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What is a Local Energy Network (LEN)?

In recent years, electricity industry consumer protection has led to the introduction of Local Energy Networks (LENs). Previously known as Embedded Networks, these networks are small-scale, self-contained grids that operate within a defined area, such as an apartment building, to provide electricity to multiple users from a centralized source. The Victorian government's regulatory changes, which came into effect on January 1, 2023, mark a significant shift in how these networks are managed and operated. 

LENs come with a strong emphasis on sustainability and consumer protection. One of the primary changes under the new regulations is the requirement that at least 5% of the electricity supplied by these networks must come from on-site renewable energy sources, such as solar panels. This mandate aims to promote the use of cleaner, more sustainable energy. 

The General Exemption Order (GEO) 2022 plays a crucial role in this new framework. The GEO stipulates that the benefits of the electricity generated must be shared equitably among users, ensuring that customers' rights are protected and that they have access to renewable energy produced on-site. 

Companies like Energy On are pivotal in implementing these new regulations. They operate and manage LEN’s, ensuring compliance with the new rules and protecting consumer rights. Furthermore, they focus on renewable energy planning, ensuring accurate billing and managing Solar PV systems within LENs. Energy On’s expertise in these areas helps to ensure that the transition to renewable energy is smooth and that the benefits are maximized for both the building owners and the residents. 

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