Market Update | 8 September

• NSW Government puts down the pedal on the states energy transition with $1.8 billion injection
• AEMC efforts to ensure 100% smart meter penetration by 2030
• Electricity Infrastructure Roadmap sees revitalisation streamlining consumer and community benefits

$1.8 billion to fast track NSW energy Transition

The New South Wales Government has pledged a significant $1.8 billion investment to accelerate the state’s energy transition efforts. This funding will facilitate the integration of new projects across the state and the establishment of the Energy Security Corporation (ESC). Its primary goal is to revitalise transmission efforts and energy storage initiatives, ensuring a smooth transition towards cleaner and more cost-effective electricity sources.

The establishment of the new ESC entity will see investment of the allocated funding in storage projects, addressing market gaps and enhancing the electricity network’s reliability amidst the transition to renewables. The ESC is also looking at funding community batteries and virtual power plants, enabling communities to pool rooftop solar-generated electricity, reducing grid reliance and lowering bills.

“We’re not just investing in large, grid-scale projects. We want to give households and communities more power to make choices about how they generate and use energy.” Said New South Wales Minister for Energy, Penny Sharpe.

Premier Chris Minns emphasised the importance of this announcement in getting New South Wales on track for a successful energy transition, ensuring cleaner and more affordable energy for the state’s residents.

“This is a serious, long-term step towards ensuring we get the transition right.”

Smart meters penned as key to activate consumer savings with goals of 100% adoption by 2030

The Australian Energy Market Commission (AEMC) has made final recommendations to ensure regulatory frameworks support 100% of consumers having smart meters by the start of the next decade. The universal uptake of household smart meters by 2030 are expected to provide net benefits to the value of $507 million for national electricity market regions.

AEMC Chair Anna Collyer said smart meter data will help customers see the benefits of a more efficient, lower-cost and decarbonised energy system.

The AEMC’s final recommendations would see new obligations placed on retailers to provide information prior to meter installations. Retailers would also be required to provide adequate notice of tariff increases.

“Knowledge really is power and that’s why we’re also recommending a mandate on customer access to real-time data about their own energy usage, so that they can maximise their savings from the touch of a device in their own homes,” Ms Collyer said.

 NSW Electricity Infrastructure Roadmap sees strong support with a focus on unlocking community and consumer benefits

The New South Wales Government is taking decisive steps towards securing a dependable and cost-effective supply of clean, renewable energy with the revitalisation of the Electricity Infrastructure Roadmap. Following the May 2023 Electricity Supply and Reliability Check Up, spearheaded by Cameron O’Reilly of Marsden Jacob Associates, the government has endorsed 50 out of 54 recommendations in the Roadmap. These measures are designed to drive the transition towards renewable energy, ensuring a smooth shift as coal-fired power plants phase out.

Key Points:

Strategic Emphasis on Infrastructure Roadmap:

• The Electricity Infrastructure Roadmap is now a top-tier priority for the government. This concerted effort aims to swiftly replace retiring coal-fired power with a robust infrastructure of renewable energy, transmission, and storage solutions.

Energy Security Target Monitoring:

• A new Energy Security Target Monitor will closely scrutinise the plans of remaining private coal-fired power stations nearing retirement. This proactive approach ensures sustained reliability at the most economical cost.

Streamlined Renewables Approvals and Community Benefits:

• The government is streamlining the approval process for renewable projects within the planning system. Additionally, efforts will be made to enhance and coordinate community benefit sharing. This move unlocks opportunities to integrate new renewables into the existing grid, even beyond designated Renewable Energy Zones (REZs).

Consumer Energy Strategy:

• A Consumer Energy Strategy is set to be developed. This strategy aims to empower households and businesses to readily adopt small-scale renewables like solar in the short-term. Importantly, this initiative won’t divert attention from the essential delivery of large-scale renewable projects.