NSW Energy Savings Scheme

Country / jurisdiction: Australia · Year: 2009 · Status: In force · Level: State/Provincial · Type: Voluntary

In 2009, the government of New South Wales introduced an energy efficiency obligation for the residential, commercial and industrial sectors concerning electricity and gas consumption. This scheme was developed based on the Demand-Side Abatement Rule of the NSW Greenhouse Gas Reduction Scheme (GGAS). Obligated parties include electricity retailers, electricity generators that supply customers directly, and customers who purchase electricity directly from the wholesale National Electricity Market. Electricity retailers are responsible for acquiring gas savings.

This is a white certificate scheme with tradeable energy savings certificates. Obligated parties and other businesses may apply to become "Accredited Certificate Providers" to deliver approved energy efficiency activities under the scheme.

In 2019, the NSW Government announced the scheme will be extended until 2050, with energy savings targets increasing over time to reach 13% by 2030. The obligation programme is also set to be renamed the "Energy Security Safeguard". In 2019 and 2020 the NSW Government is also consulting on a peak demand scheme to be developed based on, and alongside the Energy Savings Scheme.

Following a scheme review finalised in 2015, the obligation included a target of 7% annual electricity and gas purchases by retailers, increasing each year to reach 8.5% in 2019, which was to remain steady until 2025.

Calculation of energy savings are based on The Energy Savings Scheme Rule, which includes a combination of deemed energy savings measures, and measurement and verfication based methods.

The scheme administrator conducts audits of energy savings certificates (and thereby projects) across each Accredited Certificate Provider's portfolio, based on their agreed audit regime (which is normally based on an audit trigger at an agreed certificate creation threshold, e.g. every 50,000 certificates).

Obligated parties can surrender certificates against their targets for activities they deliver themselves (which they have rarely done over the life of the scheme), or purchase white certificates from accredited third party certificate providers via private bilateral contracts and/or public spot markets.

Official source: https://www.ess.nsw.gov.au/Home