Summary
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.
Details
- Australia
Mandatory for:
Any proponent constructing, installing, commissioning, operating, maintaining or decommissioning offshore renewable energy or offshore electricity transmission infrastructure in Commonwealth offshore areas under the OEI scope.
Exceptions:
State coastal waters and onshore components fall under different regimes, but Commonwealth OEI controls apply in Commonwealth offshore areas.
A feasibility licence is not authorisation for commercial generation; it is for feasibility assessment and progression toward a commercial licence.
Deep dive
What’s Required
Australia’s Offshore Electricity Infrastructure Act 2021 (OEI Act) creates the core Commonwealth framework that prohibits offshore renewable energy and offshore electricity transmission activities in Commonwealth waters unless licensed. It establishes who can operate, where, under what conditions, and with what safety and environmental controls.
Key requirements include:
Declared offshore areas + licensing pathway: Projects generally progress through a staged licensing regime (notably feasibility licences and later commercial licences, plus transmission/infrastructure licences where relevant). The feasibility licence allows assessment of feasibility and progression toward commercial licensing.
Merit-based allocation and competitive process: Licences are typically offered via an invitation process and assessed against merit criteria (Registrar advice supports the Minister’s decision).
Management plan requirement (critical compliance gate): Licence holders must prepare and maintain an OEI management plan describing how they will manage work health and safety, infrastructure integrity, and environmental management risks, developed with stakeholder consultation. This plan is the backbone of operational compliance and is subject to regulator oversight.
Regulatory oversight: The Offshore Infrastructure Registrar (within NOPTA) administers licensing; the Offshore Infrastructure Regulator (OIR) oversees safety, integrity and environmental management compliance under the OEI framework.
Interaction with EPBC Act: Separate Commonwealth environmental approvals may still be required where impacts are significant on protected matters (particularly relevant for marine context).
Important Deadlines
Before doing regulated offshore activities: A relevant OEI licence must be in place.
Before construction/operation under an OEI licence: A compliant management plan must be prepared and accepted/approved as required by the OEI regulatory framework.
Event-based: Management plan revisions may be directed by the regulator, and are triggered by material changes and risk updates.
Current Status
The OEI regime is actively operating, with published licensing administration guidance (including feasibility licence guidance) and regulator materials detailing management plan expectations and enforcement posture.
Penalties for Non-Compliance
Operating without the required licence, breaching licence conditions, or failing to maintain/comply with management plan requirements can trigger regulatory intervention. Enforcement tools include directions, compliance action and penalties (OIR policy describes its enforcement role and approach).
Separate offences exist for interference/damage-type conduct related to offshore infrastructure (illustrative from legislative materials and commentary on the regime’s protective offences).
Examples of Known Violations
Commencing offshore works before the correct licence is in force.
Treating feasibility activities as “soft approval” and failing to do stakeholder consultation and risk controls at management plan standard.
Scope drift: changing layout, vessels, cables or construction methods without revising and maintaining the management plan to reflect changed WHS, integrity and environmental risk.
Resources
