Federal Government backs NSW renewable energy scheme
The Albanese and Minns governments are joining forces to boost investment in “firmed” renewables — which are more reliable.
A joint scheme between the Federal and New South Wales governments aims to eliminate predicted energy shortfalls in the electricity network.
The Capacity Investment Scheme seeks to boost investment in firmed renewables — those with a maintained output from a typically intermittent power source, like wind or solar.
The Capacity Investment Scheme (CIS) will more than double the firmed capacity to in the NSW Energy Roadmap’s firming tender.
Commonwealth funding will underwrite that investment for up to an additional 550MW of firmed capacity, bringing it to 930MW.
The Australian Energy Market Operator (AEMO) forecasts an energy shortfall in 2028/29, but it will effectively be eliminated by almost one gigawatt of additional dispatchable capacity tipped to be delivered by CIS.
The NSW CIS will support grid-scale dispatchable generation and storage such as batteries, pumped hydro, or other dispatchable capacity.
Announcing the scheme on Thursday, Federal Climate Change and Energy Minister Chris Bowen said it will improve the security and reliability of the NSW grid, as well as put downward pressure on prices.
“Today’s announcement will drastically improve energy security with large-scale batteries and other zero-emission technology that can quickly dispatch cleaner, cheaper, renewable energy when it’s needed, like when the sun isn’t shining and the wind isn’t blowing,” he said.
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While NSW Energy Minister Penny Sharpe said any risks around grid reliability can be resolved by accelerating the development of a clean, reliable, consumer-focused energy system.
“The large number of proponents wanting to invest in New South Wales is a clear indication that we can transform our energy system,” she said.
It’s hope the scheme will unlock about $10bn in investment.
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