The NSW Government has released its 2023-2024 NSW Budget, which includes a $3.9 billion investment into the State’s clean energy future.
“The NSW Government is committed to transitioning our energy system to meet our emissions reduction targets of 50 per cent by 2030 and net zero by 2050, and seizing the opportunities that this will bring to communities across NSW,” the State Government said in a statement on Tuesday.
$1 billion is being allocated to establish an Energy Security Corporation to invest in storage and pumped hydro projects, addressing market gaps. This includes community batteries and virtual power plants, enabling households and communities to pool rooftop solar electricity, and reducing grid reliance and power bills.
$804 million will be committed to the Transmission Acceleration Facility to connect Renewable Energy Zones to the grid sooner while also benefiting the towns that will host these future renewable power stations.
Additionally, the State Government has partnered with the Australian Government, committing $1.3 billion in 2023-2024 to provide energy rebates and targeted bill relief to up to 1.6 million eligible households and around 300,000 eligible small businesses.
According to the State Government, the Energy Accounts Payment Assistance crisis support payment cap has been raised to $500 for households facing financial difficulties in the 2023-2024 financial year, aiming to assist those in short-term financial hardship and emergencies like income loss or natural disasters.
Furthermore, the State Government would provide an additional $100 million to help families and households with their energy expenditures in 2024-2025.
$480 million is being allocated to boost net zero manufacturing in NSW, aiming to expand local manufacturing capacity for the emerging renewable energy sector and assist businesses in manufacturing low-carbon products at scale. This move aims to decarbonise NSW industries and support the growing domestic circular economy.
Lastly, the State Government plans to invest $263 million in NSW to boost electric vehicle (EV) adoption and achieve net zero emissions targets. The new NSW EV Strategy will prioritise charging infrastructure in regional and metropolitan areas.
Transgrid has welcomed the announcement, with CEO Brett Redman stating that the company shares the goal of reducing costs and ensuring a clean, sustainable, and reliable energy future.
“Transgrid welcomes today’s significant clean energy investment including $1 billion to establish the Energy Security Corporation to drive investment in stable and affordable renewable energy and $804 million for the Transmission Acceleration Facility to connect Renewable Energy Zones to the grid sooner,” Redman said.
“We are proud to be a key partner in delivering the NSW Government’s Electricity Infrastructure Roadmap to bring clean, cheap and reliable energy to millions of households and businesses, achieve our emissions reduction targets, and ensure the state becomes a global renewable energy leader,” Redman added.
However, the NSW Liberal has criticised the NSW Budget, claiming it failed to provide energy certainty for the State, limited energy relief, ripped away EV subsidies, and failed to include plans for the extension of the Eraring Power Station.
The future of the Eraring Power Station remains unknown, as there is no mention of it in the budget.
“We don’t want Eraring to stay open for a day longer than it needs to and nor do we want to pay a cent more than we have to when it comes to this particular issue,” NSW Treasurer Daniel Mookhey said in an interview with Sky News last week.
Treasurer Mookhey noted that the Government will allow conversations about Eraring to begin, noting, “We’ll have more to say about the future of the Eraring Power Station when some of those conversations have taken place.”
The NSW Liberals countered that “The Government have not provided a single cent to the ongoing operation of the Eraring Power Station which could cost up to $3 billion. This is completely at odds with their commitment pre-Budget to discuss extending the aging power station.”
In February 2022, Origin Energy announced plans to retire the Eraring Power Station in August 2025.
Meanwhile, Electric Vehicle Council CEO Behyad Jafari said he doubts those who voted for the current NSW Government knew they were voting to reduce EV incentives to fund handouts to coal-fired power stations.
“Not only has the Minns Government put us in reverse when it comes to Electric Vehicles by scrapping the $3,000 rebate and reintroducing stamp duty, they continue to leave households in the dark by providing meagre relief from energy bills,” Member for Manly James Griffin commented.
