Australia’s battery energy storage sector is set to benefit from streamlined compliance requirements, with new legislation taking effect from 1 January 2026.
Under the amendments to the Renewable Energy (Electricity) Act 2000, electricity used specifically for energy storage will no longer be treated as a relevant acquisition.
This change is designed to reduce administrative burden and support the rapid scale-up of battery assets across the grid.
What this change means for operators
The reforms mean that operators whose electricity acquisitions relate solely to charging battery energy storage systems (BESS) will no longer need to submit an Energy Acquisition Statement (EAS) or surrender Large-Scale Generation Certificates (LGCs) or Small-Scale Technology Certificates (STCs). The exemption applies strictly to acquisitions for energy storage. Operators who also acquire electricity for other purposes must continue to lodge an annual EAS and meet their certificate obligations.
From 2026 onward, any portion of electricity acquired exclusively for storage will be excluded from reporting and certificate surrender requirements. However, some storage-related acquisitions may still attract liability depending on the operational context.
The Clean Energy Regulator is encouraging entities to seek tailored advice where needed, with operators urged to contact the Renew Energy Target Liability Team if they are unsure how the changes apply to their systems or business models.
Transitional arrangements for 2025 provide early relief for operators whose acquisitions are limited to energy storage. These entities will not be required to submit an EAS, surrender LGCs for the year, or surrender STCs for Quarter 4. Importantly, submitting an EAS without certificate surrender may trigger a shortfall charge, so operators are encouraged to check their obligations carefully. Those who acquire electricity for both storage and non-storage purposes in 2025 must continue to report all relevant acquisitions, including electricity used for BESS charging.
The reforms stem from the Future Made in Australia (Guarantee of Origin Consequential Amendments and Transitional Provisions) Act 2024, with Part 4 commencing in 2026.
These measures aim to clarify liabilities, support investor confidence and remove barriers for large-scale and behind-the-meter storage developers as Australia accelerates its clean-energy build-out.
To understand how these reforms may impact you, the CER has recommended reviewing this Act and related legislation, available via the Federal Register of Legislation.