing, and treatment of pre-existing infrastructure which were released for consultation in March.
The next set of regulations intend to cover management plans, financial security, safety and protection zones, and work health and safety aspects and are expected to be released for consultation later this year. There continues to be a high level of interest in offshore renewables both domestically and internationally.
We look forward to officially overseeing the growth and direction of this emerging industry and we are already involved in supporting the Department of Agriculture, Water and Environment in project approvals under the EPBC Act. The Global Wind Energy Council estimates that Australia has the potential to generate up to 5,000 gigawatts (GW) of electricity from offshore wind using a combination of fixed and floating infrastructure.
This estimate represents 100 times the installed capacity of Australia’s two largest electricity networks. Most of country’s world-class wind resources are generally located on the south side of the country and adjacent to large population centres, industrial hubs, and mining projects.
Offshore wind represents a proven and competitive generation technology that can contribute to the diversification of Australia’s energy sources. The Offshore Infrastructure Regulator will progressively publish information and materials on its Offshore Renewable Energy page at NOPSEMA’s website.
Interested stakeholders can also subscribe to receive offshore renewables updates via the NOPSEMA homepage.