Amendment TO the RES Act and the Energy Law Act

04 Oct 2021

In June 2021, the Government Legislation Centre published a proposal to amend the Energy Law and RES Act. One of the most controversial parts of the proposal envisages a departure from the system of billing for prosumer installations (connected to the grid since 1 January 2021) using the net metering method.

At the moment, micro-installation billing is based on a system of 1 to 0.7 for installations with an installed capacity exceeding 10 kW, and 1 to 0.8 for installations of up to 10 kW. This means that the seller has an obligation to return to the prosumer, when necessary, during the billing reference period, 0.7 or 0.8 kWh, as the case may be.

If the currently proposed wording of the amendment becomes law, micro-installation investment projects will not be as beneficial as today. This will mean the gradual development of energy storage facilities, and this in turn will make off-grid energy storage more cost-effective.

Under the proposal, dynamic prices for electricity will also be introduced, to encourage users to adjust their consumption to peak times of generation of renewable energy.

The proposal is an opportunity for growth of businesses dealing with energy aggregation, and also of energy smart management and storage start-ups.