Access schemes

Introduction

Access schemes are a key part of the NSW Government’s plan to coordinate and encourage renewable energy and storage investment in Renewable Energy Zones (REZs) and realise the objectives of the NSW Electricity Infrastructure Roadmap (the Roadmap) and the Electricity Infrastructure Investment Act 2020 (the Act).

Generation and storage projects that wish to connect to network infrastructure which is subject to an access scheme will need to apply for an access right – either through an application process or a competitive tender. Access right holders will contribute access fees that include funds for community benefit and employment purposes in the region.

REZ access schemes may:

• govern the volume of projects that may be granted access rights to connect to REZ network infrastructure and define the terms and conditions of the access rights
• enable investment in new, low-cost generation and storage projects by providing increased certainty of curtailment risks for access right holders while maintaining an efficient level of utilisation of the REZ scheme infrastructure
• create a streamlined connection process for projects that will improve connection timeframes, provide greater certainty and reduce re-work and costs compared to the open-access connection process.

Guidelines for Access Scheme Declarations

The Minister for Energy published updated Guidelines for Access Scheme Declarations in April 2024. The Guidelines provide information on how the Minister for Energy exercises the function of making access scheme declarations.

View the Guidelines for Access Scheme Declarations

The Guidelines are intended to be flexible to allow the Minister to declare an access scheme for each REZ that provides the best outcome for local communities and NSW electricity consumers.

The initial Guidelines were published in July 2022. The updated Guidelines were published following consultation on the Draft Guidelines for Access Scheme Declarations between 22 February and 20 March 2024.

The updated Guidelines were part of the reforms to enable EnergyCo to allocate the initial tranche of access rights under the Central-West Orana REZ Access Scheme. The updates are in line with the market information notice published in January 2024.

Supporting materials

• Guidelines for Access Scheme Declarations (April 2024)
• Draft Guidelines for Access Scheme Declarations (February 2024)

Central-West Orana REZ Access Scheme

The Central-West Orana REZ Access Scheme is the first of its kind in the National Electricity Market. The Access Scheme was formally declared by the Minister for Energy on Monday 19 December 2022. Following consultation, an amended Access Scheme was declared on Friday 5 April 2024.

View the Central-West Orana REZ Access Scheme Declaration

The amended declaration was part of the reforms to enable EnergyCo to allocate the initial tranche of access rights under the Central-West Orana REZ Access Scheme. The updates are in line with the market information notice published in January 2024.

For details on the timing and form of the application process, visit Central-West Orana REZ Access Rights Application Process.

Consultation on the Central-West Orana REZ Access Scheme

Public exhibition of both the Access Scheme Declaration and 2024 update were conducted in line with the statutory process for the declaration of access schemes under Section 24 of the Act.

Notification of Draft Headroom Assessment for the Central-West Orana REZ Access Scheme

In December 2023, the Minster for Energy amended the Renewable Energy Zone (Central-West Orana) Order 2021 to increase the intended network capacity of the Central-West Orana REZ from 3 GW to 6 GW, noting the network infrastructure will initially be built at 4.5 GW.  This was reflected in the network recommendation authorised by the Consumer Trustee in May 2024.

To reflect the increase in expected network capacity, EnergyCo as the Infrastructure Planner for the Central-West Orana REZ, has started the process of conducting a headroom assessment to increase the amount of aggregate maximum capacity that can connect in the REZ via an access scheme.

This is a technical process that is primarily designed to support generation and storage projects that are already working with EnergyCo and are covered by the Central-West Orana Renewable Energy Zone transmission project planning approval received in June 2024.  

Increasing the aggregate maximum capacity cap will support EnergyCo to meet legislated objectives and targets and help make the Central-West Orana REZ a success for energy consumers and host communities.  

The Notification of Draft Headroom Assessment is published below:  

Notification of Draft Headroom Assessment for the Central-West Orana REZ Access Scheme

EnergyCo welcomes submissions on the Notification of Draft Headroom Assessment for the Central-West Orana REZ Access Scheme via [email protected].

Submission close on 5 September 2024.

The aggregate maximum capacity cap proposed in this headroom assessment may not be the final limit on aggregate maximum capacity for the Central-West Orana REZ. EnergyCo will conduct future headroom assessments in accordance with the Access Scheme Declaration. Generation and storage projects wishing to connect to the Central-West Orana REZ are welcomed to engage with EnergyCo to discuss their pathway to access rights. All generation and storage projects are subject to the relevant planning and environmental approvals, including statutory consultation.  

For more information on headroom assessments refer to the Target Transmission Curtailment Limit and Headroom Assessment Method paper. 

South West REZ Access Scheme

The Renewable Energy Zone (South West) Access Scheme Order 2024 (South West REZ Access Scheme) was formally declared by the Minister for Energy under section 24(1) of the Act on Friday 12 April 2024. The Access Scheme Declaration is available in the NSW Government Gazette.

View the South West REZ Access Scheme Declaration

Key features of the South West REZ Access Scheme include:

• a community benefits program funded through fees paid by renewable energy and storage developers for community and employment purposes 
• a target transmission curtailment level of 3.86 per cent and initial aggregate maximum capacity cap of 3.98 gigawatts to ensure higher utilisation of the network infrastructure
• flexibility on the location of projects not located wholly within the REZ geographical area to provide more opportunity for investment.

The scheme applies to significant components of the NSW-side of Project EnergyConnect, including infrastructure between Buronga and Wagga Wagga, and incorporating the planned substation at Dinawan. It will also incorporate the NSW-side of the proposed VNI West.

Projects can bid for access rights as part of a tender run by AEMO Services launched on 22 May 2024.  

Information on the Tender is available on the AEMO Services website, where you can find:

• Tender registration details, deadlines and process. The registration deadline is set for Friday 7 June, and only registered projects can bid for access rights
• Tender webinar details, planned for Tuesday 28 May 11am-12pm
• Tender documents, including details on how to participate in consultation on access rights contracts
• Bid submission details
• Q&A
• Subscription details for the AEMO Services tender mailing list. 

Learn more on the AEMO Services website

Consultation on the South West REZ Access Scheme

This public exhibition was conducted in line with the statutory process for the declaration of access schemes under Section 24 of the Act.

Connection process for the South West REZ Access Scheme

Generation projects will need to hold an access right to make an application to connect to the access rights network, specified in the South West REZ Access Scheme Declaration.

New England REZ Access Scheme

EnergyCo is currently developing an access scheme for the New England REZ and will consider how this access scheme could be applied to the New England REZ. We will consult with industry and other stakeholders as part of this process.