Consultation now open: 2025 Energy Savings Scheme and Peak Demand Reduction Scheme statutory reviews
We have prepared draft Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS) statutory reviews, which are now open for consultation.
We encourage you to share feedback on whether there are other matters or evidence we should consider to inform these reviews.
Submissions close at 5 pm AEST on Wednesday 11 June 2025.
Please submit your response in PDF format using your organisation’s letterhead to [email protected]
Draft 2025 Energy Savings Scheme statutory review report
Draft 2025 Peak Demand Reduction Scheme statutory review report
Following this consultation, we will finalise the reviews and provide them to the Minister to table in Parliament.
We also intend to consult further in 2025 on potential reform opportunities, based partly on the findings of the reviews.
Reviewing the Energy Security Safeguard
The Energy Security Safeguard's schemes must be reviewed every 5 years under the NSW Electricity Supply Act 1995. These statutory reviews determine whether the schemes' objectives remain valid and if the schemes' designs remain appropriate to achieve those objectives. The NSW Government has also previously used statutory reviews to consider opportunities to reform the schemes.
2025 Energy Savings Scheme and Peak Demand Reduction Scheme statutory reviews
In 2025, the NSW Government will finalise statutory reviews of the Energy Savings Scheme (ESS) and the Peak Demand Reduction Scheme (PDRS).
Statutory review discussion paper consultation
In August 2024, we consulted with stakeholders to inform our approach and evidence base for these reviews, and to identify key issues and opportunities that reforms could address. We received 30 responses to the discussion paper consultation.
To learn more about the consultation and statutory review, please read the discussion paper or email us at [email protected]
2021 Energy Savings Scheme expansion
In September 2021, the NSW Government announced the expansion of the Energy Savings Scheme to cover a wider range of fuel switching activities.
Increasing the energy savings targets and introducing a wider range of fuel switching activities is expected to save households and businesses choosing to implement energy savings projects an additional $2.4 billion on their bills between 2022 and 2040.
The NSW Government also published the Energy Security Safeguard position paper. This paper sets out the government’s final position on the design of the Peak Demand Reduction Scheme and reforms to the Energy Savings Scheme.
The paper also summarised stakeholder feedback received in response to the Energy Security Target and Safeguard consultation paper. The consultation was open from April to June 2020.
2020 Energy Savings Scheme targets
In December 2020, the NSW Government increased the existing energy savings targets of the ESS for the years 2022 to 2025 and set new targets for the years 2026 to 2050.
Schedule 5 of the NSW Electricity Supply Act 1995 sets out the new energy savings targets for the scheme. The target will increase by 0.5% each year from 2022, reaching 13% in 2030. The target will then remain at 13% until the end of the scheme in 2050.
2020 Energy Savings Scheme Statutory Review
In April 2020, the Minister for Energy and Environment released the Energy Savings Scheme Draft Statutory Review and Energy Security Target and Safeguard consultation paper. Submissions closed in May and the Energy Savings Scheme Final Statutory Review Report 2020 was tabled in parliament in June 2020.
- NSW Energy Savings Scheme – Final Statutory Review Report 2020
- Energy Savings Scheme Statutory Review 2020: Stakeholder submissions
2015 Energy Savings Scheme review
In 2014 and 2015, the NSW Government carried out a Statutory Review of the ESS and consulted on reforms. The ESS Statutory Review was completed in June 2015 and reforms to the scheme were introduced in October 2015. You can find out more about the review by reading the:
- Review of the Energy Savings Scheme Position Paper
- NSW Energy Savings Scheme Final Statutory Review Report
- Review of the NSW Energy Savings Scheme Part 2: Options Paper
Stay in touch
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If you have questions about the Energy Security Safeguard and its schemes you can email us at [email protected]