NSW Energy Security Corporation gets green light to co-fund storage projects
The Investment Mandate from the NSW Government marks the start of a new approach to supporting NSW’s transition to clean energy while ensuring the state’s energy system remains reliable and affordable for everyone.
The NSW Energy Security Corporation is a state-owned body, seeded with a $1 billion investment from the existing Restart NSW Fund, and tasked with accelerating investment in renewable energy assets to deliver cleaner and more reliable energy.
On Friday the NSW Government unveiled the Energy Security Corporation's first Investment Mandate, detailing how it will use $1 billion in state funding to support renewable energy projects in partnership with the private sector. This initiative aims to address gaps in the energy market and improve reliability for households and businesses across the state.
The Corporation’s investment priorities include energy storage solutions, such as large-scale batteries, community batteries, and pumped hydro, as well as virtual power plants (VPPs). These technologies will ensure that surplus energy generated by renewables like wind and solar is stored and utilised efficiently.
Community batteries, for example, offer a shared storage option within neighbourhoods, enabling excess solar energy generated by homes to be stored centrally and redistributed when demand is high. Virtual power plants, on the other hand, connect rooftop solar systems and batteries across homes, coordinating them to function as a collective energy source. Many small projects, when connected and coordinated, the Investment Mandate notes, can be as impactful as a whole power station.
The Corporation will also focus on upgrading infrastructure to facilitate smoother grid operation and integrating energy resources in homes, businesses, and communities.
Minister for Energy and Climate Change Penny Sharpe said, “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.”
Paul Peters, appointed interim Chief Executive Officer, will lead the Corporation’s initial activities. Mr Peters brings a strong background in investment and financing, along with experience in energy infrastructure and industrial decarbonisation projects. An inaugural Board will soon be appointed to support the Corporation's efforts.
