NSW Climate and Energy Action

Review and reform

 

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 finalised statutory reviews of the Energy Savings Scheme (ESS) and the Peak Demand Reduction Scheme (PDRS). 

Following 2 consultations, we prepared final reports. These reports were tabled in the Parliament of NSW on 27 June 2025. 

2025 Energy Savings Scheme statutory review report

2025 Peak Demand Reduction Scheme statutory review report

We intend to consult further in 2025 on potential reform opportunities, based partly on the findings of these reviews.

If you have questions about these reviews, please contact [email protected]

2025 Statutory review draft report consultation

Based on the 2024 statutory review discussion paper consultation, we prepared draft reports for the Energy Savings Scheme and Peak Demand Reduction Scheme

These draft reports were open for public consultation from Wednesday 21 May 2025 to Wednesday 11 June 2025.

Through this consultation, a calculation error on the estimated cost of emission reductions achieved by the Energy Savings Scheme was identified in section 4.1.1. This error was corrected for the final report.  

2024 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 email us at [email protected] 

Past reviews and reforms

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 Energy Savings Scheme 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  Energy Security Target and Safeguard consultation paper. Submissions closed in May 2020 and the Energy Savings Scheme Final Statutory Review Report 2020 was tabled in Parliament in June 2020. 

2015 Energy Savings Scheme Review

In 2014 and 2015, the NSW Government carried out a Statutory Review of the Energy Savings Scheme and consulted on reforms. The Energy Savings Scheme 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: 

Stay in touch

We collaborate with industry through research and public consultation. Sign up to receive updates and opportunities to get involved. 

If you have questions about the Energy Security Safeguard and its schemes you can email us at [email protected]