The Minns Labor Government has announced the Energy Security Corporation's first Investment Mandate, which outlines how the corporation will co-invest with the private sector in renewable energy projects for our state.
The Energy Security Corporation is seeded with $1 billion to help build a more reliable energy system. It will work with the private sector to plug investment gaps in the market, ensuring NSW homes and businesses can enjoy the benefits of renewable energy.
The key priorities for investment include short to long-duration storage projects that capture excess renewable energy, to maximise use of electricity generated from solar and wind.
It will also cover projects that will upgrade infrastructure to ensure smooth operation of the grid coordinate and consumer energy resources in households, businesses and the community (such as virtual power plants).
The Investment Mandate is a key milestone in establishing the Energy Security Corporation, allowing it to begin investigating investment opportunities throughout NSW.
Mr Paul Peters has been appointed as interim Chief Executive Officer to kick-off the Energy Security Corporation's activities. Mr Peters brings significant experience in investment and financing, as well as developing energy and infrastructure assets and industrial decarbonisation projects.
The NSW Government will shortly appoint the inaugural Board.
Quote attributable to Minister for Energy, Penny Sharpe:
"NSW will invest $1 billion in critical projects to deliver more affordable, clean and reliable energy to homes and businesses across the state.
"After a decade of privatisation, the Energy Security Corporation gives the people of NSW the chance to invest in their energy system.
"I congratulate Mr Peters on his appointment, and I am looking forward to the Energy Security Corporation supporting projects throughout NSW."
Further information:
The Energy Security Corporation will co-invest with the private sector on energy storage projects such as:
- Large-scale batteries
Large-scale batteries store surplus energy generated by renewable sources like wind and solar, and release it when renewable generation is low or when demand for energy peaks.
- Community batteries
A community battery is a shared battery installed in a central location within a neighbourhood that can store excess solar energy generated from homes in a community.
The stored energy can then be shared with other homes in the community when demand is high, like in the evening or when its cloudy.
- Pumped hydro
Hydro energy uses the force of moving water to create electricity. Hydro energy is capable of rapidly providing power on-demand, to supply electricity to consumers when it is needed.
- Virtual Power Plant (VPP)
A Virtual Power Plant is a network that can connect your rooftop solar and battery to other participating homes and coordinate them, allowing them to work together.
This means that if there's a shortage of energy supply in the grid, the virtual power plant can draw on the collective energy to fill the gap. This can earn participating homes a profit from their excess energy.
Many small projects, when connected and coordinated, can be as impactful as a whole power station.
