Infrastructure Investment Objectives
The overall Infrastructure Investment Objectives under the EII Act include building:
- electricity generation infrastructure to lower costs for consumers
- long duration storage like pumped hydro and batteries, necessary to meet the reliability standard
- firming infrastructure that can be dispatched when its needed, to help support our grid and to ensure we meet the Energy Security Target and reliability standard.
The minimum Infrastructure Investment Objectives include:
- construction of at least:
- 8 GW of generation capacity from the New England REZ
- 3 GW of generation capacity from the Central-West Orana REZ
- 1 GW of additional generation capacity
- construction of long duration storage infrastructure with 2 GW capacity, before 2030.
This objective is an annual generation volume (GWh per year) target rather than a target for capacity at a point in time.
AEMO Services is an independent subsidiary of the Australian Energy Market Operator (AEMO) and is a key partner in the implementation of the Roadmap through its appointment as the NSW Consumer Trustee.
Central to this role is the duty to act independently and in the long-term financial interests of NSW electricity consumers. This responsibility is at the core of everything AEMO Services does as the NSW Consumer Trustee.
Through competitive tenders and coordinated planning of long-term investment, the Consumer Trustee ensures competition thrives and only the best, most efficient projects that deliver energy in a socially responsible way, are supported to construction and operation as early as possible.
The Consumer Trustee is also responsible for the authorisation of Renewable Energy Zone network infrastructure, which is an important check and balance on consumer value from the development of this infrastructure.
The Infrastructure Investment Objectives Report (IIO Report) is the Consumer Trustee’s plan for meeting NSW’s future electricity needs. It sets out a development pathway for the next twenty years, and a tender plan for the next decade to identify the timing and scale for renewable energy generation and storage investment. The Report is updated every two years to ensure the interests of consumers are prioritised.
The IIO report is a companion to the Energy Security Target Monitor report below. It shows that good planning and foresight will help NSW avoid network and generation shortfalls as we transition to cheap, clean and reliable electricity.
Energy Security Target Monitor (ESTM)
The Energy Security Target Monitor (ESTM) report shows the amount of reliable electricity needed in NSW to service maximum consumer demand. For example, the report would accommodate for a summer heatwave plus a buffer.
The ESTM report defines the Energy Security Target for the next 10 financial years. In doing so, it also considers:
- the amount of reliable energy needed to meet demand
- any anticipated shortfalls and recommends actions to take in the event of any shortfalls over the medium term.
The most recent Energy Security Target Monitor (ESTM) Report was released in October 2022. This report gives a current view of NSW’s dynamic energy market with updated inputs and assumptions.
It also shows that with targeted action, NSW is on track to meet the Energy Security Target over the next 10 years.
Read the latest report at ESTM Report October 2022.
Find out more about the Energy Security Target Monitor.
There are a range of mechanisms in place to monitor how the Roadmap is tracking and whether it is meeting its objectives:
- The Consumer Trustee, Financial Trustee, the Scheme Financial Vehicle and the Infrastructure Planner must provide IPART with an annual report on their activities.
- IPART has the ability to conduct performance audits of the above entities.
- The Minister will review the EII Act after 5 years to determine whether the policy objectives and terms of the EII Act remain valid and appropriate.
These mechanisms are embedded in the EII Act to boost accountability around how the Roadmap is impacting NSW consumers.
Risk management framework
The Consumer Trustee has prepared a risk management framework. The framework aims to protect the financial interests of consumers against risks related to commercial agreements under the Roadmap.
The AER has approved the risk management framework.