A NSW Government website

NSW Peak Demand Reduction Scheme consultation

Rule change 2

The Peak Demand Reduction Scheme (PDRS) provides financial incentives for households and businesses to decrease energy demand during peak hours. To ensure the scheme meets its objectives to improve the reliability and sustainability of our electricity system, we're making some changes. These include:

  • amending existing activities
  • providing suppliers with the opportunity to reach new customers and increase revenue generated through the scheme.

For the first time, households and businesses will receive financial incentives by helping us temporarily reduce energy demand during peak hours.

Proposed changes to the Peak Demand Reduction Scheme

Consultation has now closed on our proposals to:  

  • change the capacity factor for commercial water heaters
  • change the requirements for inbuilt demand response capabilities for all new air conditioners
  • change the pool pump activity
  • create the Whole Annual Response Mechanism (WARM) to provide incentive to eligible end users participating in the Wholesale Demand Response Mechanism
  • add incentives for households for the following activities:
    • installation of a new residential battery energy storage system
    • registration of an existing residential battery energy storage system to a demand response contract
    • registration of a residential air conditioner into a demand response contract. 

Stay up to date

You can find out more about our proposals in the documents:

To support the PDRS Rule change, we held a webinar on Wednesday 1 November 2023. This allowed stakeholders to have an open discussion on the proposed PDRS Rule 2. If you were unable to attend the webinar or wish to watch it again, you can watch the video and read presentation slides.

After the consultation period, stakeholder feedback will be analysed and inform the final PDRS Rule, which is expected to be released in early 2024.

Contact us

This is one of many opportunities to get involved with the scheme. We look forward to collaborating with industry through targeted research, stakeholder engagement, and prototyping activities. We will provide regular updates about these activities on our website and via email.  

If you have any further questions or would like to be notified about future updates on the scheme, please contact us at [email protected]