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Electricity Supply and Reliability Check Up

In 2019, the NSW Government released the NSW Electricity Strategy to augment the national framework with NSW specific policies and programs. This includes enhanced and expanded schemes to support households and businesses reduce peak demand, a more stringent reliability objective called the Energy Security Target, funding to demonstrate emerging technologies and a NSW regulatory framework to support new generation and transmission investment.

In November 2020, the NSW Government released the NSW Electricity Infrastructure Roadmap (the Roadmap) that is legislated under the Electricity Infrastructure Investment Act 2020. The Roadmap sets out an investment framework to coordinate the replacement of coal-fired power stations and transition the electricity sector to a clean, affordable, and reliable system, based on best available modelling and forecasts at that time.

The outlook for NSW’s electricity sector has evolved and changed since November 2020. The transformation of the electricity sector to meet NSW’s growing and changing needs will require continued structural economic adjustment in NSW and across Australia. There is a need to ensure this effort supports the transition of our workforce from coal-related industries.

Independent Check Up

The NSW Government will continue to implement the Roadmap and facilitate the transition and decarbonisation of the electricity sector as part of our commitment to achieve Net Zero by 2050.

In this context, a Electricity Supply and Reliability Check Up (the Check Up) was conducted to:

  • review the existing information, resources, known developments and structures rather than commission any new work or analysis
  • consider the current overall policy and program approach to delivering a timely and cost effective electricity sector transition, given the main developments that have occurred since the Electricity Infrastructure Investment Act 2020 was passed
  • comment on any residual risks for NSW (for reliability and price) should the Eraring Power Station close in 2025 and the potential additional controls available to mitigate them
  • in undertaking the above, have regard to opportunities for the NSW Government to enhance local community support, workforce readiness and supply chain improvements.

The independent Check Up report has been provided to the NSW Government and is available here.

The NSW Government has considered the report, and the recommendations made, and has published its response here.