The Australian Energy Regulator (AER) has approved a risk management framework for long-term energy service agreements in the New South Wales Electricity Infrastructure Roadmap.
Put forward by the independent Consumer Trustee, AEMO Services Limited will now use the approved framework to manage specific risks under the Electricity Infrastructure Investment Act 2020 (NSW) (EII Act).
Long-term energy service agreements are a key element of the Roadmap that support and encourage private sector investment in eligible electricity generation, long duration storage and firming projects.
The Consumer Trustee will consider how to best structure these agreements to effectively manage obligations and the net cost and risk to NSW electricity customers.
Our role in this is limited to approving the Consumer Trustee’s risk management framework. We do not have any ongoing role in monitoring the Consumer Trustee or other Roadmap entities in using the framework.