The NSW Government has hit another milestone in its Electricity Infrastructure Roadmap (Roadmap) with the publication of the first Energy Security Target Monitor (ESTM) Report.
The ESTM Report shows the amount of reliable electricity needed in NSW during maximum consumer demand such as a summer heatwave, plus a buffer.
It’s imperative we have an accurate measure of our energy needs so we can adequately prepare for times of high demand in the future.
The ESTM Report, released by Australian Energy Market Operator (AEMO) as the appointed Energy Security Target Monitor, is a key milestone under the terms of the Electricity Infrastructure Investment Act 2020 (EII Act).
It defines the Energy Security Target for the next ten financial years, considers the amount of reliable energy to meet demand, any anticipated shortfalls and recommends actions to take in the event of any shortfalls over the medium term.
The ESTM Report has found a possible target breach in 2028–29 where intra-regional constraints were taken into account. In their report, AEMO advised that new transmission developments that increase intra-regional transfer limits into the Sydney-Newcastle-Wollongong area would help alleviate major transmission constraints and avoid any target breach in the next decade.
In implementing the Roadmap, the NSW Government is coordinating investment in the transmission network as well as generation, storage, and firming infrastructure across the state, to ensure NSW consumers enjoy cheap, clean, and reliable electricity into the future as our power stations retire.
This is supported by the 2021 Infrastructure Investment Objectives (IIO) Report, published today by Roadmap’s NSW Consumer Trustee (AEMO Services), alongside the ESTM Report.
The IIO Report is a plan for building electricity generation projects, to provide 33,600 gigawatt hours (GWh) of electricity per year and 2 gigawatts (GW) of long-duration storage by the end of 2029, while minimising costs for NSW consumers and maintaining reliable electricity supply. The IIO Report will outline to investors, developers, and the public what generation and long duration storage is required in New South Wales and when.
It sets out the 20-year development pathway for renewable generation and long-duration storage infrastructure in NSW and a 10-year tender plan to award contracts that provide minimum revenue certainty to support the development of eligible projects.
This report is a companion to the ESTM Report and demonstrates that appropriate planning and foresight will allow the state to avoid network and generation shortfall as the state transitions to cheap, clean and reliable electricity.