Energy Saving Scheme Programs

New South Wales

NSW Energy Savings Scheme is administered by the NSW Independent Pricing and Regulatory Tribunal. Full details of how the scheme works can be found at www.ess.nsw.gov.au.

Briefly, the NSW Government has set targets for “liable parties” for energy savings. To meet these targets they must create energy savings or purchase Energy Savings Certificates (ESCs).  ESCs are created and registered by Accredited Certificate Providers who then sell on the certificates either direct to the “liable parties” or they can be traded on the “open market”. ESCs are tradable commodities and as such the pricing varies according to supply and demand. Generally trades consist of lots of 5,000+. To become an ACP application must be made to NSW IPART and full details of the proposed RESA (Recognised Energy Savings Activity) submitted together with a non-refundable fee.

The NSW energy savings scheme (ESS) scheme is a NSW Government initiative promoted as Energy Saver Incentive.

ESS was introduced on the 01/07/2009 by the NSW Government to help reduce CO2 emissions by improving energy efficiency. Under ESS all electricity retailers must reduce their CO2 emissions by a set amount of equivalent of CO2

Tonnes (CO2t-e). If an electricity retailer fails to reduce their CO2 emissions as required they are liable to pay a fine.

To offset their emissions energy retailers can purchase ‘carbon credits’ known as Energy Savings Certificates or ESCs. One ESC represents one tonne of CO2 saved.

It is designed to increase opportunities to improve energy efficiency by rewarding companies who undertake eligible projects that either reduce electricity consumption or improve the efficiency of energy use.  Reducing electricity use will help NSW families and businesses to save money on their power bills and will shield customers from rising electricity prices and from future electricity price increases.