A range of entities and stakeholders work together to deliver NSW's plan to bring affordable, clean and reliable energy to everyone.
Each has a distinct role under the Electricity Infrastructure Investment Act 2020 (EII Act) in the coordination, delivery and oversight of the Roadmap.
The Minister for Energy
The Minister for Energy is responsible for the delivery of the Roadmap and appointing the key Roadmap entities, advisory bodies and regulators.
The Minister's responsibilities include:
- declaring Renewable Energy Zones,
- establishing access schemes,
- directing network operators to construct projects,
- directing the Consumer Trustee to conduct firming tenders,
- preparing statutory reviews of the EII Act every five years.
Roadmap entities
The Energy Corporation of NSW (EnergyCo) is the Infrastructure Planner for the first five NSW Renewable Energy Zones (REZs).
The Infrastructure Planner’s responsibilities include:
- leading the planning, technical design, delivery and coordination of REZs and priority transmission projects.
- contracting and overseeing the suppliers delivering the REZ transmission network infrastructure.
- leading community and stakeholder engagement activities to support REZ delivery.
Recent reports:
As the Consumer Trustee for the Roadmap, AEMO Services acts independently and in the long-term financial interests of NSW electricity customers to improve the affordability, reliability, security and sustainability of electricity supply.
The Consumer Trustee’s responsibilities include:
- designing and conducting competitive tenders to accelerate the development of generation, storage, and firming projects with the greatest potential to help the state meet its future needs.
- developing the Infrastructure Investment Objectives Report (IIO), every two years. This is the central planning document for the Roadmap, outlining a 20-year development pathway for NSW electricity infrastructure and 10-year tender plan to meet it.
- authorising network infrastructure projects.
- appointing a Financial Trustee to manage the Scheme Financial Vehicle and execute Long-Term Energy Service Agreements.
Recent reports:
The Australian Energy Regulator (AER) performs a number of statutory functions as regulator for the Roadmap.
The regulator’s responsibilities include:
- determining the annual contribution from distribution businesses required to cover the costs of implementing the Roadmap.
- making 5-year revenue determinations for network infrastructure projects authorised by the Consumer Trustee.
- approving a risk management framework developed by the Consumer Trustee.
- reviewing tender rules in relation to Long-Term Energy Service Agreements.
Recent reports:
The Independent Pricing and Regulatory Tribunal (IPART) is a regulator under the EII Act.
Responsibilities of IPART include:
- undertaking performance audits on the entities delivering the Roadmap.
- preparing an annual report on the exercise of functions of the Consumer Trustee, the Financial Trustee, the Infrastructure Planner and the Regulator under the EII Act.
- recommending the Renewable Energy Sector Board’s plan to the Minister, to ensure it protects the financial interests of NSW electricity consumers and is consistent with international trade obligations.
Recent reports:
Advisory bodies
The Renewable Energy Sector Board helps make sure local workers, communities, and industries share in the economic benefits of the transition to a more affordable, clean and reliable electricity system.
The Renewable Energy Sector Board is made up of representatives from:
- trade unions
- manufacturers of steel, aluminium and other similar materials
- metal fabricators
- employers in the electricity, manufacturing and construction sectors
- the renewable energy industry
- NSW electricity customers
- EnergyCo
The responsibilities of the Renewable Energy Sector Board include:
- setting out a plan for the NSW renewable energy sector on how to ensure the use of locally produced and supplied goods and services, the employment of suitably qualified workers, and opportunities for apprentices and trainees.
- advising the Minister and Roadmap delivery entities on how to support the growth and competitiveness of the NSW renewable energy sector and jobs for NSW workers.
Recent reports:
- Review of the Board’s Plan – Sept 2024
- Annual Report – June 2023
- Renewable Energy Sector Board’s Plan – Sept 2022
For more information about the work of the Board, its members, the review of its plan, and the process to increase recommended Local Content Requirements, read here.
The Australian Energy Market Operator (AEMO) was appointed the Energy Security Target Monitor in October 2021.
Responsibilities of the Energy Security Target Monitor include:
- assessing and monitoring whether NSW will have sufficient firm capacity (generation, firming and storage, transmission capacity) to meet the Energy Security Target under different scenarios,
- providing market certainty by ensuring there will be reliable supplies of electricity available to meet demands over the medium term.
Recent reports:
NSW’s Electricity Infrastructure Jobs Advocate is an independent statutory role under the EII Act, appointed by the Minister for Energy.
The Jobs Advocate’s responsibility is to advise the Minister on:
- initiatives to optimise jobs in NSW’s transition to renewable energy, particularly in regional NSW and within the REZs.
- strategies and incentives to encourage investment, workforce development, employment, education and training in the renewable energy sector.
- road, rail and port infrastructure required in the regions to promote export opportunities for generation, storage and network technology.
Recent reports:
Financial intermediaries
The Scheme Financial Vehicle (SFV) holds money in a nominated deposit account called the Electricity Infrastructure Fund (the Fund). All cash flows related to the Roadmap are intended to be paid to and distributed from the Fund.
The responsibilities of the Scheme Financial Vehicle include:
- entering into commercial contracts with project proponents for REZ network infrastructure projects and Priority Transmission infrastructure Projects developed under the Roadmap.
- receiving payments to and making payments from the Fund.
The Financial Trustee establishes, owns and administers the Scheme Financial Vehicle.
The Consumer Trustee oversees the Financial Trustee, Equity Trustees Ltd.
FAQs
Renewable Energy Zones (REZs) are the equivalent of modern-day power stations. They are areas designated for renewable energy generation such as wind and solar, storage such as batteries, and network infrastructure such as high-voltage poles and wires, to deliver energy to the homes, businesses and industries that need it.
Hundreds of millions of dollars will be made available for community and employment benefits in these regions that are hosting grid-scale renewable energy. EnergyCo’s Community and Employment Benefit Program will be funded from access fees, paid by generation and storage projects with an access right to connect to the network infrastructure.
To date, five REZs have been declared across NSW: Central-West Orana, New England, Hunter Central Coast, Illawarra and South West.
Long-Term Energy Service Agreements (LTESAs) are an innovative type of contract and a key element of the Roadmap, which improve certainty for investors and bring value to energy consumers.
LTESAs achieve this by offering generation, storage and firming projects with a series of options to access cash flows for distinct periods, over a long contract term. This reduces investor risk from unexpectedly low wholesale electricity prices while maintaining their exposure to upside where electricity prices are higher.
Reducing price uncertainty for investors helps to secure finance for project construction, bringing forward investment in new sources of renewable generation and storage, supporting more affordable energy for consumers.