Long Duration Storage Review
In May 2024, the NSW Government released a consultation paper as part of a review into LDS in response to the independent Electricity Supply and Reliability Check Up (the Check Up). The consultation paper sought feedback on:
- Potentially reducing the minimum duration of LDS infrastructure under the Electricity Infrastructure Investment Act 2020 to lower the cost to consumers of achieving the Roadmap’s 2030 infrastructure objectives;
- Mechanisms to support longer duration storage infrastructure to mitigate against future reliability gaps; and,
- Options to aggregate infrastructure to accelerate additional storage infrastructure.
To support this review advice from AEMO Services was commissioned on the storage requirements for NSW. The complete report from AEMO Services is provided alongside this consultation paper for stakeholders to consider.
Public submissions were called for from 22 May to 18 June 2024. A virtual briefing session was held on Thursday 30 May. You can find the presentation pack here:
We received 30 submissions, and all submissions not marked as confidential are accessible here:
The Long Duration Storage Review: Position Paper outlines the NSW Government’s final positions following the review, including:
- Retaining the legislated minimum dispatch duration for LDS infrastructure at 8 hours
- Legislating a new minimum objective for the construction of 28 GWh of LDS by 2034, which includes an additional 12 GWh on top of the 16 GWh and 2 GW due by 2030
- Requiring the Consumer Trustee to consider a wider range of benefits when assessing the financial value of LDS
- Consideration of further changes to support aggregation, if required, following the Australian Energy Market Commission rule change Integrating price-responsive resources into the NEM.
The final position paper can be accessed here:
Previous consultations
Draft Central-West Orana Renewable Energy Zone Access Scheme Declaration
The NSW Government has published an updated Draft Renewable Energy Zone (Central-West Orana) Access Scheme Order 2024 for consultation.
The proposed amendments to the declaration are to provide for the Infrastructure Planner, under the Electricity Infrastructure Investment Act 2020 (EII Act), to grant or increase the initial allocation of access rights after conducting an application process (clause 7(1)(a)(ii)). The proposed updates are outlined in the Central-West Orana Renewable Energy Zone (Central-West Orana REZ) Access Scheme Declaration position paper.
There have been no other changes to the connection model, terms and conditions, or target transmission curtailment level of the Central-West Orana REZ access scheme. The changes do not impact how access schemes benefit the local community, for example through the allocation of a portion of access fees for community and employment purposes.
The proposed amendments to the access rights application process are in line with the market information notice published by EnergyCo on 22 January 2024.
This public exhibition provided an opportunity for stakeholders to provide feedback to help inform the Minister for Energy’s final decision about amendments to the Central-West Orana REZ Access Scheme Declaration and the Guidelines for Access Scheme Declarations.
Public submissions were open from Thursday 22 February 2024 to Wednesday 20 March 2024.
EnergyCo will conduct targeted consultation with relevant project proponents on the application process.
The NSW Government previously exhibited the Central-West Orana REZ Draft Access Scheme Declaration from 15 July to 12 August 2022 and it was gazetted on 23 December 2022.
Draft Update to the Guidelines for Access Scheme Declarations
The NSW Government has published a draft Guidelines for Access Scheme Declarations to align with the reforms to enable the Infrastructure Planner, under the Electricity Infrastructure Investment Act 2020 (EII Act), to grant or increase an initial allocation of access rights after an application process. The proposed updates are outlined in the position paper.
Public submissions were open from Thursday 22 February 2024 to Wednesday 20 March 2024. Submissions can be combined with submissions on the Draft Central-West Orana REZ Access Scheme Declaration.
The Guidelines for Access Scheme Declarations provide information on how the Minister will exercise the function of declaring access schemes. They build upon feedback received on the draft Guidelines for Access Scheme Declarations, and on the REZ access rights and scheme design: Central-West Orana consultation paper. The NSW Government previously exhibited the draft Guidelines for Access Scheme Declarations in May and June 2022.
In recognition of each REZ having unique opportunities and challenges, the guidelines are intended to retain flexibility to allow the Minister to declare an access scheme for each REZ that provides the best outcome for local communities and NSW electricity consumers.
Draft South West Renewable Energy Zone (REZ) Access Scheme Declaration
The Department of Climate Change, Energy, the Environment and Water (DCCEEW) published a refined Draft Renewable Energy Zone (South West) Access Scheme Order 2023 (Draft South West REZ Access Scheme) for consultation. Interested stakeholders were invited to have their say between 21 December 2023 and 5 February 2024.
The refined Draft South West REZ Access Scheme outlines the procedures for granting access rights, gives an overview of how and when the amount of capacity granted may be increased, and sets the duration of access rights.
A Supplementary Position Paper has been published alongside the refined Draft South West REZ Access Scheme.
This paper is an addendum to the original position paper published in March 2023 and explains the changes made to the initial Draft South West REZ Access Scheme.
The proposed changes aim to address stakeholder feedback while delivering on the Government’s statutory responsibilities and policy objectives and include:
- Increasing the Target Transmission Curtailment Level (to 3.86 per cent) and initial aggregate maximum capacity cap (to 3.98 gigawatts) to ensure higher utilisation of the network infrastructure
- Providing flexibility on the location of projects not located wholly within the REZ geographical area to provide more opportunities for investment.
The public exhibition provides an opportunity for stakeholders to provide input to help inform the Minister’s final decision about the South West REZ.
For questions on the Draft South West REZ Access Scheme, please contact [email protected].
Refined Draft South West Renewable Energy Zones Access Scheme webinar
DCCEEW, including the Energy Corporation of NSW, hosted an online briefing about the refined Draft South West REZ Access Scheme on Monday 29 January 2024.
Watch a recording of the webinar here.
Proposed regulatory reforms to enable the access rights scheme
The NSW Government consulted, on behalf of the Minister for Energy, with distribution network service providers and transmission network service providers on some of the proposed regulatory reforms outlined in the Central-West Orana REZ Access Rights and Scheme Design Position Paper.
Items 1 – 7 in Appendix B of the Central-West Orana REZ Access Rights and Scheme Design Position Paper contemplate a regulation to modify and/or disapply provisions of the National Electricity (NSW) Law or the National Electricity Rules to allow the open access regime to be replaced by an access scheme declared by the Minister under the Electricity Infrastructure Investment Act 2020 (EII Act). An excerpt of the proposed regulation is available.
As required by section 27(2) of the EII Act, the NSW Government sought submissions from network service providers on the extent to which these proposed regulatory reforms may affect the operation and safety of network infrastructure.
Formal consultation closed on Thursday 18 August 2022.
Central-West Orana Renewable Energy Zones Access Rights and Scheme Design Position Paper
The NSW Government published the Central-West Orana REZ Access Rights and Scheme Design Position Paper in July 2022. The Position Paper explains the policy design and purpose of the Central-West Orana REZ Draft Access Scheme Declaration and the proposed regulations that will enable the Central-West Orana REZ Access Scheme, including modifications to the National Electricity Rules (NER).
The paper also provides an overview of the streamlined REZ connection process option, as well as minimum regulated components of access fees for community and employment purposes.
This paper outlines a set of final positions that represent more than a year of public consultation, expert advice, stakeholder workshops and valuable feedback. The paper includes an overview of how stakeholder feedback received on the December 2021 Consultation Paper has been considered to inform the Central-West Orana REZ Access Scheme.
Draft guidelines on orders prohibiting connection to network infrastructure in Renewable Energy Zones
EnergyCo welcomed feedback on the ‘Draft guidelines on orders prohibiting connection to network infrastructure in Renewable Energy Zones’. The draft guidelines provide guidance on the purpose and scope of a connection prohibition order made under section 29 of the Electricity Infrastructure Investment Act 2020.
The draft guidelines closed for feedback on Wednesday 29 June 2022.
Policy Papers on Renewable Energy Zone (REZ) Infrastructure Projects
Part 5 of the Electricity Infrastructure Investment Act 2020 (the EII Act) sets out the framework for REZ Network Infrastructure Projects. The NSW Office of Energy and Climate Change (OECC), Energy Corporation of NSW (EnergyCo), the Australian Energy Regulator and AEMO Services Limited (as the Consumer Trustee) have developed three papers to support the implementation of the Electricity Infrastructure Roadmap.
Visit the regulatory framework page for further information about these papers.
Competitive Tender Process
AEMO Services Ltd welcomed feedback on the draft LTESA and Project Development Agreement term sheets for generation and long-duration storage. The documents set out the key contractual terms and conditions for the generation and long-duration storage, LTESAs and the construction phase of projects. The term sheets are subject to final approval by the AEMO Services Board. Find more information via the AEMO website.
AEMO Services held an interactive session on Competitive Tender Design, LTESA and REZ access rights on 7 February 2022. The recording of the interactive session is available online, as well as the presentation.
Previous consultation documents
Previous consultation documents relating to the Electricity Infrastructure Roadmap are available on the resources page. For consultation documents relating to the development of regulations under the Electricity Infrastructure Investment Act 2020, please visit the regulatory framework page.